Common use of Inspection and Reports Clause in Contracts

Inspection and Reports. Regions, or any inspector designated by Regions may at any time with reasonable notice enter upon any of the Companies’ premises to inspect any Item and all of the Companies’ books and records, insofar as they relate to the Equipment leased or financed hereunder, and to make copies of such books and records, provided that Regions is not obligated to do so and provided, further, that no notice is required if a default or Event of Default shall have occurred and then be continuing. The Companies will deliver to Regions: (a) within forty-five (45) days after the close of each first, second and third quarter of Forbes Energy Services Ltd., the ultimate parent of the Companies (the “Guarantor,” and together with the Companies, the “Loan Parties”), a copy of the Guarantor’s unaudited consolidated quarterly financial statements and such other information as Regions may require from time to time, certified by the Guarantor’s chief financial officer to present fairly in all material respects (subject to footnotes and year-end audit adjustments) the Guarantor’s consolidated financial position and the consolidated results of the Guarantor’s operations at the date and for the periods indicated therein; and (b) within ninety (90) days after the close of each fiscal year of the Guarantor, consolidated year-end financial statements of Guarantor which shall be at Regions’ election either (i) certified and audited by the Guarantor’s certified public accounting firm (the “Approved Accountants”); or (ii) compiled or reviewed by the Approved Accountants. For the purpose of satisfying the Companies obligations under this Section V, the Guarantor’s filing of annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K shall constitute delivery to Regions by the Companies.

Inspection and Reports. Regions, or any inspector designated by Regions may at any time with reasonable notice enter upon any of the Companies’ Company’s premises to inspect any Item Item, all other property of Company and all of the Companies’ Company’s books and records, insofar as they relate to the Equipment leased or financed hereunder, records and to make copies of such books and records, provided that Regions is not obligated to do so and provided, further, that no notice is required if a default or Event of Default shall have occurred and then be continuing. The Companies If requested by Regions, Company will deliver to Regions: (a) within forty-five thirty (4530) days after the close of each first, second and third calendar quarter of Forbes Energy Services Ltd., the ultimate parent of the Companies (the “Guarantor,” and together with the Companies, the “Loan Parties”), Company a copy of the GuarantorCompany’s unaudited consolidated quarterly monthly financial statements statement as of the end of the immediately preceding quarter and such other information as Regions may require from time to time, certified by the GuarantorCompany’s chief financial officer to present fairly in all material respects and accurately represent (subject to footnotes and year-end audit adjustments) the GuarantorCompany’s consolidated financial position condition and the consolidated results of the GuarantorCompany’s operations at the date and for the periods indicated therein; and (b) within ninety (90) days after the close of each fiscal year of the GuarantorCompany, consolidated year-end financial statements of Guarantor Company which shall be at Regions’ election either (i) certified and audited by the Guarantor’s a certified public accounting firm acceptable to Regions (the “Approved Accountants”); or (ii) compiled or reviewed by the Approved Accountants. For If requested by Regions, Company will deliver to Regions for each Guarantor: (A) in the purpose event such Guarantor is an individual (1) annually, upon their filing with the Internal Revenue Service, copies of satisfying such Guarantor’s Federal Income Tax Return, including all attachments and schedules; and (2) at the Companies obligations under same time as the Federal Income Tax Return, a personal financial statement from such Guarantor in form acceptable to Regions; and (B) in the event such Guarantor is not an individual, the same documents and financial information for such Guarantor as is required by this Section V, the Guarantor’s filing of annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K shall constitute delivery to Regions by the CompaniesV for Company.