Warranty Reserve. The Company has made available to Parent a calculation of the warranty reserve included on the Current Balance Sheet. Such reserve is established in accordance with GAAP. The Company is not aware of any specific fault in products in warranty as of September 30, 1999 which would require any separate and specific reserve in accordance with GAAP. Except for increases in the ordinary course of business in connection with the sale of products, nothing has occurred between September 30, 1999 and the date hereof which would require additional warranty reserves to be included in the Current Balance Sheet.
Warranty Reserve. For any warranty reserve that reduced the Net Income of LTS for the 12-month period ending March 31, 1999, the parties shall review the actual expenses associated with warranty services during each subsequent year for the duration of each warranty covered by such reserve. If any such warranty expenses prove to be less than the amount reserved for that warranty, the LTS Shareholders shall be entitled to the additional Earn-Out Payment (subject to adjustment for any stock split, stock dividend, reverse stock split or similar transaction after March 31, 1999) that would have been paid if the warranty reserve had only reflected such actual warranty expenses, which shall be paid no later than 75 days after the end of each such year.
Warranty Reserve. (a) Establishment of
Warranty Reserve. In order to partially secure the Seller's and the Principal Stockholders' obligations under Section 6.12 hereof, at the Closing the Seller shall assign to the Buyer, out of the Excluded Assets, an amount of accounts receivable having a value of $8,000 (the "Warranty Reserve Cushion"). In the event that any of the accounts receivables comprising the Warranty Reserve are not collected by Buyer in accordance with their terms, Buyer may retain an amount of the Warranty Reserve Cushion (including any cash received by Buyer upon collection thereof) equal to the lesser of (i) the amount of such uncollected accounts receivable or (ii) $8,000. The balance of the Warranty Reserve Cushion (including any cash received by Buyer upon collection thereof), if any, shall be refunded by Buyer to the Seller when and to the extent that the accounts receivable comprising the Warranty Reserve are collected by the Buyer.
Warranty Reserve. The customer requests IFN, in the conditions hereafter defined and according to the Customer specific conditions, to build a warranty reserve to the benefit of IFN to cover the principal, commissions, charges and any other obligation of the Customer resulting from the execution of this agreement. This reserve will not be available to the Customer and will not bear any interest. IFN is entitled to use this reserve at any time, to cover any debt he owns on the Customer. In such case the warranty reserve should be rebuilt according to the provisions of the Customer specific conditions and without any possibility for the Customer to lower the level of such reserve. At any time, this warranty reserve should cover the aggregate of the litigations in process, credit notes to be issued, discounts of any sort including end of year discounts and customer's agreed participation to its client's advertising campaigns. During the termination notice period, the warranty reserve will be increased by fifty (50) percent. Except in the case of formal and prior approval by IFN, the warranty reserve will not be transferable to any third party and could not use as collateral security to the benefit of a third party.
Warranty Reserve. At this point I agree with Dan's summary showing SI/DK owing $40,547. This is subject to final audit.
Warranty Reserve. Seller has placed in reserve an amount equal to $200,000 (the “Warranty Reserve”). Buyer shall deduct the amount of the Warranty Reserve from the Purchase Price under the Purchase Agreement and hold such amount (together with any interest thereon) in the Warranty Account until the funds therein are exhausted or finally released in accordance with Section 2.3 hereof. Buyer shall deduct any Repair Costs that Buyer incurs in connection with the Warranty Services from time to time; provided, however, that in the event a claim related to any Warranty Obligation is tendered by Buyer or Seller under any Insurance Policy, any award or recovery from the insurer with respect to such claim shall be used to replenish the Warranty Reserve for any amounts that were withdrawn from the Warranty Reserve in connection with such claim. Buyer will provide to Seller, on a quarterly basis, an accounting of funds deducted from the Warranty Reserve, together with (a) a description of the Warranty Services delivered and Repair Costs incurred for each home, and (b) any amount replenished by insurance awards or recoveries under Insurance Policies.
Warranty Reserve. 18 3.26 OMITTED............................................................................................18 3.27 INTERESTS OWNED BY THE COMPANY OR THE LLC..........................................................18 3.28 ABSENCE OF UNDISCLOSED LIABILITIES.................................................................18
Warranty Reserve. The warranty reserves maintained by the Company are adequate and sufficient to cover any post-Closing liabilities for the applicable warranty period that may arise on account of or relating to work performed by the Company or the LLC, as the case may be, prior to the Closing. Seller shall indemnify Buyer in the event and to the extent that the warranty reserves are insufficient to cover any such post-Closing liabilities. In the event, and to the extent, that the warranty reserves are in excess of any such post-Closing liabilities, as determined after the applicable warranty period has elapsed, the Company shall pay such excess to Seller. Buyer, Seller, the Company and the LLC agree to allocate warranty costs as determined by the Auditors to be in accordance with GAAP.
Warranty Reserve. 3M shall pay to Buyer for 3M Products sold prior to Closing the warranty amount of Three Hundred Thousand Dollars ($300,000.00) associated with 3M's "A" (new equipment) and "B" (repaired equipment) warranties.
