Reporting Covenant Clause Samples

Reporting Covenant. So long as any Guaranteed Obligations shall remain unsatisfied or any Lender shall have any Commitment, each Guarantor agrees that it shall furnish to the Administrative Agent such information respecting the operations, properties, business or condition (financial or otherwise) of such Guarantor or its Subsidiaries as the Administrative Agent, at the request of any Guaranteed Party, may from time to time reasonably request.

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly financial statements Quarterly within 45 days Yes No Annual (CPA Audited) FYE within 90 days Yes No 10-Q, 10-K and 8-K Within 5 days after filing with SEC Yes No A/R Agings Monthly within 20 days Yes No

Reporting Covenant. Required Complies --------------------------------------- ------------------------------- ------------------ Monthly financial statements + CC Monthly within 45 days Yes No Annual (Audited) FYE within 120 days Yes No A/R & A/P Agings* Monthly within 20 days Yes No A/R Audit Initial and Semi-Annual Yes No Borrowing Base Certificate* Monthly within 20 days Yes No *at such times as outstandings exist and prior to any disbursement if no outstandings exist Financial Covenant Required Actual Complies --------------------------------------- ----------------------- ------------- --------------- Maintain on a Monthly Basis: Minimum Quick Ratio 1.50:1.00 ____:1.00 Yes No Minimum Tangible New Work $1,500,000 plus $_______ Yes No 50% of new equity Maximum Debt/Tangible New Worth 1.00:1.00 ____:1.00 Yes No Profitability: beginning 9/30/98 Quarterly $_______ Yes No and thereafter Losses not to exceed: $500,000 for the three (3) months ending Yes No 3/31/98; and $200,000 for the three (3) months ending 6/30/98 Comments Regarding Exceptions: See Attached ----------------------------------- | BANK USE ONLY | Sincerely, | ------------- | | | | Received By: | CLARENT CORPORATION | -------------------- | | Authorized Signature | | Date: | __________________________________ | ---------------------- | Signature | Verified | | -------------------- | | Authorized Signature | __________________________________ | Date: | Title | ----------------------- | | Compliance Status: Yes No | ----------------------------------- __________________________________ Date SILICON VALLEY BANK PRO FORMA INVOICE FOR LOAN CHARGES BORROWER: CLARENT CORPORATION LOAN OFFICER: ▇▇▇▇▇ ▇▇▇▇ DATE: May 22, 1998 Revolving Loan Fee $12,000.00 Credit Report 35.00 UCC Search Fee 150.00 UCC Filing Fee 40.00 Intellectual Property Filing Fees 550.00 TOTAL FEE DUE $12,775.00 ------------- ========== Please indicate the method of payment:

Reporting Covenant. (a) Unless the Company has filed the financial statements referred to in (i) and (ii) below with the Commission in accordance with Section 1.11(b), the Company shall post on its public website: (i) Within 110 days after the end of each fiscal year, the Company’s audited annual financial statements, together with the related report of the Company’s independent auditors thereon, prepared in accordance with the requirements that would be applicable to such audited annual financial statements if appearing in an annual report on Form 10-K filed by the Company as a non-accelerated filer (within the meaning of Rule 12b-2 under the Exchange Act) subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, or any successor or comparable form; and (ii) Within 55 days after the end of each of the first three fiscal quarters of each fiscal year, the Company’s unaudited interim financial statements, prepared in accordance with the requirements that would be applicable to such unaudited interim financial statements if appearing in a quarterly report on Form 10-Q filed by the Company as a non-accelerated filer (within the meaning of Rule 12b-2 under the Exchange Act) subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, or any successor or comparable form. (b) For so long as the Company is subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act, the Company shall file with the Trustee and make available to the holders of the Securities (without exhibits), without cost to any holder, copies of all documents that the Company files with, or furnishes to, the Commission under the Exchange Act, within 15 days after the Company files them with, or furnishes them to, the Commission. Any such documents that are publicly available through the E▇▇▇▇ system of the Commission (or any successor system) shall be deemed to have been filed with the Trustee and made available to holders in accordance with the Company’s obligations under this Section 1.11. If at any time the Company is not subject to Section 13 or Section 15(d) of the Exchange Act, and to the extent not satisfied by the foregoing, the Company will make available to the holders of the Securities and to prospective investors, for so long as any Securities are outstanding, in accordance with the rules and regulations prescribed from time to time by the Commission, such information as may be required pursuant to Rule 144A(d)(4) o...

Reporting Covenant. Commercially reasonable and customary reporting covenant for a financing of this type, which shall require CPC to deliver, without limitation, annual audited financial statements, quarterly unaudited financial statements, annual projections, quarterly management discussion and analysis (others to be mutually agreed).

Reporting Covenant. Required Financial Covenant Required

Reporting Covenant. As long as the Investors own Registrable Shares, the Parent, at all times while it shall be reporting under the U.S. Exchange Act, covenants to use commercially reasonable efforts to file timely (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Parent pursuant to Sections 13(a) or 15(d) of the U.S. Exchange Act.

Reporting Covenant. REQUIRED COMPLIES ------------------ -------- --------

Reporting Covenant. Required Complies ------------------ -------- -------- Quarterly financial statements Quarterly within 45 days Yes No Quarterly Backlog Report Quarterly within 45 days Yes No Annual CPA Audited FYE within 120 days Yes No 10Q and 10K Within 5 days of filing Yes No Borrowing Base, A/R & A/P Agings Monthly within 30 days Yes No A/R Audit Initial and Semi-Annual Yes No Financial Covenant Required Actual Complies ------------------ -------- ------ -------- Maintain on a Quarterly Basis: Minimum Quick Ratio 1.0:1.0 ___:1.0 Yes No Minimum Tangible Net Worth $______1 $______ Yes No Maximum Debt/Tangible Net Worth 1.5:1.0 ___:1.0 Yes No Profitability $______2 $______ Yes No 1 Permitted losses not to exceed: $1,550,000 for quarter ending 3/31/98; $1,500,000 for quarter ending 6/30/98, $1,500,000 for quarter ending 9/30/98; and $1,750,000 for quarter ending 12/31/98. Preliability required for each fiscal quarter thereafter. Comments Regarding Exceptions: See Attached.