Common use of Interim Redetermination Clause in Contracts

Interim Redetermination. In addition to the Borrowing Base and the Monthly Commitment Reduction redeterminations provided for in Section 2.02(b), Lender may, in its sole discretion and based on such information as Lender deems relevant (but in accordance with Section 2.02(d)), make two additional redeterminations of the Borrowing Base and the Monthly Commitment Reduction for the first year following the Closing Date and one additional redetermination of the Borrowing Base and the Monthly Commitment Reduction during each subsequent year. Furthermore, Lender shall, at the request of Borrowers, and based on such information as Lender deems relevant (but in accordance with Section 2.02(d)), make one additional unscheduled redetermination of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations, and, at the further request of Borrowers, Lender may (but is not obligated to) make additional unscheduled redeterminations of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations. The party requesting the redetermination shall give the other party at least 10 days’ prior written notice that a redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) is to be performed. In connection with any redetermination of the Borrowing Base and the Monthly Commitment Reduction under this Section 2.02(c), Borrowers shall provide Lender with such information regarding each Borrower’s business (including, without limitation, its Borrowing Base Oil and Gas Properties, the Proved Reserves, and production relating thereto) as Lender may reasonably request, including an updated Engineering Report. Lender shall as soon as reasonably practical notify Borrowers in writing of each redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) and the amount of the Borrowing Base and the Monthly Commitment Reduction as so redetermined.

Interim Redetermination. In addition 1. Tenant shall notify Landlord within seven (7) days of any of the following changes: a. any household member, as set forth in paragraph 2 of this Lease, moves from the Leased Premises; b. an adult member of the household previously reported as unemployed on the most recent certification or recertification obtains employment; c. the cumulative household income increases by $200 or more per month; or d. provide to Landlord any letter or other notice by HUD which was sent or delivered to Tenant or a member of the Borrowing Base and Tenant’s household that provides information concerning the Monthly Commitment Reduction redeterminations provided for in Section 2.02(b)amount or verification of the Tenant’s household income, Lender may, in its sole discretion and based on such information as Lender deems relevant (but in accordance with Section 2.02(d))HUD requirements. 2. Tenant may report any decrease in income or any change in other factors considered in calculating the Tenant Rent. Unless Landlord has confirmation that the decrease in income or change in other factors will last less than one (1) month, Landlord shall verify the information and make the appropriate reduction in Tenant Rent. However, if Tenant's income will be partially or fully restored within two additional redeterminations (2) months, Landlord may delay the certification process until the new income is known, but any Tenant Rent reduction shall be retroactive and Landlord may not evict Tenant for nonpayment of Tenant Rent due during the period of the Borrowing Base reported decrease and the Monthly Commitment Reduction completion of the certification process. Tenant has thirty (30) days after receiving written notice of any rent due for this time period to pay the Tenant Rent or the Landlord may evict Tenant for non-payment of Tenant Rent. 3. Except as provided below, Landlord shall provide Tenant a thirty (30) day written notice of any increase in Tenant Rent based on interim changes. The increase in Tenant Rent shall be effective on the first year (1st) day of the first (1st) month following the Closing Date and one additional redetermination thirty (30) day notice period. Decreases in Tenant Rent based on interim changes shall be effective on the first (1st) day of the Borrowing Base first (1st) month after Tenant notifies Landlord of the change leading to the decrease. 4. If Tenant fails or refuses to timely report any interim change required above, Landlord may increase the Tenant Rent to the HUD-approved Contract Rent. 5. Tenant may request a meeting with Landlord to discuss any change in Tenant Rent or the Tenant Assistance Payment resulting from the interim redetermination process, in which case Landlord shall meet with Tenant and discuss how Tenant Rent and the Monthly Commitment Reduction during each subsequent year. Furthermore, Lender shall, at the request of Borrowers, and based on such information as Lender deems relevant (but in accordance with Section 2.02(d)), make one additional unscheduled redetermination of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations, and, at the further request of Borrowers, Lender may (but is not obligated to) make additional unscheduled redeterminations of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations. The party requesting the redetermination shall give the other party at least 10 days’ prior written notice that a redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) is to be performed. In connection with any redetermination of the Borrowing Base and the Monthly Commitment Reduction under this Section 2.02(c), Borrowers shall provide Lender with such information regarding each Borrower’s business (including, without limitation, its Borrowing Base Oil and Gas Properties, the Proved Reserves, and production relating thereto) as Lender may reasonably request, including an updated Engineering Report. Lender shall as soon as reasonably practical notify Borrowers in writing of each redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) and the amount of the Borrowing Base and the Monthly Commitment Reduction as so redeterminedTenant Assistance Payment were calculated.

