Common use of Special Covenants With Respect to Equipment and Inventory Clause in Contracts

Special Covenants With Respect to Equipment and Inventory. Each Grantor shall: (a) if any Inventory is in possession or control of any of such Grantor’s agents or processors, upon the occurrence and during the continuance of an Event of Default, instruct such agent or processor to hold all such Inventory for the account of Secured Party and subject to the instructions of Secured Party; and (b) promptly upon the issuance and delivery to such Grantor of any negotiable Document with a fair market value in excess of $100,000 (other than the Excluded Pledged Debt), deliver such Document to Secured Party.

Special Covenants With Respect to Equipment and Inventory. Each Grantor shall: (a) if any Inventory is in possession or control of any of such Grantor’s agents or processors, if the aggregate book value of all such Inventory in possession or control of any such agent or processor exceeds $500,000, and in any event upon the occurrence and during the continuance of an Event of Default, instruct such agent or processor to hold all such Inventory for the account of Secured Party and subject to the instructions of Secured Party; and; (b) upon the occurrence and during the continuance of an Event of Default upon Secured Party’s written request, promptly upon the issuance and delivery to such Grantor of any negotiable Document with a fair market value in excess of $100,000 (other than the Excluded Pledged Debt)Document, deliver such Document to Secured Party.