Put Options; Cap Transactions Sample Clauses

Put Options; Cap Transactions. Notwithstanding the foregoing provisions of this Section 6.03, there shall be no limitations on the purchase by the Restricted Persons of put options or floor transactions with respect to oil, gas or natural gas liquids produced by, call options or cap transactions with respect to gas expected to be purchased by, or cap transactions with respect to principal balances of indebtedness of, any Restricted Person; provided, however, that (i) any such put or call options or cap or floor transactions shall be solely for hedging, and not for speculative purposes, (ii) the Restricted Persons shall have no obligations thereunder other than payment of the applicable premium for any such put or call options or cap or floor transactions and (iii) the aggregate amount of premiums payable in respect of any such put or call options or cap or floor transactions in any Fiscal Year shall not exceed an amount equal to 5% of Consolidated EBITDAX for such Fiscal Year; provided further that the limitation in the preceding clause (iii) shall apply only to the purchase of a put or call option and not a cashless collar.