Common use of Provisions Concerning Inventory Clause in Contracts

Provisions Concerning Inventory. (a) Borrower represents and warrants that each item of Inventory will be valued by Borrower at the lower of cost or market on a FIFO basis. Borrower has informed Bank on Schedule I of all places where Borrower maintains Inventory or has maintained Inventory at any time during the past four months, including, without limitations, facilities leased and operated by Borrower and locations neither owned nor leased by Borrower. Schedule I indicates whether the premises are those of a warehouseman or other party. No Inventory will be removed from the current locations or stored at locations other than the current locations disclosed to Bank on Schedule I, except (i) for the purpose of sale in the ordinary course of Borrower's business or (ii) upon 30 days' written notice to Bank, to such other locations as to which all action required to perfect and protect Bank's lien in such Inventory has been taken. Inventory may be moved from one current location to another. (b) Borrower will keep all Inventory in good order and condition and will maintain full, accurate and complete books and records with respect to Inventory at all times. (c) Except during the continuance of an Event of Default, Borrower may sell Inventory in the ordinary course of its business (which does not include a transfer in full or partial satisfaction of indebtedness). (d) If any Inventory is stored with a bailee, warehouseman or similar party at any time, Borrower so storing such Inventory will inform Bank of that fact and will take all steps requested by Bank so that Bank retains a first priority perfected Lien in those assets. (e) Borrower has not purchased any of the Collateral in a bulk transfer or in a transaction which was outside the ordinary course of the seller's business, except as set forth on an exhibit attached hereto.

Provisions Concerning Inventory. (a) Borrower represents and warrants that each item of Inventory will be valued by Borrower at the lower of cost or market on a FIFO basisbasis for purpose of reporting to the Agent. Borrower has informed Bank Agent on Schedule I of all places where Borrower currently maintains Inventory or has maintained Inventory at any time during the past four months, including, without limitations, facilities leased and operated by Borrower and locations neither owned nor leased by Borrower. Schedule I indicates whether the premises are those of a warehouseman or other party. No Inventory will be removed from the current locations or stored at locations other than the current locations disclosed to Bank Agent on Schedule I, except (i) for the purpose of sale in the ordinary course of Borrower's business or (ii) upon 30 days' written notice to BankAgent, to such other locations as to which all action required to perfect and protect BankAgent's lien in such Inventory has been taken. Inventory may be moved from one current location to another. (ba) Borrower will keep all Inventory in good order and condition and will maintain full, accurate and complete books and records with respect to Inventory at all times. (cb) Except during the continuance of an Event of Default, Borrower may sell Inventory in the ordinary course of its business (which does not include a transfer in full or partial satisfaction of indebtedness). (dc) If any material portion of the Inventory is stored with a bailee, warehouseman or similar party at any time, Borrower so storing such Inventory will inform Bank Agent of that fact and will take all steps reasonably requested by Bank Agent so that Bank Agent retains a first priority perfected Lien in those assets. (ed) Borrower has not purchased any of the Collateral in a bulk transfer or in a transaction which was outside the ordinary course of the seller's business, except as set forth on an exhibit attached hereto.

Provisions Concerning Inventory. (a) Borrower represents and warrants that each item of Inventory will be valued by Borrower at the lower of cost or market on a FIFO basis. Borrower has informed Bank on Schedule I of all places where Borrower maintains Inventory other than machines on lease, repair parts held by field representatives and demo machines loaned to state lotteries or has maintained Inventory other than machines on lease, repair parts held by field representatives and demo machines loaned to state lotteries at any time during the past four months, including, without limitations, facilities leased and operated by Borrower and locations neither owned nor leased by Borrower. Schedule I indicates whether the premises are those of a warehouseman or other party. No Inventory other than machines on lease, repair parts held by field representatives and demo machines loaned to state lotteries will be removed from the current locations or stored at locations other than the current locations disclosed to Bank on Schedule I, except (i) for the purpose of sale or lease in the ordinary course of Borrower's business or (ii) upon 30 days' written notice to Bank, to such other locations as to which all action required to perfect and protect Bank's lien in such Inventory has been taken. Inventory may be moved from one current location to another. (b) Borrower will keep all Inventory (except for obsolete and damaged Inventory no longer necessary for the business of Borrower) in good order and condition and will maintain full, accurate and complete books and records with respect to Inventory at all times. (c) Except during the continuance of an Event of Default, Borrower may sell Inventory in the ordinary course of its business (which does not include a transfer in full or partial satisfaction of indebtedness). (d) If any Inventory is stored with a bailee, warehouseman or similar party at any time, Borrower so storing such Inventory will inform Bank of that fact and will take all steps requested by Bank so that Bank retains a first priority perfected Lien in those assets. (e) Borrower has not purchased any of the Collateral in a bulk transfer or in a transaction which was outside the ordinary course of the seller's business, except as set forth on an exhibit attached hereto.

Provisions Concerning Inventory. (a) Borrower Guarantor represents and warrants that each item of Inventory will be valued by Borrower at the lower of cost or market on a FIFO basis. Borrower has informed Bank on Schedule I of sets forth all places where Borrower Guarantor maintains Inventory or has maintained Inventory at any time during the past four twelve months, including, without limitations, facilities leased and operated by Borrower Guarantor and locations neither owned nor leased by BorrowerGuarantor. Schedule I indicates whether the premises are those of a warehouseman or other party. No Inventory will be removed from the current locations or stored at locations other than the current locations disclosed to Bank Secured Party on Schedule I, except (i) for the purpose of sale in the ordinary course of Borrower's Guarantor’s business or (ii) upon 30 days' ’ prior written notice to BankSecured Party, to such other locations as to which all action required to perfect and protect Bank's Secured Party’s lien in such Inventory has been taken. Inventory may be moved from one current location to another. (b) Borrower Guarantor will keep all Inventory in good order and condition and will maintain full, accurate and complete books and records with respect to Inventory at all times. (c) Except during the continuance of an Event of DefaultDefault and following notice from Secured Party, Borrower Guarantor may sell Inventory in the ordinary course of its business (which does not include a transfer in full or partial satisfaction of indebtednessIndebtedness). (d) If any Inventory is stored with a bailee, warehouseman or similar party at any time, Borrower Guarantor so storing such Inventory will inform Bank Secured Party of that fact and will take all steps requested by Bank Secured Party so that Bank Secured Party retains a first priority perfected Lien in those assets. (e) Borrower Guarantor has not purchased any of the Collateral in a bulk transfer or in a transaction which was outside the ordinary course of the seller's ’s business, except pursuant to the Acquisition or as set forth on an exhibit attached hereto.