Common use of Payments Pro Rata Treatment Computations Etc Clause in Contracts

Payments Pro Rata Treatment Computations Etc. 30- Section 4.01 Payments -30- Section 4.02 Pro Rata Treatment -30- Section 4.03 Computations -31- Section 4.04 Non-receipt of Funds by the Agent -31- Section 4.05 Set-off, Sharing of Payments, Etc. -32- Section 4.06 Taxes -32- Section 4.07 Disposition of Proceeds -35- ARTICLE V Capital Adequacy -36- Section 5.01 Additional Costs. -36- Section 5.02 Limitation on Tranche B Eurodollar Loans -37- Section 5.03 Illegality -38- Section 5.04 Tranche B Base Rate Loans Pursuant to Sections 5.01, 5.02 and 5.03 -38- Section 5.05 Compensation -38- Section 5.06 Replacement Lenders. -39- ARTICLE VI Conditions Precedent -40- Section 6.01 Initial Funding -40- Section 6.02 Initial and Subsequent Tranche B Loans and Tranche B Letters of Credit -42- Section 6.03 Conditions Relating to Tranche B Letters of Credit -42- ARTICLE VII Representations and Warranties -43- Section 7.01 Existence -43- Section 7.02 Financial Condition -43- Section 7.03 Litigation -44- Section 7.04 No Breach -44- Section 7.05 Authority -44- Section 7.06 Approvals -44- Section 7.07 Use of Tranche B Loans -44- Section 7.08 ERISA -45- Section 7.09 Taxes -46- Section 7.10 Titles, etc. -46- Section 7.11 No Material Misstatements -47- Section 7.12 Investment Company Act -47- Section 7.13 Public Utility Holding Company Act -47- Section 7.14 Subsidiaries -47- Section 7.15 Location of Business and Offices -47- Section 7.16 Defaults -47- Section 7.17 Environmental Matters -47- Section 7.18 Compliance with the Law -49- Section 7.19 Insurance -49- Section 7.20 Hedging Agreements -49- Section 7.21 Restriction on Liens -50- Section 7.22 Material Agreements -50- Section 7.23 Gas Imbalances -50- ARTICLE VIII Affirmative Covenants -50- Section 8.01 Financial Statements -51- Section 8.02 Litigation -53- Section 8.03 Maintenance, Etc. -53- Section 8.04 Environmental Matters -54- Section 8.05 Further Assurances -55- Section 8.06 Performance of Obligations -55- Section 8.07 Title Information -55- Section 8.08 ERISA Information and Compliance -56- Section 8.09 Engineering Reports -56- Section 8.10 Liens. -57- ARTICLE IX Negative Covenants -57- Section 9.01 Debt -57- Section 9.02 Liens -59- Section 9.03 Investments, Loans and Advances -59- Section 9.04 Dividends, Distributions and Redemptions -60- Section 9.05 [Intentionally left blank] -60- Section 9.06 Nature of Business -60- Section 9.07 Mergers, Etc. -60- Section 9.08 Proceeds of Tranche B Notes -61- Section 9.09 ERISA Compliance -61- Section 9.10 Sale or Discount of Receivables -62- Section 9.11 Sale of Oil and Gas Properties -62- Section 9.12 Environmental Matters -63- Section 9.13 Transactions with Affiliates -63- Section 9.14 [Intentionally left blank.] -63- Section 9.15 Interest Coverage Ratio -63- Section 9.16 Subsidiaries -63- Section 9.17 Negative Pledge Agreements -64- Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -64-

