Common use of Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency Clause in Contracts

Compliance with the Laws and Agreements; No Defaults or Borrowing Base Deficiency. (a) Each of the Parent and the Restricted Subsidiaries is in compliance with all Governmental Requirements applicable to it or its Property and all agreements and other instruments binding upon it or its Property, and possesses all licenses, permits, franchises, exemptions, approvals and other governmental authorizations necessary for the ownership of its Property and the conduct of its business, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. (b) No Default or Borrowing Base Deficiency has occurred and is continuing.