Document:

Unassociated Document

    EXHIBIT
      10.4

     

    EXECUTION
      COPY

     

    CVS
      CORPORATION

    

    GLOBAL
      AMENDMENT TO CREDIT AGREEMENTS

     

    GLOBAL
      AMENDMENT (this “Amendment”),
      dated as of March 15, 2007, to the following Credit Agreements:

    

    (i) Five
      Year
      Credit Agreement, dated as of June 11, 2004, by and among CVS Corporation (the
      “Borrower”),
      the
      lenders party thereto, Bank of America, N.A., Credit Suisse First Boston, and
      Wachovia Securities, Inc., as co-syndication agents, ABN AMRO Bank N.V., as
      documentation agent, and The Bank of New York, as administrative
      agent
      (the “2004
      Five Year Credit Agreement”);

    

    (ii) Five
      Year
      Credit Agreement, dated as of June 3, 2005, by and among the Borrower, the
      lenders party thereto, Bank of America, N.A., Credit Suisse First Boston, and
      Wachovia Bank, National Association, as co-syndication agents, SunTrust Bank,
      as
      documentation agent, and The Bank of New York, as administrative agent
(the
      “2005
      Five Year Credit Agreement”);

    

    (iii) Five
      Year
      Credit Agreement, dated as of May 12, 2006, by and among the Borrower, the
      lenders party thereto, Bank of America, N.A., Lehman Brothers Inc. and Wachovia
      Bank, National Association, as co-syndication agents, KeyBank National
      Association, as documentation agent, and The Bank of New York, as administrative
      agent (the
      “2006
      Five Year Credit Agreement”);

    

    (iv) Five
      Year
      Credit Agreement, dated as of March 12, 2007, by and among the Borrower, the
      lenders party thereto, Lehman Commercial Paper Inc. and Wachovia Bank, National
      Association, as co-syndication agents, Morgan Stanley Senior Funding, Inc.,
      as
      documentation agent, and The Bank of New York, as administrative agent
(the
      “2007
      Five Year Credit Agreement”);
      and

    

    (v) 364
      Day
      Credit Agreement, dated as of March 12, 2007, by and among the Borrower, the
      lenders party thereto, Lehman Commercial Paper Inc. and Wachovia Bank, National
      Association, as co-syndication agents, and The Bank of New York, as
      administrative agent (the
      “2007
      364 Day Credit Agreement”
      and, together with the 2004 Five Year Credit Agreement, the 2005 Five Year
      Credit Agreement, the 2006 Five Year Credit Agreement and the 2007 Five Year
      Credit Agreement, the “Credit
      Agreements”;
      each a “Credit
      Agreement”).

    

    Except
      as otherwise provided herein, capitalized terms used herein which are not
      defined herein shall have the meanings set forth in the applicable Credit
      Agreements.

     

    In
      consideration of the covenants, conditions and agreements hereinafter set forth,
      and for other good and valuable consideration, the receipt and adequacy of
      which
      are hereby

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

    

    acknowledged,
      and pursuant to Section 11.1 of each of the Credit Agreements, the parties
      hereto hereby agree as follows:

    

    1. The
      definition of “Intercompany Debt” in each of the Credit Agreements is hereby
      amended to delete the word “demand” appearing in clause (ii)
      thereof.

     

    2. Each
      of
      the Lenders hereby waives any Default or Event of Default that may exist under
      any of the Credit Agreements solely as a result of the failure of the Borrower
      to be in compliance with Section 8.1 of each of the Credit Agreements without
      giving effect to this Amendment.

     

    3. This
      Amendment shall become effective on and as of the date hereof as to each of
      the
      Credit Agreements upon the receipt by The Bank of New York, as Administrative
      Agent under each of the Credit Agreements, of counterparts of this Amendment
      executed by the Borrower and the Required Lenders under each of the Credit
      Agreements.

     

    4. Except
      as
      amended hereby, each of the Credit Agreements and the other Loan Documents
      under
      each of the Credit Agreements shall remain in full force and
      effect.

     

    5. This
      Amendment may be executed in any number of separate counterparts and all of
      said
      counterparts taken together shall be deemed to constitute one and the same
      agreement. It shall not be necessary in making proof of this Amendment to
      produce or account for more than one counterpart signed by the party to be
      charged. A set of the copies of this Amendment signed by all of the parties
      hereto shall be lodged with each of the Borrower and The Bank of New York,
      as
      Administrative Agent under each of the Credit Agreements. Any party to this
      Amendment may rely upon the signatures of any other party hereto which are
      transmitted by fax or other electronic means to the same extent as if originally
      signed. 

     

    6. This
      Amendment shall be governed by, and construed and interpreted in accordance
      with, the laws of the State of New York.

     

    

    [signature
      pages follow]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     
      CVS
        CORPORATION

      

      GLOBAL
        AMENDMENT TO CREDIT AGREEMENTS

    The
      parties have caused this Amendment to be duly executed as of the date first
      written above.

     

     

    
      	 	
              CVS
                CORPORATION

              

              

              By: /s/
                Carol A. DeNale  

              Name: 
                Carol A. DeNale  

              Title: Vice
                President and Treasurer

            
	 	 
	 	 
	 	
              THE
                BANK OF NEW YORK, in
                its 
capacity as a Lender and in its 
capacity as the Administrative
                Agent 
under each of the Credit Agreements

            
	 	 
	 	 

              By: /s/
                Erin Morrissey  

              Name: Erin
                Morrissey  

              Title: Assistant
                Vice President 

            
	 	 
	 	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      CVS
        CORPORATION

      

      GLOBAL
        AMENDMENT TO CREDIT AGREEMENTS

    

    
       

       

      
        	 	
                
                  BANK
                    OF AMERICA, N.A., as Co-Documentation Agent and a Lender

                   

                  

                  By:
                     /s/
                    John Pocalyko   

                  Name:
                     John
                    Pocalyko    

                  Title:
                     Senior
                    Vice President   

                

              

      

      
         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    
    

    
       

      
        	 	
                
                  MORGAN
                    STANLEY SENIOR FUNDING, INC., in its capacity
as Documentation
                    Agent

                   

                  By:
                     /s/
                    Elizabeth Hendricks  

                  Name:
                     Elizabeth
                    Hendricks   

                  Title:
                     Vice
                    President    

                  

                  MORGAN
                    STANLEY BANK, in its capacity

                  as
                    a Lender

                  

                  By:
                     /s/
                    Dawn M. Dawson   

                  Name:
                     Dawn
                    M. Dawson   

                  Title:
                     Authorized
                    Signatory 

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

     

     

    
       

      
        	 	
                
                  HSBC
                    BANK USA

                  

                  By:
                     /s/
                    Martin J. Haythorne  

                  Name:
                     Martin
                    J. Haythorne   

                  Title:
                     Managing
                    Director 

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

      

    

    

      

    

    
       

       

      
        	 	
                
                  KEYBANK
                    NATIONAL ASSOCIATION

                  

                  By:
                     /s/
                    Marianne T. Meil   

                  Name:
                     Marianne
                    T. Meil   

                  Title:
                     Senior
                    Vice President 

                

              

      

      
 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

      

    
       

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    

      

    
       

      
        	 	
                
                  SUMITOMO
                    MITSUI BANKING CORPORATION

                  

                  By:
                     /s/
                    Shigeru Tsuru   

                  Name:
                     Shigeru
                    Tsuru    

                  Title:
                     Joint
                    General Manager 

                

              

      

       

       

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

      

    

      

    
       

      
        	 	
                
                  ABN
                    AMRO BANK N.V.

                  

                  By:
                     /s/
                    Tracie Elliot   

                  Name:
                     Tracie
                    Elliot    

                  Title:
                     Senior
                    Vice President   

                  

                  

                  By:
                     /s/
                    David Carrington   

                  Name:
                     David
                    Carrington   

                  Title:
                     Director  

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    
       

      
        	 	
                
                  WELLS
                    FARGO BANK

                  

                  By:
                     /s/
                    Donald Schwartz   

                  Name:
                     Donald
                    Schwartz   

                  Title:
                     Senior
                    Vice President   

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

      

    
       

      
        	 	
                
                  SOVEREIGN
                    BANK

                  

                  By:
                     /s/
                    Robert F. Camara   

                  Name:
                     Robert
                    F. Camara   

                  Title:
                     Vice
                    President 

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    
 

    
       

      
        	 	
                
                  CHANG
                    HWA COMMERICAL BANK, LTD.,

                  LOS
                    ANGELES BRANCH

                  

                  By:
                     /s/
                    Wen-Che Chen   

                  Name:
                     Wen-Che
                    Chen   

                  Title:
                     VP
                    & General Manager  

                

              

      

      

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    

      

    
       

      
        	 	
                
                  SUNTRUST
                    BANK

                  

                  By:
                     /s/
                    Richard C. Wilson   

                  Name:
                     Richard
                    C. Wilson   

                  Title:
                     Managing
                    Director 

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    

    
       

      
        	 	
                
                  MIZUHO
                    CORPORATE BANK, LTD.

                  

                  By:
                     /s/
                    Bertram H. Tang   

                  Name:
                     Bertram
                    H. Tang   

                  Title:
                     Senior
                    Vice President & Team
                    Leader

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

    

    
       

      
        	 	
                
                  REGIONS
                    BANK

                  

                  By:
                     /s/
                    Berkin Istanbulluoglu  

                  Name:
                     Berkin
                    Istanbulluoglu   

                  Title:
                     Assistant
                    Vice President  

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

      

    

      

    

    
       

      
        	 	
                
                  WACHOVIA
                    BANK, NATIONAL ASSOCIATION

                  

                  By:
                     /s/
                    Denis Waltrich   

                  Name:
                     Denis
                    Waltrich    

                  Title:
                     Vice
                    President  

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

         

         

      

    

    

    
       

      
        	 	
                
                  UNION
                    BANK OF CALIFORNIA, N.A.

                  

                  By:
                     /s/
                    Ching Lim    

                  Name:
                     Ching
                    Lim    

                  Title:
                     Vice
                    President  

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

     

    
       

      
        	 	
                
                  NATIONAL
                    CITY BANK

                  

                  By:
                     /s/
                    Amanda M. Sigg   

                  Name:
                     Amanda
                    M. Sigg   

                  Title:
                     Relationship
                    Manager 

                

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        CVS
          CORPORATION

        

        GLOBAL
          AMENDMENT TO CREDIT AGREEMENTS

    

     

    

    
       

      
        	 	
                
                  THE
                    NORTHERN TRUST COMPANY

                  

                  By:
                     /s/
                    Ashish S. Bhagwat   

                  Name:
                     Ashish
                    S. Bhagwat   

                  Title:
                     Vice
                    President  

                

              

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    
      CVS
        CORPORATION

      

      GLOBAL
        AMENDMENT TO CREDIT AGREEMENTS

       

      

      
         

        
          	 	
                  
                    
                      LEHMAN
                        BROTHERS BANK, FSB

                      

                      By:
                         /s/ Janine M. Shugan   

                      Name:
                         Janine M. Shugan   

                      
                        Title:
 Authorized
                          SignatoryEX-10.1

 

Exhibit 10.1

 

 

GUARANTEE AND COLLATERAL AGREEMENT

dated as of

March 19, 2007,

among

FREEPORT-MCMORAN COPPER & GOLD INC.,

THE SUBSIDIARIES OF FREEPORT-MCMORAN COPPER & GOLD INC.

FROM TIME TO TIME PARTY HERETO

and

JPMORGAN CHASE BANK, N.A.,

as Collateral Agent

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Parent Credit Agreement
	 	 	1	 
	SECTION 1.02. Other Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	Guarantee
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Guarantee
	 	 	6	 
	SECTION 2.02. Guarantee of Payment
	 	 	7	 
	SECTION 2.03. No Limitations
	 	 	7	 
	SECTION 2.04. Reinstatement
	 	 	8	 
	SECTION 2.05. Agreement To Pay; Subrogation
	 	 	8	 
	SECTION 2.06. Information
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Pledge of Securities
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Pledge
	 	 	9	 
	SECTION 3.02. Delivery of the Pledged Collateral
	 	 	9	 
	SECTION 3.03. Representations, Warranties and Covenants
	 	 	10	 
	SECTION 3.04. Certification of Limited Liability Company and Limited Partnership Interests
	 	 	12	 
	SECTION 3.05. Registration in Nominee Name; Denominations
	 	 	12	 
	SECTION 3.06. Voting Rights; Dividends and Interest
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Security Interests in Personal Property
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Security Interest
	 	 	14	 

 

 