Payments Pro Rata Treatment Computations Etc. 30- Section 49 4.01 Payments -30- Section 49 4.02 Pro Rata Treatment -30- Section 51 4.03 Computations -31- Section 51 4.04 Minimum Amounts 51 4.05 Certain Notices 52 4.06 Non-receipt Receipt of Funds by the Administrative Agent -31- Section 4.05 Set-off, 52 4.07 Sharing of Payments, EtcEtc 54 Article V. YIELD PROTECTION, ETC. -32- Section 4.06 Taxes -32- Section 4.07 Disposition of Proceeds -35- ARTICLE V Capital Adequacy -36- Section 56 5.01 Additional Costs. -36- Section Costs 56 5.02 Limitation on Tranche B Eurodollar Loans -37- Section 58 5.03 Illegality -38- Section 58 5.04 Tranche B Base Rate Treatment of Affected Loans Pursuant to Sections 5.01, 5.02 and 5.03 -38- Section 58 5.05 Compensation -38- Section 59 5.06 Taxes 60 5.07 Replacement Lendersof Lenders 62 Article VI. -39- ARTICLE VI CONDITIONS PRECEDENT 62 6.01 Conditions Precedent -40- Section 6.01 Initial Funding -40- Section 6.02 Initial and Subsequent Tranche B Loans and Tranche B Letters to Effectiveness of Credit -42- Section 6.03 Conditions Relating to Tranche B Letters of Credit -42- ARTICLE VII Representations and Warranties -43- Section Loan Commitments 62 Article VII. REPRESENTATIONS AND WARRANTIES 67 7.01 Existence -43- Section Organization; Powers 67 7.02 Authorization; Enforceability 67 7.03 Government Approvals; No Conflicts 67 7.04 Financial Condition -43- Section 7.03 68 7.05 Litigation -44- Section 7.04 No Breach -44- Section 7.05 Authority -44- Section 68 7.06 Approvals -44- Section ERISA 68 7.07 Use of Tranche B Loans -44- Section Taxes 69 7.08 ERISA -45- Section 7.09 Taxes -46- Section 7.10 Titles, etc. -46- Section 7.11 No Material Misstatements -47- Section 7.12 Investment Company Act -47- Section 7.13 Public Utility and Holding Company Act -47- Section 7.14 Subsidiaries -47- Section 7.15 Location of Business and Offices -47- Section 7.16 Defaults -47- Section 7.17 Status 69 7.09 Environmental Matters -47- Section 69 7.10 Organizational Structure 70 7.11 Subsidiaries 70 7.12 Title 70 7.13 No Bankruptcy Filing 70 7.14 Executive Offices; Places of Organization 71 7.15 Compliance; Government Approvals 71 7.16 Condemnation; Casualty 71 7.17 Utilities and Public Access; No Shared Facilities 71 7.18 Solvency 71 7.19 Foreign Person 71 7.20 No Joint Assessment; Separate Lots 72 7.21 Security Interests and Liens 72 7.22 Leases 72 7.23 Insurance 73 7.24 Physical Condition 73 7.25 Flood Zone 73 7.26 Management Agreement 74 7.27 Boundaries 74 7.28 Illegal Activity 74 7.29 Permitted Liens 74 7.30 Foreign Assets Control Regulations, Etc 74 7.31 Defaults 74 7.32 Other Representations 74 7.33 True and Complete Disclosure 74 7.34 For Own Account 75 7.35 Non-Foreign Status 75 Article VIII. AFFIRMATIVE COVENANTS OF THE BORROWER 75 8.01 Information 75 8.02 Notices of Material Events 77 8.03 Existence, Etc 78 8.04 Compliance with Laws; Adverse Regulatory Changes 78 8.05 Insurance 79 8.06 Real Estate Taxes and Other Charges 85 8.07 Maintenance of the Law -49- Section 7.19 Insurance -49- Section 7.20 Hedging Agreements -49- Section 7.21 Restriction on Liens -50- Section 7.22 Material Agreements -50- Section 7.23 Gas Imbalances -50- ARTICLE VIII Affirmative Covenants -50- Section 8.01 Financial Statements -51- Section 8.02 Litigation -53- Section 8.03 Maintenance, Etc. -53- Section 8.04 Environmental Matters -54- Section 8.05 Further Assurances -55- Section 8.06 