Common use of Borrowing Base Reduction Clause in Contracts

Borrowing Base Reduction. At the time of any periodic or special redetermination of the Borrowing Base, the Revolving Credit Lenders reserve the right to establish the Monthly Reduction Amount. The Revolving Credit Lenders’ determination of the Monthly Reduction Amount shall be made in accordance with the standards specified in Section 2.9 and the procedures specified in Section 2.9(d). On the Third Amendment Effective Date, the Monthly Reduction Amount initially will be set as follows for each Monthly Reduction Date: Monthly Reduction Date Monthly Reduction Amount February 28, 2020 $ 1,000,000 March 31, 2020 $ 1,000,000 April 30, 2020 $ 2,000,000 May 1, 2020 $ 2,000,000 If the total Aggregate Revolving Credit Exposure of the Revolving Credit Lenders shall exceed the Borrowing Base solely because of the reduction of the Borrowing Base by the Monthly Reduction Amount, Borrower shall, on or prior to the date of such occurrence, make a single lump sum payment in an amount sufficient to reduce the total Aggregate Revolving Credit Exposure of the Revolving Credit Lenders to or below the Borrowing Base. (g) Amendment to Section 7.1(a)(ii) of the Credit Agreement. Section 7.1(a)(ii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows: