Common use of Acknowledgment of Borrower Clause in Contracts

Acknowledgment of Borrower. The Borrower hereby acknowledges receipt of a copy of the foregoing Subordination Agreement, confirms the accuracy of the information set forth in Exhibit A attached hereto and that Exhibit A identifies all of Borrower's existing indebtedness and obligations to Subordinated Creditor, and agree that they will not pay any indebtedness subordinated by the foregoing Subordination Agreement (except as otherwise permitted hereby) until all indebtedness of Borrower to Senior Creditor, its successors and assigns, now existing and hereafter arising shall have been indefeasibly paid in full in cash. In the event of any breach of the provisions of the foregoing Subordination Agreement, Borrower agrees that, in addition to any other rights and remedies Secured Party may have, all of Borrower's obligations and liabilities to Senior Creditor shall, without notice or demand, become immediately due and payable, unless Senior Creditor shall otherwise elect. TEMTEX INDUSTRIES, INC. By:________________________________ Name:______________________________ Title:_____________________________ TEMCO FIREPLACE PRODUCTS, INC. By:________________________________ Name:______________________________ Title:_____________________________ EXHIBIT A SUBORDINATED DEBT AND PERMITTED PAYMENTS ----------------------------------------

Acknowledgment of Borrower. The Borrower hereby acknowledges receipt of a copy of the foregoing Subordination Agreement, confirms the accuracy of the information set forth in Exhibit A attached hereto and that Exhibit A identifies all of Borrower's existing indebtedness and obligations to Subordinated Creditor, and agree that they will not pay any indebtedness subordinated by the foregoing Subordination Agreement (except as otherwise permitted hereby) until all indebtedness of Borrower to Senior Creditor, its successors and assigns, now existing and hereafter arising shall have been indefeasibly paid in full in cash. In the event of any breach of the provisions of the foregoing Subordination Agreement, Borrower agrees that, in addition to any other rights and remedies Secured Party may have, all of Borrower's obligations and liabilities to Senior Creditor shall, without notice or demand, become immediately due and payable, unless Senior Creditor shall otherwise elect. TEMTEX INDUSTRIES, INC. By:________________________________ : /s/ -------------------------------- Name:______________________________ : ------------------------------ Title:_____________________________ : ----------------------------- TEMCO FIREPLACE PRODUCTS, INC. By:________________________________ : /s/ -------------------------------- Name:______________________________ : ------------------------------ Title:_____________________________ : ----------------------------- EXHIBIT A SUBORDINATED DEBT AND PERMITTED PAYMENTS ----------------------------------------