Common use of Administration of Inventory Clause in Contracts

Administration of Inventory. (a) Borrower shall keep accurate and complete records of its Inventory (including records showing the cost thereof and daily withdrawals therefrom and additions thereto) and shall furnish Lender on or before the 20th day of each month inventory reports respecting such Inventory in form and detail reasonably satisfactory to Lender as of the last day of the preceding month, or, at any time a Default or Event of Default has occurred and is continuing, at such other times as Lender may reasonably request (but in such case, no more frequently than once each week). Borrower shall, at its own expense, conduct auditor-approved cycle counts no less frequently than annually (and on a more frequent basis if requested by Lender when an Event of Default exists) and additional periodic cycle counts consistent with Borrower's historical practices, shall provide Lender prior written notice of the conduct of an auditor-approved cycle count, and shall provide to Lender a report based on each such auditor-approved cycle count and other cycle count promptly after completion thereof, together with such supporting information as Lender shall reasonably request. Lender may participate in and observe each physical count, which participation shall be at Borrower' expense at any time that an Event of Default exists. (b) Borrower shall not return any of its Inventory to a supplier or vendor thereof, or any other Person, whether for cash, credit against future purchases or then existing payables, or otherwise, unless (i) such return is in the Ordinary Course of Business of Borrower and such Person; (ii) no Default or Event of Default exists or would result therefrom; (iii) the return of such Inventory will not result in an Overadvance; (iv) Borrower promptly notifies Lender thereof if the aggregate value of all Inventory returned in any month exceeds the amount shown on Item 13(a) of the Terms Schedule; and (v) any payments received by Borrower in connection with any such return are either received by Borrower in the Collections Account or, to the extent not received therein, promptly deposited by Borrower in the Collections Account in accordance with Section 2.7. (c) Borrower shall not acquire or accept any Inventory on consignment or approval and shall not sell or deliver any Inventory to any customer on approval or any other basis upon which the customer has a right to return or obligates Borrower to repurchase such Inventory, other than the granting of customary warranties and rights of inspection. (d) Borrower shall produce, use, store and maintain all Inventory with all reasonable care and caution in accordance with applicable standards of any insurance and in conformity with applicable law (including the requirements of the Fair Labor Standards Act) and will maintain current rent payments (within applicable grace periods provided for in leases) at all locations at which any Inventory is maintained or stored (other than the Razorback Location, but only as long as the landlord for such premises permits all rent, fees and other charges to accrue, does not demand payment of any portion thereof, and has executed a Lien Waiver/Access Agreement acceptable to Lender).

Administration of Inventory. (a) Borrower shall keep accurate and complete records of its Inventory (including records showing the cost thereof and daily withdrawals therefrom and additions thereto) and shall furnish Lender on or before the 20th 15th day of each month inventory reports respecting such Inventory in form and detail reasonably satisfactory to Lender as of the last day of the preceding month, or, at any time a Default or Event of Default has occurred and is continuing, at such other times as Lender may reasonably request (request, but in such caseso long as no Default or Event of Default exists, no more frequently than once each week). Borrower shall, at its own expense, conduct auditor-approved cycle counts a physical inventory no less frequently than annually (and on a more frequent basis if requested by Lender when an Event of Default exists) or a comprehensive cycle count and additional periodic cycle counts consistent with Borrower's ’s historical practices, shall provide Lender prior written notice of the conduct of an auditor-approved cycle count, practices and shall provide to Lender a report based on each such auditor-approved cycle count physical inventory and other cycle count promptly after completion thereof, together with such supporting information as Lender shall reasonably request. Lender may participate in and observe each physical countcount or inventory, which participation shall be at Borrower' ’s expense at any time that an Event of Default exists. (b) Borrower shall not return any of its Inventory to a supplier or vendor thereof, or any other Person, whether for cash, credit against future purchases or then existing payables, or otherwise, unless (i) such return is in the Ordinary Course of Business of Borrower and such Person; (ii) no Default or Event of Default exists or would result therefrom; (iii) the return of such Inventory will not result in an Overadvance; (iv) Borrower promptly notifies Lender thereof if the aggregate value of all Inventory returned in any month exceeds the amount shown on Item 13(a) of the Terms Schedule$250,000; and (v) any payments received by Borrower in connection with any such return are either received by Borrower in the Collections Account or, promptly turned over to Lender for application to the extent not received therein, promptly deposited by Borrower in the Collections Account in accordance with Section 2.7Obligations. (c) Borrower shall not acquire or accept any Inventory on consignment (as such term is defined in the UCC) or approval and approval. For the avoidance of doubt, Borrower shall not sell be permitted to acquire or deliver accept any Inventory to any customer on approval or any other basis upon which the customer has goods for a right to return or obligates Borrower to repurchase such Inventory, other than the granting of customary warranties and rights of inspectionjust-in-time delivery. (d) Borrower shall produce, use, store and maintain all Inventory with all reasonable care and caution in accordance with applicable standards of any insurance and in conformity with applicable law (including the requirements of the Fair Labor Standards Act) and will maintain current rent payments (within applicable grace periods provided for in leases) at all locations at which any Inventory is maintained or stored (other than the Razorback Location, but only as long as the landlord for such premises permits all rent, fees and other charges to accrue, does not demand payment of any portion thereof, and has executed a Lien Waiver/Access Agreement acceptable to Lender)stored.

