Common use of Borrowing Base and Compliance Clause in Contracts

Borrowing Base and Compliance. Pursuant to the Loan Documents, Lender has been granted a lien on all Accounts of Borrower. The amounts, calculations and representations set forth below and on Schedule 1 are true and correct in all respects and were determined in accordance with the Loan Agreement and GAAP. All of the Accounts referred to (other than those entered as ineligible on Schedule 1) are Eligible Accounts. Attached are reports with detailed aging and categorizing of Borrower’s accounts receivable and payables and supporting documentation with respect to the amounts, calculation and representations set forth on Schedule 1, all as reasonably requested by Lender pursuant to the Loan Agreement.