{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "the-inventory", "type": "clause", "offset": [106, 119]}, {"key": "by-purchaser", "type": "clause", "offset": [195, 207]}, {"key": "prior-to-closing", "type": "clause", "offset": [276, 292]}, {"key": "unless-otherwise-agreed", "type": "definition", "offset": [294, 317]}, {"key": "in-writing", "type": "clause", "offset": [321, 331]}, {"key": "by-the-sellers", "type": "clause", "offset": [332, 346]}, {"key": "provided-that", "type": "clause", "offset": [362, 375]}, {"key": "saturdays-and-sundays", "type": "clause", "offset": [431, 452]}, {"key": "completion-date", "type": "clause", "offset": [470, 485]}, {"key": "date-of", "type": "clause", "offset": [496, 503]}, {"key": "inventory-date", "type": "definition", "offset": [599, 613]}, {"key": "inventory-taking-service", "type": "definition", "offset": [750, 774]}, {"key": "third-party-inventory", "type": "definition", "offset": [952, 973]}, {"key": "in-accordance-with", "type": "definition", "offset": [1030, 1048]}, {"key": "the-procedures", "type": "definition", "offset": [1049, 1063]}, {"key": "instructions-to", "type": "definition", "offset": [1068, 1083]}, {"key": "agreed-by", "type": "clause", "offset": [1096, 1105]}, {"key": "this-agreement", "type": "clause", "offset": [1151, 1165]}, {"key": "responsible-for", "type": "clause", "offset": [1243, 1258]}, {"key": "expenses-of-the", "type": "clause", "offset": [1280, 1295]}, {"key": "in-the-event", "type": "clause", "offset": [1351, 1363]}, {"key": "no-third-party", "type": "clause", "offset": [1369, 1383]}, {"key": "of-the-sellers", "type": "clause", "offset": [1432, 1446]}, {"key": "expenses-incurred", "type": "clause", "offset": [1499, 1516]}, {"key": "right-to-have", "type": "clause", "offset": [1588, 1601]}, {"key": "right-to-review", "type": "clause", "offset": [1679, 1694]}, {"key": "conduct-of-the", "type": "clause", "offset": [1777, 1791]}, {"key": "location-shall", "type": "definition", "offset": [1880, 1894]}, {"key": "closed-to-the-public", "type": "definition", "offset": [1898, 1918]}, {"key": "no-sales", "type": "clause", "offset": [1923, 1931]}, {"key": "other-transactions", "type": "clause", "offset": [1935, 1953]}, {"key": "days-after", "type": "definition", "offset": [2060, 2070]}, {"key": "closing-inventory-statement", "type": "clause", "offset": [2142, 2169]}, {"key": "eligible-inventory-value", "type": "definition", "offset": [2179, 2203]}, {"key": "as-of-the-closing-date", "type": "clause", "offset": [2204, 2226]}, {"key": "physical-inventory-count", "type": "clause", "offset": [2243, 2267]}, {"key": "equal-to", "type": "definition", "offset": [2350, 2358]}, {"key": "with-respect-to", "type": "clause", "offset": [2360, 2375]}, {"key": "dip-credit-agreement", "type": "definition", "offset": [2427, 2447]}, {"key": "at-the-closing", "type": "definition", "offset": [2464, 2478]}, {"key": "the-cost", "type": "clause", "offset": [2480, 2488]}, {"key": "applicable-seller", "type": "definition", "offset": [2504, 2521]}, {"key": "accounting-unit", "type": "clause", "offset": [2522, 2537]}, {"key": "shipping-charges", "type": "clause", "offset": [2664, 2680]}, {"key": "except-to-the-extent", "type": "clause", "offset": [2690, 2710]}, {"key": "the-pre", "type": "clause", "offset": [2760, 2767]}, {"key": "agreed-to-by", "type": "clause", "offset": [2900, 2912]}, {"key": "sole-discretion", "type": "clause", "offset": [2939, 2954]}, {"key": "transit-inventory", "type": "definition", "offset": [2981, 2998]}, {"key": "for-purposes-of", "type": "clause", "offset": [2999, 3014]}], "samples": [{"hash": "eaG4JtzyKjW", "uri": "/contracts/eaG4JtzyKjW#inventory-value", "label": "Asset Purchase Agreement", "score": 21.0, "published": true}], "size": 7, "snippet": "(a) As promptly as practicable, the Sellers and Purchaser shall cause to be taken a physical inventory of the Inventory, other than a physical inventory of the Inventory at the Stores identified by Purchaser (the \u201cInventory Taking\u201d), which Inventory Taking shall be completed prior to Closing, unless otherwise agreed to in writing by the Sellers and Purchaser (provided that the Inventory Taking shall not be required to occur on Saturdays and Sundays) (the \u201cInventory Completion Date\u201d, and the date of the Inventory Taking at