Use of Inventory Collateral Clause Samples

Use of Inventory Collateral. (a) The Borrowers shall not engage in any sale of the Inventory other than for fair consideration in the conduct of the Borrowers’ business in the ordinary course and shall not engage in sales or other dispositions to creditors, sales or other dispositions in bulk, or any use of any of the Inventory in breach of any provision of this Agreement. (b) No sale of Inventory shall be on consignment, approval, or under any other circumstances such that, with the exception of the Borrowers’ customary return policy applicable to the return of Inventory purchased by the Borrowers’ retail customers in the ordinary course, such Inventory may be returned to the Borrowers without the consent of the Agent.

Use of Inventory Collateral. (a) The Borrower shall not, and shall cause each other Loan Party not to, engage in any sale of the Inventory other than for fair consideration in the conduct of the Borrower’s or any other Loan Party’s business in the ordinary course (other than promotions, markdowns, and discounts in the ordinary course of business) nor shall either engage in sales or other dispositions to creditors in reduction or satisfaction of such creditors’ claims; sales or other dispositions in bulk; or any use of any of the Inventory in breach of any provision of this Agreement. Notwithstanding the foregoing, the Loan Parties may “job-out” end of season and slow-moving Inventory, provided that the Inventory so disposed of does not exceed five percent (5%) of the Loan Parties’ aggregate retail receipts in any fiscal year. (b) No sale of Inventory shall be on consignment, approval, or under any other circumstances such that, with the exception of the Loan Parties’ customary return policy applicable to the return of inventory purchased by the Loan Parties’ retail customers in the ordinary course, such Inventory may be returned to the Loan Parties without the consent of the Agent.

Use of Inventory Collateral. Cash Management (except if the failure to comply is as a result of force majeure or through no fault of the Loan Parties)

Use of Inventory Collateral. (a) No Loan Party shall engage in any of the following with respect to its Inventory: (i) Any sale other than for fair consideration in the conduct of the Loan Parties' business in the ordinary course. (ii) Sales or other dispositions to creditors, except returns in the ordinary course of business. (iii) Sales or other dispositions in bulk except in the ordinary course of business consistent with past practices. (iv) Sales in breach of any provision of this Agreement. (v) Sales other than in connection with Permitted Dispositions. (b) Without the prior written consent of the Collateral Agent, no sale of Inventory shall be on consignment (other than between Loan Parties), approval, or under any other circumstances such that, with the exception of the Loan Parties' customary return policy applicable to the return of inventory purchased by the Loan Parties' retail customers in the ordinary course, such Inventory may be returned to a Loan Party without the consent of the Collateral Agent.

Use of Inventory Collateral. (a) Except as otherwise permitted by Sections 4.5(b) or 4.13(d), no Borrower shall engage (i) In any sale of the Inventory other than for fair consideration in the conduct of such Borrower's business in the ordinary course. (ii) Sales or other dispositions to creditors. (iii) Sales or other dispositions in bulk. (iv) Sales of any Collateral in breach of any provision of this Agreement. (b) No sale of Inventory shall be on consignment, approval, or under any other circumstances such that, with the exception of each Borrower's customary return policy applicable to the return of inventory purchased by such Borrower's retail customers in the ordinary course, such Inventory may be returned to such Borrower without the consent of the Agent.

Use of Inventory Collateral. (a) The Borrower shall not engage in any sale of the Inventory other than for fair consideration in the conduct of the Borrower's business in the ordinary course and shall not engage in sales or other dispositions to creditors; sales or other dispositions in bulk; and any use of any of the Inventory in breach of any provision of this Agreement, except for employee discounts in the ordinary course of business. (b) No sale of Inventory shall be on consignment, approval, or under any other circumstances such that, with the exception of the Borrower's customary return policy applicable to the return of Inventory purchased by the Borrower's retail customers in the ordinary course, such Inventory may be returned to the Borrower without the consent of the Lender.

Use of Inventory Collateral. 88 6.2. Inventory Quality..............................................................................89 6.3.

Use of Inventory Collateral. 100 6.2 INVENTORY QUALITY..................................................................100 6.3

Use of Inventory Collateral. (a) No Loan Party shall engage in any of the following with respect to its Inventory: (i) Any sale other than for fair consideration in the conduct of the Loan Parties’ business in the ordinary course. (ii) Sales or other dispositions to creditors. (iii) Sales or other dispositions in bulk. (iv) Sales of any Collateral in breach of any provision of this Agreement. (b) No sale of Inventory shall be on consignment, approval, or under any other circumstances such that, with the exception of the Loan Parties’ customary return policy applicable to the return of Inventory purchased by the Loan Parties’ retail customers in the ordinary course, such Inventory may be returned to a Loan Party without the consent of the Administrative Agent.