Common use of Debts, Guaranties and Other Obligations Clause in Contracts

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Documents; (b) Debt listed on the attached Schedule 4.05(d); (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (d) of Section 6.01 in an aggregate amount not to exceed $5,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14; (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (h) Debt arising pursuant to the Bond Issuance; provided that, concurrent with the issuance of such Debt, all Tranche B Advances, if any, shall be paid in full; and (i) other Debt not exceeding $2,000,000 in the aggregate at any time outstanding.

Debts, Guaranties and Other Obligations. The No Borrower shall, nor shall not, and shall not any Borrower permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries Borrowers under the Loan Documents; (b) Debt listed on Schedule 4.05 and any renewals, extensions, or replacements thereof; provided that the attached Schedule 4.05(d)amount of such Debt may not be increased; (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (db) of Section 6.01 in an aggregate amount not to exceed $5,000,000 1,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14; (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the any Borrower or any Subsidiary of a Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (hg) Debt arising pursuant to the Bond Issuance; provided that, concurrent owing in connection with the issuance financing of such Debt, all Tranche B Advances, if any, shall be paid insurance premiums in fullthe ordinary course of business; and (h) Debt not otherwise permitted under this Section 6.02; provided that such Debt (i) other Debt is not exceeding secured by any Lien and (ii) does not exceed $2,000,000 1,000,000 in the aggregate at any time outstanding.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Documents; (b) Debt listed on of the attached Schedule 4.05(d)Borrower and its Subsidiaries under the Senior Loan Documents; (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (db) of Section 6.01 in an aggregate amount not to exceed $5,000,000 3,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14;; and (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties;. (hg) Debt arising pursuant of the Borrower or any Subsidiary owing to the Bond IssuanceBorrower or to any other Subsidiary; provided that, concurrent with that such Debt is subordinated to the issuance of such Debt, all Tranche B Advances, if any, shall be paid Obligations on terms acceptable to the Administrative Agent in fullits sole discretion; and (i) other Debt not exceeding $2,000,000 in the aggregate at any time outstanding.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Documents; (b) Debt listed on the attached Schedule 4.05(d)Subordinated Debt; (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (dSection 6.01(c) of Section 6.01 in an aggregate amount not to exceed $5,000,000 1,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14; (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (h) Debt arising pursuant to the Bond Issuance; provided that, concurrent with the issuance of such Debt, all Tranche B Advances, if any, shall be paid in full; and (g) Debt not otherwise permitted under this Section 6.02, provided that (i) other such Debt is not exceeding $2,000,000 in secured by any Lien, and (ii) the aggregate of amount of such Debt plus the aggregate amount of Debt permitted under Section 6.02(d) shall not to exceed $1,000,000 at any time outstandingtime.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Documents; (b) Debt listed on Schedule 4.05; provided, that, the attached Schedule 4.05(d)amount of such Debt may not be increased; (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (db) of Section 6.01 in an aggregate amount 6.01; provided that, the sum of such Debt and other unsecured Debt permitted under paragraph 6.02(g) does not to exceed $5,000,000 250,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14;; HOUSTON\2067330.8 -63- (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (g) Intercompany Debt; (h) Debt arising pursuant to constituting letters of credit for the Bond Issuanceaccount of any member of the Company Group provided as security (i) for any matter which is a Lien permitted under paragraphs (d), (k), (m) or (n) or Section 6.01; provided that, concurrent with that the issuance amount of such DebtDebt shall not exceed the obligations secured by such Lien, all Tranche B Advancesand (ii) to secure payment obligations in connection with self-insurance or similar requirements in the ordinary course of business; (i) Debt arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business if any, shall be paid in fullextinguished within two (2) Business Days of incurrence and does not exceed $50,000; (j) Debt of Abraxas GP as a guarantor under the Abraxas MLP Credit Facility; and (k) Debt not otherwise permitted under this Section 6.02, provided, that (i) other such Debt is not exceeding $2,000,000 in secured by any Lien, and (ii) the aggregate of amount of such Debt plus the aggregate amount of Debt permitted under Section 6.02(d) shall not to exceed $250,000 at any time outstandingtime.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Credit Documents; (b) Debt listed of the Borrower and its Subsidiaries existing on the date hereof and disclosed in the attached Schedule 4.05(d)6.2 and any extensions, rearrangements, modifications, renewal, and refinancings thereof which do not increase the principal amount thereof or the interest rate charged thereon above a market rate of interest; (c) Debt (including Capital Leases and purchase money obligations) relating to Property or assets acquired by the Borrower after the date of this Agreement not to exceed $25,000,000 (excluding gas balancing liabilities assumed in the acquisition of Oil and Gas Properties) at any time outstanding; (d) Debt for borrowed money owed by any Subsidiary of the Borrower to the Borrower or to any other Credit Party; (e) Debt in the form of obligations for the deferred purchase price of Property property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (d) of Section 6.01 in an aggregate amount not to exceed $5,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14;; and (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting Any guarantee of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (h) Debt arising pursuant to the Bond Issuance; provided that, concurrent with the issuance of such Debt, all Tranche B Advances, if any, shall be paid in full; and (i) other Debt not exceeding $2,000,000 in the aggregate at any time outstandingpermitted to be incurred hereunder.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Documents; (b) Debt listed on Schedule 4.05; provided, that, the attached Schedule 4.05(d)amount of such Debt may not be increased; (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (db) of Section 6.01 in an aggregate amount 6.01; provided that, the sum of such Debt and other unsecured Debt permitted under paragraph 6.02(g) does not to exceed $5,000,000 250,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14; (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (g) Intercompany Debt; (h) Debt arising pursuant to constituting letters of credit for the Bond Issuanceaccount of any member of the Company Group provided as security (i) for any matter which is a Lien permitted under paragraphs (d), (k), (m) or (n) or Section 6.01; provided that, concurrent with that the issuance amount of such DebtDebt shall not exceed the obligations secured by such Lien, all Tranche B Advances, if any, shall be paid and (ii) to secure payment obligations in full; andconnection with self-insurance or similar requirements in the ordinary course of business; (i) Debt arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business if extinguished within two (2) Business Days of incurrence and does not exceed $50,000; and HOUSTON\2059604 -65- (j) Debt not exceeding $2,000,000 in otherwise permitted under this Section 6.02, provided, that (i) such Debt is not secured by any Lien, and (ii) the aggregate of amount of such Debt plus the aggregate amount of Debt permitted under Section 6.02(d) shall not to exceed $250,000 at any time outstandingtime.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Documents; (b) Debt listed on the attached Schedule 4.05(d)Senior Debt; (c) Debt in the form of obligations for the deferred purchase price of Property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (dSection 6.01(c) of Section 6.01 in an aggregate amount not to exceed $5,000,000 1,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14; (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (h) Debt arising pursuant to the Bond Issuance; provided that, concurrent with the issuance of such Debt, all Tranche B Advances, if any, shall be paid in full; and (g) Debt not otherwise permitted under this Section 6.02, provided that (i) other such Debt is not exceeding $2,000,000 in secured by any Lien, and (ii) the aggregate of amount of such Debt plus the aggregate amount of Debt permitted under Section 6.02(d) shall not to exceed $1,000,000 at any time outstandingtime.

