Document:

exhibit10_40.htm

    
      

    

    Exhibit
10.40

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    McMoRan
EXPLORATION CO.

    

    

    2005
SUPPLEMENTAL EXECUTIVE CAPITAL

    ACCUMULATION
PLAN

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    (As
Amended and Restated Effective January 1, 2009)

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF CONTENTS

     

     

    Page

    
      
        

          
            	
                    ARTICLE
      I – DEFINITIONS

                  	
                    2

                  
	
                    1.00

                  	 
      	
                    Account
      or Accounts

                  	
                    2

                  
	
                    1.01

                  	 
      	
                    Compensation

                  	
                    2

                  
	
                    1.02

                  	 
      	
                    Beneficiary

                  	
                    2

                  
	
                    1.03

                  	 
      	
                    Board
      of Directors

                  	
                    2

                  
	
                    1.04

                  	 
      	
                    Committee

                  	
                    2

                  
	
                    1.05

                  	 
      	
                    Company

                  	
                    2

                  
	
                    1.06

                  	 
      	
                    Contribution

                  	
                    2

                  
	
                    1.07

                  	 
      	
                    Core
      Company

                  	
                    3

                  
	
                    1.08

                  	 
      	
                    Employee

                  	
                    3

                  
	
                    1.09

                  	 
      	
                    Employer

                  	
                    3

                  
	
                    1.10

                  	 
      	
                    MMR-ECAP

                  	
                    3

                  
	
                    1.11

                  	 
      	
                    Internal
      Revenue Code or Code

                  	
                    3

                  
	
                    1.12

                  	 
      	
                    Participant

                  	
                    3

                  
	
                    1.13

                  	 
      	
                    Participating
      Company

                  	
                    3

                  
	
                    1.14

                  	 
      	
                    Plan

                  	
                    3

                  
	
                    1.15

                  	 
      	
                    Plan
      Year

                  	
                    3

                  
	
                    1.16

                  	 
      	
                    Separation
      from Service

                  	
                    3

                  
	
                    1.17

                  	 
      	
                    Specified
      Employee

                  	
                    4

                  
	
                    1.18

                  	 
      	
                    Value
      Determination Date

                  	
                    4

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      II -- ELIGIBILITY

                  	
                    4

                  
	
                    2.00

                  	 
      	
                    Eligible
      Employee for Basic and Matching Contribution

                  	
                    4

                  
	
                    2.01

                  	 
      	
                    Automatic
      Eligibility for Enhanced Company Contribution Credit

                  	
                    4

                  
	
                    2.02

                  	 
      	
                    Automatic
      Eligibility for Excess Section 415 Amounts

                  	
                    4

                  
	
                    2.03

                  	 
      	
                    Automatic
      Eligibility for Excess Section 401(a)(4) Amounts

                  	
                    5

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      III -- MMR-SECAP BASIC CREDITS

                  	
                    5

                  
	
                    3.00

                  	 
      	
                    Deferral
      Election

                  	
                    5

                  
	
                    3.01

                  	 
      	
                    Earnings

                  	
                    6

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      IV -- OTHER MMR-SECAP CREDITS

                  	
                    6

                  
	
                    4.00

                  	 
      	
                    MMR-SECAP
      Company Matching Contribution Credit

                  	
                    6

                  
	
                    4.01

                  	 
      	
                    MMR-SECAP
      Enhanced Company Contribution Credits

                  	
                    6

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      V -- VALUATION OF A PARTICIPANT’S INTEREST IN A FUND

                  	
                    7

                  
	
                    5.00

                  	 
      	
                    Annual
      Statements

                  	
                    7

                  
	
                    5.01

                  	 
      	
                    Valuation

                  	
                    7

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      VI -- PAYMENTS

                  	
                    7

                  
	
                    6.00

                  	 
      	
                    Distribution
      Upon Separation from Service

                  	
                    7

                  
	
                    6.01

                  	 
      	
                    Timing
      of Payment

                  	
                    7

                  
	
                    6.02

                  	 
      	
                    Distribution
      Upon Death

                  	
                    8

                  
	
                    6.03

                  	 
      	
                    Form
      of Payments

                  	
                    8

                  
	
                    6.04

                  	 
      	
                    Loans
      Prohibited

                  	
                    8

                  

          

          
            
               

            

            
              i

              
                

              

            

            
               

            

          

          
            	
                    6.05

                  	 
      	
                    Transition
      Period Elections

                  	
                    8

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      VII -- VESTING AND FORFEITURES

                  	
                    9

                  
	
                    7.00

                  	 
      	
                    Vesting
      and Forfeitures

                  	
                    9

                  
	
                    7.01

                  	 
      	
                    Restoration
      of Forfeitures

                  	
                    9

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      VIII -- ADMINISTRATION

                  	
                    9

                  
	
                    8.00

                  	 
      	
                    Committee

                  	
                    9

                  
	
                    8.01

                  	 
      	
                    Notices,
      Statements, Etc.

                  	
                    10

                  
	
                    8.02

                  	 
      	
                    Indemnification

                  	
                    10

                  
	
                    8.03

                  	 
      	
                    Bookkeeping
      Accounts

                  	
                    10

                  
	
                    8.04

                  	 
      	
                    Determination
      of Eligibility

                  	
                    10

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      IX -- CLAIMS PROCEDURES

                  	
                    10

                  
	
                    9.00

                  	 
      	
                    Claims
      Procedures

                  	
                    10

                  
	 
      	 
      	 
      	 
      
	
                    ARTICLE
      X -- GENERAL PROVISIONS

                  	
                    11

                  
	
                    10.00

                  	 
      	
                    Beneficiary
      Designation; Change

                  	
                    12

                  
	
                    10.01

                  	 
      	
                    Status
      of the Plan

                  	
                    12

                  
	
                    10.02

                  	 
      	
                    Not
      a Contract of Employment

                  	
                    12

                  
	
                    10.03

                  	 
      	
                    Unsecured
      General Creditor

                  	
                    12

                  
	
                    10.04

                  	 
      	
                    Amendment
      and Termination

                  	
                    12

                  
	
                    10.05

                  	 
      	
                    Non-Assignability

                  	
                    13

                  
	
                    10.06

                  	 
      	
                    Offset

                  	
                    13

                  
	
                    10.07

                  	 
      	
                    Governing
      Law

                  	
                    13

                  

          

          
            
               

            

            
              ii

              
                

              

            

            
               

            

          

      

    

    McMoRan
EXPLORATION CO.

    2005
SUPPLEMENTAL EXECUTIVE CAPITAL ACCUMULATION PLAN

    (As
Amended and Restated Effective January 1, 2009)

    

    

    Recitals

     

    WHEREAS, McMoRan Exploration
Co. adopted the McMoRan Exploration Co. Supplemental Executive Capital
Accumulation Plan for the benefit of selected employees effective of January 1,
1996 and the Plan was renamed, effective January 1, 2008 as the McMoRan
Exploration Co. 1996 Supplemental Executive Accumulation Plan (“FCX
1996-SECAP”);

     

    WHEREAS, McMoRan Exploration
Co. (the “Company”), established and maintains the McMoRan Exploration Co. 2005
Supplemental Executive Capital Accumulation Plan, effective as of January 1,
2008 (the “MMR-SECAP or Plan”), in response to the enactment of Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), to provide deferred
compensation benefits earned or vested after December 31, 2004, with all
earnings attributable thereto, for the benefit of the eligible employees of the
Company and any Participating Employer; and

     

    WHEREAS, the Company desires
to amend and restate the MMR-SECAP to comply with the applicable requirements
under the final regulations issued under Code Section 409A, which regulations
are effective as of January 1, 2009, and to make other revisions and
clarifications;

     

    NOW, THEREFORE, effective as
of January 1, 2009, the Company hereby amends, restates and continues the
MMR-SECAP as herein set forth:

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    ARTICLE I --DEFINITIONS

     

    Unless
otherwise required by the context, wherever used herein:

     

    1.00 Account or
Accounts means
the Basic Credits Account, Company Savings Contribution Credits Account and
Enhanced Company Contribution Credits Account reflecting amounts earned or
vested after December 31, 2004, with all earnings attributable
thereto.

     

    1.01 Compensation

     

    
      	
              (a)  

            	
              Basic
      Compensation means Participant’s Basic Compensation, as defined in
      the MMR-ECAP.

            

    

     

    
      	
              (b)  

            	
              Pensionable
      Compensation means the Participant’s Pensionable Compensation as
      defined in the MMR-ECAP.

            

    

     

    1.02 Beneficiary means
the person or entity designated by the Participant on forms furnished by the
Committee to receive benefits under this Plan upon the Participant’s
death.

     

    1.03 Board of
Directors means
the Board of Directors of the Company.

     

    1.04 Committee means
a Committee appointed by the Board of Directors consisting of one to three
members of the Board or officers of the Company.

     

    1.05 Company means
McMoRan Exploration Co. (“MMR”) or any Company that is a successor as a result
of a merger, consolidation, liquidation, transfer of assets, or
reorganization.

