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

Payments Pro Rata Treatment Computations Etc. 29- Section 4.01 Payments -29- Section 4.02 Pro Rata Treatment -30- Section 4.03 Computations -30- Section 4.04 Non-receipt of Funds by the Agent -31- Section 4.05 Set-off, Sharing of Payments, Etc -31- Section 4.06 Taxes -32- Section 4.07 Disposition of Proceeds -35- ARTICLE V Capital Adequacy -35- Section 5.01 Additional Costs -35- Section 5.02 Limitation on Tranche A Eurodollar Loans -37- Section 5.03 Illegality -38- Section 5.04 Tranche 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 -39- ARTICLE VI Conditions Precedent -40- Section 6.01 Initial Funding -40- Section 6.02 Initial and Subsequent Tranche A Loans and Tranche A Letters of Credit -42- Section 6.03 Conditions Relating to Tranche 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 -45- Section 7.07 Use of Tranche A Loans -45- 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 -48- Section 7.15 Location of Business and Offices -48- Section 7.16 Defaults -48- Section 7.17 Environmental Matters -48- Section 7.18 Compliance with the Law -49- Section 7.19 Insurance -50- Section 7.20 Hedging Agreements -50- Section 7.21 Restriction on Liens -50- Section 7.22 Material Agreements -50- Section 7.23 Gas Imbalances -51- ARTICLE VIII Affirmative Covenants -51- Section 8.01 Financial Statements -51- Section 8.02 Litigation -53- Section 8.03 Maintenance, Etc. -53- Section 8.04 Environmental Matters -55- Section 8.05 Further Assurances -56- Section 8.06 Performance of Obligations -56- Section 8.07 Engineering Reports -56- Section 8.08 Title Information -57- Section 8.09 Collateral -58- Section 8.10 ERISA Information and Compliance -59- Section 8.11 Applicability of Affirmative Covenants -59- ARTICLE IX Negative Covenants -59- Section 9.01 Debt -60- Section 9.02 Liens -61- Section 9.03 Investments, Loans and Advances -62- Section 9.04 Dividends, Distributions and Redemptions -63- Section 9.05 Sales and Leasebacks -63- Section 9.06 Nature of Business -63- Section 9.07 Mergers, Etc. -64- Section 9.08 Proceeds of Tranche A Notes -64- Section 9.09 ERISA Compliance -64- Section 9.10 Sale or Discount of Receivables -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 -66- Section 9.14 Environmental Matters -66- Section 9.15 Transactions with Affiliates -66- Section 9.16 Subsidiaries -67- Section 9.17 Negative Pledge Agreements -67- Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -68- Section 9.19 Applicability of Negative Covenants -68- Section 9.20 "Margin Calls" on Hedging Agreements -68-

Payments Pro Rata Treatment Computations Etc. 29- 30- Section 4.01 Payments -29- -30- Section 4.02 Pro Rata Treatment -30- Section 4.03 Computations -30- -31- Section 4.04 Non-receipt of Funds by the Agent -31- Section 4.05 Set-off, Sharing of Payments, Etc -31- Etc. -32- Section 4.06 Taxes -32- Section 4.07 Disposition of Proceeds -35- ARTICLE V Capital Adequacy -35- -36- Section 5.01 Additional Costs -35- Costs. -36- Section 5.02 Limitation on Tranche A B Eurodollar Loans -37- Section 5.03 Illegality -38- Section 5.04 Tranche A 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 Lenders. -39- ARTICLE VI Conditions Precedent -40- Section 6.01 Initial Funding -40- Section 6.02 Initial and Subsequent Tranche A B Loans and Tranche A B Letters of Credit -42- Section 6.03 Conditions Relating to Tranche A 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 -45- -44- Section 7.07 Use of Tranche A B Loans -45- -44- 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 -48- -47- Section 7.15 Location of Business and Offices -48- -47- Section 7.16 Defaults -48- -47- Section 7.17 Environmental Matters -48- -47- Section 7.18 Compliance with the Law -49- Section 7.19 Insurance -50- -49- Section 7.20 Hedging Agreements -50- -49- Section 7.21 Restriction on Liens -50- Section 7.22 Material Agreements -50- Section 7.23 Gas Imbalances -51- -50- ARTICLE VIII Affirmative Covenants -51- -50- Section 8.01 Financial Statements -51- Section 8.02 Litigation -53- Section 8.03 Maintenance, Etc. -53- Section 8.04 Environmental Matters -55- -54- Section 8.05 Further Assurances -56- -55- Section 8.06 Performance of Obligations -55- Section 8.07 Title Information -55- Section 8.08 ERISA Information and Compliance -56- Section 8.07 8.09 Engineering Reports -56- Section 8.08 Title Information 8.10 Liens. -57- Section 8.09 Collateral -58- Section 8.10 ERISA Information and Compliance -59- Section 8.11 Applicability of Affirmative Covenants -59- ARTICLE IX Negative Covenants -59- -57- Section 9.01 Debt -60- -57- Section 9.02 Liens -61- -59- Section 9.03 Investments, Loans and Advances -62- -59- Section 9.04 Dividends, Distributions and Redemptions -63- -60- Section 9.05 Sales and Leasebacks -63- [Intentionally left blank] -60- Section 9.06 Nature of Business -63- -60- Section 9.07 Mergers, Etc. -64- -60- Section 9.08 Proceeds of Tranche A B Notes -64- -61- Section 9.09 ERISA Compliance -64- -61- Section 9.10 Sale or Discount of Receivables -66- -62- 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 -66- -62- Section 9.14 9.12 Environmental Matters -66- -63- Section 9.15 9.13 Transactions with Affiliates -66- -63- Section 9.14 [Intentionally left blank.] -63- Section 9.15 Interest Coverage Ratio -63- Section 9.16 Subsidiaries -67- -63- Section 9.17 Negative Pledge Agreements -67- -64- Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -68- Section 9.19 Applicability of Negative Covenants -68- Section 9.20 "Margin Calls" on Hedging Agreements -68--64-

Payments Pro Rata Treatment Computations Etc. 29- 29 Section 4.01 Payments -29- 29 Section 4.02 Pro Rata Treatment -30- 29 Section 4.03 Computations -30- 29 Section 4.04 Non-receipt of Funds by the Agent -31- 30 Section 4.05 Set-off, Sharing of Payments, Etc -31- Etc. 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 -35- 35 Section 5.01 Additional Costs -35- 35 Section 5.02 Limitation on Tranche A Eurodollar Loans -37- 36 Section 5.03 Illegality -38- 37 Section 5.04 Tranche A 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- Lenders. 38 ARTICLE VI Conditions Precedent -40- 39 Section 6.01 Initial Funding -40- 39 Section 6.02 Initial and Subsequent Tranche A Loans and Tranche A Letters of Credit -42- 41 Section 6.03 Conditions Relating to Tranche A 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 -45- 43 Section 7.07 Use of Tranche A Loans -45- 43 Section 7.08 ERISA -45- 44 Section 7.09 Taxes -46- 45 Section 7.10 Titles, etc -46- etc. 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 -48- 46 Section 7.15 Location of Business and Offices -48- 46 Section 7.16 Defaults -48- 47 Section 7.17 Environmental Matters -48- 47 Section 7.18 Compliance with the Law -49- 48 Section 7.19 Insurance -50- 48 Section 7.20 Hedging Agreements -50- 49 Section 7.21 Restriction on Liens -50- 49 Section 7.22 Material Agreements -50- Reserved 49 Section 7.23 Gas Imbalances -51- 49 ARTICLE VIII Affirmative Covenants -51- 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 -55- 53 Section 8.05 Further Assurances -56- 54 Section 8.06 Performance of Obligations -56- 54 Section 8.07 Engineering Reports -56- 55 Section 8.08 Title Information -57- 56 Section 8.09 Collateral -58- 57 Section 8.10 ERISA Information and Compliance -59- 57 Section 8.11 Applicability of Affirmative Covenants -59- Accounts 58 ARTICLE IX Negative Covenants -59- 58 Section 9.01 Debt -60- 58 Section 9.02 Liens -61- 59 Section 9.03 Investments, Loans and Advances -62- 60 Section 9.04 Dividends, Distributions and Redemptions -63- 61 Section 9.05 Sales and Leasebacks -63- 61 Section 9.06 Nature of Business -63- 62 Section 9.07 Mergers, Etc. -64- 62 Section 9.08 Proceeds of Tranche A Notes -64- 62 Section 9.09 ERISA Compliance -64- 63 Section 9.10 Sale or Discount of Receivables -66- 64 Section 9.11 Debt Service Coverage Ratio of Debt to EBITDAX -66- 64 Section 9.12 Interest Coverage Ratio -66- Reserved 64 Section 9.13 Sale of Oil and Gas Properties -66- 64 Section 9.14 Environmental Matters -66- 64 Section 9.15 Transactions with Affiliates -66- 65 Section 9.16 Subsidiaries -67- 65 Section 9.17 Negative Pledge Agreements -67- 66 Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -68- 66 Section 9.19 Applicability of Negative Covenants -68- Section 9.20 "Margin Calls" Calls on Hedging Agreements -68-66 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").

Payments Pro Rata Treatment Computations Etc. 29- 26- Section 4.01 Payments -29- -26- Section 4.02 Pro Rata Treatment -30- -27- Section 4.03 Computations -30- -27- Section 4.04 Non-receipt of Funds by the Agent -31- -27- Section 4.05 Set-off, Sharing of Payments, Etc -31- Etc. -28- Section 4.06 Taxes -32- -28- Section 4.07 Disposition of Proceeds -35- -31- ARTICLE V Capital Adequacy -35- -32- Section 5.01 Additional Costs -35- -32- Section 5.02 Limitation on Tranche A Eurodollar Loans -37- -33- Section 5.03 Illegality -38- -34- Section 5.04 Tranche A Base Rate Loans Pursuant to Sections 5.01, 5.02 and 5.03 -38- -34- Section 5.05 Compensation -38- -34- Section 5.06 Replacement Lenders -39- -35- ARTICLE VI Conditions Precedent -40- -36- Section 6.01 Initial Funding -40- -36- Section 6.02 Initial and Subsequent Tranche A Loans and Tranche A Letters of Credit -42- -37- Section 6.03 Conditions Relating to Tranche A Letters of Credit -42- -38- ARTICLE VII Representations and Warranties -43- -38- Section 7.01 Existence -43- -38- Section 7.02 Financial Condition -43- -39- Section 7.03 Litigation -44- -39- Section 7.04 No Breach -44- -39- Section 7.05 Authority -44- -40- Section 7.06 Approvals -45- -40- Section 7.07 Use of Tranche A Loans -45- -40- Section 7.08 ERISA -45- -40- Section 7.09 Taxes -46- -41- Section 7.10 Titles, etc -46- etc. -41- Section 7.11 No Material Misstatements -47- -42- Section 7.12 Investment Company Act -47- -42- Section 7.13 Public Utility Holding Company Act -47- -43- Section 7.14 Subsidiaries -48- -43- Section 7.15 Location of Business and Offices -48- -43- Section 7.16 Defaults -48- -43- Section 7.17 Environmental Matters -48- -43- Section 7.18 Compliance with the Law -49- -44- Section 7.19 Insurance -50- -45- Section 7.20 Hedging Agreements -50- -45- Section 7.21 Restriction on Liens -50- -45- Section 7.22 Material Agreements -50- -45- Section 7.23 Gas Imbalances -51- ARTICLE VIII Affirmative Covenants -51- -46- Section 8.01 Financial Statements -51- Section 8.02 Litigation -53- Section 8.03 Maintenance, Etc. -53- Section 8.04 Environmental Matters -55- Section 8.05 Further Assurances -56- Section 8.06 Performance of Obligations -56- Section 8.07 Engineering Reports -56- Section 8.08 Title Information -57- Section 8.09 Collateral -58- Section 8.10 ERISA Information and Compliance -59- Section 8.11 Applicability of Affirmative Covenants -59- ARTICLE IX Negative Covenants -59- Section 9.01 Debt -60- Section 9.02 Liens -61- Section 9.03 Investments, Loans and Advances -62- Section 9.04 Dividends, Distributions and Redemptions -63- Section 9.05 Sales and Leasebacks -63- Section 9.06 Nature of Business -63- Section 9.07 Mergers, Etc. -64- Section 9.08 Proceeds of Tranche A Notes -64- Section 9.09 ERISA Compliance -64- Section 9.10 Sale or Discount of Receivables -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 -66- Section 9.14 Environmental Matters -66- Section 9.15 Transactions with Affiliates -66- Section 9.16 Subsidiaries -67- Section 9.17 Negative Pledge Agreements -67- Section 9.18 Gas Imbalances, Take-or-Pay or Other Prepayments -68- Section 9.19 Applicability of Negative Covenants -68- Section 9.20 "Margin Calls" on Hedging Agreements -68-7.24 Year 2000 -46-