Common use of Use of Loans Clause in Contracts

Use of Loans. (a) The proceeds of the Loans shall be used solely (i) to pay all amounts owing under the Existing Credit Agreement, (ii) to pay fees and expenses related to the Transactions, this Agreement and the other Loan Documents, (iii) to develop the Oil and Gas Properties of the Company and its Subsidiaries in accordance with the APOD. (b) Neither the Company nor any Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No part of the proceeds of any Loan will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.

Use of Loans. (a) The proceeds of the Loans shall be used solely by the Company (i) to pay all amounts owing in full the indebtedness of the Company under the Existing Credit Agreement, (ii) to pay fees provide working capital for the Company and expenses related to the Transactionsits Subsidiaries, this Agreement and the other Loan Documents, (iii) to develop the for general corporate purposes, including acquisitions of Oil and Gas Properties of the Company and its Subsidiaries related items used or useful in accordance connection with the APOD. (b) Company's existing business. Neither the Company nor any Subsidiary is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board). No Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used for to buy or carry any purpose which violates the provisions of Regulations T, U or X of the Boardmargin stock.