     

    1.06 Contribution means
the following amounts credited for bookkeeping purposes to the Participant’s
Account or Accounts:

     

    
      	
              (a)  

            	
              Basic
      Credits means amounts credited to a Participant's Account pursuant
      to Section 3.00 of this Plan.

            

    

     

    
      	
              (b)  

            	
              Company
      Savings Contribution Credits means matching contributions made by a
      Participating Company on behalf of a Participant for Basic Credits
      deferred prior to 2009.

            

    

     

    
      	
              (c)  

            	
              Enhanced
      Company Contribution Credits means amounts that would be
      contributed to the MMR-ECAP as Enhanced Company Contribution but for the
      limits imposed by the Internal Revenue
Code.

            

    

     

    
      	
              (d)  

            	
              DC
      Adjustment Contribution Credits means amounts that were contributed
      to the MMR-SECAP as DC Adjustment Contribution for a period of sixty (60)
      months starting in July, 2000.  The DC Adjustment Contribution
      Credits are accounted for in the Participant’s Enhanced Company
      Contribution Credits Account.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.07 Core
Company means
McMoRan Oil & Gas Co. and its affiliates, Freeport-McMoRan Copper & Gold
Inc. and its affiliates and FM Services Company and its affiliates.

     

    1.08 Employee means
an Employee as defined in the MMR-ECAP.

     

    1.09 Employer means the Company and all
entities with whom the Company would be considered a single employer under
Section 414(b) of the Code (employees of a controlled group of corporations),
and all entities with whom the Company would be considered a single employer
under Section 414(c) of the Code (employees of partnerships, proprietorships,
etc., under common control).

     

    1.10 MMR-ECAP means
the McMoRan Exploration Co. Employee Capital Accumulation Program maintained by
the Company, as may be amended from time to time.

     

    1.11 Internal Revenue Code or
Code means
the Internal Revenue Code of 1986, as amended from time to time.

     

    1.12 Participant means
an Employee or former Employee for whom an Account in the Plan is
maintained.

     

    1.13 Participating
Company means
the Company and any corporation that has been designated by the Board of
Directors or its delegates as a Participating Company for the employees of which
the benefits of this Plan are available.

     

    1.14 Plan means
this McMoRan Exploration Co. 2005 Supplemental Executive Capital Accumulation
Plan, as amended and restated effective January 1, 2009, (“MMR-SECAP” or
“Plan”).

     

    1.15 Plan Year means
the twelve (12) month period beginning on January 1st and ending each December
31 during which the Plan is in effect.

     

    1.16 Separation from
Service means
a termination of employment with the Employer in such a manner as to constitute
a “separation from service” as defined under Treasury Regulations Section
1.409A-1(h), for any reason other than death.

     

    Whether a
termination of employment has occurred is determined based upon whether the
facts and circumstances indicate that the Employer and Employee reasonably
anticipated that no further services would be performed after a certain date or
that the level of bona fide services the Employee would perform after such date
(whether as an employee or independent contractor) would permanently decrease to
no more than 20 percent of the average level of bona fide services performed
(whether as an employee or independent contractor) over the immediately
preceding 36-month period (or, if employed less than 36 months, such lesser
period).

     

    An unpaid
bona fide leave of absence is disregarded in determining the average level of
bona fide services during the 36 month period (or, if employed less than 36
months, such lesser period) and a paid bona fide leave is considered at a level
equal to the level of services that the employee would have been required to
perform to receive the compensation paid with respect to such
leave.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Facts and
circumstances to be considered in making a determination of Separation from
Service include, but are not limited to, whether the Employee continues to be
treated as an employee for other purposes (such as continuation of salary and
participation in employee benefit programs), whether similarly situated
Employees have been treated consistently, and whether the Employee is permitted
and realistically available to perform services for other service recipients in
the same line of business.

     

    An
Employee is presumed to have separated from service where the level of bona fide
services decrease as described above.  An Employee will be presumed
not to have separated from service where the level of bona fide services
performed continues at a level that is 50 percent or more over the immediately
preceding 36-month period.  No presumption applies to a decrease that
is more than 20% and less than 50%.  This presumption is rebuttable if
an Employee must return to employment due to business circumstances, such as the
termination of the employee’s replacement.

     

    A
Separation from Service has not occurred while the Employee is on military
leave, sick leave, or other bona fide leave of absence if the period does not
exceed six months, or if longer, so long as the Employee retains the right to
reemployment with the Employer under an applicable statute or by
contract.  A leave of absence constitutes a bona fide leave of absence
only if there is a reasonable expectation that the Employee will return to
perform services for the Employer.  A 29-month period may be
substituted for the six-month period for certain medical leaves of
absence.

     

    Treasury
Regulation Section 1.409A-1(h)(1) definitions of “separation from service”,
leave of absence, and termination of employment are incorporated
herein.

     

    1.17 Specified
Employee shall
mean a Participant who is a key employee of the Employer under Treasury
Regulations Section 1.409A-1(i) because of final and binding action taken by the
Board of Directors of the Company or delegate, or by operation of law or such
regulation.

     

    1.18 Value Determination
Date means
any business date specified by the Company but no less frequently than on a
monthly basis.

     

    ARTICLE II --ELIGIBILITY

     

    2.00 Eligible
Employee for
Basic and Matching Contribution. An
Employee is eligible to make Basic Contribution Credits and receive Matching
Contribution Credits if he or she (a) had annualized Basic Compensation equal to
or greater than the Code Section 401(a)(17) dollar limit in a prior year or (b)
was previously a participant in a  Core Company’s nonqualified
deferred compensation plan which is comparable to this Plan as determined by the
Committee.

     

    2.01 Automatic Eligibility for
Enhanced Company Contribution Credit.  An
Employee will automatically become eligible for Enhanced Company Contribution
Credits when his or her Pensionable Compensation exceeds the Code Section
401(a)(17) dollar amount.

     

    2.02 Automatic Eligibility for
Excess Section 415 Amounts.  Any
Employee who would receive contributions under the MMR-ECAP but for the limits
imposed by Code Section 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    415 shall
automatically become a Participant eligible for the Enhanced Company
Contribution Credits.

     

    2.03 Automatic Eligibility for
Excess Section 401(a)(4) Amounts.  Any
Employee who would receive Enhanced Company Contributions under the MMR-ECAP but
for concerns by the Participating Company, as described in Section 4.01(c)
herein, that such contributions will cause the MMR-ECAP to be discriminatory
under Code Section 401(a)(4), shall automatically become a Participant eligible
for the Enhanced Company Contribution Credit.

     

    ARTICLE
III --MMR-SECAP
BASIC CREDITS

     

    3.00 Deferral Election.

     

    
    

     

    
      	
              (a)  

            	
              Basic
      Credits Deferral Election.  Each Eligible Employee (as
      defined in Section 2.00) may elect prior to the first day of each Plan
      Year to defer a percentage of his Basic Compensation for each pay period
      in which the Eligible Employee’s deferrals under the MMR-ECAP have ceased
      due to application of Code Sections 401(a)(17) and 402(g) and, if elected
      by the Participant, Code Section 414(v). The Code Section 401(a)(17)
      amount for Plan Year 2009 is $245,000, the Code Section 402(g) amount for
      Plan Year 2009 is $16,500 and the Code Section 414(v) amount for Plan Year
      2009 is $5,500.  The amount of allowable deferral pursuant to
      the Participant’s election shall be a minimum of one (1) percent, and in
      increments of at least one-half of one percent (1/2%), but not to exceed
      twenty percent (20%).  Further, the elected deferral must be the
      same percentage such Employee elected to defer into the
      MMR-ECAP.

            

    

     

    
      	
              (b)  

            	
              Irrevocable
      Election.  Once a Plan Year has begun, Participant
      elections shall be irrevocable. Notwithstanding, as permitted by Treasury
      Regulation Section 1.409A-3(j)(4)(viii), a Participant’s deferral election
      is cancelled as required by the MMR-ECAP to receive a hardship
      distribution pursuant to Treasury Regulation Section
      1.401(k)-1(d)(3).  If a Participant discontinues a deferral
      election, he will not be permitted to elect to make deferrals again until
      open enrollment for the succeeding Plan
Year.

            

    

     

    If a
Participant is authorized by the Participating Company for any reason to take an
unpaid leave of absence from the employment of the Participating Company, the
Participant shall be excused from making deferrals until the Participant returns
to a paid employment status. Upon such return, deferrals shall resume for the
remaining portion of the Plan Year in which the return occurs, based on the
deferral election, if any, made for that Plan Year.  If no election
was made for that Plan Year, no deferral shall be withheld.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (c)  

            	
              Duration
      of Deferral Election.  A Basic Credits Election Form
      shall be executed prior to the beginning of the Plan Year to which the
      agreement relates and shall be effective only for the Plan Year to which
      it relates.

            

    

     

    3.01 Earnings.  The
Participant's Basic Credits shall be treated as if invested by the Committee in
a manner to produce a rate of interest equal to the prime rate, as published in
the Federal Reserve Statistical Report at the beginning of each
month.

