Common use of Reports and Inspection Clause in Contracts

Reports and Inspection. (a) So long as a Member has a Sharing Ratio of at least 1%, the Board shall cause to be prepared and delivered to each Member (in the case of the Lenders, to the Class A-II Representative) such reports, forecasts, studies, budgets and other information as the Member (in the case of the Lenders, to the Class A-II Representative) may reasonably request from time to time, including periodic financial statements (not less than quarterly) and access to all operating and financial data provided to the senior lenders of the Company or any Person in the Partnership Group; provided, however, that this Section 11.2 shall not obligate the Company to create any information that does not already exist at the time of such request (other than to convert existing information from one medium to another, such as providing a printout of information that is stored in a computer database). (b) The Company shall permit each of EIG, Tailwater and the Lenders (in the case of the Lenders, acting through the Class A-II Representative) and any other Member that has a Sharing Ratio of at least 10%, at such Member’s expense, to visit and inspect the Company’s properties; examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Member; provided, however, that the Company shall not be obligated pursuant to this Section 11.2(b) to provide access to any information that it reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel. (c) At the request of a Designating Party, the Company will, and will cause its Subsidiaries to, enter into a management rights letter in form and substance satisfactory to such Designating Party and the Company, at the cost and expense of such requesting party.

Reports and Inspection. (a) So long as a Member has a Sharing Ratio of at least 1%, the Board shall cause to be prepared and delivered to each Member (in the case of the Lenders, to the Class A-II Representative) such reports, forecasts, studies, budgets and other information as the Member (in the case of the Lenders, to the Class A-II Representative) may reasonably request from time to time, including periodic financial statements (not less than quarterly) and access to all operating and financial data provided to the senior lenders of the Company or any Person in the Partnership Group; provided, however, that this Section 11.2 shall not obligate the Company to create any information that does not already exist at the time of such request (other than to convert existing information from one medium to another, such as providing a printout of information that is stored in a computer database). (b) The Company shall permit each of EIG, Tailwater and the Lenders (in the case of the Lenders, acting through the Class A-II Representative) and any other Member that has a Sharing Ratio of at least 101%, at such Member’s expense, to visit and inspect the Company’s properties; examine its books of account and records; and discuss the Company’s affairs, finances, and accounts with its officers, during normal business hours of the Company as may be reasonably requested by the Member; provided, however, that the Company shall not be obligated pursuant to this Section 11.2(b) to provide access to any information that it reasonably and in good faith considers to be a trade secret or confidential information (unless covered by an enforceable confidentiality agreement, in form acceptable to the Company) or the disclosure of which would adversely affect the attorney-client privilege between the Company and its counsel. (c) At the request of a Designating Party, the Company will, and will cause its Subsidiaries to, enter into a management rights letter in form and substance satisfactory to such Designating Party and the Company, at the cost and expense of such requesting party.