Debts, Guaranties and Other Obligations. The U.S. Borrower shall will --------------------------------------- not, and shall will not permit any of its Subsidiaries to, create, assume, suffer to exist, exist or in any manner become or be liable liable, in respect of, of any Debt except: (ai) Debt of the U.S. Borrower and its Subsidiaries under the Loan Documents; (bii) Debt listed on intercompany indebtedness owed between any Obligor and the attached Schedule 4.05(d)U.S. Borrower and permitted by Section 6.03 or between any two Obligors and permitted by Section 6.03; (ciii) Debt of the Borrowers and the other Obligors owing in respect of taxes, assessments or other government charges which are not yet due or are being contested in good faith and for which adequate reserves have been established in accordance with GAAP; (iv) Debt of the form of obligations for Borrowers and the deferred purchase price of Property or services other Obligors incurred in the ordinary course of business which are not yet due in respect of drilling, completing, leasing and payable or are being contested in good faith by appropriate proceedings reworking oil and for which adequate reserves in accordance with GAAP have been establishedgas xxxxx; (dv) Debt secured by of the Liens permitted Borrowers and the other Obligors owing under paragraph (d) of Section 6.01 in an aggregate amount not to exceed $5,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest to the extent such Hedge Agreements which are not prohibited permitted by the terms of Section 6.14; (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (h) Debt arising pursuant to the Bond Issuance6.11; provided that, concurrent with if any such Debt is owing to any Person that is not a Bank, such Debt shall not be secured by any Collateral (other than cash or Cash Equivalents to the issuance extent permitted by clause (l) of such Debt, all Tranche B Advances, if any, shall be paid in fullthe definition of "Permitted Liens"); and (ivi) other Debt not exceeding $2,000,000 in listed on Schedule 6.08 and all extensions, amendments and renewals thereof so long as none of the aggregate at any time outstandingprincipal amount of such Debt is increased or the maturity date is shortened.

Debts, Guaranties and Other Obligations. The Borrower shall not, and shall not permit any of its Subsidiaries to, create, assume, suffer to exist, or in any manner become or be liable in respect of, any Debt except: (a) Debt of the Borrower and its Subsidiaries under the Loan Credit Documents; (b) Debt listed of the Borrower existing on the date hereof and disclosed in the attached Schedule 4.05(d)6.2 and any extensions, rearrangements, modifications, renewal, and refinancings thereof which do not increase the principal amount thereof or the interest rate charged thereon above a market rate of interest; (c) Debt (including Capital Leases and purchase money obligations ) relating to Property or assets acquired by the Borrower after date of this Agreement not to exceed $25,000,000 (excluding gas balancing liabilities assumed in the acquisition of Oil and Gas Properties) at any time outstanding; (d) Debt for borrowed money owed by any Subsidiary of the Borrower to the Borrower or to any other Credit Party; (e) Debt in the form of obligations for the deferred purchase price of Property property or services incurred in the ordinary course of business which are not yet due and payable or are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been established; (d) Debt secured by the Liens permitted under paragraph (d) of Section 6.01 in an aggregate amount not to exceed $5,000,000 at any time; (e) Debt under Hydrocarbon Hedge Agreements or Interest Hedge Agreements which are not prohibited by the terms of Section 6.14;; and (f) Obligations under the Gas Gathering Agreement dated December 29, 1999 between MEGS LLC and the Borrower; (g) Debt consisting Any guarantee of sureties or bonds provided to any Governmental Authority or other Person and assuring payment of contingent liabilities of the Borrower in connection with the operation of the Oil and Gas Properties, including with respect to plugging, facility removal and abandonment of its Oil and Gas Properties; (h) Debt arising pursuant to the Bond Issuance; provided that, concurrent with the issuance of such Debt, all Tranche B Advances, if any, shall be paid in full; and (i) other Debt not exceeding $2,000,000 in the aggregate at any time outstandingpermitted to be incurred hereunder.