Document:

Exhibit 10.7

                                                                        Exhibit
      10.7
       

      FREEPORT-McMoRan
        COPPER & GOLD INC.

      

      NOTICE
        OF GRANT OF

      NONQUALIFIED
        STOCK OPTIONS

      UNDER
        THE 

      2006
        STOCK INCENTIVE PLAN

      

      1.  (a)Pursuant
        to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan (the
“Plan”), _________________ (the “Optionee”) is hereby granted effective
        _______________, ______, in consideration of future services, Options to
        purchase from the Company, on the terms and conditions set forth in this
        Notice
        and in the Plan, _______ shares of the Class B Common Stock of the Company
        at a
        purchase price of $_______ per share.

       

      (b)  Defined
        terms not otherwise defined in Section 11 of this Notice shall have the meanings
        set forth in Section 2 of the Plan.

       

      (c)  The
        Options granted hereunder are intended to constitute nonqualified stock options
        and are not intended to constitute incentive stock options within the meaning
        of
        Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”).

       

      2.  (a)All
        Options granted hereunder shall terminate on __________, 20___, unless
        terminated earlier as provided in Section 4 of this Notice.

       

      (b)  The
        Options granted hereunder shall become exercisable in installments as
        follows:

       

      Date
        Exercisable Number
        of Shares

      

      

      

      

      (c)  The
        Options granted hereunder may be exercised with respect to all or any part
        of
        the Shares comprising each installment as the Optionee may elect at any time
        after such Options become exercisable until the termination date set forth
        in
        Section 2(a) or Section 4, as the case may be.

       

      (d)  Notwithstanding
        the foregoing provisions of this Section 2, the Options granted hereunder
        shall
        immediately become exercisable in their entirety at such time as there shall
        be
        a Change in Control of the Company.

       

      3.  Upon
        each
        exercise of the Options granted hereunder, the Optionee shall give written
        notice to the Company, which shall specify the number of Shares to be purchased
        and shall be accompanied by payment in full of the aggregate purchase price
        thereof (which payment may be made in Shares owned by the Optionee for at
        least
        six months), in accordance with procedures established by the Committee.
        Such
        exercise shall be effective upon receipt by the Company of such notice in
        good
        order and payment.

       

      4.  (a)Except
        as
        set forth in this Section 4, the Options provided for in this Notice shall
        immediately terminate on the date that the Optionee ceases for any reason
        to be
        an Eligible Individual.

       

      (b)  If
        the
        Optionee ceases to be an Eligible Individual for any reason other than death,
        Disability, Retirement or termination for Cause, any Option granted hereunder
        that is then exercisable shall remain exercisable in accordance with the
        terms
        of this Notice within three months after the date of such cessation, but
        in no
        event shall any such Option be exercisable after the termination date specified
        in Section 2(a).

       

      (c)  If
        the
        Optionee ceases to be an Eligible Individual by reason of the Optionee’s
        Disability or Retirement, any Option granted hereunder that is exercisable
        on
        the date of such cessation, as well as any Option granted hereunder that
        would
        have become exercisable within one year after the date of such cessation
        had the
        Optionee continued to be an Eligible Individual, shall remain exercisable
        in
        accordance with the terms of this Notice within three years after the date
        of
        such cessation, but in no event shall any such Option be exercisable after
        the
        termination date specified in Section 2(a).

       

      (d)  (i)If
        the
        Optionee ceases to be an Eligible Individual as a result of the Optionee’s
        death, any Option granted hereunder that is exercisable on the date of such
        death, as well as any Option granted hereunder that would have become
        exercisable within one year after the date of such death had the Optionee
        continued to be an Eligible Individual, shall remain exercisable by the
        Optionee’s Designated Beneficiary in accordance with the terms of this Notice
        until the third anniversary of the date of such death, but in no event shall
        any
        such Option be exercisable after the termination date specified in Section
        2(a).