Performance of Obligations -55- Section 8.07 Title Information -55- Section 8.08 ERISA Information and Compliance -56- Section 8.09 Engineering Reports -56- Section 8.10 Liens. -57- ARTICLE IX Negative Covenants -57- Section 9.01 Debt -57- Section 9.02 Liens -59- Section 9.03 Investments, Loans and Advances -59- Section 9.04 Dividends, Distributions and Redemptions -60- Section 9.05 [Intentionally left blank] -60- Section 9.06 Nature of Business -60- Section 9.07 Mergers, Etc. -60- Section 9.08 Proceeds of Tranche B Notes -61- Section 9.09 ERISA Compliance -61- Section 9.10 Sale or Discount of Receivables -62- Section 9.11 Sale of Oil and Gas Properties -62- Section 9.12 Environmental Matters -63- Section 9.13 Transactions with Affiliates -63- Section 9.14 [Intentionally left blank.] -63- Section 9.15 Interest Coverage Ratio -63- Section 9.16 Subsidiaries -63- Section 9.17 Negative Pledge Agreements -64- Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -64-Projects; Alterations 85

Payments Pro Rata Treatment Computations Etc. 30- 29- Section 4.01 Payments -30- -29- Section 4.02 Pro Rata Treatment -30- Section 4.03 Computations -31- -30- Section 4.04 Non-receipt of Funds by the Agent -31- Section 4.05 Set-off, Sharing of Payments, Etc. -32- Etc -31- Section 4.06 Taxes -32- Section 4.07 Disposition of Proceeds -35- ARTICLE V Capital Adequacy -36- -35- Section 5.01 Additional Costs. -36- Costs -35- Section 5.02 Limitation on Tranche B A Eurodollar Loans -37- Section 5.03 Illegality -38- Section 5.04 Tranche B A Base Rate Loans Pursuant to Sections 5.01, 5.02 and 5.03 -38- Section 5.05 Compensation -38- Section 5.06 Replacement Lenders. Lenders -39- ARTICLE VI Conditions Precedent -40- Section 6.01 Initial Funding -40- Section 6.02 Initial and Subsequent Tranche B A Loans and Tranche B A Letters of Credit -42- Section 6.03 Conditions Relating to Tranche B A Letters of Credit -42- ARTICLE VII Representations and Warranties -43- Section 7.01 Existence -43- Section 7.02 Financial Condition -43- Section 7.03 Litigation -44- Section 7.04 No Breach -44- Section 7.05 Authority -44- Section 7.06 Approvals -44- -45- Section 7.07 Use of Tranche B A Loans -44- -45- Section 7.08 ERISA -45- Section 7.09 Taxes -46- Section 7.10 Titles, etc. etc -46- Section 7.11 No Material Misstatements -47- Section 7.12 Investment Company Act -47- Section 7.13 Public Utility Holding Company Act -47- Section 7.14 Subsidiaries -47- -48- Section 7.15 Location of Business and Offices -47- -48- Section 7.16 Defaults -47- -48- Section 7.17 Environmental Matters -47- -48- Section 7.18 Compliance with the Law -49- Section 7.19 Insurance -49- -50- Section 7.20 Hedging Agreements -49- -50- Section 7.21 Restriction on Liens -50- Section 7.22 Material Agreements -50- Section 7.23 Gas Imbalances -50- -51- ARTICLE VIII Affirmative Covenants -50- -51- Section 8.01 Financial Statements -51- Section 8.02 Litigation -53- Section 8.03 Maintenance, Etc. -53- Section 8.04 Environmental Matters -54- -55- Section 8.05 Further Assurances -55- -56- Section 8.06 Performance of Obligations -55- -56- Section 8.07 Engineering Reports -56- Section 8.08 Title Information -55- -57- Section 8.08 8.09 Collateral -58- Section 