Common use of DISPOSAL OF THE EQUIPMENT Clause in Contracts

DISPOSAL OF THE EQUIPMENT. it will not, and will ensure that no Trading Company will, without the Agent's prior written consent, sell, lease as a lessor, or otherwise dispose of any Equipment provided that obsolete or unusable Equipment having an orderly liquidation value no greater than L500,000 individually and L1,500,000 in the aggregate in any Financial Year, may be disposed of without the Agent's consent, subject to the conditions set forth below. If any of the Equipment is sold, transferred or otherwise disposed of with the Agent's prior written consent or as otherwise permitted hereby then: (a) if such sale, transfer or disposal is effected without replacement of such Equipment, or such Equipment is replaced by leased Equipment, or by Equipment purchased subject to a Permitted Encumbrance, Ideal will, or will procure that the relevant Trading Company will, deliver all of the cash proceeds of any such sale, transfer or disposal to the Agent, which proceeds shall be applied in or towards prepayment of all sums due from the Borrowers hereunder; or (b) if such sale, transfer or disposal is made in connection with the purchase of replacement Equipment (other than subject to a Permitted Encumbrance), Ideal will use the proceeds of such sale, transfer or disposal to finance the purchase of such replacement Equipment which shall be free and clear of all liens, claims and encumbrances, except for the Security Interest and other Permitted Encumbrances and shall deliver to the Agent written evidence of the use of the proceeds for such purchase;

DISPOSAL OF THE EQUIPMENT. it will not, and will ensure that no Trading Company will, without the Agent's prior written consent, sell, lease as a lessor, or otherwise dispose of any Equipment provided that obsolete or unusable Equipment having an orderly liquidation value no greater than L500,000 individually and L1,500,000 in the aggregate in any Financial Year, may be disposed of without the Agent's consent, subject to the conditions set forth below. If any of the Equipment is sold, transferred or otherwise disposed of with the Agent's prior written consent or as otherwise permitted hereby then: (a) if such sale, transfer or disposal is effected without replacement of such Equipment, or such Equipment is replaced by leased Equipment, or by Equipment purchased subject to a Permitted Encumbrance, Ideal will, or will procure that the relevant Trading Company 77 will, deliver all of the cash proceeds of any such sale, transfer or disposal to the Agent, which proceeds shall be applied in or towards prepayment of all sums due from the Borrowers hereunder; or (b) if such sale, transfer or disposal is made in connection with the purchase of replacement Equipment (other than subject to a Permitted Encumbrance), Ideal will use the proceeds of such sale, transfer or disposal to finance the purchase of such replacement Equipment which shall be free and clear of all liens, claims and encumbrances, except for the Security Interest and other Permitted Encumbrances and shall deliver to the Agent written evidence of the use of the proceeds for such purchase;

DISPOSAL OF THE EQUIPMENT. it will not, and will ensure that no Trading Company will, without the Agent's prior written consent, sell, lease as a lessor, or otherwise dispose of any Equipment provided that obsolete or unusable Equipment having an orderly liquidation value no greater than L500,000 (pound)500,000 individually and L1,500,000 (pound)1,500,000 in the aggregate in any Financial Year, may be disposed of without the Agent's consent, subject to the conditions set forth below. If any of the Equipment is sold, transferred or otherwise disposed of with the Agent's prior written consent or as otherwise permitted hereby then: (a) if such sale, transfer or disposal is effected without replacement of such Equipment, or such Equipment is replaced by leased Equipment, or by Equipment purchased subject to a Permitted Encumbrance, Ideal will, or will procure that the relevant Trading Company will, deliver all of the cash proceeds of any such sale, transfer or disposal to the Agent, which proceeds shall be applied in or towards prepayment of all sums due from the Borrowers hereunder; or (b) if such sale, transfer or disposal is made in connection with the purchase of replacement Equipment (other than subject to a Permitted Encumbrance), Ideal will use the proceeds of such sale, transfer or disposal to finance the purchase of such replacement Equipment which shall be free and clear of all liens, claims and encumbrances, except for the Security Interest and other Permitted Encumbrances and shall deliver to the Agent written evidence of the use of the proceeds for such purchase;