       

      (ii)  If
        the
        Optionee dies after having ceased to be an Eligible Individual and any Option
        granted hereunder is then exercisable in accordance with the provisions of
        this
        Section 4, such Option will remain exercisable by the Optionee’s Designated
        Beneficiary in accordance with the terms of this Notice until the third
        anniversary of the date the Optionee ceased to be an Eligible Individual,
        but in
        no event shall any such Option be exercisable after the termination date
        specified in Section 2(a).

       

      (e)  If
        the
        Optionee ceases to be an Eligible Individual by reason of the Optionee’s
        termination for Cause, any Option granted hereunder that is exercisable on
        the
        date of such cessation shall terminate immediately.

       

      5.  The
        Options granted hereunder are not transferable by the Optionee otherwise
        than by
        will or by the laws of descent and distribution or pursuant to a domestic
        relations order, as defined in the Code, and shall be exercised during the
        lifetime of the Optionee only by the Optionee or by the Optionee’s duly
        appointed legal representative.

       

      6.  All
        notices hereunder shall be in writing and, if to the Company, shall be delivered
        personally to the Secretary of the Company or mailed to its principal office,
        1615 Poydras Street, New Orleans, Louisiana 70112, addressed to the attention
        of
        the Secretary; and, if to the Optionee, shall be delivered personally, mailed
        or
        delivered via e-mail to the Optionee at the address on file with the Company.
        Such addresses may be changed at any time by notice from one party to the
        other.

       

      7.  The
        terms
        of this Notice shall bind and inure to the benefit of the Optionee, the Company
        and the successors and assigns of the Company and, to the extent provided
        in the
        Plan and in this Notice, the Designated Beneficiaries and the legal
        representatives of the Optionee.

       

      8.  This
        Notice is subject to the provisions of the Plan. The Plan may at any time
        be
        amended by the Board, except that any such amendment of the Plan that would
        materially impair the rights of the Optionee hereunder may not be made without
        the Optionee’s consent. The Committee
        may amend, modify or terminate this Notice and any of the Options granted
        hereunder at any time prior to exercise in any manner not inconsistent with
        the
        terms of the Plan, including, without limitation, to change the date or dates
        as
        of which the Options granted hereunder become exercisable. Notwithstanding
        the
        foregoing, no such amendment, modification or termination may materially
        impair
        the rights of the Optionee hereunder without the Optionee’s consent. Except as
        set forth above, any applicable determinations, orders, resolutions or other
        actions of the Committee shall be final, conclusive and binding on the Company
        and the Optionee.

       

      9.  The
        Optionee is required to satisfy any obligation in respect of withholding
        or
        other payroll taxes resulting from the exercise of any Option granted hereunder,
        in accordance with procedures established by the Committee, as a condition
        to
        receiving any certificates for securities resulting from the exercise of
        any
        such Option.

       

      10.  Nothing
        in this Notice shall confer upon Optionee any right to continue in the employ
        of
        the Company or any of its Subsidiaries, or to interfere in any way with the
        right of the Company or any of its Subsidiaries to terminate Optionee’s
        employment relationship with the Company or any of its Subsidiaries at any
        time.

       

      11.  As
        used
        in this Notice, the following terms shall have the meanings set forth
        below.

       

      (a)  “Cause”
        shall mean any of the following: (i) the commission by the Optionee of an
        illegal act (other than traffic violations or misdemeanors punishable solely
        by
        the payment of a fine), (ii) the engagement of the Optionee in dishonest
        or
        unethical conduct, as determined by the Committee or its designee, (iii)
        the
        commission by the Optionee of any fraud, theft, embezzlement, or
        misappropriation of funds, (iv) the failure of the Optionee to carry out
        a
        directive of his superior, employer or principal, or (v) the breach of the
        Optionee of the terms of his engagement.

