Common use of Ineligible Inventory Clause in Contracts

Ineligible Inventory. In addition to any Inventory which does not meet the foregoing criteria, the following Inventory is also ineligible for the purposes of determination of the Borrowing Base: (1) Fixtures and displays representing display racks sold to customers to hold and display products of Borrower; (2) Discontinued products; (3) Inventory located at third party vendors; (4) Proprietary packaging materials that include the name of the client or which are not of standard size.

Appears in 2 contracts

Sources: Revolving Credit Loan and Security Agreement (Hallwood Group Inc), Revolving Credit Loan and Security Agreement (Hallwood Group Inc)