Common use of Borrowing Base Reduction Clause in Contracts

Borrowing Base Reduction. (a) At the time of any periodic or special redetermination of the Borrowing Base, Lenders reserve the right to establish an amount (the "Monthly Reduction Amount") by which the Borrowing Base shall be automatically reduced effective on the first day of each successive calendar month until the next Borrowing Base redetermination. Lenders' determination of the Monthly Reduction Amount shall be made in accordance with the standards specified in Section 4.01 hereof and the procedures specified in Section 4.04 hereof. Initially, the Monthly Reduction Amount will be set at zero dollars ($0). If the Total Outstandings shall exceed the Borrowing Base solely because of the reduction of the Borrowing Base by the Monthly Reduction Amount, Borrower shall make a single lump sum payment within 30 days of Borrower receiving notice from Lenders in an amount sufficient to reduce the Total Outstandings to or below the Borrowing Base. (b) If any Swap Contract is terminated or not fully performed for any reason, the Borrowing Base shall be reduced by the amount of the Recognized Value given such Swap Contract in the then current Borrowing Base as determined by the Required Lenders in their discretion in accordance with the standards set forth in Section 4.01. Any redetermination pursuant to this Section 4.05(b) shall not be considered a special determination requested by Administrative Agent within the meaning specified in Section 4.03. (c) The Borrowing Base shall be reduced if the aggregate value of Asset Dispositions in any calendar year exceeds 5% of the then existing Borrowing Base as provided in Section 8.05(i). The amount of the reduction shall equal the Recognized Value of the assets included in such Asset Disposition, as determined by Administrative Agent, in the then current Borrowing Base. Any redetermination pursuant to this Section 4.05(c) shall not be considered a special determination requested by Administrative Agent within the meaning of Section 4.03.

Borrowing Base Reduction. (a) At the time of any periodic or special redetermination of the Borrowing Base, Lenders reserve the right to establish an amount (the "“Monthly Reduction Amount"”) by which the Borrowing Base shall be automatically reduced effective on the first day of each successive calendar month until the next Borrowing Base redetermination. Lenders' ’ determination of the Monthly Reduction Amount shall be made in accordance with the standards specified in Section 4.01 hereof and the procedures specified in Section 4.04 hereof. InitiallyAs of the Sixth Amendment Effective Date, the Monthly Reduction Amount will be set at zero dollars (is $0). If the Total Outstandings aggregate Outstanding Amount of Revolving Loans and L/C Obligations shall exceed the Borrowing Base solely because of the reduction of the Borrowing Base by the Monthly Reduction Amount, Borrower shall make a single lump sum payment within 30 days of Borrower receiving notice from Lenders in an amount sufficient to reduce the Total Outstandings aggregate Outstanding Amount of Revolving Loans and L/C Obligations to or below the Borrowing Base. (b) If any Swap Contract is terminated or not fully performed for any reason, the Borrowing Base shall be reduced by the amount of the Recognized Value given such Swap Contract in the then current Borrowing Base as determined by the Required Lenders in their discretion in accordance with the standards set forth in Section 4.01. Any redetermination pursuant to this Section 4.05(b) shall not be considered a special determination requested by Administrative Agent within the meaning specified in Section 4.03.. CREDIT AGREEMENT – Page 55 (c) The Borrowing Base shall be reduced if the aggregate value of Asset Dispositions in any calendar year exceeds 5% of the then existing Borrowing Base as provided in Section 8.05(i). The amount of the reduction shall equal the Recognized Value of the assets included in such Asset Disposition, as determined by Administrative Agent, in the then current Borrowing Base. Any redetermination pursuant to this Section 4.05(c) shall not be considered a special determination requested by Administrative Agent within the meaning of Section 4.03.