Common use of Financial Information; Undisclosed Liabilities Clause in Contracts

Financial Information; Undisclosed Liabilities. (a) Attached hereto as Schedule 4.14 is a copy of the balance sheet of the Company (the "Company's Balance Sheet") as of June 29, 1996 (the "Balance Sheet Date"). The Company's Balance Sheet, together with the books and records of the business of the Company, present fairly in accordance with GAAP the financial condition of the business of the Company as of the Balance Sheet Date. (b) The books of account of the Company reflect all items of income and expense and all assets and liabilities of the business of the Company in accordance with GAAP. (c) The Company has delivered to Buyer a copy of its balance sheets, together with the notes thereto, as of September 30, 1993, 1994 and 1995 and the related statement of operations and retained earnings and of cash flows for the year then ended. Such financial statements, together with the notes thereto, (i) are in accordance with the books and records of the Company, (ii) present fairly the financial condition of the Company as of the date thereof, (iii) present fairly the result of operations of the Company for the periods covered by such statements, (iv) have been prepared in accordance with GAAP by the Accountants and (v) include all adjustments that are necessary for a fair presentation of the financial condition of the Company and the results of the Company's business operations for the periods covered by such statements. (d) To the knowledge of the Company, there are no material liabilities of the Company of any kind whatsoever, whether or not accrued or fixed, absolute or contingent, determined or determinable, known or unknown, other than liabilities (i) reflected on and adequately provided for in the Company's Balance Sheet attached hereto as Schedule 4.14, or (ii) incurred since the Balance Sheet Date in the ordinary course of the operation of the Company's business and not as a result of any violation of law or regulation, or (iii) disclosed in Schedule 4.14. (e) Prior to the date hereof, the Company has satisfied in full its obligation to Applied Magnetics Corporation, which obligation was reflected on the Company's Balance Sheet as a liability of $659,230.00 (the "AMC Obligation").

Financial Information; Undisclosed Liabilities. (a) Attached hereto as Schedule 4.14 is a copy 4.13 are copies of the balance sheet of the Company USC (the "Company's USC Balance Sheet") as of June 29December 31, 1996 1995 (the "Balance Sheet Date"). The Company's Except as disclosed on Schedule 4.13, the USC Balance Sheet, together with the books and records of the business of the CompanyUSC, present fairly in accordance with GAAP and consistently the financial condition of the business of the Company USC as of the Balance Sheet Date. (b) The books of account of the Company USC reflect all items of income and expense and all assets and liabilities of the business of the Company in accordance with GAAPUSC. (c) The Company USC has delivered to Buyer DRS/MS a copy of its balance sheets, together with the notes thereto, as of September 30December 31, 19931992, 1993 and 1994 and 1995 and the related statement of operations and retained earnings and of cash flows for the year then ended. Such Except as disclosed on Schedule 4.13, such financial statements, together with the notes thereto, (i) are in accordance with the books and records of the CompanyUSC, (ii) present fairly and consistently the financial condition of the Company USC as of the date thereof, (iii) present fairly and consistently the result of operations of the Company USC for the periods covered by such statements, and (iv) have been prepared in accordance with GAAP by the Accountants and (v) include all adjustments that are necessary for a fair and consistent presentation of the financial condition of the Company USC and the results of the CompanyUSC's business operations for the periods covered by such statements. (d) To the knowledge of the Company, there There are no material liabilities of the Company USC relating to or involving any Transferred Asset of any kind whatsoever, whether or not accrued or fixed, absolute or contingent, determined or determinable, known or unknown, other than liabilities (i) that comprise part of the Assumed Liabilities, (ii) reflected on and adequately provided for in the Company's USC Balance Sheet attached hereto as Schedule 4.144.13, or (iiiii) incurred since the Balance Sheet Date in the ordinary course of the operation of the Company's business USC and not as a result of any violation of law or regulationregulation which, singly or in the aggregate, are likely to have a Material Adverse Effect, or (iiiiv) disclosed in Schedule 4.144.13. (e) Prior to the date hereof, the Company has satisfied in full its obligation to Applied Magnetics Corporation, which obligation was reflected on the Company's Balance Sheet as a liability of $659,230.00 (the "AMC Obligation").

