Common use of Use of Loan Proceeds and Letters of Credit Clause in Contracts

Use of Loan Proceeds and Letters of Credit. (a) Proceeds of all Loans shall be used solely by the Borrower (i) to acquire and develop Oil and Gas Properties, (ii) for the Borrower’s working capital and general business purposes and capital expenditures not otherwise prohibited under applicable provisions of this Agreement, (iii) to advance funds to Subsidiaries of the Borrower or any of the Guarantors which are Guarantors for working capital and general business purposes and capital expenditures not prohibited under the provisions of this Agreement or to acquire and develop Oil and Gas Properties, (iv) to pay fees and expenses incurred in connection with this Agreement and (v) for other general business purposes of the Borrower not prohibited by the provisions of this Agreement. (b) Letters of Credit shall be issued solely for the account of the Borrower for general business purposes of the Borrower and Subsidiaries of the Borrower which are Guarantors not otherwise prohibited under applicable provisions of this Agreement.

Use of Loan Proceeds and Letters of Credit. (a) Proceeds of all Loans shall be used solely by the Borrower (i) to refinance the Indebtedness of the Borrower under the Existing Credit Agreement, (ii) to acquire and develop Oil and Gas Properties, (iiiii) for the Borrower’s working capital and general business purposes and capital expenditures not otherwise prohibited under applicable provisions of this Agreement, (iiiiv) to advance funds to Subsidiaries of the Borrower or any of the Guarantors which are Guarantors for working capital and general business purposes and capital expenditures not prohibited under the provisions of this Agreement or to acquire and develop Oil and Gas Properties, Properties and (ivv) to pay fees and expenses incurred in connection with this Agreement and (v) for other general business purposes of the Borrower not prohibited by the provisions of this AgreementBorrower. (b) Letters of Credit shall be issued solely for the account of the Borrower for general business purposes of the Borrower and Subsidiaries of the Borrower which are Guarantors not otherwise prohibited under applicable provisions of this Agreement; provided, however, no Letter of Credit may be used in lieu or in support of stay or appeal bonds or Obligations in respect of Commodity Hedge Agreements or Interest Rate Hedge Agreements.