Common use of MCR Clause in Contracts

MCR. As of the first (1st) day of each calendar month, commencing May 1, 2006, the amount available under the Revolving Credit Commitments shall be automatically reduced by the then applicable monthly commitment reduction (“MCR”) amount as determined by the Required Lenders. To the extent the sum of (i) the outstanding principal balance of the Notes plus (ii) the LC Exposure is in excess of the adjusted amount of the Aggregate Revolving Credit Commitment Amounts, the Borrower shall make a mandatory principal prepayment on the Notes in such amount as is necessary to reduce the sum of (i) the outstanding principal balance of the Notes plus (ii) the LC Exposure to an amount less than or equal to the adjusted Revolving Credit Commitments, which such mandatory principle prepayment shall be made within five (5) days of the applicable MCR application. The amount of the MCR (initially stipulated to be zero dollars ($0)) shall be evaluated and redetermined by the Required Lenders concurrent with each semi-annual Borrowing Base redetermination in accordance with the provisions of Section 2.08.

MCR. As of the first (1st) day of each calendar month, commencing May July 1, 20062009, the amount available under the Revolving Credit Commitments shall be automatically reduced by the then applicable monthly commitment reduction (“MCR”) amount as determined by the Required Lenders. To the extent the sum of (i) the outstanding principal balance of the Notes plus (ii) the LC Exposure is in excess of the adjusted amount of the Aggregate Revolving Credit Commitment Amounts, the Borrower shall make a mandatory principal prepayment on the Notes in such amount as is necessary to reduce the sum of (i) the outstanding principal balance of the Notes plus (ii) the LC Exposure to an amount less than or equal to the adjusted Revolving Credit Commitments, which such mandatory principle prepayment shall be made within five (5) days of the applicable MCR application. The amount of the MCR (initially stipulated to be zero dollars ($0)) shall be evaluated and redetermined by the Required Lenders concurrent with each semi-annual Borrowing Base redetermination in accordance with the provisions of Section 2.08.