     

    ARTICLE
IV --OTHER
MMR-SECAP CREDITS

     

    4.00 MMR-SECAP Company Matching
Contribution Credit.

     

    
      	
              (a)  

            	
              For
      each dollar of Basic Credits that the Eligible Employee contributes to the
      Plan pursuant to his or her Basic Credits Deferral Election, the
      Participating Company shall deem set aside an amount (“Company Savings
      Contribution Credits”) equal to the amount of Participating Company
      Savings Contributions that would have been made under the MMR-ECAP if the
      Participant’s Basic Credits had been made to the MMR-ECAP instead of being
      credited to this Plan.

            

    

     

    
      	
              (b)  

            	
              The
      Participant's Company Savings Contribution Credits Account shall be
      treated as if invested by the Committee in a manner to produce a rate of
      interest equal to the prime rate, as published in the Federal Reserve
      Statistical Report at the beginning of each
  month.

            

    

     

    
      	
              (c)  

            	
              If
      an Eligible Employee is hired from a Core Company, he or she will receive
      the same Company Savings Contribution Credits under Section 4.00(a) of
      this Plan that he or she would have received under the equivalent
      provision in the Core Company’s equivalent
plan.

            

    

     

    4.01 MMR-SECAP Enhanced Company
Contribution Credits.

     

    
      	
              (a)  

            	
              The
      Enhanced Company Contribution Credits shall be equal to the percentage
      determined under the MMR-ECAP times [(A) minus (B)] when (A) equals such
      Participant’s Pensionable Compensation and (B) equals the Code Section
      401(a)(17) dollar limit for the applicable
year.

            

    

     

    
      	
              (b)  

            	
              When
      the Participating Company determines that amounts scheduled for
      contribution to the MMR-ECAP as Enhanced Company Contributions for a
      Participant will exceed the limit imposed by Code Section 415, the
      Participating Company shall credit the Participant's Enhanced Company
      Contribution Credits Account with such excess contributions. Further, if
      any contributions in excess of Code Section 415 are inadvertently
      contributed on behalf of a Participant to the MMR-ECAP, and such
      Participant’s MMR-ECAP accounts are reduced pursuant to the terms of such
      plan to correct the excess contributions, the amount of such reduction
      (including any earnings accrued in the MMR-ECAP) shall be credited to
      

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
       

      the
Participant’s applicable Accounts in this Plan as soon as administratively
feasible.

    

     

    
      	
              (c)  

            	
              If
      the Committee determines, upon the advice of the Participating Company’s
      counsel or actuary, that amounts that would be contributed to the MMR-ECAP
      as Enhanced Company Contributions for a Participant will cause the
      MMR-ECAP to be discriminatory under Code Section 401(a)(4), the
      Participating Company shall credit the Participant’s Enhanced Company
      Contribution Credits Account with some or all of the Participant’s future
      MMR-ECAP Enhanced Company
Contributions.

            

    

     

    
      	
              (d)  

            	
              If
      an Eligible Employee is hired from a Core Company, he or she will receive
      the same Enhanced Company Contribution Credits that he or she would have
      received under the equivalent provision in the Core Company’s equivalent
      plan.

            

    

     

    
      	
              (e)  

            	
              The
      Participant’s Enhanced Company Contribution Credits Account shall be
      treated as if invested by the Committee in a manner to produce a rate of
      interest equal to the prime rate, as published in the Federal Reserve
      Statistical Report at the beginning of each
  month.

            

    

     

    ARTICLE
V --VALUATION
OF A PARTICIPANT’S INTEREST IN A FUND

     

    5.00 Annual
Statements.  As
soon as practicable after the close of each Plan Year (and at such intervals
during the Plan Year as may be determined by the Participating Company from time
to time), the Participating Company shall deliver to each Participant a
statement setting forth the amount credited for bookkeeping purposes to the
Participant’s Accounts.

     

    5.01 Valuation.  The
value of a Participant’s Accounts shall be based upon the unit value credited to
the Accounts as of a Value Determination Date.

     

    ARTICLE VI --PAYMENTS

     

    6.00 Distribution Upon
Separation from
Service.  Upon
Separation from Service, a Participant shall be paid as soon as practicable the
total vested value of the Participant’s Accounts provided, however, that if the
Participant has elected by timely filing the required notice with the Company to
defer payment, the total value of the Participant’s vested Accounts will be paid
by February 28th of the year following the year in which such separation
occurs.  Notwithstanding, if the Participant is a Specified Employee
payment shall not be made earlier than the first business day that is six months
after the Participant’s Separation from Service or, if earlier, the date of
death of the Participant.

    

    6.01 Timing of
Payment.

     

    
      	
              (a)  

            	
              An
      Eligible Employee will be provided an opportunity to elect his or her
      distribution payment date when he makes an election to defer a percentage
      of his Basic Compensation as described in Section 3.00(a).  Once
      made, the distribution payment election, or default payment election,
      shall 

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    continue in force indefinitely for all of the Participant’s
Accounts, until changed by the Participant on a subsequent election form
provided by the Company.  Such subsequent distribution election shall
apply only to contributions made with respect to services to be performed in the
following Plan Year and future years and until changed again as described in
this paragraph.

     

    
      	
              (b)  

            	
              An
      Eligible Employee who is automatically eligible to receive Enhanced
      Company Contribution Credits prior to his or her
      eligibility to defer a percentage of his or her Basic Compensation will be
      deemed to have elected to receive payment upon Separation from
      Service.  This default payment election will continue in force
      indefinitely for all of the Participant’s Accounts, until changed by such
      Participant on an election form provided by the Company. Such subsequent
      distribution election shall apply only to contributions made with respect
      to services to be performed in the following Plan Year and future years
      and until changed again as described in this
  paragraph.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      the provisions of Section 6.00(a), a Participant who has terminated
      employment with the Employer but has continued active employment with a
      Core Company, shall not be entitled to distribution of his or her Accounts
      until he or she is no longer employed by a Core
  Company.

            

    

     

    6.02 Distribution Upon
Death.  Upon
the death of a Participant, the value of the Participant’s Account or Accounts
shall be paid in lump sum to the Beneficiary or Beneficiaries, if any,
designated by the Participant, or if the Participant is not survived by any such
designated Beneficiary, then to the Participant’s estate.  Payment
shall be made on or before December 31 of the calendar year in which the death
occurs, or if later by the 15th day of
the third month following the date of death.  A Beneficiary may not
direct when payment is made. 

     

    6.03 Form of
Payments.  Distribution
to a Participant or his or her Beneficiary will be paid in lump
sum.

     

    6.04 Loans
Prohibited.  No
Participant shall be entitled to borrow any portion of the amount credited to
the Participant’s Accounts in this Plan.

     

    6.05 Transition Period
Elections.

     

    
      	
              (a)  

            	
              One-Time
      Lump Sum Option.  A certain Participant whose employment
      classification changed from common-law employee to independent contractor
      was offered a one-time option during the period ending December 31, 2008
      to elect to receive a lump sum payment on July 1, 2009, representing the
      Participant’s entire interest in the
Plan.

            

    

     

    
      	
              (b)  

            	
              409A
      Transition Election.  A Participant may make a new
      payment election at any time before December 31 2008, with respect to the
      time of payment of all elective deferrals and employer contributions
      earned or 

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    vested after December 31, 2004, with all earnings attributable
thereto, provided the election does not apply to amounts that would have
otherwise been payable in the year the change is made or cause an amount to be
paid in the year the change is made that would not otherwise be payable in that
year.  Such election will apply indefinitely for all of the
Participant’s Accounts until changed in accordance with the procedures described
in Section 6.01(a).  The new payment election during the transition
period must be received no later than six (6) months prior to a new payment
commencement date.

     

    ARTICLE
VII --VESTING
AND FORFEITURES

     

    7.00 Vesting and
Forfeitures.

     

    
      	
              (a)  

            	
              Vesting.  A
      Participant’s interest in his Basic Credits Account shall be 100% vested
      at all times.  A Participant’s interest in his or her Company
      Savings Contribution Credits Account shall vest at the same rate as his
      Company Savings Contribution Account in the MMR-ECAP.  A
      Participant’s interest in his or her Company Matching Contribution Credits
      Account shall vest at the same rate as his or her Company Matching
      Contribution Account in the MMR-ECAP.  A Participant’s interest
      in his Enhanced Company Contribution Credits Account will vest at the same
      rate as his or her Enhanced Company Contribution Account in the
      MMR-ECAP.

            

    

     

    
      	
              (b)  

            	
              Forfeitures.  A
      Participant’s non-vested amounts, if any, will forfeit when he or she
      receives a distribution of vested amounts.  If the Participant
      does not have any vested amount, his or her Accounts will forfeit at the
      end of the year in which the Participant terminated
      employment.

            

    

     

    7.01 Restoration of
Forfeitures.  Forfeitures
may be restored if a Participant elects to repay to the MMR-ECAP the full amount
of a distribution he or she previously received (unadjusted by any subsequent
gains or losses) from the MMR-ECAP in accordance with such plan’s reemployment
rules.  For example, if a Participant repays to the MMR-ECAP the full
amount of his or her Company Savings Contribution Account and his forfeited
Company Savings Contribution are restored in the MMR-ECAP then his or her
Company Savings Contribution Credits (unadjusted by any subsequent gains or
losses) under this Plan shall be credited to the Participant’s Company Savings
Contribution Credits Account.

