Common use of Right to Audit and Inspect Clause in Contracts

Right to Audit and Inspect. In order to verify the validity of any Borrowing Base Certificate, Borrower shall, upon the request of Capital, promptly furnish Capital with copies of Borrower's financial and business records, as well as any information which has been provided by Contract Debtors to Borrower, and Borrower shall warrant the genuineness thereof. For each twelve (12) month period commencing on the date of this Agreement, Capital shall have the right to conduct four (4) periodic audits of the Collateral and Borrower's financial condition at Borrower's expense; provided, however, that Capital may conduct additional audits, at Capital's own expense so long as no Event of Default shall have occurred, during each such twelve (12) month period. Borrower shall pay to Capital as an audit fee Six Hundred Fifty Dollars ($650) per auditor, per day for each audit in connection with the first four (4) audits during each twelve (12) month period, as well as in connection with any audits conducted following an Event of Default and the amount charged shall be deemed included in the "Obligations" when incurred. The maximum audit fees shall not apply to (i) the preliminary audit conducted prior to the date of this Agreement; and (ii) the travel expenses reasonably incurred by Capital in connection with each audit. Borrower shall reimburse Capital for all such travel expenses. Capital will invoice Borrower for such audit fees and travel expenses and Borrower shall pay to Capital the full amount of such costs and expenses within fifteen (15) calendar days from the date of invoice.