       

      (b)  “Change
        in Control” shall mean the earliest of the following events: (i) any person or
        any two or more persons acting as a group, and all affiliates of such person
        or
        persons, shall acquire beneficial ownership of more than 20% of all classes
        and
        series of the Company’s outstanding stock (exclusive of stock held in the
        Company’s treasury or by the Company’s Subsidiaries), taken as a whole, that has
        voting rights with respect to the election of directors of the Company (not
        including any series of preferred stock of the Company that has the right
        to
        elect directors only upon the failure of the Company to pay dividends) pursuant
        to a tender offer, exchange offer or series of purchases or other acquisitions,
        or any combination of those transactions, or (ii) there shall be a change
        in the
        composition of the Board at any time within two years after any tender offer,
        exchange offer, merger, consolidation, sale of assets or contested election,
        or
        any combination of those transactions (a “Transaction”), such that (A) the
        persons who were directors of the Company immediately before the first such
        Transaction cease to constitute a majority of the board of directors of the
        corporation that shall thereafter be in control of the companies that were
        parties to or otherwise involved in such Transaction or (B) the number of
        persons who shall thereafter be directors of such corporation shall be fewer
        than two-thirds of the number of directors of the Company immediately prior
        to
        such first Transaction.

       

      (c)  “Disability”
        shall mean long-term disability, as defined in the Company’s long-term
        disability plan.

       

      (d)  “Retirement”
        shall mean early, normal or deferred retirement of the Optionee under a tax
        qualified retirement plan of the Company or any other cessation of the provision
        of services to the Company or a Subsidiary by the Optionee that is deemed
        by the
        Committee to constitute a retirement.

       

      

      FREEPORT-McMoRan
        COPPER & GOLD INC.

      

      

      

      By: ___________________________Exhibit 10.8

    
      Exhibit
        10.8

       

      FREEPORT-McMoRan
        COPPER & GOLD INC.

      

      RESTRICTED
        STOCK UNIT AGREEMENT

      UNDER
        THE 2006 STOCK INCENTIVE PLAN

       

      AGREEMENT
        dated as of ____________, 20__ (the “Grant Date”), between Freeport-McMoRan
        Copper & Gold Inc., a Delaware corporation (the “Company”), and
        _______________ (the “Participant”). 

      

      1.  (a)Pursuant
        to the Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan (the
“Plan”), the Participant is hereby granted effective the Grant Date _________
        restricted stock units (“Restricted Stock Units” or “RSUs”) on the terms and
        conditions set forth in this Agreement and in the Plan.

       

      (b)  Defined
        terms not otherwise defined herein shall have the meanings set forth in Section
        2 of the Plan.

       

      (c)  Subject
        to the terms, conditions, and restrictions set forth in the Plan and herein,
        each RSU granted hereunder represents the right to receive from the Company,
        on
        the respective scheduled vesting date for such RSU set forth in Section 2(a)
        of
        this Agreement or on such earlier date as provided in Section 2(b) of this
        Agreement or Section 6(b) of this Agreement (the “Vesting Date”), one share (a
“Share”) of Class B Common Stock of the Company (“Common Stock”), free of any
        restrictions, all amounts notionally credited to the Participant’s Dividend
        Equivalent Account (as defined in Section 4 of this Agreement) with respect
        to
        such RSU, and all securities and property comprising all Property Distributions
        (as defined in Section 4 of this Agreement) deposited in such Dividend
        Equivalent Account with respect to such RSU.

       

      (d)  As
        soon
        as practicable after the Vesting Date (but no later than 2 1⁄2 months from such
        date) for any RSUs granted hereunder, the Participant shall receive from
        the
        Company the number of Shares to which the vested RSUs relate, free of any
        restrictions, a cash payment for all amounts notionally credited to the
        Participant’s Dividend Equivalent Account with respect to such vested RSUs
        (unless the receipt of such Shares and amounts has been deferred by the
        Participant pursuant to the provisions of Section 5(a) of this Agreement),
        and
        all securities and property comprising all Property Distributions deposited
        in
        such Dividend Equivalent Account with respect to such vested RSUs.

