Common use of Loans and Procedures Clause in Contracts

Loans and Procedures. 8.1.1 The financial arrangements in respect of the transactions contemplated by this Agreement (which include loans intended to maintain the operability of the License as well as provide funds to the Contractor to cover already existing liabilities under the License) are as follows: 8.1.1.1. On the Signing Date, the PRE Lender shall: (a) make the Initial Loan to the Borrower, and the Borrower shall execute and deliver to the PRE Lender or its counsel a note substantially in the form attached hereto as Attachment H (the Initial Note) and (b) the PRE Lender shall (i) make a loan to the Borrower in an amount equal to that set forth on the initial 51 CEE Statement (such initial 51 CEE Statement to be in the amount of 51% of the Capital and Exploratory Expenditures incurred in the period from the Effective Date through the Signing Date), and (ii) make a Loan to the Borrower in an amount equal to that set forth on the initial 49 CEE Statement (such initial 49 CEE Statement to be in the amount of 49% of the Capital and Exploratory Expenditures incurred in the period from the Effective Date through the Signing Date) and the Borrower shall execute and deliver to the PRE Lender two notes, one in the amount of the initial 51 CEE Statement and one in the amount of the initial 49 CEE Statement, in the forms attached as Attachment I (the 49 CEE Note) and Attachment J (the 51 CEE Note), respectively. Amounts loaned by PRE Lender to Borrower and evidenced by the 49 CEE Note and the 51 CEE Note shall then be lent by Borrower to BPZ E&P and such loans shall be evidenced by a note in the form attached hereto as Attachment K (the Shareholder Note). 8.1.1.2. During the remainder of the Interim Period: (a) Borrower shall issue both a 49 CEE Statement and a 51 CEE Statement monthly in accordance with the Accounting Procedure of the JOA, (b) the PRE Lender shall make loans to the Borrower in amounts equal to the amounts set forth on the then applicable 49 ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇ithin ten (10) days of its receipt of said statements, (c) each loan so made shall be evidenced by an entry on the 49 CEE Note or the 51 CEE Note (as applicable), and (d) the amounts so loaned by PRE Lender to Borrower in respect of all 49 CEE Statements and 51 CEE Statements shall be on-loaned by Borrower to BPZ E&P and reflected by an entry on the Shareholder Note. 8.1.1.3. On the Completion Date, the PRE Lender shall make a loan to the Borrower in the amount of $85,000,000.00 and Borrower shall execute and deliver to the PRE Lender or its counsel a note from the Borrower in the form of Attachment L (the Final Note). 8.1.1.4. On the Payment Date Buyer shall pay the Share Purchase Price, at its election either (a) in cash or (b) in kind, after obtaining a credit right under the Initial and Final Notes, by assigning and transferring the Initial Note and the Final Note to Sellers. 8.1.1.5. All monthly 51 CEE Statements and 49 CEE Statements shall be handled in accordance with the JOA and the Accounting Procedure, as defined in the JOA pursuant to Section 4.8. 8.1.2 None of the loans referred to in Section 8.1 shall accrue interest in favor of the PRE Lender, except as specifically provided in Schedule 10.3.1.

Loans and Procedures. 8.1.1 The financial arrangements in respect of the transactions contemplated by this Agreement (which include loans intended to maintain the operability of the License as well as provide funds to the Contractor to cover already existing liabilities under the License) are as follows: 8.1.1.1. On the Signing Date, the PRE Lender shall: (a) make the Initial Loan to the Borrower, and the Borrower shall execute and deliver to the PRE Lender or its counsel a note substantially in the form attached hereto as Attachment H (the Initial Note) and (b) the PRE Lender shall (i) make a loan to the Borrower in an amount equal to that set forth on the initial 51 CEE Statement (such initial 51 CEE Statement to be in the amount of 51% of the Capital and Exploratory Expenditures incurred in the period from the Effective Date through the Signing Date), and (ii) make a Loan to the Borrower in an amount equal to that set forth on the initial 49 CEE Statement (such initial 49 CEE Statement to be in the amount of 49% of the Capital and Exploratory Expenditures incurred in the period from the Effective Date through the Signing Date) and the Borrower shall execute and deliver to the PRE Lender two notes, one in the amount of the initial 51 CEE Statement and one in the amount of the initial 49 CEE Statement, in the forms attached as Attachment I (the 49 CEE Note) and Attachment J (the 51 CEE Note), respectively. Amounts loaned by PRE Lender to Borrower and evidenced by the 49 CEE Note and the 51 CEE Note shall then be lent by Borrower to BPZ E&P and such loans shall be evidenced by a note in the form attached hereto as Attachment K (the Shareholder Note). 8.1.1.2. During the remainder of the Interim Period: (a) Borrower shall issue both a 49 CEE Statement and a 51 CEE Statement monthly in accordance with the Accounting Procedure of the JOA, (b) the PRE Lender shall make loans to the Borrower in amounts equal to the amounts set forth on the then applicable 49 ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇ithin within ten (10) days of its receipt of said statements, (c) each loan so made shall be evidenced by an entry on the 49 CEE Note or the 51 CEE Note (as applicable), and (d) the amounts so loaned by PRE Lender to Borrower in respect of all 49 CEE Statements and 51 CEE Statements shall be on-loaned by Borrower to BPZ E&P and reflected by an entry on the Shareholder Note. 8.1.1.3. On the Completion Date, the PRE Lender shall make a loan to the Borrower in the amount of $85,000,000.00 and Borrower shall execute and deliver to the PRE Lender or its counsel a note from the Borrower in the form of Attachment L (the Final Note). 8.1.1.4. On the Payment Date Buyer shall pay the Share Purchase Price, at its election either (a) in cash or (b) in kind, after obtaining a credit right under the Initial and Final Notes, by assigning and transferring the Initial Note and the Final Note to Sellers. 8.1.1.5. All monthly 51 CEE Statements and 49 CEE Statements shall be handled in accordance with the JOA and the Accounting Procedure, as defined in the JOA pursuant to Section 4.8. 8.1.2 None of the loans referred to in Section 8.1 shall accrue interest in favor of the PRE Lender, except as specifically provided in Schedule 10.3.1.