Reduction of Collateral Clause Samples

Reduction of Collateral. 38 9.5 Inspection and Survey Reports........................................... 39 SECTION 10 ASSIGNMENT......................................................................... 39 SECTION 11 ILLEGALITY, INCREASED COST, NON-AVAILABILITY, ETC.................................. 39

Reduction of Collateral. (a) In the event of the Total Loss of a Unit or the sale by a Guarantor of its Unit, upon such Total Loss or prior to or simultaneously with such sale the Credit Facility shall, on the date of the Total Loss or sale, be reduced by $12,500,000, provided, however, that, if the FMV of the remaining Unit then mortgaged to the Security Trustee is less than 200% of the maximum amount then available under the Credit Facility, after giving effect to the reduction as aforesaid, the Credit Facility shall be reduced by the amount of such shortfall divided by two (2), and, the Borrower shall, if necessary, prepay such Advances or part thereof (together with interest thereon and any other monies payable in respect of such prepayment pursuant to Section 5.4) as required so that the principal amount thereof does not exceed the reduced available Commitments. (b) Unless otherwise agreed by the Lenders, any sale of a Unit shall be for cash and shall not be subject to any contingencies. (c) In the event of a sale or Total Loss of Unit as contemplated by this Section 9.4, the Creditors agree to release the relevant Guarantor from its obligations under the Guaranty and the Security Documents in respect of its Unit upon the reduction of Commitment provided for in Section 9.4(a) or the substitution of a Unit as provided for in Section 9.4(b).

Reduction of Collateral. In the event of Total Loss of a Vessel or the sale by a Borrower of its Vessel or the release of its Vessel from the lien of the Mortgage thereon at the Borrower's request, upon such Total Loss or prior to or simultaneously with such sale or other disposition either: (a) the Credit Facility shall, on the date of Total Loss, sale or other disposition, be reduced by, in the case of the Vessel being sold, the net sales proceeds thereof and in the case of a Vessel suffering a Total Loss or being otherwise released from the security package, the FMV thereof, provided that, if the aggregate of the FMV of the remaining Vessels is more than 150% of the Credit Facility, after giving effect to the reduction by the net sales proceeds or FMV, as the case may be, the Credit Facility shall be reduced by only 50% of such net sales proceeds or FMV, as the case may be. The remaining reductions pursuant to Clause 5.2 shall be adjusted proportionately to reflect such reduction; or 48 (b) a Borrower, pursuant to an Accession Agreement or otherwise, substitutes a vessel approved by the Lenders or a vessel meeting all of the following characteristics and pursuant to the following conditions: (i) an Aframax tanker between 75,000 and 115,000 dead weight tons (ii) built in or after 1988 but in no event more than two years older than the Vessel sold or released; (iii) complies with requirements of Clause 4.1(b) hereof; (iv) has a FMV greater than or equal to the FMV of the Vessel sold or released; and (v) the relevant owner of the Vessel has, if relevant, executed an Accession Agreement and has executed a counterpart of the Note, a Mortgage, an Assignment of Earnings and an Assignment of Insurances and the Guarantor has pledged the shares of such owner in favor of the Security Trustee as provided with respect to each other Borrower hereunder and has met the conditions, updated mutadis mutandis, of Clauses 4.1(a), (b), (c), (d)(ii), (e), (f), (g), (h), (i), (k) and (l). Upon the satisfaction of the foregoing conditions of this Clause 9.4(b), the Lenders shall release the Mortgage covering the Vessel to be sold, disposed of or otherwise released and shall release the Borrower owning such Vessel from its obligations hereunder. (c) Notwithstanding the provisions of Clause 9.4(a) above, in the event that upon a Vessel sale or other disposition the Borrowers deposit with the Security Trustee cash collateral, on such terms as the Security Trustee may require, in an amount equal to the net...

Reduction of Collateral. In the event of a Total Loss of JACK BATES, upon such Total Loss the Credit Facility shall ▇▇ ▇▇▇▇▇▇▇▇▇d, all amounts outstanding shall be immediately repaid and cash shall be provided as collateral for the Standby Letter of Credit Facility. In the event of a Total Loss of D.R. STEWART, upon such Total Loss the Credit Facility sh▇▇▇ ▇▇ ▇▇▇▇▇▇d by 160% of the FMV of the rig (unless the Borrowers shall provide substitute cash or other collateral satisfactory to the Agent), and to the extent the aggregate amount of the Advances and the Standby Letters of Credit exceeds the reduced amount of the Credit Facility, the Borrowers shall prepay Advances in respect of the Revolving Credit Facility and furnish to the Agent cash collateral in respect of the Standby Letter of Credit Facility.