     

    ARTICLE VIII --ADMINISTRATION

     

    8.00 Committee.  Effective
December 3, 2007, the Board appointed members to the Administration Committee
(the "Committee") that will function as the Plan Administrator of this
Plan.  The members of the Committee currently consist of Nancy D.
Parmelee, Dean T. Falgoust, Pamela Q. Masson, Douglas N. Currault II, and Chad
A. Ventola.  The operation, administration and determination and
answering of all questions arising under or in connection with the Plan shall be
the responsibility of the Committee.  The Committee shall have the
exclusive right to 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    interpret
the Plan and to determine any questions arising under or in connection with the
administration of the Plan.  The Committee’s decision or action in
respect thereof shall be final and conclusive and binding upon all persons
having an interest in the Plan.

    

    8.01 Notices, Statements,
Etc.  The
Company and other Participating Companies may as a matter of accommodation
assist any Employee in the delivery of applications, notices, forms, statements,
records, remittances and other documents required or permitted to be served or
delivered under the Plan and in doing so will endeavor to exercise ordinary
diligence, but shall not be liable for any failure so to do or for any delay in
so doing, nor shall any director, officer, or employee of the Company and
Participating Companies be personally liable for any act or omission to act in
connection with the operation or administration of the Plan except for his or
her own willful misconduct or gross negligence.

     

    8.02 Indemnification.  The
Company will indemnify and hold harmless the Committee against any cost or
expense (including attorney’s fees) or liability (including any sum paid in
settlement of a claim with the approval of the Company) arising out of any act
or omission to act as Committee, except in the case of willful misconduct or
gross negligence.

     

    8.03 Bookkeeping
Accounts.  The
Company or its duly authorized record keeping agent, as determined by the
Company, shall establish and maintain Accounts for each Participant that will
separately reflect the amount credited to the Participant attributable to (i)
Basic Credits, (ii) Company Savings Contribution Credits, (iii) Company Matching
Contribution Credits, and (iv) Enhanced Company Contribution Credits and
interest shall be allocated separately with respect to each such Account in a
reasonable and consistent manner.

     

    8.04 Determination of
Eligibility.  If
the Company determines that an Employee is ineligible or becomes ineligible to
participate or to continue to participate in the Plan, the Company may terminate
Participant’s participation upon ten (10) days’ notice to the
Participant.

     

    ARTICLE
IX --CLAIMS
PROCEDURES

     

    9.00 Claims
Procedures.

     

    
      	
              (a)  

            	
              Any
      Participant or Beneficiary (a “Claimant”) who believes that he or she is
      entitled to a benefit under the Plan which he or she has not received may
      submit a claim to the Committee. Claims for benefits under this Plan shall
      be made in writing, signed by the Claimant or his or her authorized
      representative, and must specify the basis of the Claimant’s complaint and
      the facts upon which he or she relies in making such claim. A claim shall
      be deemed filed when received by the
Committee.

            

    

     

    
      	
              (b)  

            	
              In
      the event a claim for benefits is wholly or partially denied by the
      Committee, the Committee shall notify the Claimant in writing of the
      denial of the claim within a reasonable period of time, but not later than
      ninety (90) days after receipt of the claim, unless special circumstances
      require an extension of time for processing, in which case the ninety (90)
      day period may be extended to 180 days. The Committee shall notify
      

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    the Claimant in writing of any such extension. A notice of denial
shall be written in a manner reasonably calculated to be understood by the
Claimant, and shall contain (i) the specific reason or reasons for denial of the
claim; (ii) a specific reference to the pertinent Plan provisions upon which the
denial is based; (iii) a description of any additional material or information
necessary for the Claimant to perfect the claim, together with an explanation of
why such material or information is necessary; and (iv) an explanation of the
Plan’s review procedure.

     

    
      	
              (c)  

            	
              Within
      sixty (60) days of the receipt by the Claimant of the written notice of
      denial of the claim, the Claimant may appeal by filing with the Committee
      a written request for a full and fair review of the denial of the
      Claimant’s claim for benefits. Appeal requests under this Plan shall be
      made in writing, signed by the Claimant or his or her authorized
      representative, and must specify the basis of the Claimant’s complaint and
      the facts upon which he or she relies in making such appeal. An appeal
      request shall be deemed filed when received by the
    Committee.

            

    

     

    
      	
              (d)  

            	
              The
      Committee shall render a decision on the claim appeal promptly, but not
      later than sixty (60) days after the receipt of the Claimant’s request for
      review, unless special circumstances (such as the need to hold a hearing,
      if necessary), require an extension of time for processing, in which case
      the sixty (60) day period may be extended to one hundred twenty (120)
      days. The Committee shall notify the Claimant in writing of any such
      extension. The decision upon review shall be written in a manner
      reasonably calculated to be understood by the Claimant, and shall contain
      (i) the specific reason or reasons for denial of the claim; (ii) a
      specific reference to the pertinent Plan provisions upon which the denial
      is based; (iii) a statement that the Claimant shall be provided, upon
      request and free of charge, reasonable access to, and copies of, all
      documents, records, and other information relevant to the claim for
      benefits; and (iv) a statement of the Claimant’s right to bring an action
      under Section 502(a) of ERISA, if the adverse benefit determination is
      sustained on appeal.

            

    

     

    
      	
              (e)  

            	
              The
      Committee may provide written or electronic notification of any adverse
      benefit determination.  Any electronic notification shall comply
      with the standards imposed by 29 CFR 2520.104b-1(c)(1)(i), (iii) and
      (iv).

            

    

     

    
      	
              (f)  

            	
              No
      lawsuit by a Claimant may be filed prior to exhausting the Plan’s
      administrative appeal process. Any lawsuit must be filed no later than the
      earlier of one year after the Claimant’s claim for benefit was denied or
      the date the cause of action first
arose.

            

    

     

    ARTICLE
X --GENERAL
PROVISIONS

     

    10.00 Beneficiary Designation;
Change.  A
Participant may file with the Company a designation of a Beneficiary or
Beneficiaries to receive the value of his or her Account or 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Accounts on the Participant’s death, and the Participant may from
time to time change or revoke any such designation.  The last such
designation received by the Company shall be controlling; provided, however,
that no designation or change or revocation thereof shall be effective unless
received by the Company prior to the Participant’s death, and in no event shall
it be effective as of a date prior to such receipt.  To the extent
permitted under Code Section 409A and Treasury Regulations and other
interpretive guidance issued thereunder, if the Committee is in doubt as to the
right of any Beneficiary to receive any amount, the Committee may retain such
amount, with liability for any interest thereon, until the rights thereto are
determined, or the Committee may pay such amount into any court of appropriate
jurisdiction, in either of which events neither the Committee nor any
Participating Company shall be under any further liability to anyone.

     

     

    10.01 Status of the
Plan.  This
Plan is not intended to constitute a qualified plan under Section 401(a) of the
Code, and is designed to be exempt from the participation, vesting, funding and
fiduciary responsibility rules of the ERISA.  The Plan “is unfunded
and is maintained by an employer primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employee”
within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of
ERISA.  The Plan shall be administered and interpreted to the extent
possible in a manner consistent with this intent.

     

    10.02 Not a Contract of
Employment.  Nothing
in the Plan shall be deemed or construed to impair or affect in any manner
whatsoever the rights of any Participating Company with respect to the
termination of employment of any person, whether or not a Participant, all of
which rights shall remain as if the Plan had not been established.

     

    10.03 Unsecured General
Creditor.  Notwithstanding
anything to the contrary in this Plan, the rights of a Participant or a
Participant’s Beneficiary to benefits under this Plan shall be solely those of
an unsecured creditor of the Company.  Any assets acquired or held by
the Company or funds allocated by the Company in connection with liabilities
assumed by the Company pursuant to this Plan shall not be deemed to be held
under any trust for the benefit of the Participant or Participant’s
Beneficiaries or security for the performance of the Company’s obligations
pursuant hereto, but shall be and remain general assets of the
Company.

     

    10.04 Amendment and
Termination.  It
is the expectation of the Company that the Plan will continue indefinitely, but
the Company reserves the right by written action of its Board of Directors, or
individual(s) specifically designated by the Board to act on its behalf, to
change or discontinue the Plan at any time.  Notwithstanding any other
provision of this Plan, it is the intention of the Company that no payment or
entitlement pursuant to this Plan will give rise to any adverse tax consequences
to any Participant or Beneficiary under Code Section 409A and Treasury
Regulations and other interpretive guidance issued thereunder, including that
issued after the date hereof (collectively, "Section 409A"). This Plan and any
amendments hereto shall be interpreted to that end and (1) to the maximum extent
permitted by law, no effect shall be given to any provision herein, any
amendment hereto or any action taken hereunder in a manner that reasonably could
be expected to give rise to adverse tax consequences under Section 409A and (2)
the Company shall take any corrective action reasonably within its control that
is necessary to avoid such adverse tax consequences.  No amendments
shall divest otherwise vested rights of Participants or their
Beneficiaries.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    The Plan
may be terminated only under the following circumstances:

     

    
      	
              (a)  

            	
              The
      Employer may terminate the Plan within 12 months of a corporate
      dissolution taxed under Code Section 331 or with the approval of a
      bankruptcy court, provided that Treasury Regulations Section
      1.409A-3(j)(4)(ix)(A) is complied
with.