8.10 ERISA Information and Compliance -56- -59- Section 8.09 Engineering Reports -56- Section 8.10 Liens. -57- 8.11 Applicability of Affirmative Covenants -59- ARTICLE IX Negative Covenants -57- -59- Section 9.01 Debt -57- -60- Section 9.02 Liens -59- -61- Section 9.03 Investments, Loans and Advances -59- -62- Section 9.04 Dividends, Distributions and Redemptions -60- -63- Section 9.05 [Intentionally left blank] -60- Sales and Leasebacks -63- Section 9.06 Nature of Business -60- -63- Section 9.07 Mergers, Etc. -60- -64- Section 9.08 Proceeds of Tranche B A Notes -61- -64- Section 9.09 ERISA Compliance -61- -64- Section 9.10 Sale or Discount of Receivables -62- -66- Section 9.11 Ratio of Debt to EBITDAX -66- Section 9.12 Interest Coverage Ratio -66- Section 9.13 Sale of Oil and Gas Properties -62- -66- Section 9.12 9.14 Environmental Matters -63- -66- Section 9.13 9.15 Transactions with Affiliates -63- Section 9.14 [Intentionally left blank.] -63- Section 9.15 Interest Coverage Ratio -63- -66- Section 9.16 Subsidiaries -63- -67- Section 9.17 Negative Pledge Agreements -64- -67- Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -64--68- Section 9.19 Applicability of Negative Covenants -68- Section 9.20 "Margin Calls" on Hedging Agreements -68-

Payments Pro Rata Treatment Computations Etc. 30- 29 Section 4.01 Payments -30- 29 Section 4.02 Pro Rata Treatment -30- 29 Section 4.03 Computations -31- 29 Section 4.04 Non-receipt of Funds by the Agent -31- 30 Section 4.05 Set-off, Sharing of Payments, Etc. -32- 30 Section 4.06 Taxes -32- 31 Section 4.07 Disposition of Proceeds -35- 34 Section 4.08 Revenue Clearing Account 34 ARTICLE V Capital Adequacy -36- 35 Section 5.01 Additional Costs. -36- Costs 35 Section 5.02 Limitation on Tranche B Eurodollar Loans -37- 36 Section 5.03 Illegality -38- 37 Section 5.04 Tranche B Base Rate Loans Pursuant to Sections 5.01, 5.02 and 5.03 -38- 37 Section 5.05 Compensation -38- 37 Section 5.06 Replacement Lenders. -39- 38 ARTICLE VI Conditions Precedent -40- 39 Section 6.01 Initial Funding -40- 39 Section 6.02 Initial and Subsequent Tranche B Loans and Tranche B Letters of Credit -42- 41 Section 6.03 Conditions Relating to Tranche B Letters of Credit -42- 41 ARTICLE VII Representations and Warranties -43- 42 Section 7.01 Existence -43- 42 Section 7.02 Financial Condition -43- 42 Section 7.03 Litigation -44- 43 Section 7.04 No Breach -44- 43 Section 7.05 Authority -44- 43 Section 7.06 Approvals -44- 43 Section 7.07 Use of Tranche B Loans -44- 43 Section 7.08 ERISA -45- 44 Section 7.09 Taxes -46- 45 Section 7.10 Titles, etc. -46- 45 Section 7.11 No Material Misstatements -47- 46 Section 7.12 Investment Company Act -47- 46 Section 7.13 Public Utility Holding Company Act -47- 46 Section 7.14 Subsidiaries -47- 46 Section 7.15 Location of Business and Offices -47- 46 Section 7.16 Defaults -47- 47 Section 7.17 Environmental Matters -47- 47 Section 7.18 Compliance with the Law -49- 48 Section 7.19 Insurance -49- 48 Section 7.20 Hedging Agreements -49- 49 Section 7.21 Restriction on Liens -50- 49 Section 7.22 Material Agreements -50- Reserved 49 Section 7.23 Gas Imbalances -50- 49 ARTICLE VIII Affirmative Covenants -50- 50 Section 8.01 