Common use of Elections to Mortgage Additional Oil and Gas Properties Clause in Contracts

Elections to Mortgage Additional Oil and Gas Properties. If Borrower elects to mortgage additional oil and gas properties in accordance with clause (f)(i)(B) above, then (1) such property shall be acceptable to Administrative Agent and the Required Lenders with Recognized Values determined by Administrative Agent and the Required Lenders in accordance with this Section 2.07 and (2) Borrower shall execute, acknowledge and deliver to Administrative Agent security instruments acceptable to Administrative Agent within 45 days after Borrower’s notice of its election (or such longer time as determined by Administrative Agent); provided, however (x) if none of the additional Oil and Gas Properties offered by Borrower are acceptable to the Required Lenders, Borrower shall be deemed to have elected the prepayment option specified in clause (f)(i)(A) (and Borrower shall make such prepayment in accordance with clause (f)(ii)(A)); and (y) if the aggregate Recognized Values of additional Oil and Gas Properties which are acceptable to the Required Lenders are insufficient to eliminate the Borrowing Base Deficiency, then Borrower shall be deemed to have selected the option specified in clause (f)(i)(C) (and Borrower shall make prepayment and deliver security instruments as provided clause (f)(ii)(C)).

Elections to Mortgage Additional Oil and Gas Properties. If the Borrower elects to mortgage additional oil Oil and gas properties Gas Properties in accordance with clause (f)(i)(BSection 3.03(c)(ii)(A) above, then (1) such property properties shall be reasonably acceptable to Administrative Agent and the Required Majority Revolving Credit Lenders with Recognized Values determined by Administrative Agent and having present values which, in the Required Lenders reasonable opinion of the Majority Revolving Credit Lenders, based upon the Majority Revolving Credit Lenders’ good-faith evaluation of the engineering data provided them, taken in accordance with this Section 2.07 the aggregate are sufficient to increase the Borrowing Base to an amount at least equal to the total Revolving Credit Exposures, and (2) the Borrower or such Subsidiary shall execute, acknowledge and deliver to the Administrative Agent security instruments acceptable to Administrative Agent one or more Security Instruments within 45 thirty (30) days after the Borrower’s notice receipt of its election the Borrowing Base Deficiency Notice (or such longer time as determined by the Administrative Agent); provided, however (x) if none of the additional Oil and Gas Properties offered by the Borrower are reasonably acceptable to the Required Majority Revolving Credit Lenders, the Borrower shall be deemed to have elected the prepayment option specified in clause (f)(i)(ASection 3.03(c)(ii)(A)(I) (and Borrower shall make such prepayment in accordance with clause (f)(ii)(ASection 3.03(c)(ii)(B)(I)); and (y) if the aggregate Recognized Values of additional Oil and Gas Properties which are acceptable to the Required Lenders are insufficient to eliminate the Borrowing Base Deficiency, then Borrower shall be deemed to have selected the option specified in clause (f)(i)(C) (and Borrower shall make prepayment and deliver security instruments as provided clause (f)(ii)(C)).and

Elections to Mortgage Additional Oil and Gas Properties. If Borrower elects to mortgage additional oil and gas properties in accordance with clause (f)(i)(BSection 4.06(a)(ii) above, then (1) such property shall be acceptable to Administrative Agent and the Required Lenders with Recognized Values values determined by Administrative Agent and the Required Lenders in accordance with this Section 2.07 Article IV and (2) Borrower or such Guarantor shall execute, acknowledge and deliver to Administrative Agent security instruments acceptable to Administrative Agent within 45 30 days after Borrower’s notice receipt of its election the Borrowing Base Deficiency Notice (or such longer time as determined by Administrative Agent); provided, however (x) if none of the additional Oil oil and Gas Properties gas properties offered by Borrower are acceptable to the Required Lenders, Borrower shall be deemed to have elected the prepayment option specified in clause (f)(i)(ASection 4.06(a)(i) (and Borrower shall make such prepayment in accordance with clause (f)(ii)(ASection 4.06(b)(i)); and (y) if the aggregate Recognized Values present values of additional Oil oil and Gas Properties gas properties which are acceptable to the Required Lenders are insufficient to eliminate the Borrowing Base Deficiency, then Borrower shall be deemed to have selected the option specified in clause (f)(i)(CSection 4.06(a)(iii) (and Borrower shall make prepayment and deliver security instruments as provided clause (f)(ii)(Cin Section 4.06(b)(iii)).. CREDIT AGREEMENT – Page 56

Elections to Mortgage Additional Oil and Gas Properties. If Borrower elects to mortgage additional oil and gas properties in accordance with clause (f)(i)(BSection 4.06(a)(ii) above, then (1) such property shall be acceptable to Administrative Agent and the Required Lenders with Recognized Values values determined by Administrative Agent and the Required Lenders in accordance with this Section 2.07 Article IV and (2) Borrower or such Guarantor shall execute, acknowledge and deliver to Administrative Agent security instruments acceptable to Administrative Agent within 45 thirty (30) days after Borrower’s notice 's receipt of its election the Borrowing Base Deficiency Notice (or such longer time as determined by Administrative Agent); provided, however (x) if none of the additional Oil oil and Gas Properties gas properties offered by Borrower are acceptable to the Required Lenders, Borrower shall be deemed to have elected the prepayment option specified in clause (f)(i)(ASection 4.06(a)(i) (and Borrower shall make such prepayment in accordance with clause (f)(ii)(ASection 4.06(b)(i)); and (y) if the aggregate Recognized Values present values of additional Oil oil and Gas Properties gas properties which are acceptable to the Required Lenders are insufficient to eliminate the Borrowing Base Deficiencydeficiency, then Borrower shall be deemed to have selected the option specified in clause (f)(i)(CSection 4.06(a)(iii) (and Borrower shall make prepayment and deliver security instruments as provided clause (f)(ii)(Cin Section 4.06(b)(iii)).

Elections to Mortgage Additional Oil and Gas Properties. If Borrower elects to mortgage additional oil and gas properties in accordance with clause (f)(i)(B) above, then (1) such property shall be acceptable to Administrative Agent and the Required Lenders with Recognized Values determined by Administrative Agent and the Required Lenders in accordance with this Section 2.07 and (2) Borrower shall execute, acknowledge and deliver to Administrative Agent security instruments acceptable to Administrative Agent within 45 days after Borrower’s 's notice of its election (or such longer time as determined by Administrative Agent); provided, however (x) if none of the additional Oil and Gas Properties offered by Borrower are acceptable to the Required Lenders, Borrower shall be deemed to have elected the prepayment option specified in clause (f)(i)(A) (and Borrower shall make such prepayment in accordance with clause (f)(ii)(A)); and (y) if the aggregate Recognized Values of additional Oil and Gas Properties which are acceptable to the Required Lenders are insufficient to eliminate the Borrowing Base Deficiency, then Borrower shall be deemed to have selected the option specified in clause (f)(i)(C) (and Borrower shall make prepayment and deliver security instruments as provided clause (f)(ii)(C)).

Elections to Mortgage Additional Oil and Gas Properties. If Borrower elects to mortgage additional oil and gas properties in accordance with clause (f)(i)(Bf)(i)(A)(2) above, then (1) such property shall be acceptable to Administrative Agent and the Required Lenders with Recognized Values determined by Administrative Agent and the Required Lenders in accordance with this Section 2.07 and (2) Borrower shall execute, acknowledge and deliver to Administrative Agent security instruments acceptable to Administrative Agent within 45 forty-five (45) days after Borrower’s notice of its election (or such longer time as determined by Administrative Agent); provided, however however: (x) if none of the additional Oil and Gas Properties offered by the Borrower are acceptable to the Required Lenders, Borrower shall be deemed to have elected the prepayment option specified in clause (f)(i)(Af)(i)(A)(1) (and Borrower shall make such prepayment in accordance with clause (f)(ii)(A)); and (y) if the aggregate Recognized Values of additional Oil and Gas Properties which are acceptable to the Required Lenders are insufficient to eliminate the Borrowing Base Deficiency, then Borrower shall be deemed to have selected the option specified in clause (f)(i)(Cf)(i)(A)(3) (and Borrower shall make prepayment and deliver security instruments as provided clause (f)(ii)(Cf)(ii)(A)(3)).