Document:

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                        Southern Peru Copper Corporation

                               20,978,497 Shares(1)
                                  Common Stock
                                ($0.01 par value)

                             Underwriting Agreement

                                                              New York, New York
                                                                    June 9, 2005

Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several Underwriters,

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

c/o UBS Securities LLC
299 Park Avenue
New York, New York 10171

Ladies and Gentlemen:

            The stockholders of Southern Peru Copper Corporation, a corporation
organized under the laws of Delaware (the "Company"), named in Schedule II
hereto (the "Selling Stockholders") propose to sell to the several underwriters
named in Schedule I hereto (the "Underwriters"), for whom you (the
"Representatives") are acting as representatives, 20,978,497 shares of Common
Stock, $0.01 par value ("Common Stock"), of the Company (said shares to be sold
by the Selling Stockholders being hereinafter called the "Underwritten
Securities"), with each Selling Stockholder selling the number of Underwritten
Securities set forth opposite such Selling Stockholder's name on Schedule II
hereto. The Selling Stockholders also propose to grant to the Underwriters an
option to purchase up to 1,573,387 additional shares of Common Stock to cover
over-allotments (the "Option Securities"; the Option Securities, together with
the Underwritten Securities, being hereinafter called the "Securities"). To the
extent there are no additional Underwriters listed on Schedule I other than you,
the term Representatives as used herein shall mean you, as Underwriters, and the
terms Representatives and Underwriters shall mean either the singular or plural
as the context requires. The use of the neuter in this Agreement shall include
the feminine and masculine wherever appropriate. Any reference herein to the
Registration Statement, the

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  (1) Plus an option to purchase from the Selling Stockholders up to 1,573,387
additional shares of Common Stock to cover over-allotments.

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                                                                               2

Basic Prospectus, any Preliminary Prospectus or the Final Prospectus shall be
deemed to refer to and include the documents incorporated by reference therein
pursuant to Item 12 of Form S-3 which were filed under the Exchange Act on or
before the Effective Date of the Registration Statement or the issue date of the
Basic Prospectus, any Preliminary Prospectus or the Final Prospectus, as the
case may be (the "Incorporated Documents"), it being understood that in the case
of any Incorporated Document that is supplemented or amended by a subsequent
Incorporated Document, the Incorporated Document as amended or supplemented
shall be the relevant document with respect to any representations and
warranties concerning such Incorporated Document herein; and any reference
herein to the terms "amend", "amendment" or "supplement" with respect to the
Registration Statement, the Basic Prospectus, any Preliminary Prospectus or the
Final Prospectus shall be deemed to refer to and include the filing of any
document under the Exchange Act after the Effective Date of the Registration
Statement or the issue date of the Basic Prospectus, any Preliminary Prospectus
or the Final Prospectus, as the case may be, deemed to be incorporated therein
by reference. Certain terms used herein are defined in Section 19 hereof.

      1. Representations and Warranties.

            (i) The Company represents and warrants to, and agrees with, each
Underwriter and each Selling Stockholder as set forth below in this Section
1(i).

            (a) The Company meets the requirements for use of Form S-3 under the
      Act and has prepared and filed with the Commission a registration
      statement (file number 333-124439) on Form S-3, including a related basic
      prospectus, for registration under the Act of the offering and sale of the
      Securities. The Company may have filed one or more amendments thereto,
      including a Preliminary Prospectus, each of which has previously been
      furnished to you. The Company will next file with the Commission one of
      the following: (1) after the Effective Date of such registration
      statement, a final prospectus supplement relating to the Securities in
      accordance with Rules 430A and 424(b), (2) prior to the Effective Date of
      such registration statement, an amendment to such registration statement
      (including the form of final prospectus supplement) or (3) a final
      prospectus in accordance with Rules 415 and 424(b). In the case of clause
      (1), the Company has included in such registration statement, as amended
      at the Effective Date, all information (other than Rule 430A Information)
      required by the Act and the rules thereunder to be included in such
      registration statement and the Final Prospectus. As filed, such final
      prospectus supplement or such amendment and form of final prospectus
      supplement shall contain all Rule 430A Information, together with all
      other such required information, and, except to the extent the
      Representatives shall agree in writing to a modification, shall be in all
      substantive respects in the form furnished to you prior to the Execution
      Time or, to the extent not completed at the Execution Time, shall contain
      only such specific additional information and other changes (beyond that
      contained in the Basic Prospectus and any Preliminary Prospectus) as the
      Company has advised you, prior to the Execution Time, will be included or
      made therein. The Registration Statement, at the Execution Time, meets the
      requirements set forth in Rule 415(a)(1)(i).

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            (b) On the Effective Date, the Registration Statement did or will,
      and when the Final Prospectus is first filed (if required) in accordance
      with Rule 424(b) and on the Closing Date (as defined herein) and on any
      date on which Option Securities are purchased, if such date is not the
      Closing Date (a "settlement date"), the Final Prospectus (and any
      supplement thereto) will, comply in all material respects with the
      applicable requirements of the Act and the rules thereunder; the
      Incorporated Documents, when they were filed, complied in all material
      respects with the applicable requirements of the Exchange Act and the
      rules thereunder; on the Effective Date and at the Execution Time, the
      Registration Statement did not or will not contain any untrue statement of
      a material fact or omit to state any material fact required to be stated
      therein or necessary in order to make the statements therein not
      misleading; and, on the Effective Date, the Final Prospectus, if not filed
      pursuant to Rule 424(b), will not, and on the date of any filing pursuant
      to Rule 424(b) and on the Closing Date and any settlement date, the Final
      Prospectus (together with any supplement thereto) will not, include any
      untrue statement of a material fact or omit to state a material fact
      necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading; provided,
      however, that the Company makes no representations or warranties as to the
      information contained in or omitted from the Registration Statement or the
      Final Prospectus (or any supplement thereto) in reliance upon and in
      conformity with information furnished in writing to the Company by or on
      behalf of any Underwriter through the Representatives or any Selling
      Stockholder specifically for inclusion in the Registration Statement or
      the Final Prospectus (or any supplement thereto), it being understood and
      agreed that the only such information is that described in Section 8(c)
      and 8(b) hereof, respectively.

            (c) Each of the Company and its material subsidiaries listed on
      Schedule III hereof (each a "Material Subsidiary" and together the
      "Material Subsidiaries") has been duly incorporated and is validly
      existing as a corporation in good standing (to the extent applicable)
      under the laws of the jurisdiction in which it is chartered or organized
      with full corporate power and authority to own or lease, as the case may
      be, and to operate its properties and conduct its business as described in
      the Final Prospectus, and is duly qualified to do business as a foreign
      corporation and is in good standing under the laws of each jurisdiction
      which requires such qualification, except where the failure to be so
      qualified would not, individually or in the aggregate, have a material
      adverse effect on the condition (financial or otherwise), prospects,
      results of operations, business or properties of the Company and its
      subsidiaries considered as one enterprise, whether or not arising in the
      ordinary course of business (a "Material Adverse Effect"). Schedule III
      lists each subsidiary of the Company and the jurisdiction in which it is
      chartered or organized. The subsidiaries of the Company which are not
      Material Subsidiaries do not individually or, taken together, constitute a
      "Significant Subsidiary" of the Company (as defined in Regulation S-X).

            (d) All the outstanding shares of capital stock of each Material
      Subsidiary have been duly and validly authorized and issued and are fully
      paid and

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      nonassessable, and, except as otherwise set forth in the Final Prospectus
      or on Schedule III, all outstanding shares of capital stock of the
      subsidiaries are owned by the Company either directly or through wholly
      owned Material Subsidiaries free and clear of any security interests,
      claims, liens or encumbrances.

            (e) The Company's authorized equity capitalization is as set forth
      in the Final Prospectus; the capital stock of the Company conforms in all
      material respects to the description thereof contained in the Final
      Prospectus; the outstanding shares of Common Stock (including the
      Securities) have been duly and validly authorized and issued and are fully
      paid and nonassessable; the Securities have been approved for listing on
      the New York Stock Exchange and the Lima Stock Exchange; the certificates
      for the Securities are in due and proper form; the holders of outstanding
      shares of capital stock of the Company are not entitled to preemptive or
      other rights to subscribe for the Securities; and, except as set forth in
      the Final Prospectus, no options, warrants or other rights to purchase,
      agreements or other obligations to issue, or rights to convert any
      obligations into or exchange any securities for, shares of capital stock
      of or ownership interests in the Company are outstanding.

            (f) The statements in the Final Prospectus (exclusive of any
      supplement thereto) under the headings "Risk Factors," "Industry,"
      "Business," "Related Party Transactions," "Taxation" and "Description of
      Capital Stock," or, to the extent not superseded by the Final Prospectus,
      in the equivalent portions of the Incorporated Documents insofar as such
      statements summarize legal matters, agreements, documents or proceedings,
      are accurate and fair summaries of such legal matters, agreements,
      documents or proceedings; and there is no franchise, contract or other
      document of a character required to be described in the Registration
      Statement or Final Prospectus, or to be filed as an exhibit thereto, which
      is not described or filed as required.

            (g) This Agreement has been duly authorized, executed and delivered
      by the Company.

            (h) The Company is not and, after giving effect to the offering and
      sale of the Securities as described in the Final Prospectus, will not be
      an "investment company" as defined in the Investment Company Act of 1940,
      as amended.

            (i) No consent, approval, authorization, filing, order, registration
      or qualification of or with any court or governmental agency or body is
      required in connection with the transactions contemplated herein, except
      such as have been obtained or made under the Act or the Exchange Act and
      such as may be required under the securities laws of any jurisdiction in
      connection with the purchase and distribution of the Securities by the
      Underwriters in the manner contemplated herein and in the Final
      Prospectus.

            (j) Neither the execution and delivery of this Agreement nor the
      sale of the Securities nor the consummation of any other of the
      transactions herein

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      contemplated nor the fulfillment of the terms hereof will conflict with,
      result in a breach or violation of, constitute a default under, or result
      in the imposition of any lien, charge or encumbrance upon any property or
      assets of the Company or any of its subsidiaries, pursuant to, (i) the
      charter or by-laws of the Company or any of its subsidiaries, (ii) the
      terms of any indenture, contract, lease, mortgage, deed of trust, note
      agreement, loan agreement or other agreement, obligation, condition,
      covenant or instrument to which the Company or any of its subsidiaries is
      a party or bound or to which its or their property is subject, or (iii)
      any statute, law, rule, regulation, judgment, order or decree applicable
      to the Company or any of its subsidiaries of any court, regulatory body,
      administrative agency, governmental body, arbitrator or other authority
      having jurisdiction over the Company or any of its subsidiaries or any of
      its or their properties except, in the case of (ii) above, for such
      conflicts, breaches, violations, liens, charges or encumbrances that would
      not, individually or in the aggregate, have a Material Adverse Effect.

            (k) No holders of securities of the Company have rights to the
      registration of such securities under the Registration Statement, other
      than the Selling Stockholders in respect of the securities registered
      thereunder.

            (l) The consolidated financial statements of the Company and its
      consolidated subsidiaries incorporated by reference in the Final
      Prospectus and the Registration Statement present fairly in all material
      respects the financial condition, results of operations and cash flows of
      the Company as of the dates and for the periods indicated, comply as to
      form with the applicable accounting requirements of the Act and have been
      prepared in conformity with United States generally accepted accounting
      principles applied on a consistent basis throughout the periods involved
      (except as otherwise noted therein). The combined consolidated financial
      statements of the Company and its consolidated subsidiaries (including
      Minera Mexico, S.A. de C.V. ("Minera Mexico") and its consolidated
      subsidiaries) included in the Final Prospectus and the Registration
      Statement (the "Combined Financial Statements") present fairly in all
      material respects the combined financial condition, results of operations
      and cash flows of the Company as of the dates and for the periods
      indicated, comply as to form with the applicable accounting requirements
      of the Act and have been prepared in conformity with United States
      generally accepted accounting principles applied on a consistent basis
      throughout the periods involved (except as otherwise noted therein). The
      summary and selected combined consolidated financial data as of or for the
      years ended December 31, 2000 and 2001 set forth under the captions
      "Summary--Summary Combined Financial Information" and "Selected Combined
      Financial Information" in the Final Prospectus and the Registration
      Statement (i) have been derived from combined consolidated financial
      statements of the Company and its consolidated subsidiaries (including
      Minera Mexico and its consolidated subsidiaries) that present fairly in
      all material respects the combined financial condition, results of
      operations and cash flows of the Company as of the dates and for the
      periods indicated, (ii) comply as to form with the applicable accounting
      requirements of the Act and (iii) have been prepared (x) in conformity
      with United States generally accepted accounting principles applied

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      on a consistent basis throughout the periods involved (except as otherwise
      noted therein) and (y) on a basis which is consistent in all respects with
      the basis on which the Combined Financial Statements were prepared.

            (m) On the Effective Date, on the Closing Date and on any settlement
      date with respect to the Option Securities, all information related to the
      Company's ore reserves included in the Registration Statement and the
      Final Prospectus (collectively, the "Company Reserve Information") (i)
      will be accurate in all material respects and (ii) will comply in all
      material respects with the applicable requirements of the Act and the
      Exchange Act, as applicable, and the respective rules thereunder. The
      Company Reserve Information has been calculated in accordance with
      standard mining engineering procedures used in the copper mining industry
      and applicable government reporting requirements and applicable law. All
      assumptions used in the calculation of the Company Reserve Information
      were and are reasonable.

            (n) No action, suit or proceeding by or before any court or
      governmental agency, authority or body or any arbitrator involving the
      Company or any of its subsidiaries or its or their property is pending or,
      to the best knowledge of the Company, threatened that (i) could have a
      material adverse effect on the ability of the Company to perform under
      this Agreement or the consummation of any of the transactions contemplated
      hereby or (ii) could have a Material Adverse Effect, except as set forth
      in or contemplated in the Final Prospectus (exclusive of any supplement
      thereto).

            (o) Each of the Company and each of its subsidiaries owns or leases
      all such properties as are necessary to the conduct of its operations as
      presently conducted.

            (p) Neither the Company nor any subsidiary is, or with the giving of
      notice or lapse of time or both would be, in violation of or in default
      under (i) any provision of its charter or bylaws, (ii) the terms of any
      indenture, contract, lease, mortgage, deed of trust, note agreement, loan
      agreement or other agreement, obligation, condition, covenant or
      instrument to which it is a party or bound or to which its property is
      subject, or (iii) any statute, law, rule, regulation, judgment, order or
      decree of any court, regulatory body, administrative agency, governmental
      body, arbitrator or other authority having jurisdiction over the Company
      or such subsidiary or any of its properties, as applicable, except, in the
      case of (ii) and (iii) above, for such violations or defaults that would
      not, individually or in the aggregate, have a Material Adverse Effect.

            (q) PricewaterhouseCoopers S.C., who have certified certain
      financial statements of the Company and its consolidated subsidiaries and
      delivered their reports with respect to the audited consolidated financial
      statements and the audited combined consolidated financial statements
      included in the Final Prospectus, are independent public accountants with
      respect to the Company

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      within the meaning of the Act and the applicable published rules and
      regulations thereunder.

            (r) Deloitte & Touche LLP, who have previously certified certain
      financial statements of the Company, were at all times during their
      engagement by the Company independent public accountants with respect to
      the Company within the meaning of the Act and the applicable published
      rules and regulations thereunder.

            (s) Arthur Andersen LLP, who have previously certified certain
      financial statements of the Company, were at all times during their
      engagement by the Company independent public accountants with respect to
      the Company within the meaning of the Act and the applicable published
      rules and regulations thereunder.

            (t) No stamp or other transfer taxes or duties and no capital gains,
      income, stock exchange, value-added, withholding or other taxes are
      payable in the United States, Peru, Mexico or any other jurisdiction in
      which either the Company or any of its subsidiaries is organized or
      engaged in business for tax purposes or, in each case, any political
      subdivision thereof or any authority having power to tax, in connection
      with the execution or delivery of this Agreement by the Company.

            (u) The Company and each of its subsidiaries have filed all foreign,
      federal, state and local tax returns that are required to be filed or have
      requested extensions thereof (except in any case in which the failure so
      to file would not have a Material Adverse Effect, except as set forth in
      or contemplated in the Final Prospectus (exclusive of any supplement
      thereto)) and has paid all taxes required to be paid by it and any other
      assessment, fine or penalty levied against it, to the extent that any of
      the foregoing is due and payable, except for any such assessment, fine or
      penalty that is currently being contested in good faith or as would not
      have a Material Adverse Effect, except as set forth in or contemplated in
      the Final Prospectus (exclusive of any supplement thereto).

            (v) No labor problem or dispute with the employees of the Company or
      any of its subsidiaries exists or, to the knowledge of the Company, is
      threatened and the Company is not aware of any existing or, to the
      knowledge of the Company, threatened labor disturbance by the employees of
      any of its or its subsidiaries' principal suppliers, contractors or
      customers, that would have a Material Adverse Effect, except as set forth
      in or contemplated in the Final Prospectus (exclusive of any supplement
      thereto).

            (w) The Company and each of its subsidiaries are insured by insurers
      of recognized financial responsibility against such losses and risks and
      in such amounts as the Company reasonably believes to be prudent and
      customary in the businesses in which they are engaged; all policies of
      insurance and fidelity or surety bonds insuring the Company or any of its
      subsidiaries or their respective businesses, assets, employees, officers
      and directors are in full force and effect;

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      and the Company and its subsidiaries are in compliance with the terms of
      such policies and instruments in all material respects.

            (x) No Material Subsidiary of the Company is currently prohibited,
      directly or indirectly, from paying dividends to the Company, from making
      any other distribution on such subsidiary's capital stock, from repaying
      to the Company any loans or advances to such subsidiary from the Company
      or from transferring any of such subsidiary's property or assets to the
      Company or any other subsidiary of the Company, except as described in or
      contemplated by the Final Prospectus (exclusive of any supplement
      thereto).

            (y) The Company and its subsidiaries possess all licenses,
      concessions, certificates, permits and other authorizations, in each case
      that are material to its business or operations, issued by the appropriate
      federal, national, state or foreign regulatory authorities necessary to
      conduct their respective businesses as currently conducted ("Permits");
      the Company and its subsidiaries have fulfilled and performed in all
      material respects all of their respective obligations with respect to any
      such Permits which are material to its business or operations and neither
      the Company nor any such subsidiary has received any notice of proceedings
      relating to the revocation or modification of any such Permit which,
      singly or in the aggregate, if the subject of an unfavorable decision,
      ruling or finding, would have a Material Adverse Effect, except as set
      forth in or contemplated in the Final Prospectus (exclusive of any
      supplement thereto).

            (z) The Company and each of its subsidiaries maintain and will
      maintain a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorizations; (ii) transactions are
      recorded as necessary to permit preparation of financial statements in
      conformity with United States generally accepted accounting principles and
      to maintain asset accountability; (iii) access to assets is permitted only
      in accordance with management's general or specific authorization; and
      (iv) the recorded accountability for assets is compared with the existing
      assets at reasonable intervals and appropriate action is taken with
      respect to any differences.

            (aa) The Company has not taken, directly or indirectly, any action
      designed to or that would constitute or that might reasonably be expected
      to cause or result in, under the Exchange Act or otherwise, stabilization
      or manipulation of the price of any security of the Company to facilitate
      the sale or resale of the Securities.

            (bb) The Company and its subsidiaries are (i) in compliance with any
      and all applicable foreign, federal, national, state and local laws and
      regulations relating to the protection of human health and safety, the
      environment or hazardous or toxic substances or wastes, pollutants or
      contaminants ("Environmental Laws"); (ii) have received and are in
      compliance with all permits, licenses or other approvals required of them
      under applicable

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      Environmental Laws to conduct their respective businesses; and (iii) have
      not received notice of any actual or potential liability under any
      environmental law, except where such non-compliance with Environmental
      Laws, failure to receive required permits, licenses or other approvals, or
      liability would not, individually or in the aggregate, have a Material
      Adverse Effect, except as set forth in or contemplated in the Final
      Prospectus (exclusive of any supplement thereto).

            (cc) There is and has been no failure on the part of the Company and
      any of the Company's directors or officers, in their capacities as such,
      to comply in all material respects with any provision of the Sarbanes
      Oxley Act of 2002 and the rules and regulations promulgated in connection
      therewith (the "Sarbanes Oxley Act"), including Section 402 related to
      loans and Sections 302 and 906 related to certifications.

            (dd) Neither the Company nor any of its Material Subsidiaries nor,
      to the knowledge of the Company, any director, officer, agent, employee or
      affiliate of the Company or any of its Material Subsidiaries is aware of
      or has taken any action, directly or indirectly, that (i) would result in
      a violation by such persons of the Foreign Corrupt Practices Act of 1977,
      as amended, and the rules and regulations thereunder (the "FCPA"),
      including, without limitation, making use of the mails or any means or
      instrumentality of interstate commerce corruptly in furtherance of an
      offer, payment, promise to pay or authorization of the payment of any
      money, or other property, gift, promise to give, or authorization of the
      giving of anything of value to any "foreign official" (as such term is
      defined in the FCPA) or any foreign political party or official thereof or
      any candidate for foreign political office, in contravention of the FCPA;
      and (ii) the Company, its Material Subsidiaries and, to the knowledge of
      the Company, its affiliates have conducted their businesses in compliance
      in all material respects with the FCPA and have instituted and maintain
      policies and procedures designed to ensure in all material respects, and
      which are reasonably expected to continue to ensure in all material
      respects, continued compliance therewith.

            (ee) Neither the Company nor any of its subsidiaries nor any of its
      or their properties or assets has any immunity from the jurisdiction of
      any court or from any legal process (whether through service or notice,
      attachment prior to judgment, attachment in aid of execution or otherwise)
      under the laws of Mexico or Peru.

            (ff) The acquisition of Minera Mexico by the Company has been
      completed in accordance with the terms of the Merger Agreement. The Merger
      Agreement has not been amended and none of the terms, conditions or
      covenants of the Merger Agreement was waived by any of the parties to such
      Agreement on or prior to April 1, 2005.

            (gg) The Company has provided to the Representatives true, correct
      and complete copies of all documentation pertaining to any extension of
      credit in the form of a personal loan made, directly or indirectly, by the
      Company or any

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      subsidiary to any director or executive officer of the Company, or to any
      family member or affiliate of any director or executive officer of the
      Company; and on or after July 30, 2002, the Company has not, directly or
      indirectly, including through any subsidiary: (i) extended credit,
      arranged to extend credit, or renewed any extension of credit, in the form
      of a personal loan, to or for any director or executive officer of the
      Company, or to or for any family member or affiliate of any director or
      executive officer of the Company; or (ii) made any material modification,
      including any renewal thereof, to any term of any personal loan to any
      director or executive officer of the Company, or any family member or
      affiliate of any director or executive officer, which loan was outstanding
      on July 30, 2002.

            (hh) All of the shares of the Company's Class A common stock ("Class
      A Shares") have been converted into an equal number of shares of Common
      Stock.

            Any certificate signed by any officer of the Company and delivered
to the Representatives or counsel for the Underwriters in connection with the
offering of the Securities shall be deemed a representation and warranty by the
Company, as to matters covered thereby, to each Underwriter.

            (ii) Each Selling Stockholder, severally and not jointly, represents
and warrants to, and agrees with, each Underwriter that:

            (a) Such Selling Stockholder is the record and beneficial owner of
      the Securities to be sold by it hereunder free and clear of all liens,
      encumbrances, equities and claims, has duly endorsed such Securities in
      blank or accompanied by a blank stock power, has delivered such Securities
      to the Bank of New York, the Company's stock transfer agent, and has
      instructed such transfer agent to deliver the securities to DTC for credit
      to the securities account or accounts of such Underwriter maintained with
      DTC on the Closing Date. Upon the crediting of such Securities to the
      securities account of such Underwriter maintained with DTC and payment
      therefor by such Underwriter, as provided herein, such Underwriter will
      have acquired a security entitlement (within the meaning of Section 8-501
      of the UCC) to such Securities, and no action based on any adverse claim
      may be asserted against such Underwriter with respect to such security
      entitlement.

            (b) Such Selling Stockholder has not taken, directly or indirectly,
      any action designed to or that would constitute or that might reasonably
      be expected to cause or result in, under the Exchange Act or otherwise,
      stabilization or manipulation of the price of any security of the Company
      to facilitate the sale or resale of the Securities.

            (c) No consent, approval, authorization, order, registration or
      qualification of or with any court or governmental agency or body is
      required for the consummation by such Selling Stockholder of the
      transactions contemplated herein, except such as may have been obtained or
      made under the Act and the

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                                                                              11

      Exchange Act and such as may be required under the blue sky laws of any
      jurisdiction in connection with the purchase and distribution of the
      Securities by the Underwriters in the manner contemplated herein and in
      the Final Prospectus.

            (d) Neither the execution and delivery of this Agreement nor the
      sale of the Securities being sold by such Selling Stockholder nor the
      consummation of any other of the transactions herein contemplated by such
      Selling Stockholder nor the fulfillment of the terms hereof by such
      Selling Stockholder will conflict with, result in a breach or violation
      of, or constitute a default under (i) any applicable law, statute, rule or
      regulation, (ii) the charter, by-laws, certificate of formation or
      operating agreement, as applicable, of such Selling Stockholder, (iii) the
      terms of any indenture or other agreement or instrument to which such
      Selling Stockholder or any of its subsidiaries is a party or bound, or
      (iv) any judgment, order or decree applicable to such Selling Stockholder
      or any of its subsidiaries of any court, regulatory body, administrative
      agency, governmental body or arbitrator having jurisdiction over such
      Selling Stockholder or any of its subsidiaries, except, in the case of
      (iii) and (iv) above, such conflicts, breaches, violations, or defaults
      that would not, individually or the aggregate, have a material adverse
      effect on the ability of such Selling Stockholder to fulfill its
      obligations under, and consummate the transactions contemplated by, this
      Agreement.

            (e) On the Effective Date, the Registration Statement (solely with
      respect to the Selling Stockholder Information (as defined below)
      contained therein) did or will, and when the Final Prospectus is first
      filed (if required) in accordance with Rule 424(b) and on the Closing Date
      (as defined herein) and on any settlement date, the Final Prospectus (and
      any supplement thereto) (solely with respect to the Selling Stockholder
      Information contained therein) will, comply in all material respects with
      the applicable requirements of the Act and the rules thereunder; on the
      Effective Date and at the Execution Time, the Registration Statement
      (solely with respect to the Selling Stockholder Information contained
      therein) did not or will not contain any untrue statement of a material
      fact or omit to state any material fact required to be stated therein or
      necessary in order to make the statements therein not misleading; and, on
      the Effective Date, the Final Prospectus, if not filed pursuant to Rule
      424(b), will not, and on the date of any filing pursuant to Rule 424(b)
      and on the Closing Date and any settlement date, the Final Prospectus
      (together with any supplement thereto) (solely with respect to the Selling
      Stockholder Information contained therein) will not, include any untrue
      statement of a material fact or omit to state a material fact necessary in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading; it being understood and agreed
      that the only such information furnished by any Selling Stockholder (the
      "Selling Stockholder Information") consists of (i) the name of such
      Selling Stockholder, (ii) the number of Securities to be offered by such
      Selling Stockholder, (iii) the number of shares of common stock
      beneficially owned by such Selling Stockholder before the offering and
      (iv) the number of shares of common stock beneficially owned by such
      Selling Stockholder after the offering, in each case as

<PAGE>

                                                                              12

      set forth in the table under the caption "Principal and Selling
      Stockholders--Selling Stockholders" in any Preliminary Prospectus and the
      Final Prospectus.

            (f) There are no affiliations or associations between any
      Underwriter and such Selling Stockholder; none of the proceeds received by
      such Selling Stockholder from the sale of the Securities to be sold by
      such Selling Stockholder pursuant to this Agreement will be paid to any
      Underwriter or any affiliate of any Underwriter.

            (g) This Agreement has been duly authorized, executed and delivered
      by such Selling Stockholder.

            (h) At the time of purchase and each additional time of purchase,
      all stock transfer taxes, if any, that are required to be paid in
      connection with the sale and transfer of the Securities to be sold by such
      Selling Stockholder to the several Underwriters hereunder shall have been
      fully paid or provided for by such Selling Stockholder.

            (i) Such Selling Stockholder has not, prior to the execution of this
      Agreement, distributed any "prospectus" (within the meaning of the Act) or
      offering material in connection with the offering or sale of (i) Class A
      Shares or (ii) the Securities other than the Registration Statement and
      the then most recent Preliminary Prospectus and will not, at any time on
      or after the execution of this Agreement and prior to the completion of
      the offering, distribute any "prospectus" (within the meaning of the Act)
      or offering material in connection with the offering or sale of the
      Securities other than the Registration Statement and the then most recent
      Final Prospectus.

            Any certificate signed by any officer of any Selling Stockholder and
delivered to the Representatives pursuant to Section 6(i) in connection with the
offering of the Securities shall be deemed a representation and warranty by such
Selling Stockholder, as to matters covered thereby, to each Underwriter.

            2. Purchase and Sale. (a) Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Selling
Stockholders agree, severally and not jointly, to sell to each Underwriter, and
each Underwriter agrees, severally and not jointly, to purchase from the Selling
Stockholders, at a purchase price of $40.635 per share, the amount of the
Underwritten Securities set forth opposite such Underwriter's name in Schedule I
hereto.

            (b) Subject to the terms and conditions and in reliance upon the
      representations and warranties herein set forth, the Selling Stockholders
      hereby grant an option to the several Underwriters to purchase, severally
      and not jointly, up to 1,573,387 Option Securities at the same purchase
      price per share as the Underwriters shall pay for the Underwritten
      Securities. Said option may be exercised only to cover over-allotments in
      the sale of the Underwritten Securities by the Underwriters. Said option
      may be exercised in whole or in part at any time

<PAGE>

                                                                              13

      on or before the 30th day after the date of the Final Prospectus upon
      written or telegraphic notice by the Representatives to the Selling
      Stockholders setting forth the number of shares of the Option Securities
      as to which the several Underwriters are exercising the option and the
      settlement date. The maximum number of Option Securities that each Selling
      Stockholder agrees to sell is set forth in Schedule II hereto. In the
      event that the Underwriters exercise less than their full over-allotment
      option, the number of Option Securities to be sold by each Selling
      Stockholder listed in Schedule II shall be, as nearly as practicable, in
      the same proportion as the maximum number of Option Securities to be sold
      by each Selling Stockholder and the number of Option Securities to be
      sold. The number of Option Securities to be purchased by each Underwriter
      shall be the same percentage of the total number of shares of the Option
      Securities to be purchased by the several Underwriters as such Underwriter
      is purchasing of the Underwritten Securities, subject to such adjustments
      as you in your absolute discretion shall make to eliminate any fractional
      shares.

            3. Delivery and Payment. Delivery of and payment for the
Underwritten Securities and the Option Securities (if the option provided for in
Section 2(b) hereof shall have been exercised on or before the third Business
Day prior to the Closing Date) shall be made at 10:00 AM, New York City time, on
June 15, 2005, or at such time on such later date not more than three Business
Days after the foregoing date as the Representatives shall designate, which date
and time may be postponed by agreement among the Representatives, the Company
and the Selling Stockholders or as provided in Section 9 hereof (such date and
time of delivery and payment for the Securities being herein called the "Closing
Date"). Delivery of the Securities shall be made to the Representatives for the
respective accounts of the several Underwriters against payment by the several
Underwriters through the Representatives of the aggregate purchase price of the
Securities being sold by each of the Selling Stockholders to or upon the order
of such Selling Stockholder by wire transfer payable in same-day funds to an
account specified by such Selling Stockholder. Delivery of the Underwritten
Securities and the Option Securities shall be made through the facilities of The
Depository Trust Company ("DTC").

            Each Selling Stockholder will pay all applicable transfer taxes, if
any, involved in the transfer to the several Underwriters of the Securities to
be purchased by them from such Selling Stockholder and the respective
Underwriters will pay any additional stock transfer taxes involved in further
transfers.

            If the option provided for in Section 2(b) hereof is exercised after
the third Business Day prior to the Closing Date, the Selling Stockholders will
deliver the Option Securities through the facilities of DTC on the date
specified by the Representatives (which shall be within three Business Days
after exercise of said option) for the respective accounts of the several
Underwriters, against payment by the several Underwriters through the
Representatives of the purchase price thereof to or upon the order of each of
the Selling Stockholders by wire transfer payable in same-day funds to an
account specified by such Selling Stockholder. If settlement for the Option
Securities occurs after the Closing Date, the Company and the Selling
Stockholders will deliver to

<PAGE>

                                                                              14

the Representatives on the settlement date for the Option Securities, and the
obligation of the Underwriters to purchase the Option Securities shall be
conditioned upon receipt of, supplemental opinions, certificates and letters
confirming as of such date the opinions, certificates and letters delivered on
the Closing Date pursuant to Section 6 hereof.

            4. Offering by Underwriters. It is understood that the several
Underwriters propose to offer the Securities for sale to the public as set forth
in the Final Prospectus.

            5. Agreements.

            (i)The Company agrees with the several Underwriters and each Selling
Stockholder that:

            (a) The Company will use its best efforts to cause the Registration
      Statement, if not effective at the Execution Time, and any amendment
      thereof, to become effective under the Act. Prior to the termination of
      the offering of the Securities, the Company will not file any amendment of
      the Registration Statement or supplement (including the Final Prospectus
      or any Preliminary Prospectus) to the Basic Prospectus or any Rule 462(b)
      Registration Statement unless the Company has furnished you a copy for
      your review prior to filing and will not file any such proposed amendment
      or supplement to which you reasonably object. Subject to the foregoing
      sentence, if the Registration Statement has become or becomes effective
      pursuant to Rule 430A, or filing of the Final Prospectus is otherwise
      required under Rule 424(b), the Company will cause the Final Prospectus,
      properly completed, and any supplement thereto to be filed in a form
      approved by the Representatives with the Commission pursuant to the
      applicable paragraph of Rule 424(b) within the time period prescribed and
      will provide evidence satisfactory to the Representatives of such timely
      filing. The Company will promptly advise the Representatives (1) when the
      Registration Statement, if not effective at the Execution Time, shall have
      become effective, (2) when the Final Prospectus, and any supplement
      thereto, shall have been filed (if required) with the Commission pursuant
      to Rule 424(b) or when any Rule 462(b) Registration Statement shall have
      been filed with the Commission, (3) when, prior to termination of the
      offering of the Securities, any amendment to the Registration Statement
      shall have been filed or become effective, (4) of any request by the
      Commission or its staff for any amendment of the Registration Statement,
      or any Rule 462(b) Registration Statement, or for any supplement to the
      Final Prospectus or for any additional information, (5) of the issuance by
      the Commission of any stop order suspending the effectiveness of the
      Registration Statement or, if known to the Company, the institution or
      threatening of any proceeding for that purpose and (6) of the receipt by
      the Company of any notification with respect to the suspension of the
      qualification of the Securities for sale in any jurisdiction or the
      institution or threatening of any proceeding for such purpose. The Company
      will use its reasonable best efforts to prevent the issuance of any such
      stop order or the suspension of any such qualification and, if issued, to
      obtain as soon as possible the withdrawal thereof.

<PAGE>

                                                                              15

            (b) If, at any time when a prospectus relating to the Securities is
      required to be delivered under the Act, any event occurs as a result of
      which the Final Prospectus as then supplemented would include any untrue
      statement of a material fact or omit to state any material fact necessary
      to make the statements therein in the light of the circumstances under
      which they were made not misleading, or if it shall be necessary to amend
      the Registration Statement or supplement the Final Prospectus to comply
      with the Act or the Exchange Act or the respective rules thereunder, the
      Company promptly will (1) notify the Representatives of such event, (2)
      prepare and file with the Commission, subject to the second sentence of
      paragraph (i)(a) of this Section 5, an amendment or supplement which will
      correct such statement or omission or effect such compliance and (3)
      supply any supplemented Final Prospectus to you in such quantities as you
      may reasonably request.

            (c) As soon as practicable, the Company will make generally
      available to its securityholders and to the Representatives an earnings
      statement or statements of the Company and its subsidiaries which will
      satisfy the provisions of Section 11(a) of the Act and Rule 158 under the
      Act.

            (d) The Company will furnish to the Representatives and counsel for
      the Underwriters, without charge, signed copies of the Registration
      Statement (including exhibits thereto) and to each other Underwriter a
      copy of the Registration Statement (without exhibits thereto) and, so long
      as delivery of a prospectus by an Underwriter or dealer may be required by
      the Act, as many copies of each Preliminary Prospectus and the Final
      Prospectus and any supplement thereto as the Representatives may
      reasonably request.

            (e) The Company will arrange, if necessary, for the qualification of
      the Securities for sale under the laws of such jurisdictions as the
      Representatives may designate and will maintain such qualifications in
      effect so long as required for the distribution of the Securities;
      provided that in no event shall the Company be obligated to qualify to do
      business in any jurisdiction where it is not now so qualified or to take
      any action that would subject it to taxation or to service of process in
      suits, other than those arising out of the offering or sale of the
      Securities, in any jurisdiction where it is not now so subject.

            (f) The Company will not, without the prior written consent of the
      Representatives, offer, sell, contract to sell, pledge, or otherwise
      dispose of (or enter into any transaction which is designed to, or might
      reasonably be expected to, result in the disposition (whether by actual
      disposition or effective economic disposition due to cash settlement or
      otherwise) by the Company or any affiliate of the Company or any person in
      privity with the Company or any affiliate of the Company), except as
      provided hereunder, directly or indirectly, including the filing (or
      participation in the filing) of a registration statement with the
      Commission in respect of, or establish or increase a put equivalent
      position or liquidate or decrease a call equivalent position within the
      meaning of Section 16 of the Exchange Act, any other shares of Common
      Stock or any securities

<PAGE>

                                                                              16

      convertible into, or exercisable, or exchangeable for, shares of Common
      Stock, or publicly announce an intention to effect any such transaction,
      for a period of 90 days after the date of the Underwriting Agreement,
      provided, however, that the Company may issue and sell Common Stock (i)
      pursuant to registrations on Form S-4 in connection with acquisitions,
      mergers, or business combinations, provided that each recipient of such
      Common Stock shall have executed a letter substantially in the form of
      Exhibit A hereto in conjunction with such issuance or sale, or (ii) in
      connection with any employee benefit, stock option plan, stock ownership
      plan or dividend reinvestment plan of the Company in effect at the
      Execution Time and the Company may issue Common Stock issuable upon the
      conversion of securities or the exercise of options, warrants or similar
      rights outstanding at the Execution Time.

            (g) The Company will not take, directly or indirectly, any action
      designed to or that would constitute or that might reasonably be expected
      to cause or result in, under the Exchange Act or otherwise, stabilization
      or manipulation of the price of any security of the Company to facilitate
      the sale or resale of the Securities.

            (h) The Company will pay all costs, expenses, fees and taxes in
      connection with the performance of its obligations hereunder to the extent
      the Selling Stockholders are not obligated to pay such costs, expenses,
      fees and taxes pursuant to paragraph (ii)(c) of this Section 5 or pursuant
      to Section 2(b) of the Registration Rights Agreement.

            (ii) Each Selling Stockholder agrees with the several Underwriters
      that:

            (a) Such Selling Stockholder will not take, directly or indirectly,
      any action designed to or that would constitute or that might reasonably
      be expected to cause or result in, under the Exchange Act or otherwise,
      stabilization or manipulation of the price of any security of the Company
      to facilitate the sale or resale of the Securities.

            (b) Such Selling Stockholder will advise you promptly, and if
      requested by you, will confirm such advice in writing, so long as delivery
      of a prospectus relating to the Securities by an underwriter or dealer may
      be required under the Act, of any change in information in the
      Registration Statement or the Final Prospectus relating to such Selling
      Stockholder.

            (c) As between the Selling Stockholders and the Underwriters, the
      Selling Stockholders severally agree to pay, in the manner set forth in
      Section 2(b) of the Registration Rights Agreement, all costs, expenses,
      fees and taxes, other than legal fees and disbursements of counsel to the
      Underwriters (except as expressly provided in clauses (iv) and (vi) of
      this paragraph (c) or otherwise expressly set forth in this Agreement), in
      connection with (i) the preparation and filing of the Registration
      Statement, each Preliminary Prospectus, the Final Prospectus and any
      amendments or supplements thereto, and the printing and furnishing of
      copies of each thereof to the Underwriters and to dealers (including costs
      of mailing and

<PAGE>

                                                                              17

      shipment), (ii) the registration, sale and delivery of the Securities
      including any stock or transfer taxes and stamp or similar duties payable
      upon the sale, issuance or delivery of the Securities to the Underwriters,
      (iii) the producing, word processing and/or printing of any Agreement
      Among Underwriters, any dealer agreements and the reproduction and/or
      printing and furnishing of copies of each thereof to the Underwriters and
      (except closing documents) to dealers (including costs of mailing and
      shipment), (iv) the qualification of the Securities for offering and sale
      under state or foreign laws and the determination of their eligibility for
      investment under state or foreign law as aforesaid (including the legal
      fees and filing fees and other disbursements of counsel for the
      Underwriters) and the printing and furnishing of copies of any blue sky
      surveys or legal investment surveys to the Underwriters and to dealers,
      (v) any listing of the Securities on any securities exchange or
      qualification of the Securities for quotation on the New York Stock
      Exchange or the Lima Stock Exchange and any registration thereof under the
      Exchange Act or applicable Peruvian law or regulation, (vi) any filing for
      review of the public offering of the Securities by the NASD, including
      filing fees and the reasonably incurred legal fees and disbursements of
      one counsel to the Underwriters relating to NASD matters, (vii) the fees
      and disbursements of any transfer agent or registrar for the Securities in
      connection with the delivery of the Securities to the Underwriters, and
      any fees or expenses payable to DTC or any similar system in Peru, (viii)
      the costs and expenses of the Company, the Underwriters and each Selling
      Stockholder relating to presentations or meetings undertaken in connection
      with the marketing of the offering and sale of the Securities to
      prospective investors and the Underwriters' sales forces, including,
      without limitation, expenses associated with the production of road show
      slides and graphics, fees and expenses of any consultants engaged in
      connection with the road show presentations, travel, lodging and other
      expenses incurred by the officers of the Company, by the Underwriters or
      by any Selling Stockholder and any such consultants, and the cost of any
      aircraft chartered in connection with the road show, and (ix) the
      performance of each Selling Stockholder's other obligations hereunder;
      provided that the foregoing shall not include (i) salaries of Company
      personnel or general overhead expenses of the Company, (ii) auditing fees
      or (iii) other expenses (A) for the preparation of regular periodic
      financial statements or other data normally prepared by the Company in the
      ordinary course of its business or (B) which the Company would have
      incurred in any event. Except as otherwise expressly set forth in this
      Agreement, the Underwriters shall be solely responsible for the fees and
      disbursements of their counsel.

            (iii) Notwithstanding anything to the contrary in this Agreement,
the Selling Stockholders severally agree to pay or reimburse the Company, in the
manner set forth in Section 2(b) of the Registration Rights Agreement (but
without duplication of any payment made pursuant to paragraph (ii)(above), all
Registration Expenses (as defined in the Registration Rights Agreement).

            6. Conditions to the Obligations of the Underwriters. The
obligations of the Underwriters to purchase the Underwritten Securities and the
Option Securities, as the case may be, shall be subject to the accuracy of the
representations and warranties on

<PAGE>

                                                                              18

the part of the Company and the Selling Stockholders contained herein as of the
Execution Time, the Closing Date and any settlement date pursuant to Section 3
hereof, to the accuracy of the statements of the Company and the Selling
Stockholders made in any certificates pursuant to the provisions hereof, to the
performance by the Company and the Selling Stockholders of their respective
obligations hereunder and to the following additional conditions:

            (a) If the Registration Statement has not become effective prior to
      the Execution Time, unless the Representatives agree in writing to a later
      time, the Registration Statement will become effective not later than 9:30
      AM on the Business Day following the day on which the public offering
      price was determined; if filing of the Final Prospectus, or any supplement
      thereto, is required pursuant to Rule 424(b), the Final Prospectus, and
      any such supplement, will be filed in the manner and within the time
      period required by Rule 424(b); and no stop order suspending the
      effectiveness of the Registration Statement shall have been issued and no
      proceedings for that purpose shall have been instituted or threatened.

            (b) The Company shall have requested and caused Milbank, Tweed,
      Hadley & McCloy LLP U.S. counsel for the Company, to have furnished to the
      Representatives their opinions, dated the Closing Date and addressed to
      the Representatives, in the forms set forth on Annex A hereto.

            (c) The Company shall have requested and caused Payet, Rey, Cauvi
      Abogados, Peruvian counsel for the Company, to have furnished to the
      Representatives their opinion, dated the Closing Date and addressed to the
      Representatives, in the form set forth on Annex B hereto.

            (d) The Company shall have requested and caused Lic. Armando Ortega
      G., General Counsel of the Company, to have furnished to the
      Representatives his opinion, dated the Closing Date and addressed to the
      Representatives, in the form set forth on Annex C hereto.

            (e) Cerro Trading Company, Inc. and SPC Investors, L.L.C. shall have
      requested and caused Cleary, Gottlieb, Steen & Hamilton LLP, Adam J.
      Grais, Esq., and Robert W. Webb, Esq., to have furnished to the
      Representatives their opinions, dated the Closing Date and addressed to
      the Representatives, in the forms set forth on Annexes D-1, D-2 and D-3
      hereto.

            (f) The Phelps Dodge Entities shall have requested and caused
      Debevoise & Plimpton LLP, Loyens & Loeff N.V. and Catherine R. Hardwick,
      Esq., to have furnished to the Representatives their opinions, dated the
      Closing Date and addressed to the Representatives, in the forms set forth
      on Annexes E-1, E-2 and E-3 hereto.

            (g) The Representatives shall have received from (i) Cravath, Swaine
      & Moore LLP, New York counsel for the Underwriters, (ii) Estudio Luis
      Echecopar

<PAGE>

                                                                              19

      Garcia, Peruvian counsel for the Underwriters, and (iii) Ritch, Heather Y
      Mueller, S.C., Mexican counsel for the Underwriters, such opinions, dated
      the Closing Date and addressed to the Representatives, with respect to the
      issuance and sale of the Securities, the Registration Statement, the Final
      Prospectus (together with any supplement thereto) and other related
      matters as the Representatives may reasonably require, and the Company and
      each Selling Stockholder shall have furnished to such counsel such
      documents as they reasonably request for the purpose of enabling them to
      pass upon such matters.

            (h) The Company shall have furnished to the Representatives a
      certificate of the Company, signed by the Chairman of the Board or the
      President and the principal financial or accounting officer of the
      Company, dated the Closing Date, to the effect that the signers of such
      certificate have examined the Registration Statement, the Final
      Prospectus, any supplements to the Final Prospectus and this Agreement and
      that:

                  (i) the representations and warranties of the Company in this
            Agreement are true and correct on and as of the Closing Date with
            the same effect as if made on the Closing Date and the Company has
            complied with all the agreements and satisfied all the conditions on
            its part to be performed or satisfied at or prior to the Closing
            Date;

                  (ii) no stop order suspending the effectiveness of the
            Registration Statement has been issued and no proceedings for that
            purpose have been instituted or, to the signers' knowledge,
            threatened; and

                  (iii) since the date of the most recent financial statements
            included or incorporated by reference in the Final Prospectus
            (exclusive of any supplement thereto), there has been no material
            adverse effect on the condition (financial or otherwise), prospects,
            results of operations, business or properties of the Company and its
            subsidiaries considered as one enterprise, whether or not arising in
            the ordinary course of business, except as set forth in or
            contemplated in the Final Prospectus (exclusive of any supplement
            thereto).

            (i) Each Selling Stockholder shall have furnished to the
      Representatives a certificate, signed on its behalf by an officer,
      director or member, dated the Closing Date, to the effect that the signer
      of such certificate has examined the Selling Stockholder Information
      included in the Registration Statement, the Final Prospectus, any
      supplement to the Final Prospectus and this Agreement and that the
      representations and warranties of such Selling Stockholder in this
      Agreement are true and correct in all material respects on and as of the
      Closing Date to the same effect as if made on the Closing Date.

            (j) The Company shall have requested and caused
      PricewaterhouseCoopers S.C. to have furnished to the Representatives, at
      the Execution Time and at the Closing Date, letters, dated respectively as
      of the

<PAGE>

                                                                              20

      Execution Time and as of the Closing Date, in form and substance
      satisfactory to the Representatives, confirming that they are independent
      accountants within the meaning of the Act and the applicable rules and
      regulations thereunder adopted by the Commission and the Public Company
      Accounting Oversight Board (United States) (PCAOB), and stating in effect
      that:

                  (i) in their opinion the audited combined consolidated
            financial statements and financial statement schedules included or
            incorporated by reference in the Registration Statement and the
            Final Prospectus and reported on by them comply as to form in all
            material respects with the applicable accounting requirements of the
            Act and the Exchange Act and the related rules and regulations
            adopted by the Commission;

                  (ii) on the basis of a reading of the latest unaudited
            financial statements made available by the Company and its
            subsidiaries; carrying out certain specified procedures (but not an
            examination in accordance with generally accepted auditing
            standards) which would not necessarily reveal matters of
            significance with respect to the comments set forth in such letter;
            a reading of the minutes of the meetings of the stockholders,
            directors and the executive, compensation and audit committees of
            the Company and its subsidiaries; and inquiries of certain officials
            of the Company who have responsibility for financial and accounting
            matters regarding the specific items for which representations are
            requested below nothing came to their attention which caused them to
            believe that:

                        (1) with respect to the period subsequent to March 31,
                  2005, there was any change, at a specified date not more than
                  five days prior to the date of the letter, in the long-term
                  debt, or decrease in total assets or stockholders' equity of
                  the combined company as compared with the amounts shown on the
                  March 31, 2005, unaudited balance sheet included or
                  incorporated by reference in the Registration Statement and
                  the Final Prospectus, or for the period from April 1, 2005, to
                  such specified date there were any decreases, as compared with
                  the corresponding period in the preceding year, in
                  consolidated total net sales, net earnings, operating income,
                  or basic and diluted net earnings per share, except in all
                  instances for changes or decreases set forth in such letter,
                  in which case the letter shall be accompanied by an
                  explanation by the Company as to the significance thereof
                  unless said explanation is not deemed necessary by the
                  Representatives; and

                        (2) the unaudited income statement for the three-month
                  periods ended March 31, 2005 and 2004 and balance sheet data
                  as of March 31, 2005 and 2004 included in the Final Prospectus
                  under the heading "Recent Developments" do not agree with the
                  amounts set forth in the unaudited financial statements for
                  the same periods

<PAGE>

                                                                              21

                  or were not determined on a basis substantially consistent
                  with that of the corresponding amounts in the audited
                  financial statements included or incorporated by reference in
                  the Registration Statement and the Final Prospectus; and

                  (iii) they have performed certain other specified procedures,
            requested by the Representatives, as a result of which they
            determined that certain information of an accounting, financial or
            statistical nature (which is limited to accounting, financial or
            statistical information derived from the general accounting records
            of the Company and its subsidiaries) set forth in the Registration
            Statement and the Final Prospectus that has previously been
            identified to you agrees with the accounting records of the Company
            and its subsidiaries, excluding any questions of legal
            interpretation.

            References to the Final Prospectus in this paragraph (j) include any
      supplement thereto at the date of the letter.

            (k) The Company shall have requested and caused Deloitte & Touche
      LLP to have furnished to the Representatives, at the Execution Time and at
      the Closing Date, letters, dated respectively as of the Execution Time and
      as of the Closing Date, in form and substance satisfactory to the
      Representatives, confirming that they are independent accountants within
      the meaning of the Act and the Exchange Act and the respective applicable
      rules and regulations adopted by the Commission thereunder, and stating in
      effect that:

                  (i) in their opinion the audited consolidated financial
            statements and financial statement schedules included or
            incorporated by reference in the Registration Statement and the
            Final Prospectus and reported on by them comply as to form in all
            material respects with the applicable accounting requirements of the
            Act and the Exchange Act and the related rules and regulations
            adopted by the Commission;

                  (ii) they have performed certain other specified procedures,
            requested by the Representatives, as a result of which they
            determined that certain information of an accounting, financial or
            statistical nature (which is limited to accounting, financial or
            statistical information derived from the general accounting records
            of the Company and its subsidiaries) set forth in the Registration
            Statement and the Final Prospectus that has previously been
            identified to you agrees with the accounting records of the Company
            and its subsidiaries, excluding any questions of legal
            interpretation.

            References to the Final Prospectus in this paragraph (k) include any
      supplement thereto at the date of the letter.

<PAGE>

                                                                              22

            (l) Subsequent to the Execution Time or, if earlier, the dates as of
      which information is given in the Registration Statement (exclusive of any
      amendment thereof) and the Final Prospectus (exclusive of any supplement
      thereto), there shall not have been (i) any change or decrease specified
      in the letter or letters referred to in paragraphs (j) or (k) of this
      Section 6 or (ii) any change, or any development involving a prospective
      change, in or affecting the condition (financial or otherwise), prospects,
      results of operations, business or properties of the Company and its
      subsidiaries, considered as one enterprise, whether or not arising in the
      ordinary course of business, except as set forth in or contemplated in the
      Final Prospectus (exclusive of any supplement thereto) the effect of
      which, in any case referred to in clause (i) or (ii) above, is, in the
      sole judgment of the Representatives, so material and adverse as to make
      it impractical or inadvisable to proceed with the offering or delivery of
      the Securities as contemplated by the Registration Statement (exclusive of
      any amendment thereof) and the Final Prospectus (exclusive of any
      supplement thereto).

            (m) Prior to the Closing Date, the Company and the Selling
      Stockholders shall have furnished to the Representatives such further
      information, certificates and documents as the Representatives may
      reasonably request.

            (n) Subsequent to the Execution Time, there shall not have been any
      decrease in the rating of any of the Company's debt securities by any
      "nationally recognized statistical rating organization" (as defined for
      purposes of Rule 436(g) under the Act) or any notice given of any intended
      or potential decrease in any such rating or of a possible change in any
      such rating that does not indicate the direction of the possible change.

            (o) At the Execution Time, the Company shall have furnished to the
      Representatives a letter substantially in the form of Exhibit A hereto
      from each stockholder and individual listed in Schedule IV hereto,
      addressed to the Representatives.

            (p) At the Execution Time, each Selling Stockholder shall have
      furnished to the Representatives a letter substantially in the form of
      Exhibit B hereto, addressed to the Representatives.

            (q) The NASD shall not have raised any objection with respect to the
      fairness or reasonableness of the underwriting, or other arrangements of
      the transactions, contemplated hereby.

            If any of the conditions specified in this Section 6 shall not have
been fulfilled when and as provided in this Agreement, or if any of the opinions
and certificates mentioned above or elsewhere in this Agreement shall not be
reasonably satisfactory in form and substance to the Representatives and counsel
for the Underwriters, this Agreement and all obligations of the Underwriters
hereunder may be canceled at, or at any time prior to, the Closing Date by the
Representatives. Notice of

<PAGE>

                                                                              23

such cancellation shall be given to the Company and each Selling Stockholder in
writing or by telephone or facsimile confirmed in writing.

            The documents required to be delivered by this Section 6 shall be
delivered at the office of Cravath, Swaine & Moore LLP, counsel for the
Underwriters, at 825 Eighth Avenue, New York, New York 10019, on the Closing
Date.

            7. Reimbursement of Underwriters' Expenses. If the sale of the
Securities provided for herein is not consummated because any condition to the
obligations of the Underwriters set forth in Section 6 hereof is not satisfied,
because of any termination pursuant to Section 10 hereof or because of any
refusal, inability or failure on the part of the Company or any Selling
Stockholder to perform any agreement herein or comply with any provision hereof
other than by reason of a default by any of the Underwriters, the Selling
Stockholders will, in the manner set forth in Section 2(b) of the Registration
Rights Agreement, reimburse the Underwriters severally through Citigroup Global
Markets Inc. on demand for all out-of-pocket expenses (including fees and
disbursements of counsel reasonably incurred) that shall have been incurred by
them in connection with the proposed purchase and sale of the Securities;
provided that if the principal cause of such failure to consummate the sale of
the Securities provided for herein is the Company's failure to use reasonable
best efforts to fulfill its obligations under the Registration Rights Agreement,
the Company shall reimburse the Underwriters severally through Citigroup Global
Markets Inc. on demand for all out-of-pocket expenses (including reasonable fees
and disbursements of counsel) that shall have been incurred by them in
connection with the proposed purchase and sale of the Securities.

            8. Indemnification and Contribution. (a) The Company agrees to
indemnify and hold harmless each Underwriter, each Selling Stockholder, the
directors, officers, employees and agents of each Underwriter and Selling
Stockholder and each person who controls any Underwriter or Selling Stockholder
within the meaning of either the Act or the Exchange Act against any and all
losses, claims, damages or liabilities, joint or several, to which they or any
of them may become subject under the Act, the Exchange Act or other Federal or
state statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the registration statement for the registration of
the Securities as originally filed or in any amendment thereof, or in the Basic
Prospectus, any Preliminary Prospectus or the Final Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of the
Final Prospectus, in the light of the circumstances under which they were made)
not misleading, and agrees to reimburse each such indemnified party, as
incurred, for any legal or other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon any such untrue statement or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the

<PAGE>

                                                                              24

Company by or on behalf of any Underwriter through the Representatives or any
Selling Stockholder specifically for inclusion therein, it being understood and
agreed that the only such information is that described in Section 8(c) and 8(b)
hereof, respectively; provided, further, that with respect to any untrue
statement or omission of material fact made in any Preliminary Prospectus, the
indemnity agreement contained in this Section 8(a) shall not inure to the
benefit of any Underwriter from whom the person asserting any such loss, claim,
damage or liability purchased the securities concerned, to the extent that any
such loss, claim, damage or liability of such Underwriter occurs under the
circumstance where it shall have been determined by a court of competent
jurisdiction by final and nonappealable judgment that (A) the Company had
previously furnished copies of the Final Prospectus to the Representatives, (B)
delivery of the Final Prospectus was required by the Act to be made to such
person, (C) the untrue statement or omission of a material fact contained in the
Preliminary Prospectus was corrected in the Final Prospectus and (D) there was
not sent or given to such person, at or prior to the written confirmation of the
sale of such securities to such person, a copy of the Final Prospectus. This
indemnity agreement will be in addition to any liability which the Company may
otherwise have.

            (b) Each Selling Stockholder, severally and not jointly, agrees to
      indemnify and hold harmless the Company, each of its directors, each of
      its officers who signs the Registration Statement, each Underwriter, the
      directors, officers, employees and agents of each Underwriter and each
      person who controls the Company or any Underwriter within the meaning of
      either the Act or the Exchange Act and each other Selling Stockholder, if
      any, to the same extent as the foregoing indemnity from the Company to
      each Underwriter, but only with reference to the Selling Stockholder
      Information. This indemnity agreement will be in addition to any liability
      which any Selling Stockholder may otherwise have.

            (c) Each Underwriter severally and not jointly agrees to indemnify
      and hold harmless the Company and each Selling Stockholder, each of their
      respective directors, each of its officers who signs the Registration
      Statement, and each person who controls the Company and each Selling
      Stockholder within the meaning of either the Act or the Exchange Act, to
      the same extent as the foregoing indemnity to each Underwriter, but only
      with reference to written information relating to such Underwriter
      furnished to the Company by or on behalf of such Underwriter through the
      Representatives specifically for inclusion in the documents referred to in
      the foregoing indemnity. This indemnity agreement will be in addition to
      any liability which any Underwriter may otherwise have. The Company and
      each Selling Stockholder acknowledge that the statements set forth in the
      last paragraph of the cover page regarding delivery of the Securities and,
      under the heading "Underwriting" in any Preliminary Prospectus and the
      Final Prospectus, (i) the sentences related to concessions and
      reallowances; and (ii) the paragraphs related to stabilization, syndicate
      covering transactions and penalty bids, constitute the only information
      furnished in writing by or on behalf of the several Underwriters for
      inclusion in any Preliminary Prospectus or the Final Prospectus.

<PAGE>

                                                                              25

            (d) Promptly after receipt by an indemnified party under this
      Section 8 of notice of the commencement of any action, such indemnified
      party will, if a claim in respect thereof is to be made against the
      indemnifying party under this Section 8, notify the indemnifying party in
      writing of the commencement thereof; but the failure so to notify the
      indemnifying party (i) will not relieve it from liability under paragraph
      (a), (b) or (c) above unless and to the extent it did not otherwise learn
      of such action and such failure results in the forfeiture by the
      indemnifying party of substantial rights and defenses and (ii) will not,
      in any event, relieve the indemnifying party from any obligations to any
      indemnified party other than the indemnification obligation provided in
      paragraph (a), (b) or (c) above. The indemnifying party shall be entitled
      to appoint counsel of the indemnifying party's choice at the indemnifying
      party's expense to represent the indemnified party in any action for which
      indemnification is sought (in which case the indemnifying party shall not
      thereafter be responsible for the fees and expenses of any separate
      counsel retained by the indemnified party or parties except as set forth
      below); provided, however, that such counsel shall be reasonably
      satisfactory to the indemnified party. Notwithstanding the indemnifying
      party's election to appoint counsel to represent the indemnified party in
      an action, the indemnified party shall have the right to employ separate
      counsel (including local counsel), and the indemnifying party shall bear
      the reasonably incurred fees, costs and expenses of such separate counsel
      if (i) the use of counsel chosen by the indemnifying party to represent
      the indemnified party would present such counsel with a conflict of
      interest, (ii) the actual or potential defendants in, or targets of, any
      such action include both the indemnified party and the indemnifying party
      and the indemnified party shall have reasonably concluded that there may
      be legal defenses available to it and/or other indemnified parties which
      are different from or additional to those available to the indemnifying
      party, (iii) the indemnifying party shall not have employed counsel
      reasonably satisfactory to the indemnified party to represent the
      indemnified party within a reasonable time after notice of the institution
      of such action or (iv) the indemnifying party shall authorize the
      indemnified party to employ separate counsel at the expense of the
      indemnifying party. An indemnifying party will not, without the prior
      written consent of the indemnified parties, settle or compromise or
      consent to the entry of any judgment with respect to any pending or
      threatened claim, action, suit or proceeding in respect of which
      indemnification or contribution may be sought hereunder (whether or not
      the indemnified parties are actual or potential parties to such claim or
      action) unless such settlement, compromise or consent includes an
      unconditional release of each indemnified party from all liability arising
      out of such claim, action, suit or proceeding and does not include an
      admission of fault or culpability or a failure to act by or on behalf of
      such indemnified party.

            (e) In the event that the indemnity provided in paragraph (a), (b)
      or (c) of this Section 8 is unavailable to or insufficient to hold
      harmless an indemnified party for any reason, the Company, the Selling
      Stockholders and the Underwriters agree to contribute to the aggregate
      losses, claims, damages and liabilities (including legal or other expenses
      reasonably incurred in connection with

<PAGE>

                                                                              26

      investigating or defending same) (collectively "Losses") to which the
      Company, one or more of the Selling Stockholders and one or more of the
      Underwriters may be subject in such proportion as is appropriate to
      reflect the relative benefits received by the Company, by the Selling
      Stockholders and by the Underwriters from the offering of the Securities;
      provided, however, that in no case shall any Underwriter (except as may be
      provided in any agreement among underwriters relating to the offering of
      the Securities) be responsible for any amount in excess of the
      underwriting discount or commission applicable to the Securities purchased
      by such Underwriter hereunder. If the allocation provided by the
      immediately preceding sentence is unavailable for any reason, the Company,
      the Selling Stockholders and the Underwriters shall contribute in such
      proportion as is appropriate to reflect not only such relative benefits
      but also the relative fault of the Company, of the Selling Stockholders
      and of the Underwriters in connection with the statements or omissions
      which resulted in such Losses as well as any other relevant equitable
      considerations. The relative benefits received by the Company and the
      Selling Stockholders on the one hand and the Underwriters on the other
      shall be deemed to be in the same proportion as the total net proceeds
      from the offering (before deducting expenses) received by the Company and
      the Selling Stockholders bear to the total underwriting discounts and
      commissions received by the Underwriters, in each case as set forth on the
      cover page of the Final Prospectus. Relative fault shall be determined by
      reference to, among other things, whether any untrue or any alleged untrue
      statement of a material fact or the omission or alleged omission to state
      a material fact relates to information provided by the Company, the
      Selling Stockholders on the one hand or the Underwriters on the other, the
      intent of the parties and their relative knowledge, access to information
      and opportunity to correct or prevent such untrue statement or omission.
      The Company, the Selling Stockholders and the Underwriters agree that it
      would not be just and equitable if contribution were determined by pro
      rata allocation or any other method of allocation which does not take
      account of the equitable considerations referred to above. Notwithstanding
      the provisions of this paragraph (e), no person guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the Act) shall
      be entitled to contribution from any person who was not guilty of such
      fraudulent misrepresentation. For purposes of this Section 8, each person
      who controls an Underwriter within the meaning of either the Act or the
      Exchange Act and each director, officer, employee and agent of an
      Underwriter shall have the same rights to contribution as such
      Underwriter, and each person who controls the Company within the meaning
      of either the Act or the Exchange Act, each officer of the Company who
      shall have signed the Registration Statement and each director of the
      Company shall have the same rights to contribution as the Company, subject
      in each case to the applicable terms and conditions of this paragraph (e).

            (f) The liability of each Selling Stockholder under such Selling
      Stockholder's representations and warranties contained in Section 1 hereof
      and under the indemnity and contribution agreements contained in this
      Section 8 shall be limited to an amount equal to the initial public
      offering price of the Securities sold by such Selling Stockholder to the
      Underwriters.

<PAGE>

                                                                              27

            9. Default by an Underwriter. If any one or more Underwriters shall
fail to purchase and pay for any of the Securities agreed to be purchased by
such Underwriter or Underwriters hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Underwriters shall be obligated severally to take up
and pay for (in the respective proportions which the amount of Securities set
forth opposite their names in Schedule I hereto bears to the aggregate amount of
Securities set forth opposite the names of all the remaining Underwriters) the
Securities which the defaulting Underwriter or Underwriters agreed but failed to
purchase; provided, however, that in the event that the aggregate amount of
Securities which the defaulting Underwriter or Underwriters agreed but failed to
purchase shall exceed 10% of the aggregate amount of Securities set forth in
Schedule I hereto, the remaining Underwriters shall have the right to purchase
all, but shall not be under any obligation to purchase any, of the Securities,
and if such non-defaulting Underwriters do not purchase all the Securities, this
Agreement will terminate without liability to any non-defaulting Underwriter,
the Selling Stockholders or the Company. In the event of a default by any
Underwriter as set forth in this Section 9, the Closing Date shall be postponed
for such period, not exceeding five Business Days, as the Representatives shall
determine in order that the required changes in the Registration Statement and
the Final Prospectus or in any other documents or arrangements may be effected.
Nothing contained in this Agreement shall relieve any defaulting Underwriter of
its liability, if any, to the Company, the Selling Stockholders and any
non-defaulting Underwriter for damages occasioned by its default hereunder.

            10. Termination. This Agreement shall be subject to termination in
the absolute discretion of the Representatives, by notice given to the Company
and the Selling Stockholders prior to delivery of and payment for the
Securities, if at any time prior to such time (i) trading in the Company's
Common Stock shall have been suspended by the Commission, the New York Stock
Exchange or the Lima Stock Exchange, or trading in securities generally on the
New York Stock Exchange or the Lima Stock Exchange shall have been suspended or
limited or minimum prices shall have been established on either of such
Exchanges, (ii) a banking moratorium shall have been declared either by Federal,
New York State, Mexican or Peruvian authorities or (iii) there shall have
occurred any outbreak or escalation of hostilities, act of terrorism,
declaration by the United States, Mexico or Peru of a national emergency or war,
or other calamity or crisis the effect of which on financial markets is such as
to make it, in the sole judgment of the Representatives, impractical or
inadvisable to proceed with the offering or delivery of the Securities as
contemplated by the Final Prospectus (exclusive of any supplement thereto).

            11. Representations and Indemnities to Survive. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers, of each Selling Stockholder and of the Underwriters set
forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of any Underwriter,
any Selling Stockholder or the Company or any of the officers, directors,
employees, agents or controlling persons referred to in Section 8 hereof, and
will survive delivery of and payment for the

<PAGE>

                                                                              28

Securities. The provisions of Sections 7 and 8 hereof shall survive the
termination or cancelation of this Agreement.

            12. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Representatives, will be mailed,
delivered or telefaxed to (i) the Citigroup Global Markets Inc. General Counsel
(fax no.: (212) 816-7912) and confirmed to the General Counsel, Citigroup Global
Markets Inc., at 388 Greenwich Street, New York, New York, 10013, Attention:
General Counsel, and (ii) the UBS Securities LLC General Counsel (fax no.: (212)
821-4042) and confirmed to the General Counsel, UBS Securities LLC, at 299 Park
Avenue, New York, New York, 10171, Attention: General Counsel; or, if sent to
the Company, will be mailed, delivered or telefaxed to Southern Peru Copper
Corporation (fax no.:52 (55) 5574-8442) and confirmed to Southern Peru Copper
Corporation, 2575 East Camelback Rd., Phoenix, AZ 85016, Attention: General
Counsel; or if sent to any Selling Stockholder, will be mailed, delivered or
telefaxed and confirmed to it at the address set forth in Schedule II hereto.

            13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
officers, directors, employees, agents and controlling persons referred to in
Section 8 hereof, and no other person will have any right or obligation
hereunder.

            14. Applicable Law. This Agreement and any claim, counterclaim or
dispute of any kind or nature whatsoever arising out of or in any way relating
to this Agreement ("Claim"), directly or indirectly, will be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed within the State of New York.

            15. Submission to Jurisdiction. Except as set forth below, no Claim
may be commenced, prosecuted or continued in any court other than the courts of
the State of New York located in the City and County of New York or in the
United States District Court for the Southern District of New York, which courts
shall have jurisdiction over the adjudication of such matters, and the Company
and the Selling Stockholders each consent to the jurisdiction of such courts and
personal service with respect thereto. The Company and the Selling Stockholders
each hereby consent to personal jurisdiction, service and venue in any court in
which any Claim arising out of or in any way relating to this Agreement is
brought by any third party against any Underwriter or any indemnified party.
Each Underwriter, the Company (on its behalf and, to the extent permitted by
applicable law, on behalf of its stockholders and affiliates) and each of the
Selling Stockholders (on its behalf and, to the extent permitted by applicable
law, on behalf of its stockholders and affiliates) waive all right to trial by
jury in any action, proceeding or counterclaim (whether based upon contract,
tort or otherwise) in any way arising out of or relating to this Agreement. Each
Underwriter, the Company and the Selling Stockholders each agree that a final
judgment in any such action, proceeding or counterclaim brought in any such
court shall be conclusive and binding upon each Underwriter, the Company and the
Selling Stockholders and may be enforced in any other courts to the jurisdiction
of which any Underwriter, the Company or any Selling Stockholder is or may be
subject, by suit upon such judgment.

<PAGE>

                                                                              29

            16. Counterparts. This Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same agreement.

            17. Headings. The section headings used herein are for convenience
only and shall not affect the construction hereof.

            18. Miscellaneous. UBS Securities LLC ("UBS"), an indirect, wholly
owned subsidiary of UBS AG, is not a bank and is separate from any affiliated
bank, including any U.S. branch or agency of UBS AG. Because UBS is a separately
incorporated entity, it is solely responsible for its own contractual
obligations and commitments, including obligations with respect to sales and
purchases of securities. Securities sold, offered or recommended by UBS are not
deposits, are not insured by the Federal Deposit Insurance Corporation, are not
guaranteed by a branch or agency, and are not otherwise an obligation or
responsibility of a branch or agency.

            19. Definitions. The terms which follow, when used in this
Agreement, shall have the meanings indicated.

            "Act" shall mean the Securities Act of 1933, as amended, and the
      rules and regulations of the Commission promulgated thereunder.

            "Basic Prospectus" shall mean the prospectus referred to in
      paragraph 1(i)(a) above contained in the Registration Statement at the
      Effective Date including any Preliminary Prospectus.

            "Business Day" shall mean any day other than a Saturday, a Sunday or
      a legal holiday or a day on which banking institutions or trust companies
      are authorized or obligated by law to close in New York City or Mexico
      City, DF.

            "Commission" shall mean the Securities and Exchange Commission.

            "Effective Date" shall mean each date and time that the Registration
      Statement, any post-effective amendment or amendments thereto and any Rule
      462(b) Registration Statement became or become effective.

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
      amended, and the rules and regulations of the Commission promulgated
      thereunder.

            "Execution Time" shall mean the date and time that this Agreement is
      executed and delivered by the parties hereto.

            "Final Prospectus" shall mean the prospectus supplement relating to
      the Securities that was first filed pursuant to Rule 424(b) after the
      Execution Time, together with the Basic Prospectus.

<PAGE>

                                                                              30

            "Merger Agreement" shall mean the merger agreement dated October 21,
      2004 by and among the Company, SPCC Merger Sub, Inc., Americas Sales
      Company, Inc., Americas Mining Corporation and Minera Mexico.

            "Phelps Dodge Entities" shall mean Climax Molybdenum B.V. and Phelps
      Dodge Overseas Capital Corporation.

            "Preliminary Prospectus" shall mean any preliminary prospectus
      supplement to the Basic Prospectus which describes the Securities and the
      offering thereof and is used prior to filing of the Final Prospectus,
      together with the Basic Prospectus.

            "Registration Rights Agreement" shall mean the registration rights
      agreement dated as of March 21, 2005 by and between Cerro Trading Company,
      Inc., SPC Investors, L.L.C., Phelps Dodge Corporation, the Phelps Dodge
      Entities, the Company and Americas Mining Corporation.

            "Registration Statement" shall mean the registration statement
      referred to in paragraph 1(i)(a) above, including exhibits and financial
      statements, as amended at the Execution Time (or, if not effective at the
      Execution Time, in the form in which it shall become effective) and, in
      the event any post-effective amendment thereto or any Rule 462(b)
      Registration Statement becomes effective prior to the Closing Date, shall
      also mean such registration statement as so amended or such Rule 462(b)
      Registration Statement, as the case may be. Such term shall include any
      Rule 430A Information deemed to be included therein at the Effective Date
      as provided by Rule 430A.

            "Rule 415", "Rule 424", "Rule 430A" and "Rule 462" refer to such
      rules under the Act.

            "Rule 430A Information" shall mean information with respect to the
      Securities and the offering thereof permitted to be omitted from the
      Registration Statement when it becomes effective pursuant to Rule 430A.

            "Rule 462(b) Registration Statement" shall mean a registration
      statement and any amendments thereto filed pursuant to Rule 462(b)
      relating to the offering covered by the registration statement referred to
      in Section 1(i)(a) hereof.

<PAGE>

                                                                              31

            If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company, the Selling Stockholders and the several Underwriters.

                                Very truly yours,

                                SOUTHERN PERU COPPER CORPORATION,

                                  By  /s/ Armando Sausto Ortega Gomez
                                      ----------------------------------
                                      Name:
                                      Title:

                                CERRO TRADING COMPANY, INC.,

                                  By  /s/ Robert W. Webb
                                      ------------------------------------
                                      Name: Robert W. Webb
                                      Title: Secretary and General Counsel

                                SPC INVESTORS, L.L.C.,

                                  By  /s/ Glen Miller
                                      ------------------------------------
                                      Name: Glen Miller
                                      Title: President

<PAGE>

                                                                              32

                            PHELPS DODGE OVERSEAS CAPITAL CORPORATION,

                              By  /s/ S. David Colton
                                  -------------------------------------------
                                  Name:  S. David Colton
                                  Title: Senior Vice President & Gen. Counsel

                            CLIMAX MOLYBDENUM B.V.,

                              By  /s/ David H. Thornton
                                  -------------------------------------------
                                  Name:  David H. Thornton
                                  Title: Director

<PAGE>

                                                                              33

The foregoing Agreement is hereby confirmed and accepted as of the date first
above written.

Citigroup Global Markets Inc.
UBS Securities LLC

By: Citigroup Global Markets Inc.

  By:  /s/ John Boord
       --------------------------
       Name:  John Boord
       Title: Managing Director

By: UBS Securities LLC

  By:  /s/ Paul Knight
       --------------------------
       Name:  Paul Knight
       Title: Managing Director

  By:  /s/ Francisco Salas
       --------------------------
       Name:  Francisco Salas
       Title: Director

For themselves and the other several Underwriters named in Schedule I to the
foregoing Agreement

<PAGE>

                                   SCHEDULE I

<TABLE>
<CAPTION>
                                                                             NUMBER OF UNDERWRITTEN
                           UNDERWRITERS                                    SECURITIES TO BE PURCHASED
                           ------------                                    --------------------------
<S>                                                                        <C>
Citigroup Global Markets Inc. ....................................                 8,915,861
UBS Securities LLC ...............................................                 8,915,861
Merrill Lynch, Pierce, Fenner & Smith Incorporated................                 1,048,925
Scotia Capital Inc. ..............................................                 1,048,925
BNP Paribas Securities Corp. .....................................                 1,048,925
                                                                                  ----------

             Total................................................                20,978,497
                                                                                  ==========
</TABLE>

<PAGE>

                                   SCHEDULE II

<TABLE>
<CAPTION>
                                                       NUMBER OF                MAXIMUM NUMBER OF
                                                      UNDERWRITTEN              OPTION SECURITIES
          SELLING STOCKHOLDERS:                   SECURITIES TO BE SOLD            TO BE SOLD
          ---------------------                   ---------------------         -----------------
<S>                                               <C>                           <C>
Cerro Trading Company, Inc.                            8,835,431                     662,657
225 West Washington Street
Suite 1900
Chicago, Illinois  60606
Facsimile No.:  (312) 845-8769
email: robert.webb@marmon.com

SPC Investors, L.L.C.                                  1,748,837                     131,163
71 South Wacker Drive
Suite 4600
Chicago, Illinois 60606
Facsimile No.:  (312) 577-2619
email: gmiller@divjin.com

Phelps Dodge Overseas Capital Corporation              8,338,415                     625,381
One North Central Avenue
Phoenix, Arizona 85004
Facsimile No.:  (602) 366-7321
email: dcolton@phelpsdodge.com

Climax Molybdenum B.V.                                 2,055,814                     154,186
One North Central Avenue
Phoenix, Arizona 85004
Facsimile No.:  (602) 366-7321
email: dcolton@phelpsdodge.com

                                                      ----------                   ---------
             Total.......................             20,978,497                   1,573,387
                                                      ==========                   =========
</TABLE>

<PAGE>

                                  SCHEDULE III

                              MATERIAL SUBSIDIARIES

<TABLE>
<CAPTION>
                                                                                                     PERCENT OWNED BY
                SUBSIDIARY                                                 JURISDICTION                 THE COMPANY
                ----------                                                 ------------              ----------------
<S>                                                                        <C>                       <C>
Industrial Minera Mexico, S.A. de C.V.                                       Mexico                      99.99%
Mexicana de Cananea, S.A. de C.V.                                            Mexico                      99.99%
Mexicana de Cobre, S.A. de C.V.                                              Mexico                      99.97%
Minerales y Minas Mexicanas, S.A. de C.V.                                    Mexico                        100%
Minera Mexico, S.A. de C.V.                                                  Mexico                      99.14%
Minerales Metalicos del Norte, S.A.                                          Mexico                        100%
Southern Peru Limited                                                       Delaware                       100%
</TABLE>

                               OTHER SUBSIDIARIES

<TABLE>
<CAPTION>
                                                                                                  PERCENT OWNED BY
                          SUBSIDIARY                                      JURISDICTION              THE COMPANY
                          ----------                                      ------------            ----------------
<S>                                                                       <C>                     <C>
Americas Mining de Mexico, S.A. de C.V.                                      Mexico                     100%
Compania de Terrenos e Inversiones de S.L.P., S.C. por A.S.A.                Mexico                     100%
Compania Minera Los Tolmos, S.A.                                              Peru                      100%
Hospital del Ronquillo, S. de R.L. de C.V.                                   Mexico                     100%
Mexicana del Arco, S.A. de C.V.                                              Mexico                     100%
Mexico Compania Inmobiliaria, S.A.                                           Mexico                     100%
Minera Cumobabi, S.A. de C.V.                                                Mexico                     100%
Minera Mexico Internacional, Inc.                                           New York                    100%
Minera Pilares, S.A. de C.V.                                                 Mexico                      51%
Preparacion de Terrenos para Labranza, S.C.                                  Mexico                     100%
Proyecciones Urbanisticas, S. de R.L. de C.V.                                Mexico                     100%
Servicios de Apoyo Administrativo, S.A. de C.V.                              Mexico                     100%
Taller Escuela de Plateria de Sombrerete, S.A.                               Mexico                      98%
Western Copper Supplies                                                     Arizona                     100%
Logistics Services Incorporated                                             Delaware                    100%
Global Natural Resources, Inc.                                              Delaware                    100%
Multimines Corporation                                                      Delaware                    100%
Multimines Insurance Company, Ltd.                                          Bermuda                     100%
Southern Peru Copper Corporation, Agencia Chile                              Chile                      100%
</TABLE>

<PAGE>

                                   SCHEDULE IV

5% STOCKHOLDERS

  Americas Mining Corporation
  SPHC II Incorporated

EXECUTIVE OFFICERS AND DIRECTORS

  German Larrea Mota-Velasco
  Oscar Gonzalez Rocha
  Xavier Garcia de Quevedo Topete
  Jaime F. Collazo Gonzalez
  Remigio Martinez Muller
  Vidal Muhech Dip
  Armando Ortega Gomez
  Mario Vinageras Barroso
  Jose N. Chirinos Fano
  Emilio Carrillo Gamboa
  Harold S. Handelsman
  Genaro Larrea Mota-Velasco
  Luis Miguel Palomino Bonilla
  Gilberto Perezalonso Cifuentes
  Juan Rebolledo Gout
  Carlos Ruiz Sancristan
  J. Eduardo Gozalez Felix

<PAGE>

                                                                       EXHIBIT A

      [LETTERHEAD OF OFFICER, DIRECTOR OR MAJOR STOCKHOLDER OF THE COMPANY]

                        Southern Peru Copper Corporation
                         Public Offering of Common Stock

                                                                       [-], 2005

Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several Underwriters,

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

c/o UBS Securities LLC
299 Park Avenue
New York, New York 10171

Ladies and Gentlemen:

            This letter is being delivered to you in connection with the
proposed Underwriting Agreement (the "Underwriting Agreement"), among Southern
Peru Copper Corporation, a Delaware corporation (the "Company"), the Selling
Stockholders listed on Schedule II thereto and each of you as representatives
(the "Representatives") of a group of Underwriters named therein, relating to an
underwritten public offering of Common Stock, $0.01 par value (the "Common
Stock"), of the Company.

            In order to induce you and the other Underwriters to enter into the
Underwriting Agreement, the undersigned will not, without the prior written
consent of the Representatives, offer, sell, contract to sell, pledge or
otherwise dispose of (or enter into any transaction which is designed to, or
might reasonably be expected to, result in the disposition (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise) by the undersigned or any affiliate of the undersigned or any person
in privity with the undersigned or any affiliate of the undersigned), directly
or indirectly, including the filing (or participation in the filing) of a
registration statement with the Securities and Exchange Commission in respect
of, or establish or increase a put equivalent position or liquidate or decrease
a call equivalent position within the meaning of Section 16 of the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder with respect to, any
shares of capital stock of the Company or any securities convertible into, or
exercisable or exchangeable for such capital stock, or publicly announce an
intention to effect any such transaction, for a period of 90 days after the date
of the Underwriting Agreement, other than shares of Common Stock (i) disposed of
as bona fide gifts approved by the Representatives, (ii) transferred to any
trust for the direct or indirect benefit of the undersigned or the immediate
family of the undersigned or (iii) held by a

<PAGE>

corporation that are transferred to any of its subsidiaries or affiliates,
provided, that any such transferee pursuant to clause (i), (ii) or (iii) agrees
in writing to be bound by the restrictions set forth herein.

                                                                               2
<PAGE>

                                                                               3

            If for any reason the Underwriting Agreement shall be terminated
prior to the Closing Date (as defined in the Underwriting Agreement), the
agreement set forth above shall likewise be terminated.

                           Yours very truly,

                           [Signature of officer, director or major stockholder]

                           [Name and address of officer, director
                           or major stockholder]

<PAGE>

                                                                       EXHIBIT B

                       [LETTERHEAD OF SELLING STOCKHOLDER]

                        Southern Peru Copper Corporation
                         Public Offering of Common Stock

                                                                       [-], 2005

Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several Underwriters,

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

c/o UBS Securities LLC
299 Park Avenue
New York, New York 10171

Ladies and Gentlemen:

            This letter is being delivered to you in connection with the
proposed Underwriting Agreement (the "Underwriting Agreement"), among Southern
Peru Copper Corporation, a Delaware corporation (the "Company"), the Selling
Stockholders listed on Schedule II thereto and each of you as representatives
(the "Representatives") of a group of Underwriters named therein, relating to an
underwritten public offering of Common Stock, $0.01 par value (the "Common
Stock"), of the Company.

            In order to induce you and the other Underwriters to enter into the
Underwriting Agreement, the undersigned will not, without the prior written
consent of the Representatives, offer, sell, contract to sell, pledge or
otherwise dispose of (or enter into any transaction which is designed to, or
might reasonably be expected to, result in the disposition (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise) by the undersigned or any affiliate of the undersigned), directly or
indirectly, including the filing (or participation in the filing) of a
registration statement with the Securities and Exchange Commission in respect
of, or establish or increase a put equivalent position or liquidate or decrease
a call equivalent position within the meaning of Section 16 of the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder with respect to, any
shares of capital stock of the Company or any securities convertible into, or
exercisable or exchangeable for such capital stock, or publicly announce an
intention to effect any such transaction, for a period of 90 days after the date
of the Underwriting Agreement, other than shares of Common Stock (i) sold
pursuant to the Underwriting Agreement or (ii) disposed of as bona fide gifts
approved by the Representatives, (iii) with respect to each of Cerro Trading,
Inc. and SPC Investors, L.L.C., transferred to such Selling Stockholder's parent
corporation or such Selling

<PAGE>

                                                                               2

Stockholder's parent corporation's trust shareholders and/or beneficiaries and
any person owned or controlled by such trust shareholders and/or beneficiaries,
or (iv) with respect to the Phelps Dodge Entities, transferred to affiliates of
the Phelps Dodge Entities; provided that any such transferee pursuant to clause
(ii), (iii) or (iv) agrees in writing to be bound by the restrictions set forth
herein and provided, further, that the restrictions in this letter shall not
apply to any shares of capital stock of the Company that are (x) not registered
with the Securities and Exchange Commission pursuant to the Registration
Statement (as defined in the Underwriting Agreement) and (y) owned by any
affiliate of the undersigned that is a beneficial owner of less than 2,000
shares of capital stock of the Company. For the purposes of this agreement,
"affiliate" of any particular person means any other person controlling,
controlled by, or under common control with such particular person, where
"control" means the possession, directly or indirectly, of the power to direct
the management or policies of a person, whether through the ownership of voting
securities, by contract or otherwise.

<PAGE>

                                                                               3

            If for any reason the Underwriting Agreement shall be terminated
prior to the Closing Date (as defined in the Underwriting Agreement), the
agreement set forth above shall likewise be terminated.

                                       Yours very truly,

                                       [Signature of Selling Stockholder]

                                       [Name and address of Selling Stockholder]

<PAGE>

                                                                         ANNEX A

               FORM OF MILBANK, TWEED, HADLEY & MCCLOY LLP OPINION

                                               June __, 2005

Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several Underwriters

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York  10013

c/o UBS Securities LLC
299 Park Avenue
New York, New York  10171

     Re: Southern Peru Copper Corporation - Secondary Common Stock Offering

Ladies and Gentlemen:

We have acted as special counsel for Southern Peru Copper Corporation, a
Delaware corporation (the "Company"), in connection with the offer and sale by
the Selling Stockholders, and the purchase by you and the other several
underwriters named in Schedule II thereto (the "Underwriters"), of __________
shares (the "Shares") of the Company's Common Stock, par value $0.01 per share
(the "Common Stock") pursuant to an Underwriting Agreement dated June 9, 2005
(the "Underwriting Agreement"), by and among the Company, the Selling
Stockholders and you, as Representatives of the several Underwriters. This
opinion is being furnished to you pursuant to Section 6(b) of the Underwriting
Agreement. The capitalized terms used herein that are not defined herein shall
have the respective meanings set forth in the Underwriting Agreement.

In rendering the opinions expressed below, we have examined such documents and
records as we have deemed appropriate, including the following:

            (i) a signed copy of the Registration Statement on Form S-3, File
      No. 333-124439, filed by the Company under the Securities Act of 1933, as
      amended (the "Securities Act"), with the Securities and Exchange
      Commission (the "Commission") on April 28, 2005, as amended by Amendment
      No. 1 and Amendment No. 2 thereto;

<PAGE>

                                                                               2

            (ii) copies of the prospectus related to the Shares in the form
      filed by the Company with the Commission pursuant to Rule 424(b) under the
      Securities Act (the Registration Statement, as amended through the date on
      which it became effective, including the exhibits and schedules thereto,
      being herein referred to as the "Registration Statement," and such
      prospectus in the form in which it was filed with the Commission pursuant
      to Rule 424(b) under the Securities Act, being herein referred to as the
      "Prospectus");

            (iii) signed copies of the Underwriting Agreement; and

            (iv) a specimen stock certificate of the Company, certified by The
      Bank of New York to be a true and complete, used to evidence the Common
      Stock.

We have received oral advice from the Commission that the Registration Statement
was declared effective at 10 a.m. New York time on _____ __, 2005. Also, today a
member of the Staff of the Commission advised us orally that no stop order
suspending the effectiveness of the Registration Statement has been issued under
the Act or proceeding initiated for that purpose or threatened by the
Commission.

We have also examined originals, or copies certified or otherwise identified to
our satisfaction, of such corporate records of the Company, agreements and other
instruments, certificates of public officials, certificates of officers and
representatives of the Company and The Bank of New York, in its capacity as the
Company's registrar and transfer agent with respect to the Common Stock (the
"Transfer Agent") and other documents as we have deemed necessary as a basis for
the opinions hereinafter expressed. In our examination, we have assumed the
genuineness of all signatures, the authenticity of all documents submitted to us
as originals, the conformity with the original documents of all documents
submitted to us as copies, and the authenticity of the originals of such
documents and the due organization of all parties other than the Company. As to
various questions of fact material to our opinions, we have, when relevant facts
were not independently established, relied upon certifications by officers of
the Company and the Transfer Agent and other appropriate persons and statements
contained in the Registration Statement and the representations and warranties
of the Company and the Selling Stockholders set forth in the Underwriting
Agreement.

In addition, we attended the closing held today at our offices in New York, New
York, during the course of which the Selling Stockholders delivered, or caused
to be delivered, the Shares to the Transfer Agent for the accounts of the
several Underwriters, in accordance with the Underwriting Agreement, against
payment therefor. Insofar as statements herein are based upon our actual
knowledge, such phrase means and is limited to the conscious awareness of facts
or other information by lawyers in this firm who gave substantive attention to
representation of the Company in connection with the Prospectus.

Based upon and subject to the foregoing and subject also to the comments and
qualifications set forth below, and having regard to legal considerations which
we deem relevant, we are of the opinion that:

<PAGE>

                                                                               3

      1. The Company and Southern Peru Limited ("SPL") have each been duly
incorporated and each is validly existing as a corporation in good standing
under the laws of the State of Delaware, with corporate power and authority to
own or lease, as the case may be, and to operate its properties and conduct its
business as described in the Prospectus.

      2. The Company's authorized equity capitalization is as set forth in the
Prospectus; the capital stock of the Company conforms in all material respects
to the description thereof contained in the Final Prospectus; the outstanding
shares of Common Stock being sold pursuant to the Underwriting Agreement by the
Selling Stockholders have been duly and validly authorized and issued and are
fully paid and nonassessable; the Shares being sold by the Selling Stockholders
are duly listed, and admitted and authorized for trading, on the New York Stock
Exchange; the certificates for the Securities are in due and proper form; and
the holders of outstanding shares of capital stock of the Company are not
entitled to any statutory preemptive or other rights pursuant to the Company's
charter to subscribe for the Common Stock.

      3. To our knowledge, there is no pending action, investigation, suit or
proceeding by or before any court or governmental agency, authority or body of
the United States or any state thereof or any arbitrator in the United States or
any state thereof involving the Company or any of its subsidiaries or its or
their property of a character required to be disclosed in the Registration
Statement which is not disclosed in the Prospectus; there is no contract or
other document known to us required to be described in the Registration
Statement or Prospectus, or to be filed as an exhibit thereto, which is not
described or filed as required.

      4. Subject to the limitations and qualifications stated therein the
statements set forth in the Prospectus under the caption "Taxation" and
"Business--Legal Proceedings--Class Action," to the extent that they address
matters of law or legal conclusions are correct in all material respects.

      5. Based on oral advice received from the Commission, the Registration
Statement became effective under the Act on June 8, 2005; any required filing of
any preliminary prospectus and the Prospectus, and any supplements thereto,
pursuant to Rule 424(b) has been made in the manner and within the time period
required by Rule 424(b); to our knowledge, no stop order suspending the
effectiveness of the Registration Statement has been issued, based solely on the
oral advice of the Commission Staff described above, no proceedings for that
purpose have been instituted or, to our knowledge, threatened and the
Registration Statement and the Prospectus (other than the documents incorporated
therein by reference (the "Incorporated Documents") and other than the financial
statements and other financial and statistical information contained therein, as
to which we express no opinion) as of their respective effective or issue dates
appear on their face to be appropriately responsive in all material respects
relevant to the offering of the Shares to the requirements of the Securities Act
and the Exchange Act and the applicable rules and regulations of the Commission
thereunder.

<PAGE>

                                                                               4

      6. The Underwriting Agreement has been duly authorized, executed and
delivered by the Company.

      7. No consent, approval, authorization, filing, order, registration or
qualification of or with any United States Federal, New York State, or, to the
extent required under The Delaware General Corporation Law, Delaware court or
governmental agency or body is required to be obtained or made by the Company in
connection with the execution, delivery and consummation by the Company of the
transactions contemplated by the Underwriting Agreement and the Prospectus,
except such as have been obtained under the Act and the Exchange Act and such as
may be required under the Securities Act and the rules and regulations
thereunder and by securities or blue sky laws of any state of the United States
in connection with the purchase and distribution of the Shares by the
Underwriters in the manner contemplated in the Underwriting Agreement and in the
Prospectus.

      8. To our knowledge, neither the Company nor SPL is, and with the giving
of notice or lapse of time or both would be, in violation of or in default under
its charter or by-laws.

      10. Neither the execution and delivery by the Company of the Underwriting
Agreement nor the sale of the Shares by the Selling Stockholders nor the
consummation of any of the other transactions by the Company therein
contemplated nor the fulfillment of the terms thereof will conflict with, result
in a breach or violation of, or constitute a default under, or result in the
imposition of any lien, charge or encumbrance upon any property or assets of the
Company pursuant to, (i) the charter or by-laws of the Company or SPL, or (ii)
any statute, law, rule or regulation of the United States or the State of New
York or the General Corporation Law of the State of Delaware, that, in our
experience, is normally applicable to transactions of the type contemplated by
the Underwriting Agreement (except that we express no opinion in this paragraph
10 with regards to the application of the anti-fraud provisions of any United
States federal securities laws) or, to our knowledge, any judgment, order or
decree in each case applicable to the Company of any United States or New York
State court, regulatory body, administrative agency, governmental body,
arbitrator or other authority having jurisdiction over the Company or any of its
properties.

      Because the primary purpose of our professional engagement was not to
establish or confirm factual matters or financial, accounting or statistical
matters, because many determinations involved in the preparation of the
Registration Statement and the Prospectus are of a wholly or partially non-legal
character or relate to legal matters outside the scope of this opinion letter,
and because of the limitations inherent in the review made by us and the
knowledge available to us, we are not passing upon and do not

<PAGE>

                                                                               5

assume any responsibility for the accuracy, completeness or fairness of the
statements contained in the Registration Statement or the Prospectus, including
the Incorporated Documents (other than as set forth in paragraph 2 and 4, above)
and we make no representation that we have independently verified the accuracy,
completeness or fairness of such statements.

      However, in the course of our acting as counsel for the Company in
connection with the preparation of the Registration Statement and the
Prospectus, we participated in conferences and telephone conversations with
representatives of the Company, accountants for the Company, your
representatives and your counsel, during which conferences and conversations the
contents of the Registration Statement and the Prospectus (including the
Incorporated Documents) were discussed. In addition, we reviewed certain
corporate documents furnished to us by the Company or otherwise in our
possession.

      We have endeavored to see that the Registration Statement and the
Prospectus comply with the Act and the regulations under the Act relating to
registration statements on Form S-3 and related prospectuses, but we have not
participated in the preparation of the documents incorporated by reference in
the Registration Statement or the Prospectus and we therefore are unable to make
any representations to you as to the accuracy or completeness of statements of
fact contained in the Registration Statement or the Prospectus, including the
documents incorporated by reference therein. Based upon our participation in the
above-mentioned conferences and conversations and our review of the documents
described above, we advise you that none of the foregoing disclosed to us any
information that causes us to believe that as of its effective date, the
Registration

<PAGE>

                                                                               6

Statement (including the Incorporated Documents, except to the extent statements
contained in the Incorporated Documents have been modified or superseded by
statements contained in the Prospectus) other than the financial statements and
other financial or accounting data included therein or omitted therefrom, as to
which we express no belief and make no statement, contained an untrue statement
of a material fact or omitted to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, or the
Prospectus (other than the financial statements and other financial or
accounting data included therein or omitted therefrom, as to which we express no
belief and make no statement), as of its date and as of the date hereof,
contained or contains an untrue statement of a material fact or omitted or omits
to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

      In rendering the opinion expressed in numbered paragraph (4) above, we
have relied on the Internal Revenue Code of 1986, as amended (the "Code"), and
applicable regulations, rulings and judicial decisions, in each case as in
effect on the date hereof, and this opinion may be affected by amendments to the
Code or to the regulations thereunder or by subsequent judicial or
administrative interpretations thereof. Our opinion is not binding the Internal
Revenue Service or a court and there can be no assurance that the Internal
Revenue Service or a court will not adopt a contrary position. We express no
opinion as to tax maters other than as to the federal income tax laws of the
United States of America and we take undertake no responsibility to update or
supplement our opinion.

<PAGE>

                                                                               7

      The law covered by the opinions expressed herein is limited to the federal
law of the United States of America, the law of the State of New York and the
Delaware General Corporation Law as in effect on the date hereof, and we express
no opinion as to the effect of the laws of other jurisdictions.

      This opinion is furnished solely for the benefit of the Underwriters in
connection with the Underwriting Agreement and is not be to be used, circulated,
quoted or otherwise referred to for any other purpose or relied upon by any
other person without our express written permission. We disclaim any obligation
to update anything herein for events occurring after the date hereof.

                                Very truly yours,

MLF/RBW

<PAGE>

                                                                         ANNEX B

                   FORM OF PAYET, REY, CAUVI ABOGADOS OPINION

                                                                       [-], 2005

Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

UBS Securities LLC
299 Park Avenue
New York, New York 10171

Ladies and Gentlemen:

            We have acted as Peruvian counsel to Southern Peru Copper
Corporation, a Delaware Corporation (the "COMPANY"), in connection with the
offer and sale by certain selling stockholders of the Company (the "SELLING
STOCKHOLDERS"), and the purchase by you and other several underwriters (the
"UNDERWRITERS") named in Schedule II to an Underwriting Agreement dated
______________________, 2005 (the "UNDERWRITING AGREEMENT"), of ________
shares (the "SHARES") of the Company's Common Stock, par value $0.01 per share
(the "COMMON STOCK") pursuant to the Underwriting Agreement, by and among the
Company, the Selling Stockholders and you, as Representatives of the several
Underwriters.

            This opinion is rendered to you pursuant to Section 6(b) of the
Underwriting Agreement. Capitalized terms used but not otherwise defined herein
are used herein as defined in the Underwriting Agreement.

            In rendering the opinions expressed below, we have examined the
following documents:

      (a) a signed copy of the Registration Statement on Form S-3, File No.
333-124439, filed by the Company under the Securities Act of 1933, as amended
(the "Securities Act"), with the Securities and Exchange Commission (the
"Commission") on April 28, 2005, as amended by Amendment No. 1 thereto,

      (b) copy of the prospectus related to the Shares in the form filed by the
Company with the Commission pursuant to Rule 424(b) under the Securities Act
(the Registration Statement, as amended through the date on which it became
effective, including the exhibits and schedules thereto, being herein referred
to as the "Registration Statement," and such prospectus in the form in which it
was filed with the Commission pursuant to Rule 424(b) under the Securities Act,
being herein referred to as the "Final Prospectus"),

<PAGE>

                                                                               2

      (c) a signed copy of the Underwriting Agreement.

            The documents referred to in items (a), (b) and (c) above are herein
referred to as the "DOCUMENTS".

            We have also examined the originals, or certified, conformed or
reproduction copies, of all records, agreements, instruments and documents as we
have deemed relevant or necessary as the basis for the opinions hereinafter
expressed. We have also obtained such additional information from Southern Peru
Copper Corporation, Sucursal del Peru ("SPCC-PERU BRANCH") as we have deemed
necessary for the purposes of delivering this opinion.

            As to various questions of fact material to our opinions, we have,
when relevant facts were not independently established, relied upon
certifications by officers of SPCC-Peru Branch and other appropriate persons and
statements contained in the Registration Statement and the representations and
warranties of the Company and the Selling Stockholders set forth in the
Underwriting Agreement.

            In giving this opinion, we have assumed, and the opinion is
therefore qualified by, the following:

            (a) Insofar as any obligation needs to be performed in any
jurisdiction outside Peru, its performance will not be illegal, ineffective or
invalid by virtue of the laws of that jurisdiction.

            (b) All signatures on the documents which, or copies of which, we
have examined are genuine.

            (c) Each of the parties to the Documents has the capacity, power and
authority and is otherwise able lawfully to enter into such agreements and to
execute, deliver and perform the obligations thereunder.

            (d) The execution and delivery of the Documents have been duly
authorized by each of the parties thereto, and such agreements have been
executed and delivered by such parties.

            (e) Each of the Documents, as executed and delivered, constitute
valid and legally binding obligations enforceable in accordance with their
respective terms under the laws and jurisdictions specified therein.

            (f) In rendering the opinions contained herein, we have considered
the laws of Peru as of the date hereof.

                  Based upon the foregoing, we are of the opinion that:

1. SPCC-Peru Branch is duly registered in Peru as a foreign branch of the
Company under the laws of Peru.

<PAGE>

                                                                               3

2. Under the laws of Peru, SPCC-Peru Branch has full power and authority to own
or lease, as the case may be, and to operate its properties and conduct its
business as described in the Final Prospectus.

3. The securities being sold by the Selling Stockholders are duly listed,
admitted and authorized for trading on the Lima Stock Exchange and are duly
registered with the Comision Nacional Supervisora de Empresas y Valores --
CONASEV under the Registro Publico del Mercado de Valores.

4. SPCC-Peru Branch has all public, regulatory or governmental licenses,
concessions, franchises, certificates, permits, consents, orders, approvals and
other authorizations necessary to own, lease and operate its respective
properties and to conduct their respective businesses as currently owned,
leased, operated and conducted ("PERMITS"), except such as, individually or in
the aggregate, could not reasonably be expected to have a material adverse
effect on the condition (financial or otherwise), prospects, earnings, business
or properties of SPCC-Peru Branch. SPCC-Peru Branch has fulfilled and performed
all its respective obligations with respect to such Permits, and has not
received any notice of proceedings relating to the revocation or modification of
any such Permit that, if determined adversely thereto, would individually or in
the aggregate have a material adverse effect on the condition (financial or
otherwise), prospects, earnings, business or properties of SPCC-Peru Branch.

5. To our knowledge, there is no pending or threatened action, investigation,
suit or proceeding by or before any Peruvian court or governmental agency,
authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property that, if determined adversely thereto,
would individually or in the aggregate have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business or properties
of the SPCC-Peru Branch, except as set forth in or contemplated by the Final
Prospectus (exclusive of any supplement thereto); and the statements included or
incorporated by reference in the Final Prospectus under the headings "Risk
Factors--Risks Associated with Doing Business in Peru and Mexico--There is
uncertainty as to the termination and renewal of our mining concessions," "Risk
Factors--Risks Associated with Doing Business in Peru and Mexico--Peruvian
economic and political conditions may have an adverse impact on our business,"
"Exchange Rates--Exchange Rates in Peru," "Business--Mining Rights and
Concessions-Peru", "Business--Environmental and Related Matters--Peru" and
"Business--Legal Proceedings," insofar as such statements purport to summarize
or relate to legal proceedings in Peru or provisions of Peruvian laws or
regulations, are accurate and fair summaries of such laws or regulations;

6. We have no reason to believe that, solely with respect SPCC-Peru Branch, on
the Effective Date or the date the Registration Statement was last deemed
amended the Registration Statement contained any untrue statement of a material
fact or omitted to state any material fact required to be stated therein or
necessary to make the statements therein not misleading or that the Final
Prospectus as of its date and on the Closing Date included or includes any
untrue statement of a material fact or omitted or omits to state a material fact
necessary to make the statements therein, in the light of the circumstances

<PAGE>

                                                                               4

under which they were made, not misleading (in each case, other than the
financial statements and other financial and statistical information contained
therein, to which we express no opinion).

7. No consent, approval, authorization, filing, order, registration or
qualification of or with any Peruvian court or governmental agency or body, or
any Peruvian self-regulating organization or exchange by or in respect of the
Company or SPCC-Peru Branch or any subsidiary of the Company or any of the
Underwriters (or any agent thereof), is required in connection with the
transactions contemplated in the Underwriting Agreement (including, without
limitation, the Peru offering), except as have been obtained, all of which are
in full force and effect;

8. SPCC-Peru Branch(a) is in compliance with any and all applicable Peruvian
laws, regulations or other governmental requirements relating to the protection
of human health, safety or the environment or relating to hazardous or toxic
substances or wastes, pollutants or contaminants ("PERUVIAN ENVIRONMENTAL
LAWS"), (b) have received and are in compliance with all permits, licenses or
other approvals required of them under Peruvian Environmental Laws to conduct
their respective businesses ("PERUVIAN ENVIRONMENTAL PERMITS") and (c) have not
received notice of any actual or potential liability under any Peruvian
Environmental Law, except where such non-compliance, failure to receive or
comply with Peruvian Environmental Permits or actual or potential liability
would not, individually or in the aggregate, have a material adverse effect on
the condition (financial or otherwise), prospects, earnings, business or
properties of SPCC-Peru Branch, whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated by the Final
Prospectus (exclusive of any supplement thereto).

9. SPCC-Peru Branch is not, or with the giving of notice or lapse of time or
both would be, in violation of or in default under (a) its registration as a
foreign branch of the Company, or (b) any indenture, contract, lease, mortgage,
deed of trust, note agreement, loan agreement or other agreement, obligation,
condition, covenant or instrument to which SPCC-Peru Branch is a party or bound
or to which any of its respective properties is subject.

10. No stamp or other transfer taxes or duties and no capital gains, income,
stock exchange, value-added, withholding or other taxes are payable in Peru or
any political subdivision thereof or any authority having power to tax, by the
Company or the Selling Stockholders, in connection with the execution or
delivery of the Underwriting Agreement by the Company or the sale or delivery of
the Securities by the Selling Stockholders to the Underwriters or the initial
resales thereof by the Underwriters in the manner contemplated by the
Underwriting Agreement and the Final Prospectus; provided that (i) the transfer
of the Securities is carried out at the trading floor ("rueda de bolsa") of the
Lima Stock Exchange; and (ii) no sum of money will be transferred from and/or
deposited in an account held at a Peruvian banks, in which case the Impuesto a
las Transacciones Financieras (tax upon financial transactions) would be
applicable.

<PAGE>

                                                                               5

11. Neither the execution and delivery of the Underwriting Agreement nor the
sale of the Securities nor the consummation of any other of the transactions
therein contemplated nor the fulfillment of the terms thereof will conflict
with, result in a breach or violation of, constitute a default under, or result
in the imposition of any lien, charge or encumbrance upon any property or assets
of the Company or its subsidiaries pursuant to (a) the registration of SPCC-Peru
Branch as a foreign branch of the Company (b) the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan agreement or
other agreement, obligation, condition, covenant or instrument to which
SPCC-Peru Branch is a party or bound or to which any of its respective
properties is subject, or (c) any statute, law, rule, regulation or decree
applicable to SPCC-Peru Branch of any Peruvian court, regulatory body,
administrative agency, governmental body or other Peruvian authority having
jurisdiction over SPCC-Peru Branch or any of its respective properties.

            We are licensed to practice law in Peru, and we do not hold
ourselves out as being conversant with, and express no opinion as to, the laws
of any jurisdiction other than those of Peru.

            The opinions expressed herein are solely for your benefit and may
not be relied upon in any manner or for any purpose by any other person without
our prior written consent, except that you may deliver this opinion letter to
any person that becomes your successor or assignee in accordance with the
provisions of the Underwriting Agreement.

                                                        Very truly yours,

                                                        PAYET/REY/CAUVI

<PAGE>

                                                                         ANNEX C

                     FORM OF ARMANDO ORTEGA G., ESQ. OPINION

                                                               ___________, 2005

Citigroup Global Markets Inc.
UBS Securities LLC
As Representatives of the several Underwriters

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York  10013

c/o UBS Securities LLC
299 Park Avenue
New York, New York  10171

     Re: Southern Peru Copper Corporation - Secondary Common Stock Offering

Ladies and Gentlemen:

I am acting in my capacity as General Counsel of Southern Peru Copper
Corporation, a Delaware corporation (the "Company"), in connection with the
offer and sale by certain selling stockholders of the Company (the "Selling
Stockholders"), and the purchase by you and the other several underwriters named
in Schedule II thereto (the "Underwriters"), of __________ shares (the "Shares")
of the Company's Common Stock, par value $0.01 per share (the "Common Stock")
pursuant to an Underwriting Agreement dated June__, 2005 (the "Underwriting
Agreement"), by and among the Company, the Selling Stockholders and you, as
Representatives of the several Underwriters. This opinion is being furnished to
you pursuant to Section 6 (d) of the Underwriting Agreement. The capitalized
terms used herein that are not defined herein shall have the respective meanings
set forth in the Underwriting Agreement.

In rendering the opinions set forth below, I have examined (i) a signed copy of
the Registration Statement on Form S-3, File No. 333-124439, filed by the
Company under the Securities Act of 1933, as amended (the "Securities Act"),
with the Securities and Exchange Commission (the "Commission") on April 28,
2005, as amended by Amendments No. 1 and No. 2 thereto, (ii) copies of the
prospectus related to the Shares in the form filed by the Company with the
Commission pursuant to Rule 424(b) under the Securities Act (the Registration
Statement, as amended through the date on which it became effective, including
the exhibits and schedules thereto, being herein referred to as the
"Registration Statement," and such prospectus in the form in which it was filed
with the Commission pursuant to Rule 424(b) under the Securities Act, being
herein referred to as the "Prospectus"), and (iii) signed copies of the
Underwriting Agreement.

<PAGE>

                                                                               2

I have also examined originals, or certified, conformed or reproduction copies,
of all records, agreements and documents as I have deemed relevant or necessary
as the basis for the opinions hereinafter expressed. I have also obtained such
additional information from the Company as I have deemed necessary for the
purpose of delivering this opinion.

In stating my opinion, I have assumed the genuineness of all signatures on
original or certified copies, the authenticity of documents submitted to me as
originals and the conformity to original or certified copies of all copies
submitted to me as certified or reproduction copies. I have also assumed, for
purposes of the opinions expressed herein, that each of the parties to the
Underwriting Agreement, other than the Company, has the requisite corporate
power and authority to enter into such agreement and perform its obligations
thereunder, and that such agreement has been duly authorized, executed and
delivered by each such party.

Based upon and subject to the foregoing and subject also to the comments and
qualifications set forth below, and having regard to legal considerations which
I deem relevant, I am of the opinion that:

      a) Each of Minera Mexico, S.A. de C.V. ("Minera Mexico") and its
subsidiaries listed on Schedule A (each a "Mexican Subsidiary" and collectively
the "Mexican Subsidiaries") has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the jurisdiction in which it
is chartered or organized, with full power and authority (corporate and other)
to own or lease, as the case may be, and to operate its properties and conduct
its business as described in the Prospectus, and is duly qualified to do
business as a foreign corporation and is in good standing under the laws of each
jurisdiction which requires such qualification;

      b) all the outstanding shares of capital stock of Minera Mexico and each
of the Mexican Subsidiaries have been duly and validly authorized and issued and
are fully paid and nonassessable, and, except as otherwise set forth in the
Prospectus, all outstanding shares of capital stock of Minera Mexico and the
Mexican Subsidiaries are owned by the Company either directly or through wholly
owned subsidiaries, free and clear of any perfected security interest and, to my
knowledge, after due inquiry, any other security interest, claim, lien or
encumbrance;

      c) the holders of outstanding shares of capital stock of the Company are
not entitled to preemptive or other rights to subscribe for the Common Stock;
except as set forth in the Prospectus, to my knowledge, no options, warrants or
other rights to purchase, agreements or other obligations to issue, or rights to
convert any obligations into or exchange any securities for, shares of capital
stock of or ownership interests in the Company are outstanding;

      d) Minera Mexico and the Mexican Subsidiaries have all public, regulatory
or governmental licenses, concessions, franchises, certificates, permits,
consents, orders, approvals and other authorizations necessary to own, lease and
operate their respective properties and to conduct their respective businesses
as currently owned, leased, operated

<PAGE>

                                                                               3

and conducted ("Permits"), except such as, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect, except as
set forth in or contemplated by the Final Prospectus (exclusive of any
supplement thereto). Minera Mexico and the Mexican Subsidiaries have fulfilled
and performed all of their respective obligations with respect to such Permits,
and none of Minera Mexico and the Mexican Subsidiaries has received any notice
of proceedings relating to the revocation or modification of any such Permit
that, if determined adversely thereto, would individually or in the aggregate
have a Material Adverse Effect;

      e) to my knowledge, there is no pending or threatened action,
investigation, suit or proceeding by or before any Mexican court or governmental
agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property that, if determined adversely thereto,
would individually or in the aggregate have a Material Adverse Effect, except as
set forth in or contemplated by the Final Prospectus (exclusive of any
supplement thereto);

      f) the statements included or incorporated by reference in the Final
Prospectus under the headings "Risk Factors--Risks Associated with Doing
Business in Peru and Mexico--There is uncertainty as to the termination and
renewal of our mining concessions," "Risk Factors--Risks Associated with Doing
Business in Peru and Mexico--Mexican economic and political conditions may have
an adverse impact on our business," "Exchange Rates--Exchange Rates in Mexico,"
"Business--Mining Rights and Concessions--Mexico", "Business--Environmental and
Related Matters--Mexico" and "Business--Legal Proceedings," insofar as such
statements purport to summarize or relate to legal proceedings in Mexico or
provisions of Mexican laws or regulations, are accurate and fair summaries of
such laws or regulations;

      g) no consent, approval, authorization, filing, order, registration or
qualification of or with any Mexican court or governmental agency or body, or
any Mexican self-regulating organization or exchange, is required in connection
with the transactions contemplated in the Underwriting Agreement, except as have
been obtained, all of which are in full force and effect;

      h) the Company and its subsidiaries (a) are in compliance with any and all
applicable Mexican laws, regulations or other governmental requirements relating
to the protection of human health, safety or the environment or relating to
hazardous or toxic substances or wastes, pollutants or contaminants ("Mexican
Environmental Laws"), (b) have received and are in compliance with all permits,
licenses or other approvals required of them under Mexican Environmental Laws to
conduct their respective businesses ("Mexican Environmental Permits") and (c)
have not received notice of any actual or potential liability under any Mexican
Environmental Law, except where such non-compliance, failure to receive or
comply with Mexican Environmental Permits or actual or potential liability would
not, individually or in the aggregate, have a Material Adverse Effect, except as
set forth in or contemplated by the Final Prospectus (exclusive of any
supplement thereto);

<PAGE>

                                                                               4

      i) no stamp or other transfer taxes or duties and no capital gains,
income, stock exchange, value-added, withholding or other taxes are payable in
Mexico or any political subdivision thereof or any authority having power to
tax, in connection with the execution or delivery of the Underwriting Agreement
by the Company or the sale or delivery of the Securities by the Selling
Stockholders to the Underwriters or the initial resales thereof by the
Underwriters in the manner contemplated by the Underwriting Agreement and the
Prospectus;

      j) to my knowledge, none of the Minera Mexico and the Mexican Subsidiaries
is, or with the giving of notice or lapse of time or both would be, in violation
of or in default under their respective acta constitutiva or estatutos sociales
or other constitutive documents;

      k) to my knowledge, none of the Company and the Mexican Subsidiaries is,
or with the giving of notice or lapse of time or both would be, in violation of
or in default under any indenture, contract, lease, mortgage, deed of trust,
note agreement, loan agreement or other agreement, obligation, condition,
covenant or instrument to which any of the Company or any of the Mexican
Subsidiaries is a party or bound or to which any of their respective properties
is subject, except as set forth in or contemplated by the Prospectus (exclusive
of any supplement thereto) and for any other immaterial violations or defaults;

      l) neither the execution and delivery of the Underwriting Agreement nor
the sale of the Securities nor the consummation of any other of the transactions
therein contemplated nor the fulfillment of the terms thereof will conflict
with, result in a breach or violation of, or constitute a default under, or
result in the imposition of any lien, charge or encumbrance upon any property or
assets of the Company or the subsidiaries pursuant to, (i) the charter or
by-laws of the Minera Mexico or the Mexican Subsidiaries, (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or instrument to
which the Company or its subsidiaries is a party or bound or to which its or
their respective properties is subject, or (iii) any statute, law, rule,
regulation, judgment, order or decree applicable to the Company or its
subsidiaries of any court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over the Company or its
subsidiaries or any of its or their respective properties; and

      m) to my knowledge, no holders of securities of the Company have rights to
the registration of such securities under the Registration Statement that have
not been waived, other than the Selling Stockholders in respect of the
Securities.

I have acted as counsel to the Company in connection with the preparation of the
Registration Statement and the Prospectus, and based on the foregoing, I have no
reason to believe that as of its effective date, the Registration Statement
(including the Incorporated Documents, except to the extent statements contained
in the Incorporated Documents have been modified or superseded by statements
contained in the Prospectus) other than the financial statements and other
financial or accounting data included therein

<PAGE>

                                                                               5

or omitted therefrom, as to which I express no belief and make no statement,
contained an untrue statement of a material fact or omitted to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, or the Prospectus (other than the financial statements
and other financial or accounting data included therein or omitted therefrom, as
to which I express no belief and make no statement), as of its date and as of
the date hereof, contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

I am licensed to practice law in Mexico and I do not hold myself out as being
conversant with, and express not opinion as to, the laws of any jurisdiction
other than those of Mexico.

The opinions expressed herein are solely for your benefit and may not be relied
upon in any manner or for any person by any other person without my prior
written consent, except that this opinion letter may be relied upon by Milbank,
Tweed, Hadley & McCloy LLP in rendering its legal opinion in connection with the
closing under the Underwriting Agreement occurring today. I disclaim any
obligation to update anything herein for events occurring after the date hereof.

                                Very truly yours,

                                Armando Ortega,
                                General Counsel for the Company

<PAGE>

                                                                       ANNEX D-1

              FORM OF CLEARY GOTTLIEB STEEN & HAMILTON LLP OPINION

                                                                 June [__], 2005

CITIGROUP GLOBAL MARKETS INC.
UBS SECURITIES LLC
As Representatives of the several Underwriters,

c/o UBS Securities LLC
299 Park Avenue
New York, New York  10171

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York  10013

Ladies and Gentlemen:

            We have acted as special United States counsel to Cerro Trading
Company, Inc., a Delaware corporation ("Cerro") and SPC Investors, L.L.C., a
Delaware limited liability company ("SPC" and, together with Cerro, the "Selling
Stockholders"), in connection with the offering by the Selling Stockholders
pursuant to a registration statement on Form S-3 (File No. 333-124439) of
22,551,884 shares of common stock, par value $0.01 per share (the "Securities"),
of Southern Peru Copper Corporation, a Delaware corporation (the "Company").
Such registration statement, as amended when it became effective, including the
information deemed to be a part thereof as of such time pursuant to Rule 430A
under the Securities Act of 1933, as amended (the "Securities Act"), but
excluding the documents incorporated by reference therein, is herein called the
"Registration Statement," and the related prospectus, as first filed with the
Securities and Exchange Commission pursuant to Rule 424(b)(__) under the
Securities Act, but excluding the documents incorporated by reference therein,
is herein called the "Prospectus." [Sequence and types of filing TBD]. This
opinion letter is furnished pursuant to Section 6(e) of the underwriting
agreement dated June 9, 2005 (the "Underwriting Agreement") among the Company,
the Selling Stockholders, Phelps Dodge Overseas Capital Corporation, Climax
Molybdenum BV and the several underwriters named in Schedule I thereto (the
"Underwriters").

            In arriving at the opinions expressed below, we have reviewed the
following documents:

            (a)   an executed copy of the Underwriting Agreement;

            (b)   the Registration Statement and the documents incorporated by
                  reference therein;

            (c)   the Prospectus and the documents incorporated by reference
                  therein; and

<PAGE>

                                                                               2

            (d)   the documents delivered to you by the Selling Stockholders at
                  the closing pursuant to the Underwriting Agreement.

            In addition, we have reviewed the originals or copies certified or
otherwise identified to our satisfaction of all such corporate records of the
Selling Stockholders and such other instruments and other certificates of public
officials, officers and representatives of the Selling Stockholders and such
other persons, and we have made such investigations of law, as we have deemed
appropriate as a basis for the opinions expressed below.

            In rendering the opinions expressed below, we have assumed the
authenticity of all documents submitted to us as originals and the conformity to
the originals of all documents submitted to us as copies. In addition, we have
assumed and have not verified the accuracy as to factual matters of each
document we have reviewed (including, without limitation, the accuracy of the
representations and warranties of the Selling Stockholders in the Underwriting
Agreement).

            Based on the foregoing, and subject to the further assumptions and
qualifications set forth below, it is our opinion that:

            1. The Underwriting Agreement has been duly executed and delivered
by the Selling Stockholders.

            2. The sale of the Securities to the Underwriters pursuant to the
Underwriting Agreement does not, and the performance by the Selling Stockholders
of their respective obligations in the Underwriting Agreement will not, (a)
require any consent, approval, authorization, registration or qualification of
or with any governmental authority of the United States or the State of New York
that in our experience normally would be applicable to general business entities
with respect to such sale or performance, except such as have been obtained or
effected under the Securities Act and the Securities Exchange Act of 1934, as
amended (but we express no opinion relating to any state securities or Blue Sky
laws) or (b) result in a violation of any United States federal or New York
State law or published regulation that in our experience normally would be
applicable to general business entities with respect to such sale or performance
(but we express no opinion relating to the United States federal securities laws
or any state securities or Blue Sky laws).

            3. Assuming that (a) The Depository Trust Company ("DTC") is a
"clearing corporation" as defined in Section 8-102(a)(5) of the Uniform
Commercial Code as in effect in the State of New York (the "UCC") and (b) each
Underwriter acquires its interest in the Securities it has purchased without
notice of any adverse claim (within the meaning of Section 8-105 of the UCC),
each Underwriter that has purchased Securities from the Selling Stockholders
delivered on the date hereof to DTC, made payment therefor pursuant to the
Underwriting Agreement and has had such Securities credited to the securities
account of such Underwriter maintained with DTC, then such Underwriter will have
a securities entitlement (as defined in Section 8-102(a)(17) of the

<PAGE>

                                                                               3

UCC) to such Securities, and no action based on an adverse claim may be asserted
against such Underwriter with respect to such security entitlement.

            The foregoing opinions are limited to the federal law of the United
States of America and the law of the State of New York.

            We are furnishing this opinion letter to you, as Representatives of
the Underwriters, solely for the benefit of the Underwriters in their capacity
as such in connection with the offering of the Securities. This opinion letter
is not to be relied on by or furnished to any other person or used, circulated,
quoted or otherwise referred to for any other purpose. We assume no obligation
to advise you or any other person, or to make any investigations, as to any
legal developments or factual matters arising subsequent to the date hereof that
might affect the opinions expressed herein.

                                           Very truly yours,

                                           CLEARY GOTTLIEB STEEN & HAMILTON LLP

                                           By___________________________________

<PAGE>

                                                                       ANNEX D-2

                       FORM OF ADAM J. GRAIS, ESQ. OPINION

                               ADAM J. GRAIS, ESQ.
                                 ATTORNEY AT LAW
                          71 S.WACKER DRIVE, SUITE 4600
                                CHICAGO, IL 60606

                                                                   June __, 2005

CITIGROUP GLOBAL MARKETS INC.
UBS SECURITIES LLC
As representatives of the several Underwriters,

c/o UBS Securities LLC
299 Park Avenue
New York, New York  10171

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York  10013

Ladies and Gentlemen:

      I have acted as counsel to SPC Investors, L.L.C., a Delaware limited
liability company ("SPC") in connection with the offering by SPC pursuant to a
registration statement on Form S-3 (File No. 333-124439) of 22,551,884 shares of
common stock, par value $0.01 per share (the "Securities"), of Southern Peru
Copper Corporation, a Delaware corporation (the "Company). This opinion letter
is furnished pursuant to Section 6(e) of the underwriting agreement dated June
9, 2005 (the "Underwriting Agreement") among the Company, the Selling
Stockholders identified therein and the several underwriters named in Schedule I
thereto (the "Underwriters").

      In arriving at the opinions expressed below, I have reviewed the following
documents:

      (a)   an executed copy of the Underwriting Agreement;

      (b)   the Certificate of Formation and Operating Agreement of SPC; and

      (c)   the documents delivered to you by SPC at the closing pursuant to the
            Underwriting Agreement.

      In addition, I have reviewed the originals or copies of all such records
of SPC and such other instruments and other certificates of public officials,
officers and representatives of SPC

<PAGE>

                                                                               2

and such other persons, and I have made such investigations of law, as I have
deemed appropriate as a basis for the opinions expressed below.

      Based on the foregoing, and subject to the further assumptions and
qualifications set forth below, it is my opinion that:

      1.    The execution and delivery of the Underwriting Agreement have been
            duly authorized by all necessary corporate action of SPC and SPC has
            full legal right and authority to sell, transfer and deliver in the
            manner provided in the Underwriting Agreement the Securities being
            sold by it thereunder.

      2.    The execution and delivery of the Underwriting Agreement and the
            sale of the Securities to the Underwriters pursuant to the
            Underwriting Agreement do not, and the performance by SPC of its
            obligations in the Underwriting Agreement will not, result in a
            breach or violation of any of the terms and provisions of, or
            constitute a default under, (a) the Certificate of Formation or
            Operating Agreement of SPC, (b) the terms of any indenture or other
            agreement or instrument known to me to which SPC is a party or
            bound, or (c) any judgment, order or decree known to me to be
            applicable to SPC of any court, regulatory body, administrative
            agency, governmental body or arbitrator having jurisdiction over
            SPC.

      As I am a member of the Bar of the State of Illinois only and am therefore
competent to opine only on the laws of that State and of the United States, the
foregoing opinions are limited to the federal law of the United States of
America and the law of the State of Illinois. Nonetheless, I have experience
with, and for the purposes hereof feel comfortable giving my views under, the
General Corporation Law of the State of Delaware to the extent relevant to any
of the opinions expressed herein.

      I am furnishing this opinion letter to you, as Representatives of the
Underwriters, solely for the benefit of the Underwriters in their capacity as
such in connection with the offering of the Securities. This opinion letter is
not to be relied on by or furnished to any other person or used, circulated,
quoted or otherwise referred to for any other purpose. I assume no obligation to
advise you or any other person, or to make any investigations, as to any legal
developments or factual matters arising subsequent to the date hereof that might
affect the opinions expressed herein.

                                                   Very truly yours,

                                                   Adam J. Grais

<PAGE>

                                                                       ANNEX D-3

                      FORM OF ROBERT W. WEBB, ESQ. OPINION

                           CERRO TRADING COMPANY, INC.
                           225 WEST WASHINGTON STREET
                                CHICAGO, IL 60606

                                                                   June __, 2005

CITIGROUP GLOBAL MARKETS INC.
UBS SECURITIES LLC
As representatives of the several Underwriters,

c/o UBS Securities LLC
299 Park Avenue
New York, New York  10171

c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York  10013

Ladies and Gentlemen:

      I have acted as counsel to Cerro Trading Company, Inc., a Delaware
corporation ("Cerro") in connection with the offering by Cerro pursuant to a
registration statement on Form S-3 (File No. 333-124439) of 22,551,884 shares of
common stock, par value $0.01 per share (the "Securities"), of Southern Peru
Copper Corporation, a Delaware corporation (the "Company"). This opinion letter
is furnished pursuant to Section 6(e) of the underwriting agreement dated June
9, 2005 (the "Underwriting Agreement") among the Company, the Selling
Stockholders identified therein and the several underwriters named in Schedule I
thereto (the "Underwriters").

      In arriving at the opinions expressed below, I have reviewed the following
documents:

      (a)   an executed copy of the Underwriting Agreement;

      (b)   the Articles of Incorporation and By-Laws of Cerro; and

      (c)   the documents delivered to you by Cerro at the closing pursuant to
            the Underwriting Agreement.

      In addition, I have reviewed the originals or copies of all such records
of Cerro and such other instruments and other certificates of public officials,
officers and representatives of Cerro and such other persons, and I have made
such investigations of law, as I have deemed appropriate as a basis for the
opinions expressed below.

<PAGE>

                                                                               2

      Based on the foregoing, and subject to the further assumptions and
qualifications set forth below, it is my opinion that:

      1.    The execution and delivery of the Underwriting Agreement have been
            duly authorized by all necessary corporate action of Cerro and Cerro
            has full legal right and authority to sell, transfer and deliver in
            the manner provided in the Underwriting Agreement the Securities
            being sold by it thereunder.

      2.    The execution and delivery of the Underwriting Agreement and the
            sale of the Securities to the Underwriters pursuant to the
            Underwriting Agreement do not, and the performance by Cerro of its
            obligations in the Underwriting Agreement will not, result in a
            breach or violation of any of the terms and provisions of, or
            constitute a default under, (a) the Articles of Incorporation or
            By-Laws of Cerro, (b) the terms of any indenture or other agreement
            or instrument known to me to which Cerro is a party or bound, or (c)
            any judgment, order or decree known to me to be applicable to Cerro
            of any court, regulatory body, administrative agency, governmental
            body or arbitrator having jurisdiction over Cerro.

      As I am a member of the Bar of the State of Illinois only and am therefore
competent to opine only on the laws of that State and of the United States, the
foregoing opinions are limited to the federal law of the United States of
America and the law of the State of Illinois. Nonetheless, I have experience
with, and for the purposes hereof feel comfortable giving my views under, the
General Corporation Law of the State of Delaware to the extent relevant to any
of the opinions expressed herein.

      I am furnishing this opinion letter to you, as Representatives of the
Underwriters, solely for the benefit of the Underwriters in their capacity as
such in connection with the offering of the Securities. This opinion letter is
not to be relied on by or furnished to any other person or used, circulated,
quoted or otherwise referred to for any other purpose. I assume no obligation to
advise you or any other person, or to make any investigations, as to any legal
developments or factual matters arising subsequent to the date hereof that might
affect the opinions expressed herein.

                                         Very truly yours,

                                         Robert W. Webb
                                         General Counsel & Secretary

<PAGE>

                                                                       ANNEX E-1

                    FORM OF DEBEVOISE & PLIMPTON LLP OPINION

[Date]

[Underwriters]

                        Southern Peru Copper Corporation

Ladies and Gentlemen:

We have acted as New York special counsel to Phelps Dodge Overseas Capital
Corporation, a Delaware corporation ("PDOCC"), and Climax Molybdenum BV, a Dutch
corporation ("Climax" and, together with PDOCC, the "PD Entities") in connection
with the sale by PDOCC on this day of - shares, and the sale by Climax on this
day of - shares (collectively, the "Shares") of the Common Stock, $.01 par value
(the "Common Stock"), of Southern Peru Copper Corporation, a Delaware
corporation (the "Company"), to the several Underwriters (the "Underwriters")
named in Schedule I to the Underwriting Agreement, dated - (the "Underwriting
Agreement"), between the Company, the stockholders of the Company named in
Schedule II to the Underwriting Agreement (the "Selling Stockholders") and you,
as Representatives of the several Underwriters and the preparation of the
Underwriting Agreement. All other capitalized terms used herein without
definition have the respective meanings specified in the Underwriting Agreement.
We are delivering this letter to you pursuant to Section 6(f) of the
Underwriting Agreement.

In connection with this opinion, we have examined originals or certified,
conformed or reproduction copies of such agreements, instruments, documents and
records of the PD Entities, such certificates of public officials, and such
other documents, and have made such investigations of law, as we have deemed
necessary or appropriate for the purposes of the opinions expressed below. In
all such examinations, we have assumed the legal capacity of all natural persons
executing documents, the genuineness of all signatures on original or certified
copies, the authenticity of all original or certified copies and the conformity
to original or certified documents of all copies submitted to us as conformed or
reproduction copies. For the purposes of the opinions expressed below, we have
relied as to factual matters upon, and assume the accuracy of, the statements
made in the certificates of officers of the PD Entities delivered to us, the
representations and warranties of the parties to the Underwriting Agreement that
are contained in or made pursuant to the Underwriting Agreement and certificates
and other statements or information of or from public officials and officers and
representatives of the Company, its subsidiaries and others.

We have also assumed that: (i) Climax has duly authorized and has the power and
authority to enter into and perform its obligations under the Underwriting
Agreement; (ii) Climax has duly executed and delivered the Underwriting
Agreement; and (iii) each of the parties to the Underwriting Agreement, other
than the PD Entities, have performed or complied with their covenants and
agreements contained therein.

<PAGE>

                                                                               2

Based on the foregoing, and subject to the limitations, qualifications and
assumptions set forth herein, we are of the opinion that:

      1. The Underwriting Agreement has been duly authorized, executed and
      delivered by PDOCC, and PDOCC has corporate power and authority to sell,
      transfer and deliver in the manner provided in the Underwriting Agreement
      the Shares being sold by it thereunder.

      2. The execution, delivery and performance by each PD Entity of the
      Underwriting Agreement does not, and the sale of the applicable Shares by
      each PD Entity pursuant to the Underwriting Agreement will not, to our
      knowledge, violate the General Corporation Law of the State of Delaware,
      or any existing United States Federal or New York State statute, except as
      would not reasonably be expected to have a material adverse effect on the
      business, financial position or results of operations of either PD Entity
      or the consummation of the sale of the applicable Shares by either PD
      Entity pursuant to the Underwriting Agreement.

      3. No consent, approval, authorization, order, registration or
      qualification of or with any United States Federal or New York court or
      governmental agency or body is required to be made or obtained by either
      PD Entity for the execution, delivery and performance by such Entity of
      the Underwriting Agreement and for the sale of the applicable Shares by
      such Entity to the Underwriters as contemplated by the Underwriting
      Agreement, except such as have been obtained under the Act, the Securities
      Exchange Act of 1934, as amended, and such as may be required under state
      securities or blue sky laws or by the rules and regulations of the NASD in
      connection with the purchase and distribution of the Shares by the
      Underwriters.

      4. Assuming that each Underwriter acquires its interest in the Shares it
      has purchased from the PD Entities without notice of any adverse claim
      (within the meaning of Section 8-105 of the New York Uniform Commercial
      Code as in effect in the State of New York (the "UCC")), each Underwriter
      that has purchased such shares delivered on the Closing Date to The
      Depository Trust Company or other securities intermediary by making
      payment therefor as provided in the Underwriting Agreement and that has
      had such shares credited to the securities account or accounts of such
      Underwriters maintained with The Depository Trust Company or such other
      securities intermediary will have acquired a security entitlement (within
      the meaning of Section 8-102(a)(17) of the UCC) to such shares purchased
      by such Underwriter, and no action based on an adverse claim (within the
      meaning of Section 8-105 of the UCC) may be asserted against such
      Underwriter with respect to such security entitlement.

The opinions expressed in paragraphs 1 and 2 above are limited to the Federal
laws of the United States, the laws of the State of New York and the General
Corporation Law of the State of Delaware, as currently in effect, and the
opinions expressed in paragraphs 3 and 4 above are limited to the Federal laws
of the United States and the laws of the State of New York, as currently in
effect.

                                     * * * *

<PAGE>

                                                                               3

This letter is solely for your and the Underwriters' benefit and may not be
relied upon in any manner or for any purpose by any other person and may not be
quoted or disclosed in whole or in part without our prior written consent. We
assume no obligation to supplement this letter if any applicable laws change
after the date hereof or if we become aware of any facts that might change the
opinions or beliefs expressed herein after the date hereof.

                                Very truly yours,

<PAGE>

                                                                       ANNEX E-2

                       FORM OF LOYENS & LOEFF N.V. OPINION

To:

Each of the parties listed
on Schedule I attached hereto

                        SOUTHERN PERU COPPER CORPORATION

Privileged
London, [-] 2005

Ladies and Gentlemen,

You have requested us, the undersigned, as special counsel on certain matters of
Dutch law to Climax Molybdenum B.V., a private limited liability company,
incorporated under the laws of the Netherlands (the "COMPANY") to render an
opinion in connection with that certain underwriting agreement by and among the
Company, Southern Peru Copper Corporation, a Delaware corporation, organised
under the laws of Delaware, United States of America, Cerro Trading Company,
Inc., a corporation organised under the laws of [-], Phelps Dodge
Corporation, a corporation organised under the laws of [-], Citigroup
Global Markets Inc., a corporation organised under the laws of [-], and UBS
Securities LLC, a corporation organised under the laws of [-], dated as of
[-] (the "AGREEMENT").

Capitalised terms used herein which are not otherwise defined herein are used as
defined in the Agreement. Headings used in this opinion are for ease of
reference only and shall not affect the interpretation hereof.

In rendering this opinion, we have examined and relied upon a
[facsimile][electronically transmitted][original] copy of an executed copy of
the Agreement and upon the following documents:

(1)   a facsimile copy of an excerpt dated [-], 2005 of the registration of the
      Company in the trade register of the Chamber of Commerce of Rotterdam, the
      Netherlands (the "TRADE REGISTER") (the "EXCERPT");

(2)   a facsimile copy of the articles of association (statuten) of the Company,
      as they read as per the date of amendment of May 12, 1998 (the
      "ARTICLES"); and

<PAGE>

                                                                               2

(3)    a copy of the resolution of the board of managing directors of the
       Company, dated [-] 2005, resolving to enter into and approving, the
       execution of and the performance of the obligations under the Agreement
       (the "BOARD RESOLUTION").

For the purpose of the opinions expressed herein, we have assumed:

(i)    the genuineness of all signatures;

(ii)   the authenticity of all documents submitted to us as originals;

(iii)  the conformity to the originals of documents submitted to us as copies;

(iv)   that the information recorded in the Excerpt is true, accurate and
       complete the date hereof [and on the date of the Board Resolution]
       (although not constituting conclusive evidence thereof our assumption is
       supported by information obtained by telephone today from the Trade
       Register confirming that no changes were registered after the date of the
       Excerpt);

(v)    that the Company has been duly incorporated as a private limited
       liability company (besloten vennootschap met beperkte aansprakelijkheid)
       under the laws of the Netherlands;

(vi)   that the Company has not been dissolved (ontbonden), merged (gefuseerd),
       split up (gesplitst), granted a suspension of payments (surseance van
       betaling verleend), or declared bankrupt (failliet verklaard) or
       subjected to any other insolvency proceedings listed in Annex A or
       winding up proceedings listed in Annex B of the 29 May 2000 Council
       Regulation (EC) No. 1346/2000 on Insolvency Proceedings (the "INSOLVENCY
       REGULATION") (although not constituting conclusive evidence thereof, our
       assumption is supported by information obtained by telephone today from
       the bankruptcy clerk's office (faillissementsgriffie) of the court in
       Rotterdam, the Netherlands);

(vii)  that the Articles are the articles of association (statuten) of the
       Company in force on the date hereof [and on the date of the Board
       Resolution] (although not constituting conclusive evidence thereof, this
       assumption is supported by the contents of the Excerpt);

(viii) that the Board Resolution (a) correctly reflects the resolutions made by
       the management board of the Company in respect of the transaction(s)
       contemplated by the Agreement, (b) has been made with due observance of
       the Articles, and (c) has not been and will not be amended, revoked, or
       declared null and void;

(ix)   that none of the members of the management board of the Company has a
       (potential) conflict of interest with the Company in connection with the
       Agreement or the transactions contemplated thereby, that would preclude
       any of them from validly representing the Company;

<PAGE>

                                                                               3

(x)    that the general meeting of shareholders of the Company has not subjected
       any resolutions of the management of the Company to its approval;

(xi)   that the Agreement has been signed on behalf of the Company by [-];

(xii)  that each party to the Agreement, other than the Company, is validly
       existing under the laws under which it is purported to have been
       incorporated;

(xiii) that (a) each party to the Agreement, other than the Company, has all
       requisite power (corporate and otherwise) to execute and deliver, and to
       perform its obligations under the Agreement, and (b) the Agreement has
       been duly authorised, executed, and delivered by or on behalf of the
       parties thereto other than the Company;

(xiv)  that all documents, other than the Agreement, relating to the present
       transaction, constitute, and will continue to constitute, the legal,
       valid, and binding obligations of the parties thereto, enforceable
       against those parties in accordance with their terms and that such
       documents will not affect the validity of the opinions given herein;

(xv)   that the entering into the Agreement by the Company is in furtherance of
       its corporate objects as meant in section 2:7 of the Dutch Civil Code;

(xvi)  that, under the laws by which it is expressed to be governed and under
       the laws of any other jurisdiction (other than the laws of the
       Netherlands), the Agreement constitutes the legal, valid and binding
       obligations of the parties thereto, and is enforceable against those
       parties in accordance with its terms; and

(xvii) that the shares in the capital of Southern Peru Copper Corporation will
       not be offered or sold, directly or indirectly, in the Netherlands to
       persons other than to individuals or legal entities, that trade or invest
       in securities in the conduct of or profession or trade and that a selling
       restriction to that effect has been included in the offering
       document/pricing supplement and advertisements and documents in which the
       offer is announced.

Based upon the foregoing and subject to any factual matters or documents not
disclosed to us in the course of our investigation, and subject to the
qualifications and limitations stated hereafter, we are of the opinion that on
the date hereof:

CORPORATE POWER

A.    The Company has the corporate power to execute and deliver the Agreement
      and to perform its obligations thereunder.

DULY AUTHORISED, EXECUTED AND DELIVERED

B.    The Agreement has been duly authorised by all requisite corporate action
      on the part of, and has been duly executed and delivered by, the Company.

<PAGE>

                                                                               4

CHOICE OF LAW

C.    The choice of the laws of the State of New York as the law governing the
      Agreement is valid and binding under the laws of the Netherlands, except
      (i) to the extent that any term of the Agreement or any provision of the
      laws of the State of New York law applicable to the Agreement is
      manifestly incompatible with the public policy (ordre public) of the
      Netherlands and (ii) that a Dutch court may give effect to mandatory rules
      of the laws of the Netherlands or of another jurisdiction, with which the
      situation has a close connection, if and insofar as, under the laws of the
      Netherlands or that other jurisdiction, those rules must be applied
      irrespective of the chosen law.

NON-CONFLICTS WITH LAW

D.    The execution and delivery by the Agreement and the performance by the
      Company of its obligations thereunder do not conflict with or result in a
      violation of the Articles or the provisions of any published law, rule or
      regulation of general application of the Netherlands.

CONSENTS

E.    Save for the approvals which have been obtained, no approval,
      authorisation or other action by, or filing with, any Dutch governmental,
      regulatory or supervisory authority or body, is required in connection
      with the execution by the Company of the Agreement and the performance by
      the Company of its obligations thereunder, except that there may be
      reporting requirements to the Dutch Central Bank ("De Nederlandsche Bank")
      on (inter alia) cross border payments pursuant to the Regulation of 4
      February 2003 under the Act on Financial Foreign Relations 1994 (Wet
      financiele betrekkingen buitenland 1994). Failure to observe these filing,
      disclosure or notification requirements does not render the Agreement
      void, nor does it affect the legality, validity or enforceability of the
      obligations of the Company under the Agreement.

This opinion is subject to the following qualifications:

a.    The opinions expressed herein may be affected or limited by the provisions
      of any applicable bankruptcy (faillissement), insolvency, fraudulent
      conveyance (actio pauliana), reorganisation, suspension of payments
      (surseance van betaling) and other laws of general application now or
      hereafter in effect, relating to or affecting the enforcement or
      protection of creditor's rights (including but not limited to the laws
      that apply pursuant to the Insolvency Regulation).

b.    The enforcement in the Netherlands of the Agreement will be subject to the
      rules of civil procedure as applied by Dutch courts. Specific performance
      may not always be available under Dutch law.

c.    If proceedings are instituted against the Company in the courts of the
      Netherlands in respect of any sum payable under the Agreement, the
      claimant has the option to request those courts to render judgment either
      in United States Dollars or in the lawful currency of the Netherlands. A
      final judgment in United States Dollars may be enforced in the Netherlands
      either in United States Dollars or, if enforcement purposes would so
      require, in the lawful currency of the Netherlands. In either case,

<PAGE>

                                                                               5

      the applicable rate of exchange would be such rate that procures that the
      amount in the lawful currency of the Netherlands is sufficient for the
      claimant to purchase, on the date of payment by the Company, forthwith the
      sum payable in United States Dollars.

d.    The Company may be appointed by the Dutch Central Bank (De Nederlandsche
      Bank) pursuant to the Regulation of 4 February 2003, issued by the Dutch
      Central Bank, implementing the reporting instructions under the Act on
      Financial Foreign Relations 1994 (Wet financiele betrekkingen buitenland
      1994), and if so appointed, such company has to file reports with the
      Dutch Central Bank for the benefit of the composition of the balance of
      payments for the Netherlands by the Dutch Central Bank.

e.    Any dealer, arranger, selling agent and/or other person providing services
      as security intermediary in or from the Netherlands must either be
      licensed or exempt under section 7 up to and including 10 of the Act on
      the Supervision of Securities Transactions 1995 (Wet toezicht
      effectenverkeer 1995)

f.    We express no opinion on any law other than the law of the Netherlands
      (unpublished case law not included) as it currently stands. We express no
      opinion on any laws of the European Communities (insofar as not
      implemented in the Netherlands in statutes or regulations of general
      application or unless it concerns EU Regulations (Verordeningen) in effect
      in the Netherlands on the date of the opinion). In this opinion letter we
      express no opinion on tax law, on the business merits of the transaction
      contemplated by the Agreement or on anti-trust law.

In this opinion letter Dutch legal concepts are sometimes expressed in English
terms and not in their original Dutch terms. The concepts concerned may not be
identical to the concepts described by the same English term as they exist under
the laws of other jurisdictions. This opinion letter may only be relied upon
under the express condition that any issue of interpretation or liability
arising thereunder will be governed by Dutch law and be brought exclusively
before the competent court in Rotterdam, the Netherlands.

This opinion letter is strictly limited to the matters stated herein and may not
be read as extending by implication to any matters not specifically referred to.
Nothing in this opinion should be taken as expressing an opinion in respect of
any representations or warranties, or other information, contained in any of the
above documents or any other document examined in connection with this opinion
except as expressly confirmed herein.

<PAGE>

                                                                               6

This opinion letter is addressed to you and may only be relied upon by you in
connection with the transactions to which the Agreement relate, and may not be
relied upon by any other person, firm, company, or institution without our prior
written consent.

Yours faithfully,
Loyens & Loeff N.V.

_______________________                         _____________________

<PAGE>

                                                                               7

                                   SCHEDULE I
                               OPINION ADDRESSEES

[Underwriters]

<PAGE>

                                                                       ANNEX E-3

                   FORM OF CATHERINE R. HARDWICK, ESQ. OPINION

                    [Letterhead of Phelps Dodge Corporation]

                                     June   , 2005

Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

UBS Securities LLC
299 Park Avenue
New York, New York 10171

Dear Ladies and Gentlemen:

I am the Assistant General Counsel and Secretary of Phelps Dodge Corporation, a
New York corporation ("Phelps Dodge"). In such capacity, I am familiar with the
legal affairs of Phelps Dodge Overseas Capital Corporation, a Delaware
corporation ("PDOCC"), and Climax Molybdenum BV, a Dutch corporation ("Climax"
and, together with PDOCC, the "PD Entities"), both of which are subsidiaries of
Phelps Dodge, including the sale by PDOCC on this day of - shares, and the sale
by Climax on this day of - shares (collectively, the "Shares") of the Common
Stock, $.01 par value (the "Common Stock"), of Southern Peru Copper Corporation,
a Delaware corporation (the "Company"), to the several Underwriters (the
"Underwriters") named in Schedule I to the Underwriting Agreement, dated - (the
"Underwriting Agreement"), between the Company, the stockholders of the Company
named in Schedule II to the Underwriting Agreement (the "Selling Stockholders")
and you, as Representatives of the several Underwriters. I have examined copies,
certified or otherwise identified to my satisfaction, of such documents,
certificates of public officials and other instruments as I have deemed
necessary or appropriate for purposes of this opinion. Capitalized terms used
herein without definition have the meanings specified in the Underwriting
Agreement.

Based upon the foregoing, but subject to the qualifications stated below, I am
of the opinion that, to the best of my knowledge, neither the execution and
delivery of the Underwriting Agreement nor the sale of the Shares being sold by
the PD Entities nor the consummation of any other of the transactions therein
contemplated by the PD Entities nor the fulfillment of the terms thereof by the
PD Entities will conflict with, result in a breach or violation of, or
constitute a default under any agreement or instrument known to me and to which
any of the PD Entities is a party or bound, or any judgment, order or decree
known by me to be applicable to the PD Entities of any

<PAGE>

                                                                               2

court, regulatory body, administrative agency, governmental body or arbitrator
having jurisdiction over the PD Entities.

I am delivering this opinion to you pursuant to Section 6(f) of the Underwriting
Agreement, and no persons other than the Underwriter are entitled to rely on
this opinion.

The opinions expressed herein are limited to the Federal laws of the United
States and the laws of the State of Arizona.

                                Very truly yours,<PAGE>

                                                                    EXHIBIT 10.1

                        NORTH POINTE HOLDINGS CORPORATION
                              EQUITY INCENTIVE PLAN

SECTION 1. PURPOSE

            The purpose of this North Pointe Holdings Corporation Equity
Incentive Plan ("Plan") is to promote the best interests of North Pointe
Holdings Corporation ( "Company") and its shareholders by providing key
employees of the Company and its Affiliates (as defined below) and members of
the Company's Board of Directors who are not employees of the Company or its
Affiliates with an opportunity to acquire a proprietary interest in the Company.
It is intended that the Plan will promote continuity of management and increased
incentive and personal interest in the welfare of the Company by those key
employees who are primarily responsible for shaping and carrying out the
long-range plans of the Company and securing its continued growth and financial
success, all of which benefits the shareholders. In addition, by encouraging
stock ownership by directors who are not employees of the Company or its
Affiliates, the Company seeks to attract and retain on its Board of Directors
persons of exceptional competence and to provide a further incentive to serve as
a director of the Company.

SECTION 2. DEFINITIONS

            As used in the Plan, the following terms shall have the respective
meanings set forth below:

            (a)   "Affiliate" shall mean any entity that, directly or through
one or more intermediaries, is Controlled by, Controls, or is under common
Control with, the Company.

            (b)   "Available Shares" shall mean that number of Shares with
respect to which Awards may be granted under the Plan.

            (c)   "Award" shall mean any Option, Stock Appreciation Right,
Restricted Stock or Performance Share granted under the Plan.

            (d)   "Award Agreement" shall mean any written agreement, contract,
or other instrument or document evidencing any Award granted under the Plan.

            (e)   "Board" shall mean the board of directors of the Company.

            (f)   "Change of Control" shall mean any of the following events:

                  (i)   The acquisition, other than from the Company, by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 40% or more of either:

                  (A)   The then outstanding shares of common stock of the
                        Company (the "Outstanding Company Common Stock") or

                  (B)   The combined voting power of the then outstanding
                        voting securities of the Company entitled to vote
                        generally in the election of directors (the
                        "Company Voting Securities");

                  provided, however, that any acquisition by an Excluded Person
shall not constitute a Change in Control of the Company. For purposes hereof, an
Excluded Person shall mean any of the following: (x) James G. Petcoff, Matthew
Petcoff or members of either of their immediate families; (y) the Company or any
of its subsidiaries, or any employee benefit plan (or related trust) sponsored
or maintained by the Company or any of its subsidiaries or; (z) any corporation
with respect to which, following such acquisition, more than 60% of,
respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Company Voting Securities immediately prior
to such acquisition in substantially the same proportion as their ownership,
immediately prior to such acquisition, of the Outstanding Company Common Stock
and Company Voting Securities, as the case may be; or

                  (ii) Individuals who, as of the day immediately following the
closing of the initial public offering of shares of the Company's common stock
(the "Post-Offering Date"), constitute the Board (the "Incumbent Board") cease
for any reason to constitute at least a majority of the Board, provided that any
individual becoming a director subsequent to the Post-Offering Date, whose
election or nomination for election by the Company's shareholders was approved
by a vote of at least a majority of the directors then comprising the Incumbent
Board, shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the Directors of the Company (as
such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act); or

                  (iii) Consummation of a reorganization, merger or
consolidation (a "Business Combination"), in each case, with respect to which
all or substantially all of the individuals and entities who were the respective
beneficial owners of the Outstanding Company Common Stock and Company Voting
Securities immediately prior to such Business Combination do not, following such
Business Combination, beneficially own, directly or indirectly, more than 60%
of, respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination in substantially the same proportion as
their ownership immediately prior to such Business Combination of the
Outstanding Company Common Stock and Company Voting Securities, as the case may
be; or

                  (iv) A complete liquidation or dissolution of the Company or
sale or other disposition of all or substantially all of the assets of the
Company other than to a corporation with respect to which, following such sale
or disposition, more than 60% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors is then owned
beneficially, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Company Voting Securities immediately prior
to such sale or disposition in substantially the same proportion as their
ownership of the Outstanding Company Common Stock and Company Voting Securities,
as the case may be, immediately prior to such sale or disposition.

            Notwithstanding the foregoing, the Committee may modify the
definition of a Change of Control in an Award Agreement to the extent necessary
for such Award to comply with the provisions of Code Section 409A.

            (g)   "Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time.

            (h)   "Committee" shall mean a committee of the Board that the Board
designates to administer the Plan and composed of not less than two directors,
each of whom is a "non-employee director for purposes of Section 16" within the
meaning of Rule 16b-3 and each of whom is an "outside director" within the
meaning of Code Section 162(m)(4)(C).

            (i)   "Control" shall mean: (A) for a corporation, ownership of more
than 50% of the combined voting power of all classes of stock entitled to vote;
and (B) for a partnership or

                                       1
<PAGE>

limited liability company, ownership of more than 50% of the profits or capital
interest of such a business entity.

            (j)   "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time.

            (k)   "Excluded Items" shall mean any items that the Committee
determines shall be excluded in fixing Performance Goals, such as any gains or
losses from discontinued operations, any extraordinary gains or losses and the
effects of accounting changes.

            (l)   "Fair Market Value" shall mean, per Share on a particular
date: (i) if the Shares are listed for trading on the New York Stock Exchange,
the last reported sales price on the date in question as reported in The Wall
Street Journal, or if no sales of Shares occur on the date in question, on the
last preceding date on which there was a sale on that exchange; (ii) if the
Shares are not listed or admitted to trading on the New York Stock Exchange, the
last reported sales price on the date in question on the principal national
securities exchange on which the Shares are listed or admitted to trading, or if
no sales of Shares occur on the date in question, on the last preceding date on
which there was a sale on that exchange; (iii) if the Shares are not listed or
admitted to trading on any national securities exchange, the last reported sales
price on the date in question in the over-the-counter market, as reported by the
National Association of Securities Dealers, Inc. Automated Quotations System
("NASDAQ") or such other system then in use, or if no sales of Shares occur on
the date in question, on the last preceding date on which there was a sale; (iv)
if on any such date the Shares are not quoted by any such organization, the last
sales price on the date in question as furnished by a professional market maker
making a market in the Shares selected by the Board for the date in question, or
if no sales of Shares occur on the date in question, on the last preceding date
on which there was a sale; or (v) if on any such date no market maker is making
a market in the Shares, the price as determined in good faith by the Committee.

            (m)   "Incentive Stock Option" shall mean an option granted under
Section 6(a) that is intended to meet the requirements of Code Section 422.

            (n)   "Key Employee" shall mean any officer or other key employee of
the Company or of any Affiliate who is responsible for or contributes to the
management, growth or profitability of the business of the Company or any
Affiliate as determined by the Committee, except that only Key Employees of the
Company or a subsidiary within the meaning of Code Section 424(f) may be granted
Incentive Stock Options.

            (o)   "Non-Employee Director" shall mean any member of the Company's
Board who is not an employee of the Company or of any Affiliate.

            (p)   "Non-Qualified Stock Option" shall mean an option granted
under Section 6(a) that is not intended to be an Incentive Stock Option.

            (q)   "Option" shall mean an Incentive Stock Option or a
Non-Qualified Stock Option.

            (r)   "Participating Key Employee" shall mean a Key Employee to whom
an Award is granted under the Plan.

                                       2
<PAGE>

            (s)   "Performance Goals" shall mean one or any combination of the
following (in all cases after excluding the impact of applicable Excluded
Items):

                  (i)   Return on equity for the Performance Period for the
      Company on a consolidated basis.

                  (ii)  Return on investment for the Performance Period (aa) for
      the Company on a consolidated basis, (bb) for any one or more Affiliates
      or divisions of the Company and/or (cc) for any other business unit or
      units of the Company as defined by the Committee at the time of selection.

                  (iii) Return on net assets for the Performance Period (aa) for
      the Company on a consolidated basis, (bb) for any one or more Affiliates
      or divisions of the Company and/or (cc) for any other business unit or
      units of the Company as defined by the Committee at the time of selection.

                  (iv)  Economic value added (as defined by the Committee at the
      time of selection) for the Performance Period (aa) for the Company on a
      consolidated basis, (bb) for any one or more Affiliates or divisions of
      the Company and/or (cc) for any other business unit or units of the
      Company as defined by the Committee at the time of selection.

                  (v)   Earnings from operations for the Performance Period (aa)
      for the Company on a consolidated basis, (bb) for any one or more
      Affiliates or divisions of the Company and/or (cc) for any other business
      unit or units of the Company as defined by the Committee at the time of
      selection.

                  (vi)  Pre-tax profits for the Performance Period (aa) for the
      Company on a consolidated basis, (bb) for any one or more Affiliates or
      divisions of the Company and/or (cc) for any other business unit or units
      of the Company as defined by the Committee at the time of selection.

                  (vii) Net earnings for the Performance Period (aa) for the
      Company on a consolidated basis, (bb) for any one or more Affiliates or
      divisions of the Company and/or (cc) for any other business unit or units
      of the Company as defined by the Committee at the time of selection.

                  (viii) Net earnings per Share for the Performance Period for
      the Company on a consolidated basis.

                  (ix)  Working capital as a percent of net sales for the
      Performance Period (aa) for the Company on a consolidated basis, (bb) for
      any one or more Affiliates or divisions of the Company and/or (cc) for any
      other business unit or units of the Company as defined by the Committee at
      the time of selection.

                  (x)   Net cash provided by operating activities for the
      Performance Period (aa) for the Company on a consolidated basis, (bb) for
      any one or more Affiliates or divisions of the Company and/or (cc) for any
      other business unit or units of the Company as defined by the Committee at
      the time of selection.

                                       3
<PAGE>

                  (xi)  Market price per Share for the Performance Period.

                  (xii) Total shareholder return for the Performance Period for
      the Company on a consolidated basis.

            (t)   "Performance Period" shall mean any period for which a
Performance Goal or Goals have been established.

            (u)   "Performance Share" shall mean any right granted under Section
6(e) that will be paid out as a Share (which, in specified circumstances, may be
a Share of Restricted Stock).

            (v)   "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, or
government or related political subdivision.

            (w)   "Released Securities" shall mean Shares of Restricted Stock
with respect to which all applicable restrictions have expired, lapsed, or been
waived.

            (x)   "Restricted Securities" shall mean Awards of Restricted Stock
or other Awards under which issued and outstanding Shares are held subject to
certain restrictions.

            (y)   "Restricted Stock" shall mean any Share granted under Section
6(c) or 6(d) or, in specified circumstances, a Share paid in connection with a
Performance Share under Section 6(e).

            (z)   "Rule 16b-3" shall mean Rule 16b-3 as promulgated by the SEC
under the Exchange Act.

            (aa)  "SEC" shall mean the United States Securities and Exchange
Commission or any successor agency.

            (bb)  "Shares" shall mean shares of common stock of the Company and
such other securities or property as may become subject to Awards pursuant to an
adjustment made under Section 4(e).

            (cc)  "Stock Appreciation Right" shall mean any right granted under
Section 6(b).

SECTION 3. ADMINISTRATION

      (a)   ADMINISTRATION BY THE COMMITTEE. The Committee shall administer the
Plan. If at any time the Committee shall not be in existence, the Committee's
functions as specified in the Plan shall be exercised by a committee consisting
of those members of the Board of Directors of the Company who qualify as
"non-employee directors for purposes of Section 16" under Rule 16b-3 and as
"outside directors" under Code Section 162(m)(4)(C).

      (b)   DELEGATION OF AUTHORITY. To the extent permitted by applicable law,
the Committee may delegate to one or more of the Company's executive officers
any of its authority

                                       4
<PAGE>

and responsibility with respect to the Plan, other than with respect to Persons
who are subject to Section 16 of the Exchange Act. To the extent that the
Committee has done so, all references to the Committee in this Plan shall
include this officer(s).

      (c)   AUTHORITY. Subject to the Plan's terms, the Committee's authority
includes the following:

      (i)   designate Participating Key Employees;

      (ii)  determine the type(s) of Awards to be granted to each Participating
Key Employee;

      (iii) determine the number of Shares to be covered by (or with respect to
which payments, rights, or other matters are to be calculated in connection
with) Awards granted to Participating Key Employees;

      (iv)  determine the terms of any Award granted to a Participating Key
Employee;

      (v)   determine whether, to what extent, and under what circumstances
Awards granted to Participating Key Employees may be settled or exercised in
cash, Shares, other securities, other Awards, or other property, and the method
or methods by which Awards may be settled, exercised, cancelled, forfeited, or
suspended;

      (vi)  determine whether, to what extent, and under what circumstances
cash, Shares, other Awards, and other amounts payable with respect to an Award
granted to Participating Key Employees under the Plan shall be deferred either
automatically or at the election of the holder thereof or of the Committee;

      (vii) interpret and administer the Plan and any instrument or agreement
relating to, or Award made under, the Plan (including any Award Agreement);

      (viii) establish, amend, suspend, or waive rules and regulations and
appoint such agents as it shall deem appropriate for proper Plan administration;
and

      (ix)  make any other determination and take any other action that the
Committee deems necessary or desirable for Plan administration.

Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations, and other decisions made under or with respect
to the Plan or any Award shall be within the sole discretion of the Committee,
may be made at any time, and shall be final, conclusive, and binding upon all
Persons, including the Company, any Affiliate, any Participating Key Employee,
any Non-Employee Director, any holder or beneficiary of any Award, any
shareholder, and any employee of the Company or of any Affiliate.

Notwithstanding the foregoing, Awards to Non-Employee Directors under the Plan
shall be automatic. The amount and terms of such Awards shall be determined as
provided in Section 6(d).

                                       5
<PAGE>

SECTION 4. AVAILABLE SHARES

      (a)   NUMBER OF SHARES AVAILABLE. The number of Shares with respect to
which Awards may be granted under the Plan shall be an amount equal to 10% of
the then-current Company Shares issued and outstanding. Notwithstanding the
foregoing, the Company may grant Incentive Stock Options for no more than
500,000 Shares. If, after the effective date of the Plan, any Shares covered by
an Award granted under the Plan, or to which any Award relates, are forfeited or
if an Award otherwise terminates, expires or is cancelled prior to the delivery
of all of the Shares or of other consideration issuable or payable pursuant to
such Award, then the number of Shares counted against the number of Shares in
question will once more be available for granting of additional Awards.

      (b)   LIMITATIONS ON AWARDS TO INDIVIDUAL PARTICIPANTS. During any one
calendar year, no Participating Key Employee shall be granted Options for more
than 200,000 Shares, Stock Appreciation Rights with respect to more than 200,000
Shares, more than 200,000 Shares of Restricted Stock and/or an Award for more
than 200,000 Performance Shares under the Plan. The Committee may adjust these
limitations as provided below. In all cases, determinations under this
Subsection shall be made in a manner that is consistent with the exemption for
performance-based compensation provided by Code Section 162(m).

      (c)   ACCOUNTING FOR AWARDS. The number of Shares covered by an Award, or
to which such Award relates, shall be counted on the date of grant of such Award
against the number of Shares available for granting Awards.

      (d)   SOURCES OF SHARES DELIVERABLE UNDER AWARDS. Shares delivered
pursuant to an Award shall consist of authorized and unissued Shares.

      (e)   ADJUSTMENTS. This Section's terms are subject to this Subsection's
terms as to adjustments. If the Committee determines that any dividend or other
distribution (whether in the form of cash, Shares, other securities, or other
property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase, or exchange
of Shares or other securities of the Company, issuance of warrants or other
rights to purchase Shares or other securities of the Company, or other similar
corporate transaction or event ("Adjustment Event") affects the Shares such that
the Committee determines that an adjustment in the Plan is appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or any Award, then the Committee
may, in any manner it deems equitable, adjust any or all of:

      (i)   the number and type of Available Shares,

      (ii)  the Share limits specified in Sections 4(a), 4(b), 6(c), 6(d) and
6(e),

      (iii) the number and type of Shares subject to outstanding Awards, and

      (iv)  the grant, purchase, or exercise price with respect to any Award.

                                       6
<PAGE>

If the Committee deems it appropriate, it may make provision for a cash payment
to the holder of an outstanding Award in lieu of any such adjustment. With
respect to Awards of Incentive Stock Options no such adjustment is authorized to
the extent that that authority would cause the Plan to violate Code Section
422(b). The number of Shares subject to any Award payable or denominated in
Shares shall always be a whole number. Notwithstanding the foregoing, Restricted
Stock subject to grant or previously granted but not yet vested to Non-Employee
Directors under Section 6(d) at the time of any Adjustment Event shall be
subject to only those adjustments necessary to maintain the relative
proportionate interest represented thereby immediately prior to the Adjustment
Event and to preserve, without exceeding, the value of the Restricted Stock.

SECTION 5. ELIGIBILITY

            Any Key Employee, including any executive officer or
employee-director of the Company or of any Affiliate, shall be eligible to be
designated a Participating Key Employee. All Non-Employee Directors shall
receive Awards of Restricted Stock as provided in Section 6(d).

SECTION 6. AWARDS

            (a)   OPTION AWARDS TO KEY EMPLOYEES. The Committee is authorized to
grant Options to Key Employees with the terms set forth below and with any
additional terms not inconsistent with this Plan's provisions as the Committee
shall determine. Non-Employee Directors are not eligible to be granted Options
pursuant to this Section 6(a).

                  (i)   EXERCISE PRICE. The exercise price per Share of an
      Option shall be determined by the Committee; provided, however, that (A)
      the exercise price shall not be less than 100% of the Fair Market Value of
      a Share on the date of grant of the Option and (B) the exercise price may
      vary during the term of the Option if the Committee determines that there
      should be adjustments to the exercise price relating to achievement of
      Performance Goals and/or to changes in an index or indices that the
      Committee determines is appropriate (but in no event may the exercise
      price per Share be less than the Fair Market Value of a Share as
      determined on the date of grant).

                  (ii)  OPTION TERM. The Committee will fix the term of each
      Option. No Option term shall exceed a period of ten years from the date of
      its grant.

                  (iii) EXERCISABILITY AND METHOD OF EXERCISE. The Committee
      will determine each Option's manner and time of exercise. The Committee
      also shall determine the method(s) by which, and the form(s) in which,
      payment of the exercise price with respect to any Option may be made or
      deemed to have been made, including cash, Shares, other securities, other
      Awards, or other property, or any combination, having a Fair Market Value
      on the exercise date equal to the relevant exercise price.

                  (iv)  INCENTIVE STOCK OPTIONS. The terms of any Incentive
      Stock Option granted under the Plan shall comply in all respects with the
      provisions of Code Section 422.

            (b)   STOCK APPRECIATION RIGHTS. The Committee is authorized to
grant Stock Appreciation Rights to Key Employees. Non-Employee Directors are not
eligible to be granted

                                       7
<PAGE>

Stock Appreciation Rights under the Plan. Subject to the Plan's terms and any
applicable Award Agreement, a Stock Appreciation Right granted under the Plan
shall confer on its holder a right to receive upon its exercise the excess of
(i) the Fair Market Value of one Share on the date of exercise over (ii) the
grant price of the Stock Appreciation Right as specified by the Committee, which
shall not be less than 100% of the Fair Market Value of one Share on the date of
grant of the Stock Appreciation Right. Subject to the Plan's terms the grant
price, term, methods of exercise, methods of settlement (including whether the
Participating Key Employee will be paid in cash, Shares, other securities, other
Awards, or other property, or any combination), and any other terms of any Stock
Appreciation Right shall be as determined by the Committee. In no event shall
the term of any Stock Appreciation Right exceed ten (10) years from the date of
grant. The Committee may impose those conditions or restrictions on the exercise
of any Stock Appreciation Right as it may deem appropriate.

            (c)   RESTRICTED STOCK AWARDS.

                  (i)   ISSUANCE. The Committee is authorized to grant Awards of
      Restricted Stock to Key Employees. The aggregate number of Shares of
      Restricted Stock granted under the Plan to all Participating Key Employees
      as a group shall not exceed 500,000. Non-Employee Directors are not
      eligible to be granted Restricted Stock under this Section.

                  (ii)  RESTRICTIONS. Shares of Restricted Stock granted to
      Participating Key Employees shall be subject to those restrictions as the
      Committee may impose (including any limitation on the right to vote a
      Share of Restricted Stock or the right to receive any dividend or other
      right or property), which restrictions may lapse separately or in
      combination at such time(s) (including upon the achievement of Performance
      Goals), in such installments or otherwise, as the Committee may deem
      appropriate. In addition, the Committee shall determine whether dividends
      paid with respect to an Award of Restricted Stock will be immediately paid
      or held in escrow or otherwise deferred and whether those dividends shall
      be subject to the same terms as the Award to which they relate.

                  (iii) REGISTRATION. Any Restricted Stock granted under the
      Plan to a Participating Key Employee may be evidenced in any manner that
      the Committee may deem appropriate, including book-entry registration or
      issuance of a stock certificate or certificates. The Restricted Stock may
      be held in escrow pending lapse of all restrictions. If any stock
      certificate is issued in respect of Shares of Restricted Stock granted
      under the Plan to a Participating Key Employee, the certificate shall be
      registered in the name of the Participating Key Employee and shall bear an
      appropriate legend (as determined by the Committee) referring to the
      terms, conditions, and restrictions applicable to such Restricted Stock.

                  (iv)  PAYMENT OF RESTRICTED STOCK. At the end of the
      applicable restriction period relating to Restricted Stock granted to a
      Participating Key Employee, one or more stock certificates for the
      appropriate number of Shares, free of restrictions imposed under the Plan,
      shall be delivered to the Participating Key Employee, or, if the
      Participating Key Employee received stock certificates representing the
      Restricted Stock at the time of grant, the legends placed on such
      certificates shall be removed.

                                       8
<PAGE>

                  (v)   FORFEITURE. Except as otherwise determined by the
      Committee, upon termination of a Participating Key Employee's employment
      for any reason during the applicable restriction period, all Shares of
      Restricted Stock still subject to restriction shall be forfeited by the
      Participating Key Employee. The Committee may, when it finds that a waiver
      would be in the best interests of the Company, waive in whole or in part
      any or all remaining restrictions with respect to Shares of Restricted
      Stock held by a Participating Key Employee.

            (d)   RESTRICTED STOCK AWARDS TO NON-EMPLOYEE DIRECTORS.

                  (i)   ELIGIBILITY. Each Non-Employee Director shall
      automatically be granted Restricted Stock under the Plan in the manner set
      forth in this Section.

                  (ii)  ANNUAL RESTRICTED STOCK AWARDS TO NON-EMPLOYEE
      DIRECTORS. Each Non-Employee Director (if he or she continues to serve in
      such capacity) shall, on the day following the annual meeting of
      shareholders in each year during the time the Plan is in effect,
      automatically be granted a number of Shares of Restricted Stock equal to
      the lesser of (A) 1,000 Shares, or (B) the number of Shares determined by
      dividing $15,000 by the Fair Market Value of a Share on the date of grant
      (rounded to the nearest whole number). A Person who is first elected as a
      Non-Employee Director on the date of an annual meeting of shareholders
      shall not be eligible to begin to receive grants pursuant to this Section
      until the day following the next succeeding annual meeting of
      shareholders.

                  (iii) VESTING. The Shares of Restricted Stock granted under
      this Subsection shall vest on the date that is 24 months following the
      date of grant, provided the Non-Employee Director is in service with the
      Company or an Affiliate on such date. Except as provided in the following
      sentence, if the Director terminates service prior to the vesting date,
      the Shares of Restricted Stock shall be forfeited. Notwithstanding the
      foregoing, the Shares of Restricted Stock shall vest on the date the
      Director's service ends as a result of death or Disability, or upon the
      occurrence of a Change of Control if the Director is in service with the
      Company or an Affiliate on the date of the Change of Control. For purposes
      hereof, a Non-Employee Director's service shall be considered to cease due
      to Disability if the Non-Employee Director is unable to perform his or her
      services as a director as a result of a medically-determinable physical or
      mental impairment which can be expected to result in death or which has
      lasted or can be expected to last for a period of at least 12 months, as
      determined by the Committee.

                  (iv)  GRANT LIMITATION. Notwithstanding the provisions of this
      Section, Restricted Stock shall be automatically awarded to Non-Employee
      Directors under the Plan only for so long as the Plan remains in effect
      and there are a sufficient number of Available Shares for these awards.

            (e)   PERFORMANCE SHARES.

                  (i)   ISSUANCE. The Committee is authorized to grant Awards of
      Performance Shares to Participating Key Employees. The aggregate number of
      Performance Shares granted under the Plan to all Participating Key
      Employees as a group shall not exceed 500,000. Non-Employee Directors are
      not eligible to be granted Performance Shares under the Plan.

                  (ii)  PERFORMANCE GOALS AND OTHER TERMS. The Committee shall
      determine the Performance Period (which must be at least one year), the
      Performance Goal or Goals (and the related performance level(s)) to be
      achieved during any Performance Period, any proportion of payments to be
      made for performance between the minimum and full performance levels for
      any Performance Goal and, if applicable, the relative percentage weighting
      given to each of the selected Performance Goals, the restrictions
      applicable to Shares of Restricted Stock received upon payment of
      Performance Shares if Performance Shares are paid in such manner, and any
      other terms and rights relating to a grant of Performance Shares. The
      Committee shall have sole discretion to alter the

                                       9
<PAGE>

      selected Performance Goals as that term is defined above, subject to
      shareholder approval, to the extent required to qualify the Award for the
      performance-based exemption provided by Code Section 162(m).
      Notwithstanding the foregoing, if the Committee determines it is advisable
      to grant Performance Shares which do not qualify for the performance-based
      exemption under Code Section 162(m), the Committee may make those grants
      without satisfying that section's requirements.

                  (iii) RIGHTS AND BENEFITS DURING THE PERFORMANCE PERIOD. The
      Committee may provide that, during a Performance Period, a Participating
      Key Employee shall be paid cash, with respect to each Performance Share
      held by such Participating Key Employee, in the same manner, at the same
      time, and in the same amount paid, as a cash dividend on a Share.

                  (iv)  PAYMENT OF PERFORMANCE SHARES. As soon as is reasonably
      practicable following the end of the applicable Performance Period, and
      subject to the Committee certifying in writing as to the satisfaction of
      the requisite Performance Goal(s) if such a certification is required in
      order to qualify the Award for the performance-based exemption provided by
      Code Section 162(m), one or more certificates representing the number of
      Shares equal to the number of Performance Shares payable shall be
      registered in the name of and delivered to the Participating Key Employee.
      Any Shares of Restricted Stock that are payable in connection with
      Performance Shares shall, pending the expiration, lapse, or waiver of the
      applicable restrictions, be evidenced in the manner as set forth in the
      subsection discussing Restricted Stock.

            (f)   GENERAL.

                  (i)   NO CONSIDERATION FOR AWARDS. Awards shall be granted to
      Participating Key Employees for no cash consideration unless otherwise
      determined by the Committee. Awards of Restricted Stock granted to
      Non-Employee Directors under this Section shall be granted for no cash
      consideration unless otherwise required by law.

                  (ii)  AWARD AGREEMENTS. An Award Agreement in the form
      (consistent with the terms of the Plan) that the Committee approves shall
      evidence each Award.

                  (iii) AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER. Awards to
      Participating Key Employees under the Plan may be granted either alone or
      in addition to, in tandem with, or in substitution for any other Award or
      any award granted under any other plan of the Company or any Affiliate.
      Awards granted in addition to or in tandem with other Awards, or in
      addition to or in tandem with awards granted under any other plan of the
      Company or any Affiliate, may be granted either at the same time as or at
      a different time from the grant of such other Awards or awards.

                  (iv)  FORMS OF PAYMENT UNDER AWARDS. Subject to the terms of
      the Plan and of any applicable Award Agreement, payments or transfers to
      be made by the Company or an Affiliate upon the grant, exercise, or
      payment of an Award to a Participating Key Employee may be made in the
      form(s) that the Committee shall determine, and may be made in a single
      payment or transfer, in installments, or on a

                                       10
<PAGE>

      deferred basis, in each case in accordance with rules and procedures
      established by the Committee. These rules and procedures may include
      provisions for the payment or crediting of interest on installment or
      deferred payments.

                  (v)   LIMITS ON TRANSFER OF AWARDS. No Award (other than
      Released Securities), and no right under any such Award, shall be
      assignable, alienable, saleable, or transferable by a Participating Key
      Employee or a Non-Employee Director otherwise than by will or by the laws
      of descent and distribution (or, in the case of an Award of Restricted
      Securities, to the Company). Subject to applicable law, a Participating
      Key Employee at the discretion of the Committee may, and a Non-Employee
      Director shall, be entitled, in the manner established by the Committee,
      to designate a beneficiary or beneficiaries to exercise his or her rights,
      and to receive any property distributable, with respect to any Award upon
      the death of the Participating Key Employee or the Non-Employee Director,
      as the case may be. Each Award, and each right under any Award, shall be
      exercisable, during the lifetime of the Participating Key Employee or the
      Non-Employee Director, only by the Award recipient or, if permissible
      under applicable law, by his or her guardian or legal representative. No
      Award (other than Released Securities), and no right under any such Award,
      may be pledged, alienated, attached, or otherwise encumbered, and any
      purported pledge, alienation, attachment, or encumbrance of an Award shall
      be void and unenforceable against the Company or any Affiliate.

                  (vi)  TERM OF AWARDS. Except as otherwise provided in the
      Plan, the term of each Award shall be for that period as may be determined
      by the Committee.

                  (vii) SHARE CERTIFICATES; REPRESENTATION. In addition to the
      restrictions imposed pursuant to Section 6(c), Section 6(d) and Section
      6(e), all certificates for Shares delivered under the Plan pursuant to any
      Award or its exercise shall be subject to those stop transfer orders and
      other restrictions as the Committee may deem advisable under the Plan or
      those rules, regulations, and other requirements of the SEC, any stock
      exchange or other market upon which the Shares are then listed or traded,
      and any applicable federal or state securities laws. The Committee may
      cause a legend or legends to be put on any such certificates to make
      appropriate reference to these restrictions. The Committee may require
      each Participating Key Employee, Non-Employee Director or other Person who
      acquires Shares under the Plan by means of an Award originally made to a
      Participating Key Employee or a Non-Employee Director to represent to the
      Company in writing that he or she is acquiring the Shares without a view
      to their distribution.

                  (viii) REPRICING PROHIBITED. Notwithstanding anything in this
      Plan to the contrary, and except for the adjustments provided in Section
      4, neither the Committee nor any other person may decrease the exercise
      price for any outstanding Option after the date of grant nor cancel or
      allow a Participating Key Employee to surrender an outstanding Option to
      the Company as consideration for the grant of a new Option with a lower
      exercise price or the grant of another type of Award the effect of which
      is to reduce the exercise price of any outstanding Option.

                                       11
<PAGE>

SECTION 7. AMENDMENT AND TERMINATION OF THE PLAN; CORRECTION OF DEFECTS AND
           OMISSIONS

            (a)   AMENDMENTS TO AND TERMINATION OF THE PLAN. The Board of
Directors of the Company may at any time amend, alter, suspend, discontinue, or
terminate the Plan. The provisions of Section 6 above concerning automatic
Awards to Non-Employee Directors shall not be amended more than once every six
months, other than to comport with changes in the Code and the Employee
Retirement Income Security Act of 1974, as amended. The shareholders must
approve any amendment of the Plan in order for it to be effective if: (i) the
amendment (A) increases the number of Shares with respect to which Awards may be
granted under the Plan (other than increases related to adjustments made as
provided in Section 4), (B) expands the class of persons eligible to participate
under the Plan, (C) otherwise increases in any material respect the benefits
payable under the Plan, or (D) changes the provisions prohibiting repricing in
Section 6; or (ii) if approval is otherwise required by: (A) the Code, (B) the
listing requirements of the Nasdaq Stock Market or any principal securities
exchange or market on which the Shares are then traded (in order to maintain the
listing of the Shares on that exchange), or (C) any other applicable law or
regulation. Termination of the Plan shall not affect the rights of Participating
Key Employees or Non-Employee Directors with respect to Awards previously
granted to them, and all unexpired Awards shall continue in force and effect
after termination of the Plan except as they may lapse or be terminated by their
own terms.

            (b)   CORRECTION OF DEFECTS, OMISSIONS AND INCONSISTENCIES. The
Committee may correct any defect, supply any omission, or reconcile any
inconsistency in any Award or Award Agreement in the manner and to the extent it
shall deem desirable to carry the Plan into effect.

SECTION 8. CHANGE OF CONTROL

            Unless the Committee provides otherwise in an Award Agreement, the
following provisions shall govern Awards upon the occurrence of a Change of
Control.

            (a)   ASSUMPTION OR REPLACEMENT. In connection with a Change of
Control, an Award may be assumed, or a substitute Award that preserves the
economic value of the Award and that contains similar terms and conditions as
the Award prior to the Change of Control may be issued, in each case without the
consent of the Participant. However, in either case, if the Participant's
employment is terminated without cause, as defined by the Committee as of the
date of the Change of Control or as defined in the Participant's Award
Agreement, within one year after the date of the Change of Control, then the
Award shall fully vest as of the date of such termination of employment without
cause.

            (b)   TERMINATION OF AWARDS. If, in connection with a Change of
Control, an Award is not to be assumed or a substitute award is not to be
granted in accordance with subsection (a), then:

                  (i)   Subject to paragraph (ii), at least fifteen (15) days
      prior to the date of the Change of Control, each Option or SAR that is
      outstanding at such time and that is held by a Participant who is employed
      by the Company or an Affiliate shall become immediately and fully
      exercisable; the Committee shall notify each Participant holding an Option
      or SAR of their right to exercise such Award up to the date immediately
      preceding the Change of Control; and upon the date of the Change of
      Control, the Option or SAR shall automatically terminate without consent
      of the Participant;

                  (ii)  If it is not feasible for advance notice of a Change of
      Control to be given under paragraph (i), as determined by the Committee in
      its sole discretion, or if the advance notice is not provided at least
      fifteen (15) days prior to the date of the Change of Control, then:

                  (A)   each Option or SAR that is outstanding immediately
                        prior to the date of the Change of Control and that is
                        held by a Participant who is then employed by the
                        Company or an Affiliate shall become immediately and
                        fully vested on the date of the Change of Control;

                  (B)   and each Option or SAR that is outstanding as of the
                        date of the Change of Control (including each Option or
                        SAR that becomes fully vested under paragraph (A)) shall
                        be terminated as of such date without the consent of the
                        Participant in exchange for a cash payment by the
                        Company to the Participant in an amount equal to the
                        value of the vested portion of the Option or SAR that
                        has not been exercised as of the date of the Change of
                        Control (such value to be determined based on the
                        Black-Scholes methodology or such similar method of
                        valuing options and stock appreciation rights as shall
                        be selected by the Committee);

                  (iii) Each grant of Restricted Stock shall become vested
      immediately prior to the date of the Change of Control; and

                  (iv)  Each grant of Performance Shares shall be subject to the
      terms of the Award Agreement relating to the effect of a Change of Control
      upon such Award.

SECTION 9. GENERAL PROVISIONS

            (a)   NO RIGHTS TO AWARDS. No Key Employee, Participating Key
Employee or other Person (other than a Non-Employee Director to the extent
provided in Section 6 above ) shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Key
Employees, Participating Key Employees, or holders or beneficiaries of Awards
under the Plan. The terms of Awards need not be the same with respect to each
Participating Key Employee.

            (b)   WITHHOLDING. No later than the date as of which an amount
first becomes includable in the gross income of a Participating Key Employee for
federal income tax purposes with respect to any Award under the Plan, the
Participating Key Employee shall pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, any federal, state, local
or foreign taxes of any kind required by law to be withheld with respect to such
amount. Unless otherwise determined by the Committee, the minimum tax
withholding obligations arising with respect to Awards to Participating Key
Employees under the Plan may be settled with Shares (other than Restricted
Securities), including Shares that are part of, or are received upon exercise
of, the Award that gives rise to the withholding requirement. The obligations of
the Company under the Plan shall be conditional on such a payment or
arrangement, and the Company and any Affiliate, to the extent permitted by law,
shall have the right to deduct any such taxes from any payment otherwise due to
the Participating Key Employee. The

                                       12
<PAGE>

Committee may establish such procedures as it deems appropriate for the settling
of withholding obligations with Shares, including, without limitation, the
establishment of such procedures as may be necessary to satisfy the requirements
of Rule 16b-3.

            (c)   NO LIMIT ON OTHER COMPENSATION ARRANGEMENTS. Nothing contained
in the Plan shall prevent the Company or any Affiliate from adopting or
continuing in effect other or additional compensation arrangements, and these
arrangements may be either generally applicable or applicable only in specific
cases.

            (d)   RIGHTS AND STATUS OF RECIPIENTS OF AWARDS. The grant of an
Award shall not be construed as giving a Participating Key Employee the right to
be retained in the employ of the Company or any Affiliate. Further, the Company
or any Affiliate may at any time dismiss a Participating Key Employee from
employment, free from any liability, or any claim under the Plan, unless
otherwise expressly provided in an Award Agreement. The grant of an Award to a
Non-Employee Director pursuant to Section 6 shall confer no right on the
Non-Employee Director to continue as a director of the Company. Except for
rights accorded under the Plan and under any applicable Award Agreement,
Participating Key Employees and Non-Employee Directors shall have no rights as
holders of Shares as a result of the granting of Awards. Unless the Committee
determines otherwise, for purposes of the Plan and all Awards, the following
rules shall apply:

                  (i)   a Participating Key Employee who transfers employment
      between the Company and any Affiliate, or between Affiliates, will not be
      considered to have terminated employment;

                  (ii)  an individual who ceases to be a Non-Employee Director
      because he or she becomes an employee of the Company or an Affiliate shall
      not be considered to have ceased service as a director with respect to any
      Award until such individual's termination of employment with the Company
      or its Affiliates;

                  (iii) a Participating Key Employee who ceases to be employed
      by the Company or an Affiliate of the Company and immediately thereafter
      becomes a Non-Employee Director, a non-employee director of any Affiliate,
      or a consultant to the Company or any Affiliate shall not be considered to
      have terminated employment until the Participating Key Employee's service
      as a director of, or consultant to, the Company or its Affiliates has
      ceased; and

                  (iv)  a Participating Key Employee employed by an Affiliate of
      the Company will be considered to have terminated employment when the
      entity ceases to be an Affiliate of the Company.

            (e)   UNFUNDED STATUS OF THE PLAN. Unless otherwise determined by
the Committee, the Plan shall be unfunded and shall not create (or be construed
to create) a trust or a separate fund or funds. The Plan shall not establish any
fiduciary relationship between the Company and any Participating Key Employee,
any Non-Employee Director or other Person. To the extent any Person holds any
right by virtue of a grant under the Plan, that right (unless the Committee
otherwise determines) shall be no greater than the right of an unsecured general
creditor of the Company.

                                       13
<PAGE>

            (f)   GOVERNING LAW. Michigan law (without reference to conflict of
law principles) and applicable federal law govern this Plan. Any legal action or
proceeding relating in any way to this Plan shall be heard in the Oakland County
(Michigan) Circuit Court or the Federal District Court for the Eastern District
of Michigan sitting in Detroit, Michigan. Any such action may be heard only in a
"bench" trial, and any party to such an action waives its right to assert a jury
trial. Any legal action or proceeding relating in any way to this Plan must be
brought within 365 days after the day the complaining party first knew or should
have known of the events giving rise to the complaint.

            (g)   SEVERABILITY. If any provision of the Plan or any Award
Agreement or any Award is or becomes or is deemed to be invalid, illegal, or
unenforceable in any jurisdiction, or as to any Person or Award, or would
disqualify the Plan, any Award Agreement or any Award under any law deemed
applicable by the Committee, that provision shall be construed or deemed amended
to conform to applicable laws, or if it cannot be so construed or deemed amended
without, in the Committee's determination, materially altering the intent of the
Plan, any Award Agreement or the Award, the provision shall be stricken as to
the jurisdiction, Person, or Award in question, and the remainder of the Plan,
the Award Agreement and the Award shall remain fully effective.

            (h)   NO FRACTIONAL SHARES. No fractional Shares or other securities
shall be issued or delivered pursuant to the Plan, any Award Agreement or any
Award, and the Committee shall determine (except as otherwise provided in the
Plan) whether cash, other securities, or other property shall be paid or
transferred in lieu of any fractional Shares or other securities, or whether
such fractional Shares or other securities or any related rights shall be
canceled, terminated, or otherwise eliminated.

            (i)   HEADINGS. Headings are given to the Sections and subsections
of the Plan solely as a convenience to facilitate reference. These headings
shall not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any of its provisions.

SECTION 10. EFFECTIVE DATE OF THE PLAN

            The Plan shall be effective from and after the last to occur of the
following: (a) approval of the Plan by the Board; (b) approval of the Plan by a
vote of the Company's shareholders; and (c) the closing of the Company's initial
public offering of Shares registered with the SEC.

SECTION 11. INTERPRETATIONS

      All references in this Plan to a statute or regulation shall include any
then-current amendments of the statute or regulation, any successor statute or
regulation and, in the case of a statute, any rules and regulations promulgated
in connection with that statute. References to Sections mean sections in this
Plan.

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