       

      2.  (a)The
        RSUs
        granted hereunder are granted to the Participant in accordance with the
        Participant’s election (the “Election”) to receive RSUs in lieu of certain cash
        bonus payments awarded under the Company’s Performance Incentive Awards Program,
        which Election was made within the time period required by Section 409A of
        the
        Code. The RSUs shall vest in installments as follows:

       

      Scheduled
        Vesting Date  Number
        of RSUs

       

      

       

      (b)  Notwithstanding
        Section 2(a) of this Agreement, at such time as there shall be a Change in
        Control of the Company, all unvested RSUs shall be accelerated and shall
        immediately vest.

       

      (c) Until
        the
        respective Vesting Date for an RSU granted hereunder, such RSU, all amounts
        notionally credited in any Dividend Equivalent Account related to such RSU,
        and
        all securities or property comprising all Property Distributions deposited
        in
        such Dividend Equivalent Account related to such RSU shall be subject to
        forfeiture as provided in Section 6 of this Agreement.

       

      3.  Except
        as
        provided in Section 4 of this Agreement, an RSU shall not entitle the
        Participant to any incidents of ownership (including, without limitation,
        dividend and voting rights) in any Share until the RSU shall vest and the
        Participant shall be issued the Share to which such RSU relates nor in any
        securities or property comprising any Property Distribution deposited in
        a
        Dividend Equivalent Account related to such RSU until such RSU
        vests.

       

      4.  From
        and
        after the Grant Date of an RSU until the issuance of the Share payable in
        respect of such RSU, the Participant shall be credited, as of the payment
        date
        therefor, with (i) the amount of any cash dividends and (ii) the amount equal
        to
        the Fair Market Value of any Shares, Subsidiary securities, other securities,
        or
        other property distributed or distributable in respect of one share of
Common
        Stock to which the Participant would have been entitled had the Participant
        been
        a record holder of one share of Common Stock at all times from the Grant
        Date to
        such issuance date (a “Property Distribution”). All such credits shall be made
        notionally to a dividend equivalent account (a “Dividend Equivalent Account”)
        established for the Participant with respect to all RSUs granted hereunder
        with
        the same Vesting Date. All credits to a Dividend Equivalent Account for the
        Participant shall be notionally increased by the Account Rate (as hereinafter
        defined), compounded quarterly, from and after the applicable date of credit
        until paid in accordance with the provisions of this Agreement. The “Account
        Rate” shall be the prime commercial lending rate announced from time to time by
        JPMorgan Chase Bank, N.A. or by another major national bank headquartered
        in New
        York, New York designated by the Committee. The Committee may, in its
        discretion, deposit in the Participant’s Dividend Equivalent Account the
        securities or property comprising any Property Distribution in lieu of crediting
        such Dividend Equivalent Account with the Fair Market Value
        thereof.

       

      5.  (a)Notwithstanding
        the provisions of Section 1(d) of this Agreement, if, at the time of, and
        as
        part of, the Participant’s Election, the Participant elects in accordance with
        procedures and subject to any limitations established by the Committee, all
        or a
        portion of the Shares issuable to the Participant upon the vesting of such
        RSUs
        and all or a portion of the amounts notionally credited in the Dividend
        Equivalent Account related to such RSUs shall not be distributed on the Vesting
        Date but shall be deferred and paid in one or more periodic installments,
        not in
        excess of ten, beginning at such time or times elected by the Participant
        at
        such time. The deferral is subject to the following limitations:

       

      (i)  If
        the
        Participant is a Key Employee, a distribution of deferred amounts triggered
        by
        the Participant’s separation from service (as that term is defined pursuant to
        Section 409A of the Code) may not occur or begin until six months after the
        date
        (the “Termination Date”) the Participant ceases to be an Eligible Individual
        (the “Termination”).

       

      (ii)  The
        deferral period with respect to any Participant shall
        end
        no later than six months after the Termination Date if the Participant’s
        Termination is for any reason other than the Participant’s Disability or
        Retirement.

