Common use of Returned Inventory Clause in Contracts

Returned Inventory. If an Account Debtor returns any Inventory to the Grantor when no Event of Default exists, then the Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. The Grantor shall immediately report to the Lender any return involving an amount in excess of $250,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the Grantor when an Event of Default exists and is then continuing, the Grantor, upon the request of the Lender, shall: (i) hold the returned Inventory in trust for the Lender, (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the Lender’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Lender’s prior written consent. All returned Inventory shall be subject to the Lender’s Liens thereon. Whenever any Inventory is returned (other than water coolers or other Inventory of the Grantor rented by customers and returned at the end of the applicable customer agreement), the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the Grantor a Loan Party when no Event of Default exists, then the Grantor such Loan Party shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. The Grantor Borrowers shall immediately report to the Lender any return involving an amount in excess of the $250,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the Grantor a Loan Party when an Event of Default exists and is then continuingexists, the Grantorsuch Loan Party, upon the request of the Lender, shall: (i) hold the returned Inventory in trust for the Lender, ; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the Lender’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Lender’s prior written consent. All returned Inventory shall be subject to the Lender’s Liens thereon. Whenever any Inventory is returned (other than water coolers or other Inventory of the Grantor rented by customers and returned at the end of the applicable customer agreement)returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the such Grantor when no Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. The Such Grantor shall immediately promptly report to the Lender Agent any return involving an amount in excess of $250,000500,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the such Grantor when an Event of Default exists and is then continuingexists, the such Grantor, upon the request of the LenderAgent, shall: (i) hold the returned Inventory in trust for the Lender, Agent; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the LenderAgent’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the LenderAgent’s prior written consent. All returned Inventory shall be subject to the LenderAgent’s Liens thereon. Whenever any Inventory is returned (other than water coolers or other Inventory of the Grantor rented by customers and returned at the end of the applicable customer agreement)returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the Grantor a Loan Party when no Event of Default exists, then the Grantor such Loan Party shall promptly determine the reason for such return and shall issue a credit memorandum to the such Account Debtor in the appropriate amountamount or take such other action in accordance with its historical practices and consistent with its sale terms and conditions. The Grantor Borrowers shall immediately promptly report to the Lender any return involving an amount in excess of $250,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the Grantor a Loan Party when an Event of Default exists and is then continuingexists, the Grantorsuch Loan Party, upon the request of the Lender, shall: (i) hold the returned Inventory in trust for the Lender, ; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the Lender’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Lender’s prior written consent. All returned Inventory shall be subject to the Lender’s Liens thereon. Whenever any Inventory is returned (other than water coolers or other Inventory of the Grantor rented by customers and returned at the end of the applicable customer agreement)returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible InventoryInventory unless otherwise determined by the Lender in its Permitted Discretion.

Returned Inventory. If an Account Debtor returns any Inventory to the such Grantor when no Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. The Such Grantor shall immediately report to the Lender Agent any return involving an amount in excess of $250,000500,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the such Grantor when an Event of Default exists and is then continuingexists, the such Grantor, upon the request of the LenderAgent, shall: (i) hold the returned Inventory in trust for the Lender, Agent; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the Lender’s Agent's written instructions; and (iv) not issue any credits or allowances with respect thereto without the Lender’s Agent's prior written consent. All returned Inventory shall be subject to the Lender’s Agent's Liens thereon. Whenever any Inventory is returned (other than water coolers or other Inventory of the Grantor rented by customers and returned at the end of the applicable customer agreement)returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.

Returned Inventory. If an Account Debtor returns any Inventory to the such Grantor when no Event of Default exists, then the such Grantor shall promptly determine the reason for such return and shall issue a credit memorandum to the Account Debtor in the appropriate amount. The Such Grantor shall immediately report to the Lender any return involving an amount in excess of $250,00025,000. Each such report shall indicate the reasons for the returns and the locations and condition of the returned Inventory. In the event any Account Debtor returns Inventory to the such Grantor when an Event of Default exists and is then continuingexists, the such Grantor, upon the request of the Lender, shall: (i) hold the returned Inventory in trust for the Lender, ; (ii) segregate all returned Inventory from all of its other property; (iii) dispose of the returned Inventory solely according to the Lender’s written instructions; and (iv) not issue any credits or allowances with respect thereto without the Lender’s prior written consent. All returned Inventory shall be subject to the Lender’s Liens thereon. Whenever any Inventory is returned (other than water coolers or other Inventory of the Grantor rented by customers and returned at the end of the applicable customer agreement)returned, the related Account shall be deemed ineligible to the extent of the amount owing by the Account Debtor with respect to such returned Inventory and such returned Inventory shall not be Eligible Inventory.