each of the Stores, the Clearance Centers and the Warehouse being the \u201cInventory Date\u201d for each such Store, Clearance Center and Warehouse). The Sellers and Purchaser shall jointly employ a mutually acceptable independent inventory taking service (the \u201cInventory Taking Service\u201d) to conduct the Inventory Taking, or if the Sellers and Purchaser mutually agree, shall jointly conduct the Inventory Taking without utilizing a third party Inventory Taking Service. The Inventory Taking shall be conducted in accordance with the procedures and instructions to be mutually agreed by the Sellers and Purchaser and made a part of this Agreement as Schedule 3.5(a) (the \u201cInventory Taking Instructions\u201d). Purchaser shall be responsible for 100% of the fees and expenses of the Inventory Taking Service, if such service is utilized. In the event that no third party Inventory Taking Service is utilized, then each of the Sellers and Purchaser shall bear their respective costs and expenses incurred in the Inventory Taking. The Sellers and Purchaser shall each have the right to have representatives present during the Inventory Taking, and shall each have the right to review and verify the listing and tabulation of the Inventory Taking Service. During the conduct of the Inventory Taking in each of the Clearance Centers, Warehouse and Stores, the applicable location shall be closed to the public and no sales or other transactions shall be conducted until the Inventory Taking at such location has been completed. No later than five (5) days after the Inventory Completion Date, Sellers shall prepare a statement (\u201cPre-Closing Inventory Statement\u201d) of the Eligible Inventory Value as of the Closing Date based upon such physical inventory count (\u201cPre-Closing Eligible Inventory Value\u201d). The \u201cEligible Inventory Value\u201d shall be equal to, with respect to each item of Eligible Inventory (as defined in the DIP Credit Agreement) of the Sellers at the Closing, the cost (determined by applicable Seller accounting unit) for such item of Inventory, as reflected in Sellers\u2019 master cost file as of the Closing Date (\"Cost File\"), plus freight and shipping charges at 9.5%, except to the extent of any mistake or omission contained therein. If the Pre-Closing Eligible Inventory Statement reflects less than $50,000,000.00 of Pre-Closing Eligible Inventory Value of the Inventory, if agreed to by Purchaser, in Purchaser's sole discretion, Sellers may count the In-Transit Inventory for purposes of determining the Pre-Closing Eligible Inventory Value of the Inventory.", "hash": "e590985453f43333fbee48ef67aacd34", "id": 1}, {"snippet_links": [{"key": "at-closing", "type": "clause", "offset": [0, 10]}, {"key": "book-value", "type": "definition", "offset": [15, 25]}, {"key": "the-inventory", "type": "clause", "offset": [29, 42]}, {"key": "for-purposes-of-this-section", "type": "clause", "offset": [50, 78]}, {"key": "balance-sheet", "type": "definition", "offset": [132, 145]}, {"key": "spare-parts", "type": "clause", "offset": [185, 196]}, {"key": "the-acquired-assets", "type": "clause", "offset": [251, 270]}, {"key": "in-accordance-with", "type": "definition", "offset": [283, 301]}, {"key": "consistent-basis", "type": "definition", "offset": [320, 336]}], "samples": [{"hash": "2SJo9dXneWJ", "uri": "/contracts/2SJo9dXneWJ#inventory-value", "label": "Asset Purchase Agreement (Molten Metal Technology Inc /De/)", "score": 18.0, "published": true}], "size": 2, "snippet": "At Closing the book value of the inventory (which for purposes of this Section 5.24 means the inventories recorded in the following balance sheet accounts: HIC-CFI; Fabric Filters-CFI; Spare Parts; On-Site HIC; and RO Systems Spare Parts) included in the Acquired Assets, determined in accordance with GAAP applied on a consistent basis, shall not be less than $650,000.", "hash": "79f5820f2677bd58b1a335f5746a78d7", "id": 6}, {"snippet_links": [{"key": "date-of-determination", "type": "definition", "offset": [10, 31]}, {"key": "borrower-will", "type": "clause", "offset": [37, 50]}, {"key": "of-the-borrower", "type": "clause", "offset": [116, 131]}, {"key": "aggregate-value", "type": "definition", "offset": [160, 175]}, {"key": "at-cost", "type": "definition", "offset": [176, 