CAUSE EACH RESTRICTED SUBSIDIARY TO, USE
COMMERCIALLY REASONABLE EFFORTS TO CAUSE EACH OPERATOR OF ITS OIL AND GAS
INTERESTS TO, (A) KEEP AND MAINTAIN ALL PROPERTY MATERIAL TO THE CONDUCT OF ITS
BUSINESS IN GOOD WORKING ORDER AND CONDITION, ORDINARY WEAR AND TEAR EXCEPTED,
AND (B) MAINTAIN, WITH FINANCIALLY SOUND AND REPUTABLE INSURANCE COMPANIES,
INSURANCE IN SUCH AMOUNTS AND AGAINST SUCH RISKS AS ARE CUSTOMARILY MAINTAINED
BY COMPANIES ENGAGED IN THE SAME OR SIMILAR BUSINESSES OPERATING IN THE SAME OR
SIMILAR LOCATIONS.
ON OR PRIOR TO THE EFFECTIVE DATE AND THEREAFTER, UPON
REQUEST OF THE ADMINISTRATIVE AGENT, THE BORROWER WILL FURNISH OR CAUSE TO BE
FURNISHED TO THE ADMINISTRATIVE AGENT FROM TIME TO TIME A SUMMARY OF THE
RESPECTIVE INSURANCE COVERAGE OF THE BORROWER AND ITS RESTRICTED SUBSIDIARIES IN
FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ADMINISTRATIVE AGENT, AND, IF
REQUESTED, WILL FURNISH THE ADMINISTRATIVE AGENT COPIES OF THE APPLICABLE
POLICIES.
UPON DEMAND BY ADMINISTRATIVE AGENT, THE BORROWER WILL CAUSE ANY
INSURANCE POLICIES COVERING ANY SUCH PROPERTY TO BE ENDORSED (A) TO PROVIDE THAT
SUCH POLICIES MAY NOT BE CANCELLED, REDUCED OR AFFECTED IN ANY MANNER FOR ANY
REASON WITHOUT FIFTEEN (15) DAYS PRIOR NOTICE TO ADMINISTRATIVE AGENT, AND
(B) TO PROVIDE FOR SUCH OTHER MATTERS AS THE LENDERS MAY REASONABLY REQUIRE.
42
SECTION 6.06.
BOOKS AND RECORDS; INSPECTION RIGHTS.
THE BORROWER WILL, AND WILL CAUSE EACH RESTRICTED SUBSIDIARY TO, KEEP PROPER
BOOKS OF RECORD AND ACCOUNT IN WHICH FULL, TRUE AND CORRECT ENTRIES ARE MADE OF
ALL DEALINGS AND TRANSACTIONS IN RELATION TO ITS BUSINESS AND ACTIVITIES.
THE
BORROWER WILL, AND WILL CAUSE EACH RESTRICTED SUBSIDIARY TO, PERMIT ANY
REPRESENTATIVES DESIGNATED BY THE ADMINISTRATIVE AGENT OR ANY LENDER, UPON
REASONABLE PRIOR NOTICE, TO VISIT AND INSPECT ITS PROPERTIES, TO EXAMINE AND
MAKE EXTRACTS FROM ITS BOOKS AND RECORDS, AND TO DISCUSS ITS AFFAIRS, FINANCES
AND CONDITION WITH ITS OFFICERS AND, PROVIDED AN OFFICER OF THE BORROWER HAS THE
REASONABLE OPPORTUNITY TO PARTICIPATE, ITS INDEPENDENT ACCOUNTANTS, ALL AT SUCH
REASONABLE TIMES AND AS OFTEN AS REASONABLY REQUESTED.
SECTION 6.07.
COMPLIANCE WITH LAWS.
THE BORROWER
WILL, AND WILL CAUSE EACH RESTRICTED SUBSIDIARY TO, COMPLY WITH ALL LAWS, RULES,
REGULATIONS AND ORDERS OF ANY GOVERNMENTAL AUTHORITY APPLICABLE TO IT OR ITS
PROPERTY, EXCEPT WHERE THE FAILURE TO DO SO, INDIVIDUALLY OR IN THE AGGREGATE,
COULD NOT REASONABLY BE EXPECTED TO RESULT IN A MATERIAL ADVERSE EFFECT.
SECTION 6.08.
USE OF PROCEEDS.
THE PROCEEDS OF THE
LOANS WILL BE USED ONLY TO (A) PAY THE FEES, EXPENSES AND TRANSACTION COSTS OF
THE TRANSACTIONS AND (B) FINANCE THE WORKING CAPITAL NEEDS OF THE BORROWER,
INCLUDING CAPITAL EXPENDITURES, AND FOR GENERAL CORPORATE PURPOSES OF THE
BORROWER AND THE GUARANTORS, IN THE ORDINARY COURSE OF BUSINESS, INCLUDING THE
EXPLORATION, ACQUISITION AND DEVELOPMENT OF OIL AND GAS INTERESTS.
NO PART OF
THE PROCEEDS OF ANY LOAN WILL BE USED, WHETHER DIRECTLY OR INDIRECTLY, TO
PURCHASE OR CARRY ANY MARGIN STOCK (AS DEFINED IN REGULATION U ISSUED BY THE
BOARD).
SECTION 6.09.
[RESERVED].
SECTION 6.10.
[RESERVED].
SECTION