E&O Reserve definition
Examples of E&O Reserve in a sentence
The difference between (i) the actual costs of disposal minus (ii) the amount of the applicable E&O Reserve (if any) on Producer’s books for disposal costs will be charged (in the case in which the difference is a positive amount) or credited (in the case in which the difference is a negative amount) to Buyer.
The price to be charged to Buyer will be the net inventory value (after giving effect to any applicable portion of the E&O Reserve and accrued disposal costs) or, for Intermediates and finished goods, at agreed commercial terms but in no event less than Producer’s net book value for the same.
Producer will thereafter update and provide to Buyer monthly updates of the E&O Reserve in accordance with the Accounting Principles.
One hundred percent (100%) of this excess represents the Preliminary Excess Inventory Component of E&O Reserve.
Each month, RM&I and Products which have been on the E&O Reserve for ninety (90) days or longer will be transferred to Buyer in accordance with Section 4.5 or, at Buyer’s option, disposed of by Producer in accordance with Section 4.5.4. Producer will transfer all inventory that is included in the applicable initial E&O Reserve (i.e., the E&O Reserve established as of the Effective Date in accordance with Everest’s historical practices) before further accruing any reserves for such inventory.
Each month, RM&I and Products which have been on the E&O Reserve for ninety (90) days or longer will be transferred to Buyer in accordance with Section 4.5 or, at Buyer’s option, disposed of by Producer in accordance with Section 4.5.4. Producer will transfer all inventory that is included in the applicable initial E&O Reserve (i.e., the E&O Reserve established as of May 31, 2020 in accordance with Everest’s historical practices) before further accruing any reserves for such inventory.
Increase or decrease the Preliminary Excess Inventory Compo nent of E&O Reserve for the estimated impact of items identified in this section IV.B.2 to determine the Excess Inventory Compo nent of E&O Reserve.
Review all SKUs in the Preliminary Excess Inventory Compo nent of E&O Reserve calculated in IV.B.1 above to determine whether historical usage is representative of anticipated usage.