            

    

     

    
      	
              (b)  

            	
              Within
      the 30 days preceding or the 12 months following a Change in Control Event
      (as defined in Treasury Regulations §1.409A-3(i)(5)) provided that
      Treasury Regulations §1.409A-3(j)(4)(ix)(B) is complied
    with.

            

    

     

    
      	
              (c)  

            	
              The
      Company may in its discretion terminate this Plan, provided, (i) the
      termination and liquidation does not occur proximate to a downturn in the
      financial health of the Employer; (ii) all arrangements sponsored by the
      Employer that would be aggregated with any terminated arrangement under
      Section 1.409A-1(c) of the Treasury Regulations if the same Employee
      participated in all of the arrangements are terminated; (iii) no payments
      other than payments that would be payable under the terms of the
      arrangements if the termination had not occurred are made within 12 months
      of the termination of the arrangements; and (iv) all payments are made
      within 24 months of the termination of the arrangements; and (v) the
      Employer does not adopt a new arrangement that would be aggregated under
      Section 1.409A-1(c) of the Treasury Regulations if the same Employee
      participated in both arrangements, at any time within three years
      following the date of termination of the
  arrangement.

            

    

     

    10.05 Non-Assignability.  Neither
a Participant nor any other person shall have any right to commute, sell,
assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate or convey in advance of actual receipt the amounts, if any, payable
under this Plan, or any part thereof, which are, and all rights to which are,
expressly declared to be non-assignable and non-transferable.  No part
of the amounts payable shall, prior to actual payment, be subject to seizure or
sequestration for the payment of any debts, contracts, liabilities, torts,
judgments, alimony, or separate maintenance owed by a Participant or any other
person, nor be transferable by operation of law in the event of a Participant’s
or any other person’s bankruptcy or insolvency.

     

    10.06 Offset.  If
at the time benefit payments are to be made under the Plan, the Participant, the
Participant’s Beneficiary or both are indebted to the Employer, then the
payments remaining to be made to the Participant, the Participant’s Beneficiary
or both, may, at the Committee’s discretion, be reduced by the amount of such
indebtedness.

     

    10.07 Governing
Law.  The
Plan will be construed, administered and enforced according to Code Section 409A
and related Internal Revenue Service guidelines, ERISA, and to the extent not
preempted thereby, the laws of the State of Louisiana.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Executed
in New Orleans, Louisiana this 29th day of December, 2008.

    

    

                                                                                                    
   McMoRan Exploration Co.

                                        /s/ Dean T. Falgoust

                                         Dean T.
Falgoust

                                           
Vice-President
WITNESSES:   

    /s/
signed

    

    /s/
signed 

     

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT

     

    STATE
OF LOUISIANA

    

    PARISH
OF ORLEANS

    

    

    BEFORE
ME, the undersigned Notary Public, personally came and appeared DEAN T. FALGOUST
who, being by me sworn, did depose and state that he signed the foregoing
Amendment to the McMoRan Exploration Co. Supplemental Executive Capital
Accumulation Plan as a free act and deed on behalf of McMoRan Exploration Co.
for the purposes therein set forth.

    

                    /s/ Dean T. Falgoust

     
Dean T. Falgoust

    Vice-President

    

    

    SWORN
TO AND SUBSCRIBED

    BEFORE
ME THIS 29th DAY

    OF
DECEMBER, 2008.

    

    

    

    ________________________________

    NOTARY
PUBLIC

    My
Commission Expires:  _________

    

    
      
         

      

      
        15exhibit10_45.htm

    
      

    

     Exhibit
10.45

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    McMoRan
Exploration Co.

    Severance
Plan

    

    
      
        
                                                                    

        

         

      

      
         

        
          

        

      

      
         

      

    

    McMoRan
Exploration Co. (MMR)

    

    Severance
Plan

    

    

    WITNESSETH

     

    WHEREAS, McMoRan Exploration
Co. (referred to herein as “MMR” or the “Company”) originally adopted a welfare
benefit plan, the McMoRan Exploration Co. Severance Plan (the “Plan”), effective
November 6, 1997, and such Plan has been amended from time to time;

     

    WHEREAS, this Plan was amended
in 2006 to incorporate prior amendments, to comply in good faith with the
proposed treasury regulations under Section 409A of the Internal Revenue Code
(“Code”) and other applicable guidance, and to make other revisions for
clarification purposes;

     

    WHEREAS, the Internal Revenue
Service issued final Treasury Regulations under Code Section 409A on April 10,
2007 with corrections on July 13, 2007;

     

    NOW THEREFORE, the Plan is
hereby amended and restated effective as of the date signed; however, the
provisions to comply with Code Section 409A are effective January 1, 2008,
unless stated otherwise:

     

    ARTICLE
I

     

    DEFINITIONS

     

    
      	
              1.01  

            	
              Base
      Pay means the Employee’s
      annualized base rate of pay at the time of the Employee’s termination
      (excluding all bonuses, overseas premiums, employer paid portion of
      employee benefits, deferred compensation, and all other fringe benefits,
      but before withholding of payroll taxes and insurance
      premiums).  Notwithstanding the foregoing, if an Employee
      changes from full-time to part-time status in the twelve month period
      prior to termination, such Employee’s base pay will be determined based
      upon such Employee’s base rate of pay when employed on a full-time
      basis.

            

    

     

     

    
      	
              1.02  

            	
              Cause means
      (a) the Employee’s failure to perform the duties, obligations, or tasks
      assigned to him in a satisfactory manner; (b) the Employee’s failure to
      cooperate with the winding up and orderly transfer of pending work; (c)
      the Employee’s failure or refusal to acknowledge his or her existing and
      continuing obligation to maintain certain information as confidential; (d)
      dishonesty, gross negligence or willful misconduct by the Employee; (e)
      the conviction of the employee of, or the entry of a plea of guilty or
      nolo contendere by Employee to any crime involving moral turpitude or any
      felony; or (f) fraud, embezzlement or theft against the
      Company.

            

    

     

     

    
      	
              1.03  

            	
              Code means the Internal Revenue Code of 1986, as
      amended from time to
    time.

            

    

     

     

    
      	
              1.04  

            	
              Code Section
      409A  means
      Section 409A of the Code, and all Treasury Regulations and IRS
      guidance promulgated under or related to such Code
      section.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              1.05  

            	
              Comparable
      Employment means employment: (i)
      that is not temporary or known to be of a limited duration; (ii) for which
      the total compensation package is determined to be reasonable by the Plan
      Administrator; (iii) that is reasonably consistent with the Employee’s
      abilities and skill as performed for the Employer prior to the date of the
      Employee’s termination or it is judged that such Employee has the ability
      to absorb training for the job as is necessary to enable that Employee to
      perform the job satisfactorily; (iv) that the Employee is physically able
      to perform; and (v) for which the distance from the present residence to
      the new work location is considered reasonable, all as determined by the
      Plan
Administrator.

            

    

     

     

    
      	
              1.06  

            	
              Company means McMoRan
      Exploration Co. and any successor to or assignee of (whether direct or
      indirect, by purchase, merger, consolidation or otherwise) all or
      substantially all of the assets of the
    Company.

            

    

     

     

    
      	
              1.07  

            	
              Core
      Company means
      Freeport-McMoRan, Inc. and its affiliates (prior to its merger into IMC
      Global), Freeport-McMoRan Copper & Gold Inc., FM Services Company, and
      its affiliates, McMoRan Oil & Gas Co. and Stratus Properties, Inc. and
      its affiliates (formerly FM Properties
      Inc.).

            

    

     

     

    
      	
              1.08  

            	
              Eligible
      Employee has the meaning attributed to it in Section
      2.01.

            

    

     

    
      	
              1.09  

            	
              Eligible
      Retiree means a Retiree
      as defined in the McMoRan Exploration Co. Retiree Benefit
      Plan.

            

    

     

     

    
      	
              1.10  

            	
              Employee means any
      person in full-time active service with the Participating Employer who is
      regularly assigned to work for the Employer, and is on the payroll of the
      Employer, excluding (a) any individual who is classified as an independent
      contractor or consultant; (b) any person who is covered by a collective
      bargaining agreement which does not provide that he is to be covered by
      this Plan; (c) any person who is classified by the Employer as a contract
      or leased employee or personnel or who is seconded or loaned from another
      employer; (d) any person considered a temporary employee or in a position
      known to be of a limited duration; (e) any person who is classified as an
      “extra” or “temp”; (f) any person who is employed by Copper Overseas
      Services Company pursuant to an employment contract that identifies the
      individual as a contract employee; and (g) any person who is a
      non-resident alien; provided, however, the Plan Administrator may in his
      sole discretion include as an Employee any non-resident alien employee of
      the Employer if such employee is paid from a payroll administered in the
      United States.  An “extra” or “temp” is an employee not
      scheduled for any specific number of hours and called in by the Employer
      on an “as needed”
basis.

