ANY PROCEEDING FOR SUCH PURPOSE.
SECTION 7.
COLLATERAL REPORTING AND COVENANTS
7.1
COLLATERAL REPORTING.
(A)
BORROWERS SHALL PROVIDE AGENT WITH THE FOLLOWING
DOCUMENTS IN A FORM SATISFACTORY TO AGENT IN GOOD FAITH:
(I)
AS SOON AS POSSIBLE AFTER THE END OF EACH WEEK (BUT IN
ANY EVENT BY THE CLOSE OF BUSINESS ON THE FOURTH (4TH) BUSINESS DAY AFTER THE
END THEREOF), ON A WEEKLY BASIS OR MORE FREQUENTLY AS AGENT MAY REQUEST AT ANY
TIME THAT EXCESS AVAILABILITY IS LESS THAN $7,500,000 OR A DEFAULT OR EVENT OF
DEFAULT EXISTS OR HAS OCCURRED AND IS CONTINUING, A BORROWING BASE CERTIFICATE
SETTING FORTH THE CALCULATION OF THE BORROWING BASE AS OF THE LAST BUSINESS DAY
OF THE IMMEDIATELY PRECEDING PERIOD, DULY COMPLETED AND EXECUTED BY THE VICE
PRESIDENT-FINANCE, CHIEF FINANCIAL OFFICER, TREASURER, ASSISTANT TREASURER,
CONTROLLER OR OTHER FINANCIAL OR SENIOR OFFICER OF HAYNES PARENT, TOGETHER WITH
ALL SCHEDULES REQUIRED PURSUANT TO THE TERMS OF THE BORROWING BASE CERTIFICATE
DULY COMPLETED (INCLUDING A SCHEDULE OF ALL ACCOUNTS CREATED, COLLECTIONS
RECEIVED AND CREDIT MEMOS ISSUED FOR EACH DAY OF THE IMMEDIATELY PRECEDING
PERIOD);
66
(II)
AS SOON AS POSSIBLE AFTER THE END OF EACH MONTH (BUT IN
ANY EVENT WITHIN TWELVE (12) BUSINESS DAYS AFTER THE END THEREOF), ON A MONTHLY
BASIS OR MORE FREQUENTLY AS AGENT MAY REASONABLY REQUEST, (A) PERPETUAL
INVENTORY REPORTS, (B) INVENTORY REPORTS BY LOCATION AND CATEGORY (AND INCLUDING
THE AMOUNTS OF INVENTORY AND THE VALUE THEREOF AT ANY LEASED LOCATIONS AND AT
PREMISES OF WAREHOUSES, PROCESSORS OR OTHER THIRD PARTIES), (C) AGINGS OF
ACCOUNTS RECEIVABLE (INCLUDING AN AGING BY DUE DATE AND TOGETHER WITH A
RECONCILIATION TO THE PREVIOUS MONTH'S AGING AND GENERAL LEDGER), AND (D) AGINGS
OF ACCOUNTS PAYABLE (AND INCLUDING INFORMATION INDICATING THE AMOUNTS OWING TO
OWNERS AND LESSORS OF LEASED PREMISES, WAREHOUSES, PROCESSORS AND OTHER THIRD
PARTIES FROM TIME TO TIME IN POSSESSION OF ANY COLLATERAL);
(III)
UPON AGENT'S REASONABLE REQUEST, (A) COPIES OF CUSTOMER
STATEMENTS, PURCHASE ORDERS, SALES INVOICES, CREDIT MEMOS, REMITTANCE ADVICES
AND REPORTS, AND COPIES OF DEPOSIT SLIPS AND BANK STATEMENTS, (B) COPIES OF
SHIPPING AND DELIVERY DOCUMENTS, AND (C) COPIES OF PURCHASE ORDERS, INVOICES AND
DELIVERY DOCUMENTS FOR INVENTORY AND EQUIPMENT ACQUIRED BY ANY BORROWER; AND
(IV)
SUCH OTHER REPORTS AS TO THE COLLATERAL AS AGENT SHALL
REASONABLY REQUEST FROM TIME TO TIME.
(B)
NOTHING CONTAINED IN ANY BORROWING BASE CERTIFICATE SHALL
BE DEEMED TO LIMIT, IMPAIR OR OTHERWISE AFFECT THE RIGHTS OF AGENT OR ANY LENDER
CONTAINED HEREIN AND IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN THE
CALCULATION OF A BORROWING BASE AS SET FORTH IN ANY BORROWING BASE CERTIFICATE
AND AS DETERMINED BY AGENT IN GOOD FAITH, THE REASONABLE DETERMINATION OF AGENT
SHALL GOVERN AND BE CONCLUSIVE AND BINDING UPON BORROWERS, ABSENT MANIFEST
ERROR.
WITHOUT LIMITING THE FOREGOING, BORROWERS SHALL FURNISH TO AGENT ANY
INFORMATION WHICH AGENT MAY REASONABLY REQUEST REGARDING THE DETERMINATION AND
CALCULATION OF ANY OF THE AMOUNTS SET FORTH IN ANY BORROWING BASE CERTIFICATE.
(C)
IF EACH BORROWER'S RECORDS OR REPORTS OF