The proceeds of the Notes shall be used (i) finance a portion of the purchase price of the Whitehorse Asset Acquisition, (ii)  to provide funds for working capital, (iii)  to finance capital expenditures, (iv)  for the acquisition and development by the Issuer and its Subsidiaries of Oil and Gas Properties permitted hereunder and (v)  for general corporate purposes of the Issuer and its Subsidiaries. No Note Party is engaged principally, or as one of its or their 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 Note will be used for any purpose which violates the provisions of Regulations T, U or X of the Board.