       

      (iii)  The
        deferral period with respect to any Participant shall end three years after
        the
        Termination Date if the Participant’s Termination occurs by reason of the
        Participant’s Disability or Retirement. 

       

      (iv)  In
        the
        event of any Termination, a distribution of all amounts remaining unpaid
        shall
        be made in full to the Participant or his or her designated beneficiary as
        soon
        as administratively possible following the date of the end of the deferral
        period as set forth in Sections 5(a)(ii) and (iii). 

       

      (v)  All
        securities or property comprising Property Distributions deposited in such
        Dividend Equivalent Account related to such RSUs shall be distributed to
        the
        Participant as soon as practicable after the Vesting Date for such RSUs,
        irrespective of a deferral election made pursuant to this Section
        5.

       

      (vi)  The
        deferral procedures described in this Section 5 are intended to comply with
        the
        requirements of Section 409A of the Code and any related implementing
        regulations or guidance. 

       

      (b)  The
        provisions of Section 4 shall continue to apply to all such vested RSUs and
        all
        such credited amounts subject to a deferral election until paid in accordance
        with the provisions of this Agreement.

       

      6.  (a)Except
        as
        set forth in Section 6(b) of this Agreement, all unvested RSUs provided for
        in
        this Agreement, all amounts credited to the Participant’s Dividend Equivalent
        Accounts with respect to such RSUs, and all securities and property comprising
        Property Distributions deposited in such Dividend Equivalent Accounts with
        respect to such RSUs shall immediately be forfeited on the Participant’s
        Termination Date.

       

      (b)  Notwithstanding
        the foregoing, if the Participant ceases to be an Eligible Individual by
        reason
        of the Participant’s death, Disability, or Retirement, all the unvested RSUs
        granted hereunder, all amounts credited to the Participant’s Dividend Equivalent
        Accounts with respect to such RSUs, and all securities and property comprising
        Property Distributions deposited in such Dividend Equivalent Accounts with
        respect to such RSUs shall vest as of the Participant’s Termination Date. In the
        event that the Participant ceases to be an Eligible Individual by reason
        of the
        Participant’s Termination by his employer or principal without Cause, the
        Committee, or any person to whom the Committee has delegated authority, may,
        in
        its or his sole discretion, determine that all or any portion of the unvested
        RSUs granted hereunder, all amounts credited to the Participant’s Dividend
        Equivalent Accounts with respect to such RSUs, and all securities and property
        comprising Property Distributions deposited in such Dividend Equivalent Accounts
        with respect to such RSUs shall vest as of the Participant’s Termination Date.
        In the event vesting is accelerated pursuant to this Section 6(b) and the
        Participant is a Key Employee, a distribution of Shares issuable to the
        Participant, all amounts notionally credited to the Participant’s Dividend
        Equivalent Account, and all securities and property comprising all Property
        Distributions deposited in such Dividend Equivalent Account due the Participant
        upon the vesting of the RSUs shall not occur until six months after the
        Termination Date, unless the Participant’s Termination is due to death or
        Disability.

       

      7.  The
        RSUs
        granted hereunder, any amounts notionally credited in the Participant’s Dividend
        Equivalent Accounts, and any securities and property comprising Property
        Distributions deposited in such Dividend Equivalent Accounts are not
        transferable by the Participant otherwise than by will or by the laws of
        descent
        and distribution or pursuant to a domestic relations order, as defined in
        the
        Code.

       

      8.  All
        notices hereunder shall be in writing and, if to the Company, shall be delivered
        personally to the Secretary of the Company or mailed to its principal office,
        1615 Poydras Street, New Orleans, Louisiana 70112, addressed to the attention
        of
        the Secretary; and, if to the Participant, shall be delivered personally
        or
        mailed to the Participant at the address on file with the Company. Such
        addresses may be changed at any time by notice from one party to the other.
        