183]}, {"key": "cost-of", "type": "definition", "offset": [227, 234]}, {"key": "the-inventory", "type": "clause", "offset": [242, 255]}, {"key": "the-subsidiaries", "type": "clause", "offset": [276, 292]}, {"key": "distribution-facilities", "type": "clause", "offset": [343, 366]}], "samples": [{"hash": "8ODOhhF27GL", "uri": "/contracts/8ODOhhF27GL#inventory-value", "label": "Credit Agreement (Norstan Inc)", "score": 21.0, "published": true}, {"hash": "jzI3hGY2h3", "uri": "/contracts/jzI3hGY2h3#inventory-value", "label": "Credit Agreement (Norstan Inc)", "score": 18.0, "published": true}], "size": 2, "snippet": "As of any date of determination, the Borrower will not, and will not permit any Subsidiary to, permit any Inventory of the Borrower or any Subsidiary having an aggregate value at cost in excess of 30% of the aggregate value at cost of all of the Inventory of the Borrower and the Subsidiaries to be stored at a location other than the Primary Distribution Facilities.", "hash": "c931ba0ce6c9d8ba9ed93a7c736f8366", "id": 3}, {"snippet_links": [{"key": "in-accordance-with", "type": "definition", "offset": [76, 94]}, {"key": "consistent-with", "type": "clause", "offset": [104, 119]}, {"key": "past-practices", "type": "clause", "offset": [129, 143]}, {"key": "pursuant-to", "type": "definition", "offset": [144, 155]}, {"key": "to-the-extent", "type": "clause", "offset": [170, 183]}, {"key": "the-inventory", "type": "clause", "offset": [184, 197]}, {"key": "cash-portion-of-the-purchase-price", "type": "definition", "offset": [288, 322]}, {"key": "like-amount", "type": "definition", "offset": [345, 356]}, {"key": "increased-by", "type": "clause", "offset": [474, 486]}], "samples": [{"hash": "l3zHP80omaf", "uri": "/contracts/l3zHP80omaf#inventory-value", "label": "Asset Purchase Agreement (Patrick Industries Inc)", "score": 23.8281998631, "published": true}], "size": 2, "snippet": "The \u201cInventory Value\u201d will be valued at the lower of cost or market (\u201cLCM\u201d) in accordance with GAAP and consistent with Seller\u2019s past practices pursuant to Schedule 2.3. To the extent the Inventory Value is less than One Million Eight Hundred Forty-Six Thousand Dollars ($1,846,000), the Cash Portion of the Purchase Price shall be reduced by a like amount. To the extent that the Inventory Value is greater than such amount, the Cash Portion of the Purchase Price shall be increased by such amount.", "hash": "9e9e217f97a5b6f301dcd409a2e42761", "id": 7}, {"snippet_links": [{"key": "the-value", "type": "clause", "offset": [0, 9]}, {"key": "the-inventory", "type": "clause", "offset": [13, 26]}, {"key": "the-guarantors", "type": "clause", "offset": [47, 61]}], "samples": [{"hash": "bH8EiC6eRIS", "uri": "/contracts/bH8EiC6eRIS#inventory-value", "label": "Revolving Credit and Guaranty Agreement (Kmart Corp)", "score": 21.0, "published": true}, {"hash": "6D0CVGJtxyW", "uri": "/contracts/6D0CVGJtxyW#inventory-value", "label": "Revolving Credit and Guaranty Agreement (Kmart Corp)", "score": 18.0, "published": true}], "size": 2, "snippet": "The value of the inventory of the Borrower and the Guarantors as of December 31, 2001 was no less than $5,000,000,000.", "hash": "180868553914ef4acaff037e86aa9155", "id": 5}, {"snippet_links": [{"key": "gross-book-value", "type": "definition", "offset": [32, 48]}, {"key": "finished-goods-inventory", "type": "definition", "offset": [56, 80]}, {"key": "number-of-units", "type": "definition", "offset": [116, 131]}, {"key": "on-hand", "type": "definition", "offset": [132, 139]}, {"key": "item-number", "type": "clause", "offset": [148, 159]}, {"key": "cost-of", "type": "definition", "offset": [203, 210]}, {"key": "located-in", "type": "definition", "offset": [338, 348]}, {"key": "purchased-stores", "type": "definition", "offset": [360, 376]}, {"key": "at-retail", "type": "definition", "offset": [397, 406]}, {"key": "consistent-with", "type": "clause", "offset": [422, 437]}, {"key": "past-practice", "type": "clause", "offset": [447, 460]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [461, 495]}, {"key": "financial-reports", "type": "clause", "offset": [529, 546]}, {"key": "in-the-event", "type": "clause", "offset": [548, 560]}, {"key": "based-on", "type": "clause", "offset": [663, 671]}, {"key": "the-price", "type": "clause", "offset": [672, 