Common use of Title Work Clause in Contracts

Title Work. Within fifteen (15) Business Days following the Closing Date, EPPG shall have furnished to the Administrative Agent title documents reasonably satisfactory to the Administrative Agent with respect to the title and Lien status of at least 50% of the PV-10 Value of the Borrowing Base Properties. Thereafter, the Administrative Agent shall at all times have reasonably satisfactory title documents with respect to at least 50% of the PV-10 Value of the Borrowing Base Properties of EPPG (the “Continuing 50% Test”). If at any time after the Closing Date, EPPG fails to provide title documents reasonably satisfactory to the Administrative Agent for a sufficient number of Borrowing Base Properties to meet the Continuing 50% Test, such failure shall not constitute an Event of Default, but the Administrative Agent may redetermine the Borrowing Base by written notice to the Borrowers’ Representative as required to bring EPPG into compliance with the Continuing 50% Test until such title documents are provided. Without regard to whether EPPG provides satisfactory title documents with respect to a particular Oil and Gas Property owned by EPPG, such Oil and Gas Property shall, if necessary to meet the requirements of Section 7.7 hereof, be encumbered by a Mortgage in favor of the Administrative Agent for the ratable benefit of the Secured Parties, and shall be included in the collateral.