Using the following example project for a multiselect in a Grid:
http://www.kendoui.com/code-library/permalink/boByv66aG2OF1P8AAFTdxQ

Failure steps:
1) Run the project as-is.
2) Edit any grid line.
3) Add a Territory by typing the first few letters and pressing enter to select the highlighted item.
4) Save the grid line

Issue:
In the Update action, the ModelState is not valid and the Territories list in the EmployeeViewModel has null entries for the first X items (equivalent the the number of items existing before the update).

The data POSTed from the grid seems to be inconsistent. New items are posted as TerritoryViewModel-type objects but the existing items are posted as the value (id) only.

Note: Adding at least one item by clicking with the mouse magically resolves this issue and all items are posted as complete objects.