Administration of Inventory Sample Clauses

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 Administrative Agent on or before the 20th day of each month inventory reports respecting such Inventory in form and detail satisfactory to Agents as of the last day of the preceding month, or at such other times as Agents may reasonably request, but so long as no Default or Event of Default exists, no more frequently than once each month. Borrower shall, at its own expense, conduct a physical inventory no less frequently than annually (and on a more frequent basis if requested by Agents when an Event of Default exists) and periodic cycle counts consistent with Borrower's historical practices and shall provide to Administrative Agent a report based on each such physical inventory and cycle count promptly after completion thereof, together with such supporting information as Agents shall reasonably request. Agents may participate in and observe each physical count 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 the Administrative Agent thereof if the aggregate value of all Inventory returned in any month exceeds $200,000; and (v) any payments received by Borrower in connection with any such return are promptly turned over to Administrative Agent for application to the Obligations. (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. (d) Borrower shall produce, use, store and maintain all Inventory with all reasonable care and caution in accordance...