Financial Information; Undisclosed Liabilities. (a) Attached hereto as Schedule 4.14 is a copy The financial statements of the balance sheet Borrower and its Subsidiaries and, to the best knowledge of the Company (the "Company's Balance Sheet") as of June 29Borrower, 1996 (the "Balance Sheet Date"). The Company's Balance Sheet, together with the books and records of the business of Greens Creek Joint Venture, in each case furnished to the CompanyAdministrative Agent and each Lender pursuant to Section 5.1.4, present fairly in accordance with GAAP the financial condition of the business of the Company as of the Balance Sheet Date. (b) The books of account of the Company reflect all items of income and expense and all assets and liabilities of the business of the Company in accordance with GAAP. (c) The Company has delivered to Buyer a copy of its balance sheets, together with the notes thereto, as of September 30, 1993, 1994 and 1995 and the related statement of operations and retained earnings and of cash flows for the year then ended. Such financial statements, together with the notes thereto, (i) are in accordance with the books and records of the Company, (ii) present fairly the financial condition of the Company as of the date thereof, (iii) present fairly the result of operations of the Company for the periods covered by such statements, (iv) have been prepared in accordance with GAAP by consistently applied, present fairly the Accountants and (v) include all adjustments that are necessary for a fair presentation of the consolidated financial condition of the Company Persons covered thereby as at the dates thereof and the results of the Company's business their operations for the periods then ended, and do not contain any incorrect or misleading statement of a material fact or omit any material fact necessary to make the statements contained herein or therein not misleading as of the date made or deemed made. All balance sheets, all statements of income and of cash flow and all other financial information of each of the Borrower and its Subsidiaries and, to the best knowledge of the Borrower, of the Greens Creek Joint Venture, in each case furnished pursuant to Section 7.1.1, have been and will for periods following the Effective Date be prepared in accordance with GAAP consistently applied with the financial statements delivered pursuant to Section 5.1.4, and do or will present fairly the consolidated financial condition of the Persons covered by such statementsthereby as at the dates thereof and the results of their operations for the periods then ended. (db) To the knowledge of the Company, there There are no material liabilities of any Obligor or, to the Company best knowledge of the Borrower, the Greens Creek Joint Venture, of any kind whatsoever, whether or not accrued or fixedaccrued, absolute determined, determinable or contingent, determined or determinable, known or unknown, other than those liabilities (i) reflected on and adequately provided for or disclosed in the Company's Balance Sheet attached hereto as most recently delivered financial statements or the notes thereto, those liabilities not required under GAAP to be provided for or disclosed in the most recently delivered financial statements or the notes thereto, those liabilities that have been disclosed in the Disclosure Schedule 4.14, or (ii) incurred since the Balance Sheet Date and liabilities arising in the ordinary course of business since the operation date of the Company's business and not as a result of any violation of law or regulation, or (iii) disclosed in Schedule 4.14most recently delivered financial statements. (e) Prior to the date hereof, the Company has satisfied in full its obligation to Applied Magnetics Corporation, which obligation was reflected on the Company's Balance Sheet as a liability of $659,230.00 (the "AMC Obligation").

Financial Information; Undisclosed Liabilities. (a) Attached hereto as Schedule 4.14 is a copy The financial statements of the balance sheet of Borrower and its Subsidiaries, furnished to the Company (the "Company's Balance Sheet") as of June 29Administrative Agent and each Lender pursuant to Section 5.1.6, 1996 (the "Balance Sheet Date"). The Company's Balance Sheet, together with the books and records of the business of the Company, present fairly in accordance with GAAP the financial condition of the business of the Company as of the Balance Sheet Date. (b) The books of account of the Company reflect all items of income and expense and all assets and liabilities of the business of the Company in accordance with GAAP. (c) The Company has delivered to Buyer a copy of its balance sheets, together with the notes thereto, as of September 30, 1993, 1994 and 1995 and the related statement of operations and retained earnings and of cash flows for the year then ended. Such financial statements, together with the notes thereto, (i) are in accordance with the books and records of the Company, (ii) present fairly the financial condition of the Company as of the date thereof, (iii) present fairly the result of operations of the Company for the periods covered by such statements, (iv) have been prepared in accordance with GAAP by consistently applied, present fairly the Accountants and (v) include all adjustments that are necessary for a fair presentation of the consolidated financial condition of the Company Persons covered thereby as at the dates thereof and the results of the Company's business their operations for the periods then ended, and do not contain any incorrect or misleading statement of a material fact or omit any material fact necessary to make the statements contained herein or therein not misleading as of the date made or deemed made. All balance sheets, all statements of income and of cash flow and all other financial information of each of the Borrower and its Subsidiaries furnished pursuant to Section 7.1.1, have been and will for periods following the Effective Date be prepared in accordance with GAAP consistently applied with the financial statements delivered pursuant to Section 5.1.6, and do or will present fairly the consolidated financial condition of the Persons covered by such statementsthereby as at the dates thereof and the results of their operations for the periods then ended. (db) To the knowledge of the Company, there There are no material liabilities of any Obligor or the Company Greens Creek Joint Venture of any kind whatsoever, whether or not accrued or fixedaccrued, absolute determined, determinable or contingent, determined or determinable, known or unknown, other than those liabilities (i) reflected on and adequately provided for or disclosed in the Company's Balance Sheet attached hereto as most recently delivered financial statements or the notes thereto, those liabilities not required under GAAP to be provided for or disclosed in the most recently delivered financial statements or the notes thereto, those liabilities that have been disclosed in the Disclosure Schedule 4.14, or (ii) incurred since the Balance Sheet Date and liabilities arising in the ordinary course of business since the operation date of the Company's business and not as a result of any violation of law or regulation, or (iii) disclosed in Schedule 4.14most recently delivered financial statements. (e) Prior to the date hereof, the Company has satisfied in full its obligation to Applied Magnetics Corporation, which obligation was reflected on the Company's Balance Sheet as a liability of $659,230.00 (the "AMC Obligation").