Administration of Inventory. (a) Borrower Grantors shall keep accurate and complete records of its Inventory (all Inventory, including records showing the cost thereof costs and daily withdrawals therefrom and additions thereto) additions, and shall furnish Lender on or before the 20th day of each month submit to Administrative Agent inventory and reconciliation reports respecting such Inventory in form and detail reasonably satisfactory to Lender Administrative Agent, on such periodic basis as of the last day of the preceding month, or, at any time a Default or Event of Default has occurred and is continuing, at such other times as Lender Administrative Agent may reasonably request (but in such case, no more frequently than request. Each Grantor shall conduct a physical inventory at least once each week). Borrower shall, at its own expense, conduct auditor-approved cycle counts no less frequently than annually per calendar year (and on a more frequent basis if requested by Lender Administrative Agent when an Event of Default exists) and additional periodic cycle counts consistent with Borrower's historical practices, shall provide Lender prior written notice of the conduct of an auditor-approved cycle count, and shall provide to Lender Administrative Agent a report based on each such auditor-approved cycle count inventory and other cycle count promptly after upon completion thereof, together with such supporting information as Lender shall reasonably requestAdministrative Agent may request (including any Quarry Tech or other reports measuring piles of Inventory). Lender Administrative Agent may participate in and observe each physical count, which participation shall be at Borrower' expense at any time that an Event of Default exists. (b) Borrower No Grantor shall not return any of its Inventory to a supplier supplier, vendor or vendor thereof, or any other Person, whether for cash, credit against future purchases or then existing payables, or otherwise, unless (i) such return is in the Ordinary Course ordinary course of Business of Borrower and such Person; business, (ii) no Default or Event of Default exists or would result therefrom; , (iii) the return of such Inventory will not result in an Overadvance; (iv) Borrower Administrative Agent is promptly notifies Lender thereof notified if the aggregate value Value of all Inventory (other than replacement parts and manufacturing supplies) returned in any month exceeds the amount shown on Item 13(a) of the Terms Schedule; $1,000,000, and (viv) any payments payment received by Borrower in connection with any such a Grantor for a return are either received by Borrower in the Collections Account or, is promptly remitted to the extent not received therein, promptly deposited by Borrower in the Collections Account in accordance with Section 2.7a lockbox for deposit into a Dominion Account. (c) Borrower No Grantor shall not acquire or accept any Inventory on consignment or approval approval, and shall not take all steps to assure that all Inventory is produced in accordance with Applicable Law. No Grantor shall sell or deliver any Inventory to any customer on consignment or approval or any other basis upon which under which, in each case, the customer has a right to may return or obligates Borrower require a Grantor to repurchase such Inventory, other than provided, that the granting Grantors may store or consign immaterial amounts of customary warranties Inventory that do not constitute Eligible Inventory with customers who agree to pay for such Inventory as and rights of inspection. (d) Borrower when they withdraw it from storage or consignment. Each Grantor shall produce, use, store and maintain all Inventory with all reasonable care and caution caution, in accordance with applicable standards of any insurance and in material conformity with applicable law (including the requirements of the Fair Labor Standards Act) all Applicable Law, and will maintain shall make current rent and royalty payments (within applicable grace periods provided for in leases) at all locations at which where any Inventory Collateral is maintained located or stored (other than the Razorback Location, but only as long as the landlord for such premises permits all rent, fees and other charges to accrue, does not demand payment of any portion thereof, and has executed a Lien Waiver/Access Agreement acceptable to Lender)mined.

