Common use of Limitation on Credit Extensions Clause in Contracts

Limitation on Credit Extensions. Except for Permitted Investments, no Related Person will extend credit, make advances or make loans other than (i) normal and prudent extensions of credit to customers buying goods and services in the ordinary course of business, which extensions shall not be for longer periods than those extended by similar businesses operated in a normal and prudent manner, (ii) loans to another Related Person that is a Guarantor or to the Borrower (to the extent (and only to the extent) repayment thereof shall be subordinated by an agreement in the form of Exhibit I to payment of the Obligations); provided that, in addition to the limits set forth in Exhibit I, any payment of interest made before the Final Maturity Date on any such subordinated debt shall be permitted only if (A) such payment is solely used directly or indirectly to pay either current taxes or employee compensation paid within the ordinary course of business (including bonuses and payments under employment contracts existing on the Closing Date and (B) no Borrowing Base Deficiency exists, and (iii) advances to operators under operating agreements entered into by the Borrower in the ordinary course of business.

Limitation on Credit Extensions. Except for Permitted ------------------------------- Investments, no Related Person will extend credit, make advances or make loans other than (i) normal and prudent extensions of credit to customers buying goods and services in the ordinary course of business, which extensions shall not be for longer periods than those extended by similar businesses operated in a normal and prudent manner, (ii) loans to another Related Person that is a Guarantor or to the Borrower (to the extent (and only to the extent) repayment thereof shall be subordinated by an agreement in the form of Exhibit I to --------- payment of the Obligations); provided that, in addition to the limits set forth in Exhibit I, any payment of interest made before the Final Maturity Date on any --------- such subordinated debt shall be permitted only if (A) such payment is solely used directly or indirectly to pay either current taxes or employee compensation paid within the ordinary course of business (including bonuses and payments under employment contracts existing on the Closing Date and (B) no Borrowing Base Deficiency exists, and (iii) advances to operators under operating agreements entered into by the Borrower in the ordinary course of business.

Limitation on Credit Extensions. Except for Permitted Investments, no ------------------------------- Related Person will shall extend credit, make advances or make loans other than (i) normal and prudent extensions of credit to customers buying goods and services in the ordinary course of business, which extensions shall not be for longer periods than those extended by similar businesses operated in a normal and prudent manner, (ii) loans to another Related Person that is a Guarantor or to the Borrower (to the extent (and only to the extent) repayment thereof shall be subordinated by an agreement in the form of Exhibit I G to payment of the Obligations); provided that, in addition to the limits set forth in Exhibit IG, any payment of interest made before the Final Maturity Date on any such subordinated debt shall be permitted only if (A) such payment is solely used directly or indirectly to pay either current taxes or employee compensation paid within the ordinary course of business (including bonuses and payments under employment contracts existing on the Closing Date and (B) no Borrowing Base Deficiency exists, and (iii) advances to operators under operating agreements entered into by the Borrower in the ordinary course of business.

Limitation on Credit Extensions. Except for Permitted Investments, no Related Person will shall extend credit, make advances or make loans other than (i) normal and prudent extensions of credit to customers buying goods and services in the ordinary course of business, which extensions shall not be for longer periods than those extended by similar businesses operated in a normal and prudent manner, (ii) loans to another Related Person that is a Guarantor or to the Borrower (to the extent (and only to the extent) repayment thereof shall be subordinated by an agreement in the form of Exhibit I G to payment of the Obligations); provided that, in addition to the limits set forth in Exhibit IG, any payment of interest made before the Final Maturity Tranche A Commitment Termination Date on any such subordinated debt shall be permitted only if (A) such payment is solely used directly or indirectly to pay either current taxes or employee compensation paid within the ordinary course of business (including bonuses and payments under employment contracts existing on the Closing Date and (B) no Borrowing Base Deficiency exists, and (iii) advances to operators under operating agreements entered into by the Borrower in the ordinary course of business.