            

    

     

     

    
      	
              1.11  

            	
              Employer means the
      Company and any Participating Employer.  Employer includes all
      members of a controlled group of corporations (within the meaning of Code
      Section 414(b)) that include the Employer, all trades or business (whether
      or not incorporated) that are included in a group of trades or businesses
      under common control (within the meaning of Code Section 414(c)) of the
      Employer.

            

    

     

     

    
      	
              1.12  

            	
              Involuntary Separation
      from Service means the
      Employer’s independent exercise of authority to terminate the Employee’s
      services, other than due to the Employee’s implicit
      

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     or
explicit request.  This may include an Employee’s failure to renew an
employment contract, provided the Employer was willing and able to execute a new
contract providing similar terms and conditions substantially similar to the
expiring contract.  The determination of whether a Separation from
Service is involuntary is based upon facts and circumstances.  For
example, if a separation from service is designated as a voluntary separation
from service or resignation, but the facts and circumstances indicate that
absent such voluntary separation from service the Employer would have terminated
the Employee’s services, and that the Employee had knowledge that the Employee
would be so terminated, the separation from service is
involuntary.  The Treasury Regulation Section 1.409A-1(n)(1)
definition of “involuntary separation from service” is incorporated
herein.

     

    
      	
              1.13  

            	
              Participating
      Employer means the
      Company, Freeport-McMoRan Energy L.L.C. (formerly Freeport-McMoRan
      Sulphur, Inc.), McMoRan Oil & Gas L.L.C. and any corporation that has
      been designated by the President of the Employer as a Participating
      Employer for the employees of which the benefits of this Plan are
      available.

            

    

     

     

    
      	
              1.14  

            	
              Plan
      means this McMoRan Exploration Co. Severance Plan, including any
      amendments or attachments adopted pursuant to Section
      5.02.

            

    

     

     

    
      	
              1.15  

            	
              Plan
      Administrator means the
      Company’s Administrative
  Committee.

            

    

     

     

    
      	
              1.16  

            	
              Plan
      Year means the calendar
      year.

            

    

     

     

    
      	
              1.17  

            	
              Retiree Benefit
      Plan means the
      McMoRan Exploration Co. Retiree Benefit
  Plan.

            

    

     

     

    
      	
              1.18  

            	
              Separation from
      Service  means a
      termination of employment with the Employer in such a manner as to
      constitute a “separation from service” as defined under Treasury
      Regulations Section 1.409A-1(h), for any reason other than
      death.

            

    

     

    Whether a
termination of employment has occurred is determined based upon whether the
facts and circumstances indicate that the Employer and Employee reasonably
anticipated that no further services would be performed after a certain date or
that the level of bona fide services the Employee would perform after such date
(whether as an employee or independent contractor) would permanently decrease to
no more than 20 percent of the average level of bona fide services performed
(whether as an employee or independent contractor) over the immediately
preceding 36-month period (or, if employed less than 36 months, such lesser
period).

     

    An unpaid
bona fide leave of absence is disregarded in determining the average level of
bona fide services during the 36 month period (or, if employed less than 36
months, such lesser period) and a paid bona fide leave is considered at a level
equal to the level of services that the employee would have been required to
perform to receive the compensation paid with respect to such
leave.

     

    Facts and
circumstances to be considered in making a determination of Separation from
Service include, but are not limited to, whether the Employee continues to be
treated as an employee for other purposes (such as continuation of salary and
participation in employee benefit programs), whether similarly situated
Employees have been treated 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    consistently,
and whether the Employee is permitted and realistically available to perform
services for other service recipients in the same line of business.

     

    An
Employee is presumed to have separated from service where the level of bona fide
services decrease as described above.  An Employee will be presumed
not to have separated from service where the level of bona fide services
performed continues at a level that is 50 percent or more over the immediately
preceding 36-month period.  No presumption applies to a decrease that
is more than 20% and less than 50%.  This presumption is rebuttable if
an Employee must return to employment due to business circumstances, such as the
termination of the employee’s replacement.

     

    A
Separation from Service has not occurred while the Employee is on military
leave, sick leave, or other bona fide leave of absence if the period does not
exceed six months, or if longer, so long as the Employee retains the right to
reemployment with the Employer under an applicable statute or by
contract.  A leave of absence constitutes a bona fide leave of absence
only if there is a reasonable expectation that the Employee will return to
perform services for the Employer.  A 29-month period may be
substituted for the six-month period for certain medical leaves of
absence.

     

    Treasury
Regulation Section 1.409A-1(h)(1) definitions of “separation from service”,
leave of absence, and termination of employment are incorporated
herein.

     

    
      	
              1.19  

            	
              Separation
      Pay means
      compensation that will not be paid under any circumstances unless the
      Employee has had a Separation from Service, including payments in the form
      of reimbursements of expenses incurred and the provision of in-kind
      benefits.  Separation Pay includes amounts payable due to a
      Separation from Service, regardless of whether payment is conditioned upon
      the execution of a release of claims, non-competition or nondisclosure
      provisions, or other similar requirement.  Notwithstanding the
      foregoing, any amount, or entitlement to any amount, that acts as a
      substitute for, or replacement of, amounts deferred by the service
      recipient under a nonqualified deferred compensation plan constitutes a
      payment of compensation or deferral of compensation under such
      nonqualified deferred compensation
  plan.

            

    

     

     

    
      	
              1.20  

            	
              Weekly Base Pay or
      Weeks of Base Pay means Base Pay
      divided by 52.

            

    

     

     

    
      	
              1.21  

            	
              Window
      Program means a program
      established by an Employer, for a period of no more than twelve months,
      under which Employees who voluntarily Separate from Service during that
      period or who separate under certain circumstances will receive Separation
      Pay.  The definition of “Window Program” in Treasury Regulation
      Section 1.409A-1(b)(9)(vi) is incorporated
      herein.

            

    

     

     

    
      	
              1.22  

            	
              Years of
      Service means the
      period commencing on the first day of employment with the Employer or Core
      Company and ending upon a Separation from Service; subject to the
      following
adjustments:

            

    

     

    Years of
Service prior to a reemployment date are not counted if the Employee previously
received a severance benefit relating to such Years of Service, determined based
upon Years of Service, under this or another Employer or Core Company’s
severance plan;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    In
calculating an Eligible Employee’s severance benefit, if an Employee is
terminated pursuant to the provisions of this Plan after completing at least six
months of his final employment year, such partial year of employment will be
counted as a full Year of Service;

     

    Years of
Service through the period of short-term disability will be counted; however,
periods of long-term disability will not be counted;

     

    Years
when employed in a category of employment that is not eligible under the Plan
are ignored; and

     

    Years of
Service shall not include any period during which an individual is classified as
a leased employee, benefits contractor, contractor, or independent contractor
(without regard to such person’s status for Federal income tax purposes and
without regard to any subsequent determination that such individual is a common
law employee).

     

    ARTICLE
II

    ELIGIBILITY

     

    
      	
              2.01  

            	
              Eligible Employee.  Except as otherwise provided in Sections 2.02
      and 2.03, an Employee is eligible to receive the pay and benefits of this
      Plan if:

            

    

     

     

    
      	
              (a)  

            	
              he
      or she is considered actively employed on the scheduled work day preceding
      the effective date of his or her termination due to a change in business
      needs or a reduction in force or applicable event and (i) is involuntarily
      terminated or involuntarily retired by the Employer or (ii) he or she
      becomes eligible under an event amendment in Section 2.03(b) hereof;
      and

            

    

     

    
      	
              (b)  

            	
              if
      applicable to the Employee’s position, such Employee is a participant in
      the Employer’s Annual Business Ethics/Conflicts of Interest Certification
      process relating to the year of termination and the preceding year (if
      applicable).  The Employee will be permitted to complete the
      annual Business Ethics/Conflicts of Interest questionnaire within a
      reasonable period of time following termination of
      employment.  Such Employee will have participated in the Annual
      Business Ethics/Conflicts of Interest Certification process when he or she
      has read the Company’s Business Conduct Policy and either completes the
      Annual Business Ethics/Conflicts of Interest Certifications or notifies
      the Company’s compliance officer of any facts that should be investigated
      to determine whether or not the Business Conduct Policy was
      violated.

            

    

     

    
      	
              2.02  

            	
              Ineligible
      Employee.  An Employee is not eligible for severance pay
      and/or benefits under this Plan if the Employee
      was:

            

    

     

     

    
      	
              (a)  

            	
              Termination for
      Cause.  Discharged for Cause as determined by the Plan
      Administrator;

            

    

     

     

    
      	
              (b)  

            	
              Voluntary
      Separation.  Voluntarily separated from the Employer,
      unless such separation is pursuant to a Window Program established by the
      Employer and provided in an event
      amendment;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (c)  

            	
              Death.  Separated from the Employer by reason of
      death;

            

    

     

     

    
      	
              (d)  

            	
              Other Events.  Terminated for any reason, event, or cause
      outside of the control of the Employer, such as a natural disaster, act of
      God or war;

            

    

     

     

    
      	
              (e)  

            	
              Insolvency.  Terminated as
      a result of the insolvency, voluntary or involuntary bankruptcy, assignment for the benefit
      of creditors or similar action taken by the Employer or by a related
      entity by which the Employee was
      employed;

            

    

     

     

    
      	
              (f)  

            	
              Leave of Absence or
      Disability.  Not actively at work and receiving long-term
      disability benefits or has been on leave for a period of six months or
      more;

            

    

     

     

    
      	
              (g)  

            	
              Comparable
      Employment.  Offered and accepted Comparable Employment
      with the Employer, a Core Company or a Participating Employer or a company
      which acquires some or all of the assets of the operations in which the
      Employee is
employed.