Administration of Inventory. (a) Borrower shall keep accurate and complete records of its Inventory (including records showing the cost thereof and daily withdrawals therefrom and additions thereto) and shall furnish Lender on or before the 20th 15th day of each month inventory reports respecting such Inventory in form and detail reasonably satisfactory to Lender as of the last day of the preceding month, or, at any time a Default or Event of Default has occurred and is continuing, at such other times as Lender may reasonably request (request, but in such caseso long as no Default or Event of Default exists, no more frequently than once each week)month. Borrower shall, at its own expense, conduct auditor-approved cycle counts a physical inventory no less frequently than annually (and on a more frequent basis if requested by Lender when an Event of Default exists) and additional periodic cycle counts consistent with Borrower's ’s historical practices, shall provide Lender prior written notice of the conduct of an auditor-approved cycle count, practices and shall provide to Lender a report based on each such auditor-approved cycle count physical inventory and other cycle count promptly after completion thereof, together with such supporting information as Lender shall reasonably request. Lender may participate in and observe each physical countcount or inventory, which participation shall be at Borrower' ’s expense at any time that an Event of Default exists. (b) Borrower shall not return any of its Inventory to a supplier or vendor thereof, or any other Person, whether for cash, credit against future purchases or then existing payables, or otherwise, unless (i) such return is in the Ordinary Course of Business of Borrower and such Person; (ii) no Default or Event of Default exists or would result therefrom; (iii) the return of such Inventory will not result in an Overadvance; (iv) Borrower promptly notifies Lender thereof if the aggregate value of all Inventory returned in any month exceeds the amount shown on Item 13(a) of the Terms Schedule$25,000; and (v) any payments received by Borrower in connection with any such return are either received by Borrower in the Collections Account or, promptly turned over to Lender for application to the extent not received therein, promptly deposited by Borrower in the Collections Account in accordance with Section 2.7Obligations. (c) Borrower shall not acquire or accept any Inventory on consignment or approval and will use its best efforts to insure that all Inventory that is produced in the United States of America will be produced in accordance with the Fair Labor Standards Act. It is understood and agreed that the foregoing will in no way restrict Borrower from holding customer Inventory in connection with its contract manufacturing business, provided that such Inventory shall not sell or deliver any be segregated from the Inventory to any customer on approval or any other basis upon which of Borrower and labeled as property of the customer has a right to return or obligates Borrower to repurchase applicable customer, and provided, further, that none of such Inventory shall be deemed Eligible Inventory, other than the granting of customary warranties and rights of inspection. (d) Borrower shall produce, use, store and maintain all Inventory with all reasonable care and caution in accordance with applicable standards of any insurance and in conformity with applicable law (including the requirements of the Fair Labor Standards Act) and will maintain current rent payments (within applicable grace periods provided for in leases) at all locations at which any Inventory is maintained or stored (other than the Razorback Location, but only as long as the landlord for such premises permits all rent, fees and other charges to accrue, does not demand payment of any portion thereof, and has executed a Lien Waiver/Access Agreement acceptable to Lender)stored.

Administration of Inventory. (a) Each Borrower shall keep accurate and complete records of its Inventory (including records showing the cost thereof and daily withdrawals therefrom and additions thereto) and shall furnish Lender on or before the 20th day of each month inventory reports respecting such Inventory (including in-transit Inventory) in form and detail reasonably satisfactory to Lender as of the last day of the preceding month, or, at any time a Default or Event of Default has occurred and is continuing, at such other times as Lender may reasonably request (request, but in such caseso long as no Default or Event of Default exists, no more frequently than once each week). Each Borrower shall, at its own expense, conduct auditor-approved cycle counts a physical inventory no less frequently than annually (and on a more frequent basis if requested by Lender when an Event of Default exists) and additional periodic cycle counts consistent with such Borrower's ’s historical practices, shall provide Lender prior written notice of the conduct of an auditor-approved cycle count, practices and shall provide to Lender a report based on each such auditor-approved cycle count physical inventory and other cycle count promptly after completion thereof, together with such supporting information as Lender shall reasonably request. Lender may participate in and observe each physical countcount or inventory, which participation shall be at Borrower' Borrowers’ expense at any time that an Event of Default exists. (b) No Borrower shall not return any of its Inventory to a supplier or vendor thereof, or any other Person, whether for cash, credit against future purchases or then existing payables, or otherwise, unless (i) such return is in the Ordinary Course of Business of such Borrower and such Person; (ii) no Default or Event of Default exists or would result therefrom; (iii) the return of such Inventory will not result in an Overadvance; (iv) such Borrower promptly notifies Lender thereof if the aggregate value of all Inventory of Borrowers returned in any month exceeds $25,000 (or the amount shown on Item 13(a) US Dollar Equivalent of the Terms Schedulesuch amount); and (v) any payments received by any Borrower in connection with any such return are either received by Borrower in the Collections Account or, promptly turned over to Lender for application to the extent not received therein, promptly deposited