       

      9.  This
        Agreement is subject to the provisions of the Plan. The Plan may at any time
        be
        amended by the Board, except that any such amendment of the Plan that would
        materially impair the rights of the Participant hereunder may not be made
        without the Participant’s consent. The Committee may amend this Agreement at any
        time in any manner that is not inconsistent with the terms of the Plan and
        that
        will not result in the application of Section 409A(a)(1) of the Code.
        Notwithstanding the foregoing, no such amendment may materially impair the
        rights of the Participant hereunder without the Participant’s consent. Except as
        set forth above, any applicable determinations, orders, resolutions or other
        actions of the Committee shall be final, conclusive and binding on the Company
        and the Participant.

       

      10.  The
        Participant is required to satisfy any obligation in respect of withholding
        or
        other payroll taxes resulting from the vesting of any RSU granted hereunder
        or
        the payment of any securities, cash, or property hereunder, in accordance
        with
        procedures established by the Committee, as a condition to receiving any
        securities, cash payments, or property resulting from the vesting of any
        RSU or
        otherwise.

       

      11.  Nothing
        in this Agreement shall confer upon the Participant any right to continue
        in the
        employ of the Company or any of its Subsidiaries, or to interfere in any
        way
        with the right of the Company or any of its Subsidiaries to terminate the
        Participant’s employment relationship with the Company or any of its
        Subsidiaries at any time. 

       

      12.  As
        used
        in this Agreement, the following terms shall have the meanings set forth
        below.

       

      (a)  “Cause”
        shall mean any of the following: (i) the commission by the Participant of
        an
        illegal act (other than traffic violations or misdemeanors punishable solely
        by
        the payment of a fine), (ii) the engagement of the Participant in dishonest
        or
        unethical conduct, as determined by the Committee or its designee, (iii)
        the
        commission by the Participant of any fraud, theft, embezzlement, or
        misappropriation of funds, (iv) the failure of the Participant to carry out
        a
        directive of his superior, employer or principal, or (v) the breach of the
        Participant of the terms of his engagement.

       

      (b)  “Change
        in Control” shall mean a change in the ownership of the Company, a change in the
        effective control of the Company or a change in the ownership of a substantial
        portion of the assets of the Company as provided under Section 409A of the
        Code,
        as amended from time to time, and any related implementing regulations or
        guidance.

       

      (c)  “Disability”
        shall have occurred if the Participant is (i) unable to engage in any
        substantial gainful activity by reason of any medically determinable physical
        or
        mental impairment which can be expected to result in death or can be expected
        to
        last for a continuous period of not less than 12 months, or (ii) by reason
        of
        any medically determinable physical or mental impairment which can be expected
        to result in death or can be expected to last for a continuous period of
        not
        less than 12 months, receiving income replacement benefits for a period of
        not
        less than 3 months under an accident and health plan covering employees of
        the
        Participant’s employer.

       

      (d)  “Fair
        Market Value” shall, with respect to a share of Common Stock, a Subsidiary
        security, or any other security, have the meaning set forth in the
        Freeport-McMoRan Copper & Gold Inc. 2006 Stock Incentive Plan Policies of
        the Committee, and, with respect to any other property, mean the value thereof
        determined by the board of directors of the Company in connection with declaring
        the dividend or distribution thereof.

       

      (e)  “Key
        Employee” shall mean any employee who meets the definition of “key employee” as
        defined in Section 416(i) of the Code.

       

      (f)  “Retirement”
        shall mean early, normal or deferred retirement of the Participant under
        a tax
        qualified retirement plan of the Company or any other cessation of the provision
        of services to the Company or a Subsidiary by the Participant that is deemed
        by
        the Committee or its designee to constitute a retirement.

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        day,
        month, and year first above written. 

       

      

      FREEPORT-McMoRan
        COPPER & GOLD INC.

      

      

      By:  _____________________________________

       

                                        
        ____________________________________

                             
        (Participant)

      

                                      ________________________________

                                             
  (Street
        Address)

       

                                      ________________________________

                                               
(City)
        (State)
        (Zip Code)

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