            

    

     

     

    
      	
              (h)  

            	
              Contract or Consulting
      Services.  Further, an Employee who has terminated
      employment with the Employer but continues to provide services as a
      consultant or advisor to, or through an entity that provides services to,
      the Employer or a Core Company.  Such services provided to the
      Employer or Core Company pursuant to this paragraph (h) must be deemed by
      the Plan Administrator to be Comparable Employment in order for this
      paragraph (h) to
apply.

            

    

     

     

    
      	
              2.03  

            	
              Eligible
      Termination Benefits.  An Employee whose employment is terminated
      under the circumstances described in Section 2.01 shall receive, subject
      to Section 2.02, benefits under this Plan pursuant to one of the
      following:

            

    

     

     

    
      	
              (a)  

            	
              Involuntary
      Separation from
      Service.  An Employee who is not an Eligible Retiree
      will receive the benefits described in Article III except for Retiree
      Medical.  An Employee who is an Eligible Retiree will receive
      the benefits described in Article
  III.

            

    

     

     

    
      	
              (b)  

            	
              Voluntary Window
      Program.  An Employee, including an Eligible Retiree,
      who meets the eligibility requirements of this Plan, and elects to
      voluntarily terminate pursuant to a Window Program will receive the
      severance and medical benefits in Article III if provided in an event
      amendment to this
Plan.

            

    

     

     

    ARTICLE
III

    SEVERANCE
BENEFITS

     

    
      	
              3.01  

            	
              Severance.

            

    

     

     

    
      	
              (a)  

            	
              Severance Pay.  The Eligible Employee will receive severance
      payment(s) equal to four Weeks of Base
      Pay.

            

    

     

     

    
      	
              (b)  

            	
              Reductions.  The
      amount of severance benefit paid to any Employee shall be reduced by any
      amount required to be paid to such Employee on account of the same
      separation under the Worker Adjustment and Retraining Notification Act.
      

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Alternatively, any amount required to be paid under the Worker
Adjustment and Retraining Notification Act, if any, shall be offset by the
severance benefit paid under this Plan on account of the same separation from
employment.

     

     

    
      	
              (c)  

            	
              Employment
      Agreements. To the
      extent an Employee is a party to an Employment Agreement with the Company
      that provides severance benefits that are more favorable than the benefits
      provided herein, the Employee shall be paid the severance benefits under
      the Employment Agreement and shall not receive severance benefits provided
      in the Plan.  If a conflict exists between this document and
      another agreement, the other agreement
    applies.

            

    

     

     

    
      	
              3.02  

            	
              Welfare and Other
      Benefits.

            

    

    
      	
              (a)  

            	
              This
      Section 3.02 regarding reimbursements or in-kind payments applies to
      involuntary or voluntary terminations.  The reimbursements must
      be directly related to the Separation from
  Service.

            

    

     

    
      	
              (b)  

            	
              Medical and Dental
      COBRA Coverage.  If an Eligible Employee
      (and his dependents, if applicable) is eligible for and elects COBRA
      continuation group health and dental coverage during the COBRA election
      period, the Company will pay the full cost of that coverage for the
      following time
periods:

            

    

     

     

    
      	
              (i)  

            	
              If
      the Employee has one or more Years of Service, for a six month period
      beginning on the first day of the month following the month in which the
      termination occurred; or

            

    

     

    
      	
              (ii)  

            	
              If
      the Employee has less than one Year of Service, for a three month period
      from the first day of the month following the month in which the
      termination occurred.

            

    

     

    The
Company will bear the cost of COBRA continuation health and dental coverage
until the earlier of:  (i) the three or six month period outlined
above or (ii) the date the Employee’s COBRA coverage would otherwise end, e.g.,
if the Employee becomes eligible for Medicare or participation in another
company’s group health plan, or if the Company’s group health plan
terminates.  Thereafter, the Employee will be responsible for paying
the full COBRA premium for the remainder of the COBRA continuation coverage
period.

     

    
      	
              (c)  

            	
              Retiree Medical.  If the
      Employee is an Eligible Retiree such individual will be eligible for
      benefits under the Retiree Benefit Plan in lieu of medical and dental
      COBRA coverage described in Section 3.02(b).  If the Eligible
      Retiree is involuntarily terminated, the Company will pay
      the full cost of
      Retiree Benefit Plan coverage for a six month period beginning on the
      first day of the month following the month in which the termination
      occurred.

            

    

     

     

    
      	
              (d)  

            	
              Other Plan
      Benefits.  Participation in the employee benefit programs
      of the Employer will cease on or after the date of termination as
      determined by the provisions of the individual benefit programs of the
      Employer.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              3.03  

            	
              Deductions.  Appropriate withholdings and deductions will
      be made.

            

    

     

     

    ARTICLE
IV

    DISTRIBUTION
PROVISIONS

     

    
      	
              4.01  

            	
              Form and Timing of
      Payment.

            

    

     

     

    
      	
              (a)  

            	
              Involuntary
      Termination as a Short Term Deferral -
      If an Employee involuntarily Separates
      from Service or participated in a Window Program, the Separation Pay will
      be paid in lump sum upon the Separation from Service date, within the same
      calendar year or, if later, by March 15 following the calendar year in
      which the Separation from Service occurs.  Payment may be
      delayed due to unforeseeable circumstances as described in Treasury
      Regulation Section
      1.409A-1(b)(4)(ii).

            

    

     

    
      	
              (b)  

            	
              Reimbursements
      - The period during which expenses described in Section 3.02 may be
      incurred, or during which in-kind benefits may be provided by the Employer
      or a third party paid by the Employer, cannot extend beyond the last day
      of the second taxable year (December 31) of the Employee following the
      taxable year of the Employee in which the Separation from Service
      occurred.  The period during which reimbursements for such
      expenses must be paid may not extend beyond the third taxable year of the
      Employee following the taxable year of the Employee in which the
      Separation from Service occurred.  See Treasury Regulations
      Section 1.409A-1(b)(9)(v).

            

    

     

    
      	
              (c)  

            	
              Effect of Death on
      Benefits - If a Separation Payment is due but not
      yet paid as of the Employee’s death, such benefit will be paid to the
      Employee’s beneficiary no later than the later of December 31 of the year
      in which the death occurs, or the 15th
      day of the third month following the month in which the death
      occurs.  The payment will be made to the beneficiary who would
      receive Employer provided Basic Life insurance benefits with respect to
      the Employee.
    

            

    

     

    
      	
              4.02  

            	
              Exemptions to
      Circumvent Code Section 409A(a) .  The exemptions for Separation Pay arrangements
      described in this Article can not be used to pay deferred compensation
      that may be payable to an Employee under a separate nonqualified deferred
      compensation arrangement, such as the Supplemental Executive Capital
      Accumulation
Plan.

            

    

     

     

    ARTICLE
V

    GENERAL
PROVISIONS

     

    
      	
              5.01  

            	
              Non-Assignment of
      Severance.  The
      right to severance payments to be made in accordance with this Plan may
      not be assigned

            

    

     

    .

    
      	
              5.02  

            	
              Plan Amendment and
      Termination.  The Plan may
      be amended or terminated at any time by the Plan Administrator in its
      discretion; provided, however, that no amendment or termination may
      decrease or eliminate benefits to which an Employee has previously become
      entitled hereunder.  If the Company amends this Plan, Code
      Section 409A provisions may apply that require a delay in payment to
      Specified Employees.  Specified Employee means an Employee who
      is a key employee of the Employer under Code
      

            

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Section 409A(a)(2)(B) and Treasury Regulations Section 1.409A-1(i) because of final and binding
action by the Board of Directors or its delegate, or by operation of law or such
regulation.

     

    
      	
              5.03  

            	
              Interpretation of the
      Plan.  The Plan
      Administrator, or its authorized designee(s), shall have the sole
      discretionary authority to construe and interpret the Plan and determine
      all questions of eligibility for participation and for
      benefits.  All decisions of the Plan Administrator shall be
      final and binding on all
    parties.

            

    

     

     

    
      	
              5.04  

            	
              Funding.  The Company shall pay the benefits under this
      Plan out of its general assets at the time the benefits are to be
      paid.

            

    

     

     

    
      	
              5.05  

            	
              Named Fiduciary, Plan
      Administrator, and Agent for Service of Process.  Administrative Committee, McMoRan Exploration
      Co., c/o FM Services Company, 1615 Poydras Street, New Orleans, LA 70112,
      (504) 582-4000, is the “named fiduciary and Plan Administrator” of this
      Plan.  The named fiduciary shall have the authority to control
      and manage the operation and administration of this Plan and is designated
      as the administrator of this Plan with the authority to interpret this
      Plan.  The Plan Administrator shall make all reports and
      disclosures required by
  law.

