Common use of Mandatory Reduction Prepayment and Cancellation Clause in Contracts

Mandatory Reduction Prepayment and Cancellation. Total Loss or sale (a) If any of the Rigs are sold or otherwise is disposed of in whole or in part, or suffers a Total Loss, on the Disposal Reduction Date the Revolving Facility Commitment shall be reduced, and the Commercial Facility Loans, any Revolving Facility Loans and the Eksportfinans Loans shall be prepaid with the amount set out opposite the relevant Rig below and otherwise in accordance with Clause 10.6 (Terms and conditions for prepayments/reductions and cancellation): Rig Eksportfinans GIEK Facility Eksportfinans Commercial Facility Commercial Facility Revolving Facility 1. West Gemini $ 220,000,000 $ 22,000,000 $ 88,000,000 $ 198,000,000 2. West Orion $ 225,000,000 $ 22,500,000 $ 90,000,000 $ 202,500,000 3. West Vencedor $ 55,000,000 $ 5,500,000 $ 22,000,000 $ 49,500,000 $ 500,000,000 $ 50,000,000 $ 200,000,000 $ 450,000,000 (b) Notwithstanding the reduction amounts designated for each Rig, it is for the avoidance of doubt understood that the designated amounts set out above are maximum amounts for the relevant Facility and that a mandatory prepayment or reduction following a sale or Total Loss of a Rig shall not exceed the amount which is actually borrowed or made available to the Borrower under the relevant Facility on the applicable Disposal Reduction Date. (c) For the purpose of this Clause 10.1 the following definition shall apply: