Document:

EX-4.6

 Exhibit 4.6 

 
  

 
 MCMORAN EXPLORATION CO.

 Company 
 and 
 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. 

Trustee 

FIRST SUPPLEMENTAL INDENTURE 
 5 1/4% CONVERTIBLE SENIOR NOTES DUE 2013 
 Dated as of June 3, 2013 
  

 
  

 FIRST SUPPLEMENTAL INDENTURE, dated as of June 3, 2013 (this “First
Supplemental Indenture”), by and between MCMORAN EXPLORATION CO., a Delaware corporation (the “Company”) and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee under the Indenture
referred to below (in such capacity, the “Trustee”). All capitalized terms used herein but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Indenture (as defined below). 

RECITALS 
 WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of September 13, 2012 (the “Indenture”), providing for the issuance of 5 1/4% Convertible Senior Notes due 2013 of the Company (the “Notes”); 
 WHEREAS, pursuant to an Agreement and Plan of Merger, dated as of December 5, 2012 (as amended, supplemented or otherwise modified to the date hereof, the “Merger Agreement”), by and
among the Company, Freeport-McMoRan Copper & Gold Inc., a Delaware corporation (the “FCX”), and INAVN Corp., a Delaware corporation (the “Merger Sub), the Company will be merged with and into the Merger Sub,
with the Company continuing as the surviving company and a direct wholly owned subsidiary of FCX (the “Merger” and the time at which the Merger becomes effective in accordance with Section 1.3 of the Merger Agreement, the
“Merger Effective Time”); 
 WHEREAS, Section 5.01 of the Indenture provides, among other things, that the
Company may merge into any other Person if the Company shall be the continuing corporation and certain other conditions are complied with; and 
 WHEREAS, Section 10.11 of the Indenture is applicable with respect to the Merger; 
 WHEREAS, as a result of the Merger, Section 10.11 of the Indenture provides, among other things, that (a) the Notes are now convertible the kind and amount of consideration under the Merger
Agreement in lieu of Company Common Stock into which the Notes were previously convertible and (b) the Company shall execute and deliver with the Trustee a supplemental indenture providing for the conversion and settlement of the Notes as set
forth in the Indenture and providing for adjustments that shall be as nearly equivalent as practicable to the adjustments provided for in Article 10 of the Indenture; 
 WHEREAS, Section 9.01(h) of the Indenture provides that, without the consent of any Noteholder, the Company and the Trustee may supplement the Indenture to comply with the requirements regarding
merger or transfer or assets; and 
 WHEREAS, the Company has requested that the Trustee execute and deliver this First
Supplemental Indenture pursuant to Section 9.01(h) of the Indenture, and all conditions precedent and requirements necessary to make this First Supplemental 

  
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Indenture a valid and legally binding instrument in accordance with its terms have been complied with, performed and fulfilled, and the execution and delivery hereof have been in all respects
duly authorized. 
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt
of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
 ARTICLE I 
 Effect of Merger 

Section 1.01 In accordance with Section 10.11 of the Indenture, on and after the Merger Effective Time, the right to convert the
Notes into Common Stock will be changed to a right to exchange such Notes into the consideration such Holder would have been entitled to receive under the Merger, by reference to that number of shares of Common Stock equal to the Conversion Rate
that such Holder would have owned or been entitled to receive had such Holder converted its Notes immediately prior to the Merger, in accordance with the terms and conditions of the Indenture and the Notes. Pursuant to the Merger Agreement, the
Company’s stockholders are entitled to receive per-share consideration consisting of $14.75 in cash and 1.15 units of a royalty trust (Gulf Coast Ultra Deep Royalty Trust), which will hold a 5 percent overriding royalty interest in future
production from twenty specified ultra-deep exploration prospects. 
 ARTICLE II 

Miscellaneous 
 Section 2.04 General References. Unless otherwise specified or unless the context otherwise requires, (i) all references in this First Supplemental Indenture to Articles and Sections
refer to the corresponding Articles and Sections of this First Supplemental Indenture and (ii) the terms “herein,” “hereof,” “hereunder” and any other word of similar import refers to this
First Supplemental Indenture. 
 Section 2.05 Effectiveness of First Supplemental Indenture. Notwithstanding
anything to the contrary elsewhere herein, this First Supplemental Indenture shall become effective only as of the Merger Effective Time. Promptly after the Merger Effective Time, the Company shall provide notice thereof to the Trustee. If the
Company notifies the Trustee in writing that the Merger Effective Time will not occur, then the provisions hereof shall not become effective. Upon the effectiveness of this First Supplemental Indenture, the Indenture shall be and be deemed to be
modified and amended in accordance herewith and the respective rights, limitations of rights, obligations, duties and immunities under the Indenture of the Trustee, the Company and the Holders affected thereby shall hereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of this First Supplemental Indenture shall be and be deemed to be part of the terms and conditions of the Indenture for
any and all purposes. 

  
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 Section 2.06 Indenture Remains in Full Force and Effect. Except as
amended and supplemented hereby, all provisions in the Indenture shall remain in full force and effect and are in all respects ratified and confirmed. 
 Section 2.07 Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms,
conditions and provisions thereof shall remain in full force and effect. This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be
bound hereby. 
 Section 2.08 Supplemental Indenture Controls. If there is any conflict or inconsistency between the
Indenture and this First Supplemental Indenture, the provisions of this First Supplemental Indenture shall control. 

Section 2.11 Benefits of Supplemental Indenture. Nothing in this First Supplemental Indenture, express or implied,
shall give or be construed to give to any Person, other than the parties hereto, any agent, any registrar, any successors to the foregoing hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under the Indenture or
this First Supplemental Indenture. 
 Section 2.12 Successors and Assigns. All agreements in this First Supplemental
Indenture made by the Company or the Trustee shall bind their respective successors and assigns, whether so expressed or not. 

Section 2.13 Severability. In case any provision in this First Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

 Section 2.14 Governing Law. This First Supplemental Indenture shall be governed by, and construed in
accordance with, the laws of the State of New York. 
 Section 2.15 Counterparts. The parties hereto may sign
one or more copies of this First Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. 
 Section 2.16 Headings. The headings of the Articles and the Sections in this First Supplemental Indenture are for convenience of reference only and shall not be deemed to alter or
affect the meaning or interpretation of any provisions hereof. 
 Section 2.17 Trustee Disclaimer. The Trustee
accepts the amendments of the Indenture effected by this First Supplemental Indenture and agrees to execute the trust created by the Indenture as hereby amended, but on the terms and conditions set forth in the Indenture, including the terms and
provisions defining and limiting the liabilities and responsibilities of the Trustee, which terms and provisions shall in like manner define and limit its liabilities and responsibilities in the performance of the trust created by the 

  
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Indenture as hereby amended, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect to any of the recitals or
statements contained herein, all of which recitals or statements are made solely by the Company, and the Trustee makes no representation with respect to any such matters. Additionally, the Trustee makes no representations as to the validity or
sufficiency of this First Supplemental Indenture. 
 [Signature pages to follow.] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be
duly executed as of the day and year first written above. 
  

					
	MCMORAN EXPLORATION CO.
		
	By:	 	 /s/ Nancy D. Parmelee

		 	Name:	 	Nancy D. Parmelee
		 	Title:	 	Senior Vice President, Chief Financial Officer and Secretary

 
					
	 THE BANK OF NEW YORK MELLON
     TRUST COMPANY, N.A., as Trustee

		
	By:	 	 /s/ R. Tamas

		 	Name:	 	R. Tamas
		 	Title:	 	Vice PresidentEX-10.1

 Exhibit 10.1 
 Regulatory Compliance Incentive 
 Camco and Advantage Bank were placed under regulatory order(s)
beginning in 2009. The result has been a significant restriction on allowed activities for the company and a primary focus on attaining regulatory goals. The Board of Directors in 2008 and 2009 recognized that the existing management team would
likely not succeed, in a timely fashion, in the attainment of new regulatory requirements and thus orchestrated a significant turnover in the senior management team. Since the initiation of that change, the new management team, despite what many
thought were insurmountable issues, has made material progress in managing the company to earn elimination of regulatory orders. 
 The Board
recognizes that the task of exiting these orders and returning to normal operations is not yet complete and in fact is not a certain event. In that regard, the Board believes it in the best interest of all constituents (shareholders, regulators,
employees, customers, etc) if the management team is further incented to complete this task as quickly as possible. The Board also recognizes the CEO of the company will have the largest impact on implementing this desired requisite, although
certain members of the senior team will also impact attainment of that objective. Accordingly the Board has implemented a Regulatory Compliance Incentive as follows: 
  

									
	 	  	Cash	 	  	Equity	 
	CEO Incentive	  				  			
			
	 1.      Regulatory Required Capital Ratios
	  	$	50,000	  	  	 	35,000 shares	  
			
	 2.      Cancellation/elimination of Consent Order
	  	$	50,000	  	  			
			
	 3.      Cancellation/elimination of all Orders
	  	$	50,000	  	  			
			
	Senior Officer (CEO designees) Incentive	  				  			
			
	 1.      Cancellation/elimination of Consent Order
	  	$	2,000	  	  			

 At present, the Advantage Bank Consent Order requires Advantage’s Tier 1 Leverage Capital Ratio to be 9% and the
risk based capital to be 12%. This incentive (CEO goal #1 above) reflects the required regulatory capital ratios under any order then in effect for each month (whether higher, lower, or the same as present) and achieved as of the end of each of 2
consecutive months. In addition, if there is a difference in required Capital Ratios in effect between the regulators, the Regulatory Required Capital Ratios incentive (#1 CEO above) is attained when all regulatory capital ratio
targets are achieved for Camco and Advantage as of the end of each of 2 consecutive months. 
 The cancellation/elimination of the Consent Order
for both the CEO (#2) and Senior Officers (#1) is achieved upon cancellation of the Consent Order or a downgrade in the Consent Order. For further clarification, a cancellation/elimination is not achieved when management believes it is
in perceived compliance or there is acknowledged compliance with any regulatory issues but is achieved when the existing Consent Order is terminated by the FDIC and Ohio Division, even if the Consent Order is replaced. However, if
there is a replacement of the Consent Order, achievement of both the CEO (#2) and Senior Officers (#1) only occurs if the replacement is with an order commonly known to be of lower significance, which by example could include a Memorandum of
Understanding. It is understood a substitution of the existing Consent Order with another Consent Order, even if there are fewer exceptions or the exceptions are different in the new Consent Order, does not constitute an event which satisfies these
goals. It is understood that if the company is moved directly to #3 (CEO) above, then CEO #2 and Senior Officers #1 goals are also attained at that time and all incentives for CEO #2, CEO #3 and Senior Officer #1 goals will be paid. 

 It is also understood that CEO goal #3, cancellation/elimination of all Orders, requires that all orders,
agreements or understandings of any kind, including Consent Orders, Written Orders or Orders of lower significance (such as Memorandum of Understanding), at both Camco and Advantage with the Federal Reserve, FDIC, or State of Ohio Division of
Financial Institutions be terminated. 
 Payment as applicable for satisfaction of any of the Regulatory Compliance Incentives shall be made
within 30 days of receiving or filing independent evidence the Incentive has been achieved. This would include but not be limited to audited financial statements, SEC filings as applicable, written documents from any and all regulatory agencies (as
appropriate), internal generated financial statements provided in the normal course of business to the Board of Directors, etc. The award of unrestricted shares shall be made under one of Camco’s existing Equity Plans. If there is a Change of
Control as defined in the CEO employment agreement, all Regulatory Compliance Incentives will be deemed achieved upon the consummation of the Change of Control.

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