Common use of Management of Inventory Clause in Contracts

Management of Inventory. RSP shall maintain and manage the SGI Defective Product inventory, shall perform and submit monthly cycle counts of such inventory, and shall perform an annual physical inventory if required thereof, the results of which SGI may audit at its discretion, at no additional charge to SGI. (Cycle count procedure is governed by Exhibit E). No separate inventory carrying costs or handling fees will be incurred by SGI for SGI Defective Inventory held at RSP’s site.