Common use of Optional Reductions of Commitments Clause in Contracts

Optional Reductions of Commitments. (1) The Parent may, subject to the provisions of this Agreement and without penalty or bonus, prepay Accommodations Outstanding under the Credit Facility and/or reduce the Commitment, in each case, in whole or, subject to the next following sentence, in part, upon the number of Business Days’ notice to the Agent specified in Schedule 5 by a notice (a “Payment Reduction Notice”) substantially in the form of Schedule 10, which shall be irrevocable and binding on the Borrowers and which shall specify the proposed date and aggregate principal amount of the prepayment or reduction. In such case, the Borrowers shall pay to the applicable Lenders in accordance with such notice the amount of such prepayment or the amount by which the Accommodations Outstanding under the Credit Facility exceed the proposed reduced Commitment. Each partial prepayment or reduction shall be in a minimum aggregate principal amount of U.S.$500,000 and an integral multiple of U.S.$100,000. Notwithstanding the foregoing, the Parent may permanently reduce the Commitment of a Defaulting Lender in accordance with Section 2.13. (2) Subject to the next following sentence, the Canadian Borrower may not, pursuant to this Section 2.06, prepay the amount of any Drawings, except on the maturity date for the relevant Drawing. The Canadian Borrower may, pursuant to this Section 2.06, prepay the amount of any Drawings by depositing with the Agent the Face Amount of such Drawings to be held by the Agent in a cash collateral account and invested in an interest bearing instrument and irrevocably authorizing and directing the Agent to apply such amount on the maturity date for the relevant Drawing to the repayment of the relevant BA Instrument. Interest on amounts held on deposit by the Agent for such deposits shall be paid to the Canadian Borrower on the maturity date for the relevant Drawing.

Optional Reductions of Commitments. (1) The Parent may, subject to the provisions of this Agreement and without penalty or bonus, prepay Accommodations Outstanding under the Credit Facility and/or reduce the Commitment, in each case, in whole or, subject to the next following sentence, in part, upon the number of Business Days’ notice to the Agent specified in Schedule 5 by a notice (a “Payment Reduction Notice”) substantially in the form of Schedule 1011, which shall be irrevocable and binding on the Borrowers and which shall specify the proposed date and aggregate principal amount of the prepayment or reduction. In such case, the Borrowers shall pay to the applicable Lenders in accordance with such notice the amount of such prepayment or the amount by which the Accommodations Outstanding under the Credit Facility exceed the proposed reduced Commitment. Each partial prepayment or reduction shall be in a minimum aggregate principal amount of U.S.$500,000 and an integral multiple of U.S.$100,000. Notwithstanding the foregoing, the Parent may permanently reduce the Commitment of a Defaulting Lender in accordance with Section 2.13. (2) Subject to the next following sentence, the Canadian Borrower may not, pursuant to this Section 2.06, prepay the amount of any Drawings, except on the maturity date for the relevant Drawing. The Canadian Borrower may, pursuant to this Section 2.06, prepay the amount of any Drawings by depositing with the Agent the Face Amount of such Drawings to be held by the Agent in a cash collateral account and invested in an interest bearing instrument and irrevocably authorizing and directing the Agent to apply such amount on the maturity date for the relevant Drawing to the repayment of the relevant BA Instrument. Interest on amounts held on deposit by the Agent for such deposits shall be paid to the Canadian Borrower on the maturity date for the relevant Drawing.