HAVE BEEN ACCURATE.
SECTION 7.12.
INSURANCE.
SCHEDULE 7.12 SETS FORTH A
TRUE, COMPLETE AND CORRECT DESCRIPTION OF ALL INSURANCE MAINTAINED BY THE
BORROWER OR BY THE BORROWER FOR ITS SUBSIDIARIES OR BY EACH SUBSIDIARY FOR
ITSELF, AS THE CASE MAY BE, AS OF THE DATE HEREOF.
THE BORROWER HAS, AND HAS
CAUSED ALL OF ITS SUBSIDIARIES TO HAVE, (A) ALL INSURANCE POLICIES SUFFICIENT
FOR THE COMPLIANCE BY EACH OF THEM WITH ALL MATERIAL GOVERNMENTAL REQUIREMENTS
AND ALL MATERIAL AGREEMENTS AND (B) INSURANCE COVERAGE IN AT LEAST AMOUNTS AND
AGAINST SUCH RISK (INCLUDING, WITHOUT LIMITATION, PUBLIC LIABILITY) THAT ARE
COMMERCIALLY REASONABLE AND USUALLY INSURED AGAINST BY COMPANIES SIMILARLY
SITUATED AND ENGAGED IN THE SAME OR A SIMILAR BUSINESS FOR THE ASSETS AND
OPERATIONS OF THE BORROWER AND ITS SUBSIDIARIES.
THE ADMINISTRATIVE AGENT HAS
BEEN NAMED AS AN ADDITIONAL INSURED IN RESPECT OF SUCH LIABILITY INSURANCE
POLICIES, AND THE ADMINISTRATIVE AGENT HAS BEEN NAMED AS LOSS PAYEE WITH RESPECT
TO PROPERTY LOSS INSURANCE.
55
SECTION 7.13.
RESTRICTION ON LIENS.
NEITHER THE
BORROWER NOR ANY OF THE SUBSIDIARIES IS A PARTY TO ANY MATERIAL AGREEMENT OR
ARRANGEMENT (OTHER THAN CAPITAL LEASES CREATING LIENS PERMITTED BY
SECTION 9.03(C), BUT THEN ONLY ON THE PROPERTY SUBJECT OF SUCH CAPITAL LEASE),
OR SUBJECT TO ANY ORDER, JUDGMENT, WRIT OR DECREE, WHICH EITHER RESTRICTS OR
PURPORTS TO RESTRICT ITS ABILITY TO GRANT LIENS TO THE ADMINISTRATIVE AGENT AND
THE LENDERS ON OR IN RESPECT OF THEIR PROPERTIES TO SECURE THE INDEBTEDNESS AND
THE LOAN DOCUMENTS.
SECTION 7.14.
SUBSIDIARIES.
EXCEPT AS SET FORTH ON
SCHEDULE 7.14 OR AS DISCLOSED IN WRITING TO THE ADMINISTRATIVE AGENT (WHICH
SHALL PROMPTLY FURNISH A COPY TO THE LENDERS), WHICH SHALL BE A SUPPLEMENT TO
SCHEDULE 7.14, THE BORROWER HAS NO SUBSIDIARIES AND THE BORROWER HAS NO FOREIGN
SUBSIDIARIES.
EACH SUBSIDIARY ON SUCH SCHEDULE IS A WHOLLY-OWNED SUBSIDIARY AND
A DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES.
SECTION 7.15.
LOCATION OF BUSINESS AND OFFICES.
THE
BORROWER'S JURISDICTION OF ORGANIZATION IS KENTUCKY; THE NAME OF THE BORROWER AS
LISTED IN THE PUBLIC RECORDS OF ITS JURISDICTION OF ORGANIZATION IS VANGUARD
NATURAL GAS, LLC; AND THE ORGANIZATIONAL IDENTIFICATION NUMBER OF THE BORROWER
IN ITS JURISDICTION OF ORGANIZATION IS 0601349 (OR, IN EACH CASE, AS SET FORTH
IN A NOTICE DELIVERED TO THE ADMINISTRATIVE AGENT PURSUANT TO SECTION 8.01(N) IN
ACCORDANCE WITH SECTION 12.01).
THE BORROWER'S PRINCIPAL PLACE OF BUSINESS IS
LOCATED AT THE ADDRESS IN LONDON, KENTUCKY SPECIFIED IN SECTION 12.01 (OR AS SET
FORTH IN A NOTICE DELIVERED PURSUANT TO SECTION 8.01(N) AND SECTION 12.01(C)),
AND ITS CHIEF EXECUTIVE OFFICES IS LOCATED AT THE SAN FELIPE STREET ADDRESS IN
HOUSTON, TEXAS SPECIFIED IN SECTION 12.01 (OR AS SET FORTH IN A NOTICE DELIVERED
PURSUANT TO SECTION 8.01(N) AND SECTION 12.01(C)).
EACH SUBSIDIARY'S
JURISDICTION OF ORGANIZATION, NAME AS LISTED IN THE PUBLIC RECORDS OF ITS
JURISDICTION OF ORGANIZATION, ORGANIZATIONAL IDENTIFICATION NUMBER IN ITS
JURISDICTION OF ORGANIZATION, AND THE LOCATION OF ITS PRINCIPAL PLACE OF
BUSINESS AND CHIEF EXECUTIVE OFFICE IS STATED ON SCHEDULE 7.14