Common use of Collateral Audit and Appraisal Fees Clause in Contracts

Collateral Audit and Appraisal Fees. Borrowers shall reimburse Agent, for its sole benefit, for all expenses relating to any collateral assessment, that may be conducted from time to time by or on behalf of Agent, the scope and frequency of which shall be in Agent’s sole discretion (but is generally expected to be conducted no less frequently than two collateral field audits per year and one Inventory appraisal per year); provided that, absent an Event of Default, Borrowers need not reimburse Agent (i) for more than three collateral field audits during a calendar year, or (ii) one Inventory appraisal during a calendar year. The costs and expenses for field audits and appraisals performed by Agent during the absence of an Event of Default shall be as set forth in the Agent Fee Letter.