Common use of Operation of Assets Clause in Contracts

Operation of Assets. Seller will continue to operate the Assets according to the ordinary and usual course of business reasonably consistent with past and current practices until date of closing. Seller covenants and agrees that from and after sixty (60) days prior to the execution of this Agreement and until the Closing Date, Seller has utilized, and shall continue to utilize, all of its cash on hand and all funds received by Seller to attempt to satisfy any and all operating and business expenses incurred in the ordinary course of business, including any expenses attributable to the Assets and any and all other liabilities and accounts payable of the Seller attributable to the Assets, including but not limited to all amounts owed to PetroQuest and reimbursement to Buyer for all accrued and unpaid interest owing to TCW prior to Closing (the “Pre-Closing Liabilities”). In no event shall Pre-Closing Liabilities include any amounts due by Seller to any officer, director or shareholder of Seller or any party or entity affiliated with any officer, director or shareholder of Seller, except to the extent payment of such amounts are consistent with previous business practices (such as salaries and/or any royalty obligations). Seller covenants and agrees that from and after sixty (60) days prior to the execution of this Agreement and until the Closing Date, Seller has not and will not distribute any of its cash on hand or any funds received by Seller to any officer, director or shareholder of Seller or any party or entity affiliated with any officer, director or shareholder of Seller, except to the extent payment of such amounts are consistent with previous business practices (such as salaries and/or any royalty obligations).