681]}, {"key": "by-the-sellers", "type": "clause", "offset": [687, 701]}, {"key": "purchase-order", "type": "definition", "offset": [731, 745]}, {"key": "cost-estimate", "type": "definition", "offset": [830, 843]}, {"key": "the-party", "type": "clause", "offset": [858, 867]}, {"key": "to-the-sellers", "type": "clause", "offset": [888, 902]}, {"key": "with-respect-to", "type": "clause", "offset": [973, 988]}], "samples": [{"hash": "f3komBxwcB", "uri": "/contracts/f3komBxwcB#inventory-value", "label": "Asset Purchase Agreement (Florsheim Group Inc)", "score": 18.0, "published": true}, {"hash": "3CO2aNUcrc9", "uri": "/contracts/3CO2aNUcrc9#inventory-value", "label": "Asset Purchase Agreement (Weyco Group Inc)", "score": 18.0, "published": true}], "size": 2, "snippet": "Inventory Value\" shall mean the gross book value of the finished goods Inventory calculated, as of any date, as the number of units on hand of each item number as of such date multiplied by the standard cost of such item of finished goods Inventory as of December 29, 2001; provided, however, that the standard cost of any such Inventory located in any of the Purchased Stores shall be calculated at retail standard cost, consistent with Sellers' past practice in the ordinary course of business, as reflected on Sellers' retail financial reports. In the event no standard cost exists for any item as of December 29, 2001, the standard cost of such item shall be based on the price paid by the Sellers as set forth in the Sellers' purchase order for such item or, in the event no such purchase order exists, the Sellers' original cost estimate therefor from the party that sold such item to the Sellers plus, in either case, the Sellers' cost of freight, duty and overhead with respect to such item.", "hash": "2d9e1633767da5a6c7dc22dfe8f66777", "id": 4}, {"snippet_links": [{"key": "proceedings-at-closing", "type": "clause", "offset": [74, 96]}, {"key": "deliveries-by-seller-to-buyer", "type": "clause", "offset": [142, 171]}, {"key": "deliveries-by-buyer-to-seller", "type": "clause", "offset": [210, 239]}], "samples": [{"hash": "50ZJjnCISo0", "uri": "/contracts/50ZJjnCISo0#inventory-value", "label": "Asset Purchase Agreement (Dairy Mart Convenience Stores Inc)", "score": 18.0, "published": true}], "size": 1, "snippet": "7 2.3 Closing.......................................................7 2.4 Proceedings at Closing........................................8 2.5 Deliveries by Seller to Buyer.................................8 2.6 Deliveries by Buyer to Seller.................................9 2.7 Post Closing.................................................10", "hash": "48956e3988975cf0531aa99643a58ef7", "id": 9}, {"snippet_links": [{"key": "the-value", "type": "clause", "offset": [0, 9]}, {"key": "the-quantities", "type": "clause", "offset": [91, 105]}, {"key": "product-inventory", "type": "definition", "offset": [145, 162]}, {"key": "wip-inventory", "type": "definition", "offset": [167, 180]}, {"key": "pursuant-to", "type": "definition", "offset": [190, 201]}, {"key": "in-accordance-with", "type": "definition", "offset": [280, 298]}, {"key": "section-3", "type": "clause", "offset": [299, 308]}, {"key": "b-of", "type": "definition", "offset": [309, 313]}, {"key": "this-exhibit", "type": "definition", "offset": [314, 326]}, {"key": "relates-to", "type": "definition", "offset": [333, 343]}, {"key": "chemical-inventory", "type": "definition", "offset": [348, 366]}, {"key": "relevant-price", "type": "definition", "offset": [380, 394]}, {"key": "annex-ii", "type": "definition", "offset": [417, 425]}, {"key": "the-\u2587", "type": "clause", "offset": [482, 487]}, {"key": "market-value", "type": "definition", "offset": [494, 506]}, {"key": "associated-with", "type": "definition", "offset": [507, 522]}, {"key": "commodity-contracts", "type": "definition", "offset": [523, 542]}], "samples": [{"hash": "83SI1l18o1P", "uri": "/contracts/83SI1l18o1P#inventory-value", "label": "Asset Purchase Agreement (Green Plains Inc.)", "score": 30.1266255989, "published": true}, {"hash": "gFPRLy3OEhe", "uri": "/contracts/gFPRLy3OEhe#inventory-value", "label": "Asset Purchase Agreement (Green Plains Inc.)", "score": 29.9541409993, "published": true}], "size": 2, "snippet": "The value of the Inventories (the \u201cInventory Value\u201d