Interim Redetermination. In addition 1. Tenant shall notify Landlord within seven (7) days of any of the following changes: a. any household member, as set forth in paragraph 2 of this Lease, moves from the Leased Premises; b. an adult member of the household previously reported as unemployed on the most recent certification or recertification obtains employment; c. the cumulative household income increases by $200 or more per month; or d. provide to Landlord any letter or other notice by HUD which was sent or delivered to Tenant or a member of Tenant’s household that provides information concerning the Borrowing Base and the Monthly Commitment Reduction redeterminations provided for in Section 2.02(b)amount or verification of Tenant’s household income, Lender may, in its sole discretion and based on such information as Lender deems relevant (but in accordance with Section 2.02(d))HUD requirements. 2. Tenant may report any decrease in income or any change in other factors considered in calculating the Tenant Rent. Unless Landlord has confirmation that the decrease in income or change in other factors will last less than one (1) month, Landlord shall verify the information and make the appropriate reduction in Tenant Rent. However, if Tenant's income will be partially or fully restored within two additional redeterminations (2) months, Landlord may delay the certification process until the new income is known, but any Tenant Rent reduction shall be retroactive and Landlord may not evict Tenant for nonpayment of Tenant Rent due during the period of the Borrowing Base reported decrease and the Monthly Commitment Reduction completion of the certification process. Tenant has thirty (30) days after receiving written notice of any rent due for this time period to pay the Tenant Rent or Landlord may evict Tenant for non-payment of Tenant Rent. 3. Except as provided below, Landlord shall provide Tenant a thirty (30) day written notice of any increase in Tenant Rent based on interim changes. The increase in Tenant Rent shall be effective on the first year (1st) day of the first (1st) month following the Closing Date and one additional redetermination thirty (30) day notice period. Decreases in Tenant Rent based on interim changes shall be effective on the first (1st) day of the Borrowing Base first (1st) month after Tenant notifies Landlord of the change leading to the decrease. 4. If Tenant fails or refuses to timely report any interim change required above, Landlord may increase the Tenant Rent to the HUD-approved Contract Rent. 5. Tenant may request a meeting with Landlord to discuss any change in Tenant Rent or the Tenant Assistance Payment resulting from the interim redetermination process, in which case Landlord shall meet with Tenant and discuss how Tenant Rent and the Monthly Commitment Reduction during each subsequent year. Furthermore, Lender shall, at the request of Borrowers, and based on such information as Lender deems relevant (but in accordance with Section 2.02(d)), make one additional unscheduled redetermination of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations, and, at the further request of Borrowers, Lender may (but is not obligated to) make additional unscheduled redeterminations of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations. The party requesting the redetermination shall give the other party at least 10 days’ prior written notice that a redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) is to be performed. In connection with any redetermination of the Borrowing Base and the Monthly Commitment Reduction under this Section 2.02(c), Borrowers shall provide Lender with such information regarding each Borrower’s business (including, without limitation, its Borrowing Base Oil and Gas Properties, the Proved Reserves, and production relating thereto) as Lender may reasonably request, including an updated Engineering Report. Lender shall as soon as reasonably practical notify Borrowers in writing of each redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) and the amount of the Borrowing Base and the Monthly Commitment Reduction as so redeterminedTenant Assistance Payment were calculated.

Interim Redetermination. In addition 1. Tenant shall notify Landlord within seven (7) days of any of the following changes: a. any household member, as set forth in paragraph 2 of this Lease, moves from the Leased Premises; b. an adult member of the household previously reported as unemployed on the most recent certification or recertification obtains employment; c. the cumulative household income increases by $200 or more per month; or d. provide to Landlord any letter or other notice by HUD which was sent or delivered to Tenant or a member of the Borrowing Base and Tenant’s household that provides information concerning the Monthly Commitment Reduction redeterminations provided for in Section 2.02(b)amount or verification of the Tenant’s household income, Lender may, in its sole discretion and based on such information as Lender deems relevant (but in accordance with Section 2.02(d))HUD requirements. 2. Tenant may report any decrease in income or any change in other factors considered in calculating the Tenant Rent. Unless Landlord has confirmation that the decrease in income or change in other factors will last less than one (1) month, Landlord shall verify the information and make the appropriate reduction in Tenant Rent. However, if Tenant's income will be partially or fully restored within two additional redeterminations (2) months, Landlord may delay the certification process until the new income is known, but any Tenant Rent reduction shall be retroactive and Landlord may not evict Tenant for nonpayment of Tenant Rent due during the period of the Borrowing Base reported decrease and the Monthly Commitment Reduction completion of the certification process. Tenant has thirty (30) days after receiving written notice of any rent due for this time period to pay the Tenant Rent or the Landlord may evict Tenant for non-payment of Tenant Rent. 3. Except as provided below, Landlord shall provide Tenant a thirty (30) day written notice of any increase in Tenant Rent based on interim changes. The increase in Tenant Rent shall be effective on the first year (1st) day of the first (1st) month following the Closing Date and one additional redetermination thirty (30) day notice period. Decreases in Tenant Rent based on interim changes shall be effective on the first (1st) day of the Borrowing Base first (1st) month after Tenant notifies Landlord of the change leading to the decrease. 4. If Tenant fails or refuses to timely report any interim change required above, Landlord may increase the Tenant Rent to the HUD-approved Contract Rent. 5. Tenant may request a meeting with ▇▇▇▇▇▇▇▇ to discuss any change in Tenant Rent or the Tenant Assistance Payment resulting from the interim redetermination process, in which case Landlord shall meet with Tenant and discuss how Tenant Rent and the Monthly Commitment Reduction during each subsequent year. Furthermore, Lender shall, at the request of Borrowers, and based on such information as Lender deems relevant (but in accordance with Section 2.02(d)), make one additional unscheduled redetermination of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations, and, at the further request of Borrowers, Lender may (but is not obligated to) make additional unscheduled redeterminations of the Borrowing Base and the Monthly Commitment Reduction during each period between scheduled redeterminations. The party requesting the redetermination shall give the other party at least 10 days’ prior written notice that a redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) is to be performed. In connection with any redetermination of the Borrowing Base and the Monthly Commitment Reduction under this Section 2.02(c), Borrowers shall provide Lender with such information regarding each Borrower’s business (including, without limitation, its Borrowing Base Oil and Gas Properties, the Proved Reserves, and production relating thereto) as Lender may reasonably request, including an updated Engineering Report. Lender shall as soon as reasonably practical notify Borrowers in writing of each redetermination of the Borrowing Base and the Monthly Commitment Reduction pursuant to this Section 2.02(c) and the amount of the Borrowing Base and the Monthly Commitment Reduction as so redeterminedTenant Assistance Payment were calculated.