Common use of Reduction of Posted Collateral Clause in Contracts

Reduction of Posted Collateral. Commencing December 31, 2005 and on the last day of each month thereafter, GASMARK and Atlas DE will jointly review the amount of GASMARK’s Exposure under all prompt month and forward month Transactions entered into between the Parties under the Base Contract. If GASMARK and Atlas reasonably determine that (i) GASMARK’s Exposure is below Fifteen Million Dollars ($15,000,000), (ii) no Event of Default with respect to Atlas DE has occurred and is continuing, and (iii) no Early Termination Date has occurred or been designated by GASMARK for which there exists any unsatisfied payment obligations under the Base Contract, then the Atlas LC shall be amended, and GASMARK shall consent to such amendment, to reduce the amount of the Atlas LC to Five Million Dollars ($5,000,000). If GASMARK and Atlas DE reasonably determine that (i) GASMARK’s Exposure is below the Collateral Threshold, (ii) no Event of Default with respect to Atlas DE has occurred and is continuing, and (iii) no Early Termination Date has occurred or been designated by GASMARK for which there exists any unsatisfied payment obligations under the Base Contract, then Atlas DE will be permitted to terminate the Atlas LC. Any costs incurred by Atlas DE in reducing or terminating the Atlas LC will be borne solely by Atlas DE.