shall be calculated by multiplying (i) the quantities of the various Products comprising the Product Inventory and WIP Inventory measured pursuant to Annex I and reflected in the Product Inventory Quantity Report, or determined in accordance with Section 3 B of this Exhibit as it relates to the Chemical Inventory, by (ii) the relevant price formulas set forth in Annex II for such Products, WIP Inventory and/or Chemicals; plus the \u2587\u2587\u2587\u2587 to market value associated with Commodity Contracts pursuant to Annex II.", "hash": "8b875aeaf71891c3d8aba257dcbc3dff", "id": 2}, {"snippet_links": [{"key": "john-deere", "type": "definition", "offset": [7, 17]}], "samples": [{"hash": "f3komBxwcB", "uri": "/contracts/f3komBxwcB#inventory-value", "label": "Asset Purchase Agreement (Florsheim Group Inc)", "score": 18.0, "published": true}], "size": 2, "snippet": "6 1.33 John Deere Inventory........................................ 6 \u2587.\u25874", "hash": "e6d2ba38555bee851c60e8445eb02693", "id": 8}, {"snippet_links": [{"key": "case-volume", "type": "definition", "offset": [54, 65]}, {"key": "branded-products", "type": "definition", "offset": [84, 100]}, {"key": "month-end", "type": "clause", "offset": [113, 122]}, {"key": "date-of-execution", "type": "definition", "offset": [137, 154]}, {"key": "written-approval", "type": "clause", "offset": [190, 206]}], "samples": [{"hash": "jhoAb0Whdhr", "uri": "/contracts/jhoAb0Whdhr#inventory-value", "label": "Assets Purchase Agreement (Pyramid Breweries Inc)", "score": 16.0, "published": true}], "size": 1, "snippet": "The volume of Inventories will not exceed 120% of the case volume of inventories of Branded Products existing at month end preceding the date of execution hereof without Purchaser's express written approval.", "hash": "24cc4c10f37a5526622dca058ec9eb87", "id": 10}], "next_curs": "ClgSUmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjQLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhhpbnZlbnRvcnktdmFsdWUjMDAwMDAwMGEMogECZW4YACAA", "clause": {"title": "Inventory Value", "parents": [["miscellaneous", "Miscellaneous"], ["consideration", "Consideration"], ["additional-covenants", "Additional Covenants"], ["the-closing", "The Closing"], ["purchase-and-sale", "Purchase and Sale"]], "size": 40, "children": [["corporate-approval-binding-effect", "CORPORATE APPROVAL; BINDING EFFECT"], ["", ""], ["no-litigation", "NO LITIGATION"], ["removal-of-excluded-equipment", "REMOVAL OF EXCLUDED EQUIPMENT"], ["guaranties-and-indemnities", "GUARANTIES AND INDEMNITIES"]], "id": "inventory-value", "related": [["eligible-inventory", "Eligible Inventory", "Eligible Inventory"], ["accounts-receivable-inventory", "Accounts Receivable; Inventory", "Accounts Receivable; Inventory"], ["merchantable-inventory", "Merchantable Inventory", "Merchantable Inventory"], ["current-inventory-of-qualified-property", "CURRENT INVENTORY OF QUALIFIED PROPERTY", "CURRENT INVENTORY OF QUALIFIED PROPERTY"], ["inventory", "Inventory", "Inventory"]], "related_snippets": [], "updated": "2025-07-07T12:37:39+00:00", "also_ask": ["What valuation methods should be specified to ensure fair and consistent inventory assessment?", "How can the clause address obsolete or slow-moving inventory to minimize disputes?", "What are the key risks if the inventory value definition conflicts with accounting standards or loan covenants?", "How have courts interpreted ambiguous inventory valuation clauses in past disputes?", "What negotiation leverage points exist regarding timing and responsibility for inventory valuation?"], "drafting_tip": "Specify the valuation method, define the timing of valuation, and clarify included inventory items to ensure accuracy, prevent disputes, and facilitate consistent application.", "explanation": "The Inventory Value clause defines how the value of inventory is determined for the purposes of a contract. Typically, this clause specifies the method of valuation, such as cost, market value, or another agreed-upon standard, and may outline procedures for periodic inventory assessments or adjustments. By clearly establishing how inventory is valued, this clause helps prevent disputes between parties regarding asset worth and ensures consistency in financial reporting or settlement calculations."}, "json": true, "cursor": ""}}