by Borrower in the Collections Account in accordance with Section 2.7Obligations. (c) No Borrower shall not acquire or accept any Inventory on consignment or approval approval, and each Borrower will use its best efforts to insure that all Inventory that is produced in the United States of America will be produced in accordance with the Fair Labor Standards Act. No Borrower shall not sell or deliver any Inventory to any customer on approval or any other basis upon which the customer has a right to return or obligates any Borrower to repurchase such Inventory, other than the granting of customary warranties and rights of inspection. (d) Each Borrower shall produce, use, store and maintain all Inventory with all reasonable care and caution in accordance with applicable standards of any insurance and in conformity with applicable law (including the requirements of the Fair Labor Standards Act) and will maintain current rent payments (within applicable grace periods provided for in leases) at all locations at which any Inventory is maintained or stored stored. (e) If any Inventory is in transit to the United States and is intended by any Borrower to be Eligible In-Transit Inventory, then, with respect to such Inventory: (i) all Bills of Lading and other than documents of title in respect of such Inventory shall comply with the Razorback Locationrequirements of the definition of Eligible In-Transit Inventory; (ii) without limiting any other rights of Lender hereunder, but only while an Event of Default exists, Lender shall have the right to endorse and negotiate on behalf of, and as attorney-in-fact for, each Borrower any Bxxx of Lading or other document of title with respect to such Inventory to Lender or to such other Person as Lender may elect; and (iii) there shall be up to three (3) originals of each such Bxxx of Lading or other document of title which, unless and until Lender shall direct otherwise, shall be delivered as follows: (A) one original to such customs broker as such Borrower may specify (so long as the landlord Lender has received an Imported Goods Agreement duly executed and delivered by such Customs Broker), and (B) all other originals to Lender or to such other Person as Lender may designate for such premises permits purpose. (f) Borrowers shall pay in a timely manner all rentapplicable duties, freight, charges and like fees and other charges to accrueof the United States Customs Service, does not demand payment of any portion thereofcustoms brokers, shippers, freight forwarders, carriers and has executed a Lien Waiver/Access Agreement acceptable to Lender)warehousemen.

Administration of Inventory. (a) Borrower shall keep accurate and complete records of its Inventory (including records showing the cost thereof and daily withdrawals therefrom and additions thereto) and shall furnish Lender Administrative Agent on or before the 20th day of each month inventory reports respecting such Inventory in form and detail reasonably satisfactory to Lender Agents as of the last day of the preceding month, oror at such other times as Agents may reasonably request, at any time a but so long as no Default or Event of Default has occurred and is continuing, at such other times as Lender may reasonably request (but in such caseexists, no more frequently than once each week)month. Borrower shall, at its own expense, conduct auditor-approved cycle counts a physical inventory no less frequently than annually (and on a more frequent basis if requested by Lender Agents when an Event of Default exists) and additional periodic cycle counts consistent with Borrower's historical practices, shall provide Lender prior written notice of the conduct of an auditor-approved cycle count, practices and shall provide to Lender Administrative Agent a report based on each such auditor-approved cycle count physical inventory and other cycle count promptly after completion thereof, together with such supporting information as Lender Agents shall reasonably request. Lender Agents may participate in and observe each physical countcount or inventory, which participation by the Administrative Agent shall be at Borrower' expense at any time that an Event of Default exists. (b) Borrower shall not return any of its Inventory to a supplier or vendor thereof, or any other Person, whether for cash, credit against future purchases or then existing payables, or otherwise, unless (i) such return is in the Ordinary Course of Business of Borrower and such Person; (ii) no Default or Event of Default exists or would result therefrom; (iii) the return of such Inventory will not result in an Overadvance; (iv) Borrower promptly notifies Lender the Administrative Agent thereof if the aggregate value of all Inventory returned in any month exceeds the amount shown on Item 13(a) of the Terms Schedule$200,000; and (v) any payments received by Borrower in connection with any such return are either received by Borrower in the Collections Account or, promptly turned over to Administrative Agent for application to the extent not received therein, promptly deposited by Borrower in the Collections Account in accordance with Section 2.7Obligations. (c) Borrower shall not acquire or accept any Inventory on consignment or approval and will use its best efforts to insure that all Inventory that is produced in the United States of America will be produced in accordance with the Fair Labor Standards Act. Borrower shall not sell or deliver any Inventory to any customer on approval or any other basis upon which the customer has a right to return or obligates Borrower to repurchase such Inventory, other than the granting of customary warranties and rights of inspection. (d) Borrower shall produce, use, store and maintain all Inventory with all reasonable care and caution in accordance with applicable standards of any insurance and in conformity with applicable law (including the requirements of the Fair Labor Standards Act) and will maintain current rent payments (within applicable grace periods provided for in leases) at all locations at which any Inventory is maintained or stored (other than the Razorback Location, but only as long as the landlord for such premises permits all rent, fees and other charges to accrue, does not demand payment of any portion thereof, and has executed a Lien Waiver/Access Agreement acceptable to Lender)stored.