Reduction of Collateral. (a) In the event of the Total Loss of a Unit or the sale by a Guarantor of its Unit, upon such Total Loss or prior to or simultaneously with such sale the Credit Facility shall, on the date of the Total Loss or sale, be reduced by (i) fifty percent (50%) in the event two Units are still pledged to the Security Agent pursuant to the terms hereunder, and (ii) thirty-three percent (33%) in the event three Units are still pledged to the Security Agent pursuant to the terms hereunder; provided, however, that, if the FMV of the remaining Units then mortgaged to the Security Agent is less than 200% of the maximum amount then available under the Credit Facility, after giving effect to the reduction as aforesaid, the Credit Facility shall be reduced by the amount of such shortfall divided by two (2), and, the Borrower shall, if necessary, prepay such Advances or part thereof (together with interest thereon and any other monies payable in respect of such prepayment pursuant to Section 5.4) as required so that the principal amount thereof does not exceed the reduced available Commitments. (b) Unless otherwise agreed by the Lenders, any sale of a pledged Unit shall be for cash and shall not be subject to any contingencies. (c) In the event of a sale or Total Loss of Unit as contemplated by this Section 9.4, the Creditors agree to release the relevant Guarantor from its obligations under the Guaranty and the Security Documents in respect of its Unit upon the reduction of Commitment provided for in Section 9.4(a).

Reduction of Collateral. Invested Amount During the Revolving Period; Designation of Collateral Interest Terms; Sale of Collateral Interest.............................................................36 Section 7.4 Purchase of Series 2003-__ Certificates by the Transferor......................................37

Reduction of Collateral. The Secured Party has granted to the ----------------------- Pledgor a certain stock option award dated, pursuant to the Fiscal 1998 Stock Purchase/Option Award of Darden Restaurants, Inc. (the "2000 Award"). Under certai▇ ▇▇▇▇umstances, more particularly described in the Special Terms and Conditions of the 2000 Award, the Pledgor may be entitled to reduce the Collateral conditioned, however, on a pro rata payment of the indebtedness evidenced by the Note. In the event the Pledgor becomes entitled to reduce the Collateral under the 2000 Award, the Pledgor will notify the Secured Party and simultaneously pay to the Secured Party an amount (the "Paydown") equal to the principal then outstanding under the Note times a fraction, the numerator of which equals the number of shares of common stock by which the Collateral is to be reduced and the denominator of which equals the number of shares of common stock comprising the Collateral prior to the reduction. The Secured Party will apply the Paydown against the indebtedness evidenced by the Note and release to the Pledgor the number of shares of common stock by which the Collateral is to be reduced. After full vesting of all Options granted to the Pledgor under the 2000 Award, provided the Pledgor is not then in default under this Agreement or under the Note, the Pledgor may be entitled to reduce the Collateral upon making payments of principal under the Note. The Pledgor will notify the Secured Party at the time of the principal payment that a reduction of the Collateral is requested. Upon receipt of the principal payment and the accompanying notice, the Secured Party will reduce the Collateral by the number of shares of common stock that equals the total of all shares then comprising the Collateral times a fraction, the numerator of which is the amount of principal being paid and the denominator of which is the total outstanding principal under the Note prior to the payment. Except as permitted by the 2000 Award or this Agreement, the Collateral may not be reduced or otherwise released prior to the full and final payment of all indebtedness evidenced by the Note.

Reduction of Collateral. The CRF agrees that to the extent any losses from investing and reinvesting cash Collateral in accordance with Schedule A of this Agreement reduce the amount of cash Collateral below the amount required to be returned to the Approved Borrower upon the termination of any Loan (after giving effect to any Rebate on cash Collateral due to the Approved Borrower), upon at least two Business Days’ advance notice by the Contractor to the CRF and the Custodian, the CRF will promptly deposit in the Custody Account (for transmission to such Approved Borrower) an equivalent amount in cash in the relevant currency, except to the extent such losses are allocated to the Contractor as provided in Section XI (Events of Default). The Contractor is hereby authorized and instructed to effect any required liquidation or redemption of cash Collateral investments to satisfy the CRF’s obligation to return cash Collateral pursuant to a Mark-to-Market requirement or upon termination of any Loan. All proceeds and earnings derived from such investment shall be deposited in the Custody Account unless otherwise directed by the CRF.