REQUIRED TO EXECUTE.
SECTION 5.20.
PATRIOT ACT. THE BORROWER SHALL NOT, NOR CAUSE OR PERMIT
ANY GUARANTOR TO, (A) BE OR BECOME SUBJECT AT ANY TIME TO ANY LAW, REGULATION,
OR LIST OF ANY GOVERNMENT AGENCY (INCLUDING, WITHOUT LIMITATION, THE LIST
MAINTAINED BY OFAC AND ACCESSIBLE THROUGH THE OFAC WEBSITE) THAT PROHIBITS OR
LIMITS ANY LENDER FROM MAKING ANY ADVANCE OR EXTENSION OF CREDIT TO BORROWER OR
FROM OTHERWISE CONDUCTING BUSINESS WITH THE BORROWER OR ANY GUARANTOR, OR (B)
FAIL TO PROVIDE DOCUMENTARY AND OTHER EVIDENCE OF BORROWER'S IDENTITY AS MAY BE
REQUESTED BY ANY LENDER AT ANY TIME TO ENABLE ANY LENDER TO VERIFY BORROWER'S
IDENTITY OR TO COMPLY WITH ANY APPLICABLE LAW OR REGULATION, INCLUDING, WITHOUT
LIMITATION, THE PATRIOT ACT. IN ADDITION, THE BORROWER HEREBY AGREES TO PROVIDE
TO ANY LENDER ANY ADDITIONAL INFORMATION THAT SUCH LENDER DEEMS NECESSARY FROM
TIME TO TIME IN ORDER TO ENSURE COMPLIANCE WITH ALL APPLICABLE LAWS CONCERNING
MONEY LAUNDERING AND SIMILAR ACTIVITIES.
SECTION 5.21.
EQUITY INTERESTS. THE BORROWER SHALL NOT, NOR CAUSE OR
PERMIT ANY RESTRICTED SUBSIDIARY TO, PERMIT A LIEN (OTHER THAN A LENDER LIEN) TO
BE PLACED ON ANY OF THE EQUITY INTERESTS OWNED BY BORROWER OR SUCH RESTRICTED
SUBSIDIARY IN ANY OTHER PERSON; PROVIDED THAT LIENS
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AGAINST EQUITY INTERESTS IN AN UNRESTRICTED SUBSIDIARY SHALL BE PERMITTED TO THE
EXTENT SUCH LIEN IS GRANTED TO SECURE NON-RECOURSE DEBT PERMITTED UNDER SECTION
5.09(H).
ARTICLE VI.
FINANCIAL COVENANTS
Until the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall
have been reimbursed, the Borrower covenants and agrees with the Lenders that:
SECTION 6.01.
MINIMUM CURRENT RATIO. BEGINNING WITH THE FISCAL QUARTER
ENDING DECEMBER 31, 2006, THE BORROWER WILL NOT PERMIT THE RATIO, DETERMINED AS
OF THE END OF A FISCAL QUARTER, OF (I) CONSOLIDATED CURRENT ASSETS TO (II)
CONSOLIDATED CURRENT LIABILITIES MINUS CURRENT MATURITIES OF LONG TERM
INDEBTEDNESS TO BE LESS THAN 1.00:1.00.
SECTION 6.02.
MAXIMUM INDEBTEDNESS TO EBITDAX. BEGINNING WITH THE FISCAL
QUARTER ENDING DECEMBER 31, 2006, THE BORROWER WILL NOT PERMIT THE RATIO,
DETERMINED AS OF THE END OF A FISCAL QUARTER, OF (I) TOTAL NET DEBT TO
(II) EBITDAX TO BE GREATER THAN 3.50:1.00, FOR THE TWELVE (12) MONTHS ENDING AS
OF THE LAST DAY OF SUCH FISCAL QUARTER.
ARTICLE VII.
EVENTS OF DEFAULT
If any of the following events ("Events of Default") shall occur and be
continuing:
(a)
the Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed
for prepay­ment thereof or otherwise;
(b)
the Borrower shall fail to pay any interest on any Loan or any fee
or any other amount (other than an amount referred to in paragraph (a) of this
Article) payable