            

    

     

     

    
      	
              5.06  

            	
              Plan Sponsor and
      Number.  The Plan Sponsor is McMoRan Exploration Co.
      (EIN: 72-1392855), c/o FM Services Company, 1615 Poydras Street, New
      Orleans, LA 70112.  A complete list of the Employers
      participating in this Plan may be obtained from the Plan Administrator at
      this address.  This Plan has been assigned number
      531.

            

    

     

     

    
      	
              5.07  

            	
              Claims Procedures.  Benefits
      under the Plan will ordinarily be paid without the need to file a request
      for payment.  Any inquiry, any transaction or any claim for
      benefits under this Plan shall be made as
      follows:

            

    

     

     

    
      	
              (a)  

            	
              Filing of a Claim for
      Benefits.  Claims for benefits under the Plan are
      to be presented in writing by the claimant or an authorized representative
      to the employee’s Human Resources
      Department.

            

    

     

     

    
      	
              (b)  

            	
              Notification to
      Claimant of Decision.  If a claim is wholly or partially denied, a
      notice of the decision rendered in accordance with the rules set forth
      below will be furnished to the claimant not later than 90 days after
      receipt of the claim by the employee’s Human Resources
      Department.

            

    

     

    If
special circumstances require an extension of time for processing the claim, the
Plan Administrator will give a claimant a written notice of the extension prior
to the end of the initial 90 day period.  In no event will the
extension exceed an additional 90 days.  The extension notice will
indicate the special circumstances requiring an extension of time and the date
by which the Plan Administrator expects to render the final
decision.

     

    If the
notice of the denial of claim is not furnished in accordance with the procedure
set out herein, the claim will be deemed denied and the claimant will be
permitted to proceed to the review stage.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	
              (c)  

            	
              Content of
      Notice.  The
      Plan Administrator will provide to every claimant who is denied a claim
      for benefits written or electronic notice setting forth in a clear and
      simple manner:

            

    

     

     

    
      	
              (i)  

            	
              The
      specific reason or reasons for
denial;

            

    

     

    
      	
              (ii)  

            	
              Specific
      reference to pertinent plan provisions on which denial is
      based;

            

    

     

    
      	
              (iii)  

            	
              A
      description of any additional material or information necessary for the
      claimant to perfect the claim and an explanation of why such materials or
      information is necessary; and

            

    

     

    
      	
              (iv)  

            	
              Appropriate
      information as to the steps to be taken if the claimant wishes to submit
      his or her claim for review, including the right to bring a civil action
      under ERISA Section 502(a) following an adverse determination on
      review.

            

    

     

    
      	
              (d)  

            	
              Review Procedure.  After the claimant has received written
      notification of the denial of the claim, the claimant or a duly authorized
      representative will have 60 days within which to appeal, in writing, a
      denied claim to the Plan Administrator.  The Plan Administrator
      will afford the claimant a full and fair review of the denial of the
      claim.  The claimant should include in his written appeal the
      following information to support his claim for
      benefits:

            

    

     

    
      	
              (i)  

            	
              A
      list of the issues in the claim denial that he chooses to contest, if any,
      and that he wishes the Plan Administrator to review on
    appeal;

            

    

     

    
      	
              (ii)  

            	
              His
      position on each issue;

            

    

     

    
      	
              (iii)  

            	
              Any
      additional facts that he believes support his position on each issue;
      and

            

    

     

    
      	
              (iv)  

            	
              Any
      legal or other arguments he believes support his position on each
      issue.

            

    

     

    
      	
              (v)  

            	
              The
      claimant or a duly authorized representative will be permitted to submit
      issues and comments relevant to the claim.  Upon request, the
      claimant will be given reasonable access to, and copies of, all documents
      and information relevant to the claim for benefits, at no
      charge.

            

    

     

    
      	
              (vi)  

            	
              The
      review will consider all items submitted by the claimant, regardless of
      whether such information was submitted or considered in the initial
      benefit determination.

            

    

     

    
      	
              (e)  

            	
              Decision on
      Review.  The
      decision on review by the Plan Administrator will be rendered as promptly
      as is feasible, but not later than 60 days after the receipt of a request
      for review unless the Plan Administrator, in his sole discretion,
      determines that special circumstances require an extension of time for
      processing, 

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    in which
case a decision will be rendered as promptly as is feasible, but not later than
120 days after receipt of a request for review.

     

    If an
extension of time for review is required because of special circumstances,
written notice of the extension will be furnished to the claimant before
termination of the initial 60-day review period.

     

    The
decision on review will be in written or electronic form.  In the
event of a claim denial, the decision shall contain:  (1) specific
reasons for the decision, written in a clear and simple manner; (2) specific
references to the pertinent plan provisions on which the decision is based; (3)
a statement that the claimant may request, at no charge, reasonable access to
and copies of all documents, records and other information relevant to the claim
for benefits; and (4) a description of the Plan’s appeal and arbitration
procedures (if any), and the claimant’s right to bring an action under ERISA
Section 502(a).

     

    If the
claimant wishes to contest the Plan Administrator’s Decision on Review, the
claimant and the Plan Administrator may enter into voluntary arbitration to
resolve the dispute.  The decision reached by the arbitrator shall be
binding.  Alternatively, the claimant may bring a civil action for
recovery of benefits.

     

    No legal
action for recovery of benefits may be commenced before the claimant has
exhausted the claims and claims review procedure listed above.

     

    
      	
              5.08  

            	
              ERISA Rights.  Employees are entitled to certain rights and
      protections under the Employee Retirement Income Security Act of 1974,
      Public Law 93-406, 29 U.S.C. §1001 et seq., and regulations and rulings
      issued thereunder, as amended from time to time (ERISA).  ERISA
      provides that all plan participants shall be entitled
      to:

            

    

     

    Receive
Information About the Plan and its Benefits

     

    Examine,
without charge, at the Plan Administrator’s office and at other specified
locations, such as worksites, all documents governing the Plan, and a copy of
the latest annual report (Form 5500 Series) filed by the plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the Pension
and Welfare Benefit Administration.

     

    Obtain,
upon written request to the Plan Administrator, copies of documents governing
the Plan and copies of the latest annual report (Form 5500 Series). The
Administrator may make a reasonable charge for the copies.

     

    Prudent
Actions by Plan Fiduciaries

     

    In
addition to creating rights for plan participants ERISA imposes duties upon the
people who are responsible for the operation of the Plan. The people who operate
the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and
in the interest of Plan participants and beneficiaries.  No one,
including the Employer, a union, or any other person, may fire an Employee or
otherwise discriminate against an Employee in any way to prevent him or her from
obtaining a benefit or exercising rights under ERISA.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Enforcing
ERISA Rights

     

    If a
claim for a benefit is denied or ignored, in whole or in part, participants have
a right to know why this was done, to obtain copies of documents relating to the
decision without charge, and to appeal any denial, all within certain time
schedules.

     

    Under
ERISA, there are steps participants can take to enforce the above rights. For
instance, if a participant requests a copy of plan documents or the latest
annual report from the plan and does not receive them within 30 days, he or she
may file suit in a Federal court. In such a case, the court may require the Plan
Administrator to provide the materials and pay the participant up to $110 a day
until the materials are received, unless the materials were not sent because of
reasons beyond the control of the Administrator. If a participant’s claim for
benefits is denied or ignored, in whole or in part, or a participant is
discriminated against for asserting his or her rights, he or she may seek
assistance from the U.S. Department of Labor, or may file suit in a Federal
court. The court will decide who should pay court costs and legal fees. If the
participant is successful, the court may order the person sued to pay these
costs and fees. If the participant loses, the court may order him or her to pay
these costs and fees, for example, if it finds the claim frivolous.

     

    Assistance
with Questions

     

    Participants
with questions about the Plan should contact the Plan
Administrator.  Participants who have questions about this statement
or about their rights under ERISA, or who need assistance in obtaining documents
from the Plan Administrator, should contact the nearest office of the Employee
Benefits Security Administration, U.S. Department of Labor, listed in the
telephone directory or the Division of Technical Assistance and Inquiries,
Employee Benefits Security Administration, U.S. Department of Labor, 200
Constitution Avenue N.W., Washington, D.C. 20210.  Participants may
also obtain certain publications about their rights and responsibilities under
ERISA by calling the publications hotline of the Employee Benefits Security
Administration.

     

    
      	
              5.09  

            	
              Governing Law.  To the extent this Plan is not governed by the
      Employee Retirement Income Security Act, the Internal Revenue Code, or
      other federal law, it shall be interpreted and construed under the laws of
      the State of Louisiana.
    

            

    

     

    

    

    Executed
in New Orleans, this 29th day of December, 2008.

    

    McMoRan
Exploration Co.

    

    

    /s/
Dean T. Falgoust

        
Dean T. Falgoust

        
Vice President

    
      
        
          

                                                                         

        

         

      

      
        12

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