Financial Statements -51- 50 Section 8.02 Litigation -53- 52 Section 8.03 Maintenance, Etc. -53- 52 Section 8.04 Environmental Matters -54- 53 Section 8.05 Further Assurances -55- 54 Section 8.06 Performance of Obligations -55- 54 Section 8.07 Engineering Reports 55 Section 8.08 Title Information -55- 56 Section 8.08 8.09 Collateral 57 Section 8.10 ERISA Information and Compliance -56- 57 Section 8.09 Engineering Reports -56- Section 8.10 Liens. -57- 8.11 Accounts 58 ARTICLE IX Negative Covenants -57- 58 Section 9.01 Debt -57- 58 Section 9.02 Liens -59- 59 Section 9.03 Investments, Loans and Advances -59- 60 Section 9.04 Dividends, Distributions and Redemptions -60- 61 Section 9.05 [Intentionally left blank] -60- Sales and Leasebacks 61 Section 9.06 Nature of Business -60- 62 Section 9.07 Mergers, Etc. -60- 62 Section 9.08 Proceeds of Tranche B Notes -61- 62 Section 9.09 ERISA Compliance -61- 63 Section 9.10 Sale or Discount of Receivables -62- 64 Section 9.11 Debt Service Coverage Ratio 64 Section 9.12 Reserved 64 Section 9.13 Sale of Oil and Gas Properties -62- 64 Section 9.12 9.14 Environmental Matters -63- 64 Section 9.13 9.15 Transactions with Affiliates -63- Section 9.14 [Intentionally left blank.] -63- Section 9.15 Interest Coverage Ratio -63- 65 Section 9.16 Subsidiaries -63- 65 Section 9.17 Negative Pledge Agreements -64- 66 Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -64-66 Section 9.19 Margin Calls on Hedging Agreements 66 ARTICLE X Events of Default; Remedies 66 Section 10.01 Events of Default 66 Section 10.02 Remedies 68 ARTICLE XI The Agent 69 Section 11.01 Appointment, Powers and Immunities 69 Section 11.02 Reliance by Agent 69 Section 11.03 Defaults 70 Section 11.04 Rights as a Lender 70 Section 11.05 indemnification 70 Section 11.06 Non-Reliance on Agent and other Lenders 70 Section 11.07 Action by Agent 71 Section 11.08 Resignation or Removal of Agent 71 ARTICLE XII Miscellaneous 72 Section 12.01 Waiver 72 Section 12.02 Notices 72 Section 12.03 Payment of Expenses, Indemnities, etc 73 Section 12.04 Amendments, Etc. 75 Section 12.05 Successors and Assigns 75 Section 12.06 Assignments and Participations 75 Section 12.07 Invalidity 77 Section 12.08 Counterparts 77 Section 12.09 References 77 Section 12.10 Survival 77 Section 12.11 Captions 78 Section 12.12 no oral agreements 78 Section 12.13 governing law; submission to jurisdiction78 Section 12.14 Interest 79 Section 12.15 Confidentiality 80 Section 12.16 Effectiveness 81 Section 12.17 exculpation provisions 81 THIS CREDIT AGREEMENT dated as of July 1, 2002 is among: McMoRan OIL & GAS LLC (successor by merger with McMoRan Oil & Gas Co.), a limited liability company formed under the laws of the State of Delaware (together with its successors and assigns, the "Borrower"); each of the lenders that is a signatory hereto or which becomes a signatory hereto as provided in Section 12.06 (individually, together with its successors and assigns, a "Lender" and, collectively, the "Lenders"); and Hibernia National Bank, a national banking association (in its individual capacity, "Hibernia"), as agent for the Lenders (in such capacity, together with its successors in such capacity, the "Agent").