Redetermination Concurrent with Transfer Clause Samples
The "Redetermination Concurrent with Transfer" clause establishes that a reassessment or adjustment of certain contract terms, such as pricing or obligations, will occur simultaneously with the transfer of rights or interests under the agreement. In practice, this means that whenever a party assigns or transfers its stake in the contract to another entity, the relevant terms are reviewed and potentially updated to reflect the new circumstances or parties involved. This clause ensures that the contract remains fair and accurate after a transfer, preventing outdated terms from applying to new parties and thereby maintaining the integrity and balance of the agreement.
Redetermination Concurrent with Transfer. To the extent allowed by Section 9.12, if Borrower Transfers any Property between Scheduled Redetermination Dates with an aggregate fair market value in excess of $500,000, the Borrowing Base shall automatically be reduced upon execution of such Transfer by an amount equal to the Borrowing Base values (as determined by the Majority Lenders in their reasonable discretion) attributed in the immediately preceding determination of the Borrowing Base to the Property which is the subject of such Transfer.
Redetermination Concurrent with Transfer. If Required Lenders shall consent to any sale, transfer, lease, exchange, alienation or other disposition by the Borrower of any assets or properties other than as permitted pursuant to Section 9.5 hereof, and the Borrower shall not use the proceeds thereof within ninety days (90) after the receipt thereof to either (a) acquire Oil and Gas Properties as consented to by Required Lenders, or (b) include such proceeds as an addition to the then Approved Capital and Operating Budget for the purpose of conducting Approved Development Activities as consented to by Required Lenders, then in either case the Borrowing Base shall automatically be reduced thereupon by an amount equal to the value (as determined by the Administrative Agent and the Required Lenders in their reasonable discretion) attributed to such assets or properties in the immediately preceding determination of the Borrowing Base.
Redetermination Concurrent with Transfer. To the extent allowed by Section 9.13(b), if Borrower Transfers any Oil and Gas Property between Scheduled Redetermination Dates with an aggregate fair market value in excess of $1,000,000, Agent may or, at the direction of the Required Lenders, shall reduce the Borrowing Base upon execution of such Transfer by an amount equal to the Borrowing Base value attributed to such Property in the immediately preceding determination of the Borrowing Base (as such values appear in Agent’s records from such determination of the Borrowing Base).