Common use of Cancellation of a Charter Contract Clause in Contracts

Cancellation of a Charter Contract. (a) Upon a cancellation, termination or otherwise expiration earlier than the originally agreed expiry date of any of the Charter Contracts the Facility shall be reduced by the following amounts (i) for the Charter Contract pertaining to the Rig West Orion, USD 200,000,000 if such cancellation occurs within the 2nd anniversary of 11 June 2010 and USD 150,000,000 thereafter; (ii) for the Charter Contract pertaining to the Rig West Gemini, USD 150,000,000 if such cancellation occurs within the 2nd anniversary of 11 June 2010 and USD 100,000,000 thereafter; and (iii) for the Charter Contract pertaining to the Rig West Vencedor, USD 75,000,000 if such cancellation occurs within the 2nd anniversary of 11 June 2010 and USD 50,000,000 thereafter; on the date falling 180 days after such cancellation, unless a new charter contract with an oil company, on terms acceptable to the Required Lenders, has been entered into and documented to the Lenders prior to such date. (b) The reductions pursuant to Clause 10.3(a) above shall firstly be applied towards any unutilized amount of the Revolving Facility and any remaining amount shall be prepaid in accordance with Clause 10.6 (Terms and conditions for prepayments/reductions and cancellation).