Common use of Borrowing Base Increases Clause in Contracts

Borrowing Base Increases. As a condition precedent to Borrower’s acceptance of (and to the effectiveness of) any increase to the Borrowing Base determined by the Lenders pursuant to Section 2.9, Borrower will pay to Administrative Agent for the account of each Lender, a Borrowing Base increase fee in an amount to be mutually agreed upon by the Lenders and Borrower based on then prevailing market conditions. The Borrowing Base will not be increased and no Borrowing Base increase fee will be incurred with respect to any proposed increase in the Borrowing Base unless Borrower delivers to Administrative Agent written notice that Borrower accepts the proposed increase (or a portion thereof) and confirms the amount of the Borrowing Base increase fee mutually agreed upon by the Lenders and the Borrower.