Common use of Reduction of Variable Amount Upon Termination of Hedge Positions Clause in Contracts

Reduction of Variable Amount Upon Termination of Hedge Positions. If the Borrower or any Restricted Subsidiary shall terminate or create any off-setting positions in respect of any commodity hedge positions (whether evidenced by a floor, put or Hedge Agreement) (i) upon which the Administrative Agent relied in determining the Variable Amount and (ii) where the Swap PV of such terminated and/or offsetting positions (after taking into account any other Hedge Agreement executed contemporaneously with the taking of such actions) exceeds 10.0% of the then-effective Variable Amount, then (A) the Borrower covenants to deliver notice thereof to the Administrative Agent no later than one Business Day after the date on which the Borrower or any Restricted Subsidiary terminated or created an off-setting position (after taking into account any other Hedge Agreement executed contemporaneously with the taking of such actions) in respect of any commodity hedge positions that exceeded such 10% threshold and (B) the Borrowing Base Required Lenders shall have the right (upon the affirmative vote of the Borrowing Base Required Lenders in accordance with Section 2.14(j)) to adjust the Variable Amount in an amount equal to the Variable Amount Value, if any, attributable to such terminated or off-setting hedge positions in the calculation of the then-effective Variable Amount (after taking into account any other Hedge Agreement executed contemporaneously with the taking of such actions). If the Borrowing Base Required Lenders in fact make any such adjustment, the Administrative Agent shall promptly notify the Borrower in writing of the Variable Amount Value, if any, attributable to such hedge positions in the calculation of the then-effective Variable Amount and, upon receipt of such notice, the Variable Amount shall be simultaneously reduced by such amount.

Reduction of Variable Amount Upon Termination of Hedge Positions. If the Borrower or any Restricted Subsidiary shall terminate or create any off-setting positions in respect of any commodity hedge positions (whether evidenced by a floor, put or Hedge Agreement) (i) upon which the Administrative Agent relied in determining the Variable Amount and (ii) where the Swap PV of such terminated and/or offsetting positions (after taking into account any other Hedge Agreement executed contemporaneously with the taking of such actions) exceeds 10.0% of the then-effective Variable Amount, then (A) the Borrower covenants to deliver notice thereof to the Administrative Agent no later than one Business Day after the date on which the Borrower or any Restricted Subsidiary terminated or created an off-setting position (after taking into account any other Hedge Agreement executed contemporaneously with the taking of such actions) in respect of any commodity hedge positions that exceeded such 10% threshold and (B) the Borrowing Base Required Lenders shall have the right (upon the affirmative vote of the Borrowing Base Required Lenders in accordance with Section 2.14(j)) to adjust the Variable Amount in an amount equal to the Variable Amount Value, if any, attributable to such terminated or off-setting hedge positions in the calculation of the then-effective Variable Amount (after taking into account any other Hedge Agreement executed contemporaneously with the taking of such actions). If the Borrowing Base Required Lenders in fact make any such adjustment, the Administrative Agent shall promptly notify the Borrower in writing of the Variable Amount Value, if any, attributable to such hedge positions in the calculation of the then-effective Variable Amount and, upon receipt of such notice, the Variable Amount shall be simultaneously reduced by such amount.: