Common use of Field Audits Clause in Contracts

Field Audits. Borrower shall, and shall cause the Guarantor to, allow Lender to conduct a field examination of the assets and records of each Credit Party, the results of which must be satisfactory to Lender in Lender’s sole and absolute discretion. In the event that the results of the field examination are not satisfactory to the Lender in Lender’s sole and absolute discretion, Borrower shall be permitted ten (10) Business Days to cure such unsatisfactory condition. Such field examinations shall be at Borrower’s expense at a fee equal to Two Thousand and No/100 United States Dollars (US$2,000) per field examination and no more than four (4) field examinations shall occur per calendar year so long as no Event of Default has occurred and is continuing. The foregoing notwithstanding, (i) from and after the occurrence and during the continuation of an Event of Default or any event which with notice, lapse of time or both would become an Event of Default, or (ii) in the event that the Borrower’s cash flow indicates more than a fifteen percent (15%) reduction from the previous month pursuant to the monthly financial statements, Lender may conduct field examinations in its sole discretion and such costs shall be at the sole expense of Borrower.

Field Audits. Borrower shall, and shall cause the Guarantor Guarantors to, allow Lender to conduct a field examination of the assets and records of each Credit Party, the results of which must be satisfactory to Lender in Lender’s sole and absolute discretion. In the event that the results of the field examination are not satisfactory to the Lender in Lender’s sole and absolute discretion, Borrower shall be permitted ten (10) Business Days to cure such unsatisfactory condition. Such field examinations shall be at Borrower’s expense at a fee equal to Two expense, provided, however, that Borrower shall not be liable for more than One Thousand and No/100 United States Dollars (US$2,0001,000) per field examination and no more than four two (42) field examinations per year shall occur per calendar year so long as no Event of Default has occurred and is continuing. The foregoing notwithstanding, (i) from and after the occurrence and during the continuation of an Event of Default or any event which with notice, lapse of time or both would become an Event of Default, or (ii) in the event that the Borrower’s cash flow indicates more than a fifteen percent (15%) reduction from the previous month pursuant to the monthly financial statements, Lender may conduct field examinations in its sole discretion and such costs shall be at the sole expense of Borrower.

Field Audits. Borrower shall, and shall cause the Guarantor to, allow Lender to conduct a field examination of the assets and records of each Credit Partythe Borrower, the results of which must be satisfactory to Lender in Lender’s sole and absolute discretion. In the event that the results of the field examination are not satisfactory to the Lender in Lender’s sole and absolute discretion, Borrower shall be permitted ten (10) Business Days to cure such unsatisfactory condition. Such field examinations shall be at Borrower’s expense at a fee equal to Two Thousand Seven Hundred Fifty and No/100 United States Dollars (US$2,000750) per field examination and no more than four (4) field examinations shall occur per calendar year so long as no Event of Default has occurred and is continuing. The foregoing notwithstanding, (i) from and after the occurrence and during the continuation of an Event of Default or any event which with notice, lapse of time or both would become an Event of Default, or (ii) in the event that the Borrower’s cash flow indicates more than a fifteen percent Fifteen Percent (15%) reduction from the previous month pursuant to the monthly financial statements, Lender may conduct field examinations in its sole discretion and such costs shall be at the sole expense of Borrower.