Common use of Factor’s controls and audits Clause in Contracts

Factor’s controls and audits. (a) The Factor shall be entitled at all times to carry audits or financial reviews on each of the French Sellers, by itself or through a third party, in accordance with Clause 4.2(b). The cost of each such audit (except the financial review, which shall be free of charge) is established at three thousand Euros (EUR 3,000), excluding VAT and disbursements. Such costs shall be borne by each relevant French Seller up to an aggregate maximum amount per year of six thousand Euros (EUR 6,000) and in any case to an aggregate amount of thirty thousand Euros (EUR 30,000) for all the French Sellers and, in any amount beyond this limit by the Factor. (b) Each of the French Sellers undertakes to provide its full cooperation to the Factor for the implementation of these audits and controls, as well as for all procedures of issuing circulars to the Debtors on the relevant French Seller’s letterhead, with a view to obtain confirmation from that Debtor on the outstanding amount of their receivables toward such French Seller. In order to preserve the confidentiality of the transactions during the term of the Mandates, these circulars will be addressed on the relevant French Seller’s letterhead. (c) For compliance purposes, subject to Clause 4.2(b) above, the Factor (or its designee) will also be entitled to review, on a random basis, during the two yearly field audits referred to in Clause 4.2(b) above, any and all documents evidencing the existence and validity of the Transferred Receivables including, notably, the related invoices (factures), purchase orders (bans de commande), certificates of transport (bons du transporteur), or expedition certificate (bon d’expédition), or delivery certificate (bon de livraison).

Factor’s controls and audits. (a) The Factor shall be entitled at all times to carry audits or financial reviews on each of the French Sellers, by itself or through a third party, in accordance with Clause 4.2(b). The cost of each such audit (except the financial review, which shall be free of charge) is established at three thousand Euros (EUR 3,000), excluding VAT and disbursements. Such costs shall be borne by each relevant French Seller up to an aggregate maximum amount per year of six thousand Euros (EUR 6,000) and in any case to an aggregate amount of thirty thousand Euros (EUR 30,000) for all the French Sellers and, in any amount beyond this limit by the Factor. (b) Each of the French Sellers undertakes to provide its full cooperation to the Factor for the implementation of these audits and controls, as well as for all procedures of issuing circulars to the Debtors on the relevant French Seller’s letterhead, with a view to obtain confirmation from that Debtor on the outstanding amount of their receivables toward such French Seller. In order to preserve the confidentiality of the transactions during the term of the Mandates, these circulars will be addressed on the relevant French Seller’s letterhead. (c) For compliance purposes, subject to Clause 4.2(b) above, the Factor (or its designee) will also be entitled to review, on a random basis, during the two yearly field audits referred to in Clause 4.2(b) above, any and all documents evidencing the existence and validity of the Transferred Receivables including, notably, the related invoices (factures), purchase orders (bans bons de commande), certificates of transport (bons du transporteur), or expedition certificate (bon d’expédition), or delivery certificate (bon de livraison).