	 	 	 	 	 
	SECTION 4.02. Representations and Warranties
	 	 	15	 
	SECTION 4.03. Covenants
	 	 	16	 
	SECTION 4.04. Other Actions
	 	 	18	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Remedies Upon Default
	 	 	19	 
	SECTION 5.02. Application of Proceeds
	 	 	20	 
	SECTION 5.03. Securities Act
	 	 	21	 
	SECTION 5.04. Registration
	 	 	22	 
	SECTION 5.05. No Marshalling of Assets Required
	 	 	23	 
	SECTION 5.06. Existing JV Restrictions; Specified Restrictions
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Indemnity, Subrogation and Subordination
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Indemnity and Subrogation
	 	 	23	 
	SECTION 6.02. Contribution and Subrogation
	 	 	24	 
	SECTION 6.03. Subordination
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Ratable Obligations
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Equal and Ratable Security
	 	 	24	 
	SECTION 7.02. Ratable Application of Proceeds
	 	 	25	 
	SECTION 7.03. Application of Moneys Distributable to Ratable Obligations
	 	 	25	 
	SECTION 7.04. Delivery of Indentures
	 	 	26	 
	SECTION 7.05. Information as to Secured Parties and Indenture Trustees
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	The Collateral Agent
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Exculpatory Provisions
	 	 	26	 

 

 

	 	 	 	 	 
	SECTION 8.02. Delegation of Duties
	 	 	28	 
	SECTION 8.03. Reliance by Collateral Agent
	 	 	28	 
	SECTION 8.04. Limitations on Duties of Collateral Agent
	 	 	28	 
	SECTION 8.05. Resignation of the Collateral Agent
	 	 	29	 
	SECTION 8.06. Co-Collateral Agents; Separate Collateral Agents
	 	 	30	 
	SECTION 8.07. Representatives of Secured Parties
	 	 	31	 
	SECTION 8.08. Consent and Agreement by Secured Parties
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	32	 
	SECTION 9.02. Waivers; Amendment
	 	 	32	 
	SECTION 9.03. Collateral Agent’s Fees and Expenses; Indemnification
	 	 	33	 
	SECTION 9.04. Successors and Assigns
	 	 	34	 
	SECTION 9.05. Survival of Agreement
	 	 	34	 
	SECTION 9.06. Counterparts; Effectiveness; Several Agreement
	 	 	34	 
	SECTION 9.07. Severability
	 	 	35	 
	SECTION 9.08. Right of Set-Off
	 	 	35	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	35	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	36	 
	SECTION 9.11. Headings
	 	 	36	 
	SECTION 9.12. Security Interest Absolute
	 	 	36	 
	SECTION 9.13. Termination or Release
	 	 	37	 
	SECTION 9.14. Additional Subsidiaries
	 	 	38	 
	SECTION 9.15. Collateral Agent Appointed Attorney-in-Fact
	 	 	38	 

 

 

	 	 	 
	Schedules
	 	 
	 
	 	 
	Schedule I

	 	Subsidiary Guarantors; Subsidiary Grantors
	Schedule II

	 	Pledged Equity Interests; Specified Pledged Indebtedness
	 
	 	 
	Exhibit
	 	 
	 
	 	 
	Exhibit I

	 	Form of Supplement

 

 

     GUARANTEE AND COLLATERAL AGREEMENT (this “Agreement”), dated as of
March 19, 2007, among FREEPORT-MCMORAN COPPER & GOLD INC., a Delaware
corporation (“FCX”), the Subsidiaries of FCX from time to time party
hereto and JPMORGAN CHASE BANK, N.A., as Collateral Agent.

          Reference is made to (i) the Credit Agreement dated as of March 19, 2007 (as amended,
supplemented or otherwise modified from time to time, the “Parent Credit Agreement”), among FCX,
the Lenders party thereto, the Issuing Banks party thereto, and JPMorgan Chase Bank, N.A.
(“JPMCB”), as Administrative Agent and Collateral Agent, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated (“Merrill”), as Syndication Agent, and (ii) the Amended and Restated Credit Agreement
dated as of March 19, 2007 (as amended, supplemented or otherwise modified from time to time, the
“Restated Credit Agreement” and, together with the Parent Credit Agreement, the “Credit
Agreements”), among FCX, PTFI, the lenders party thereto, the issuing banks party thereto, JPMCB,
as administrative agent, collateral agent, security agent and JAA security agent, U.S. Bank Trust
National Association, as FI trustee, and Merrill, as syndication agent. The lenders under the
Parent Credit Agreement have agreed to extend credit to FCX and the lenders under the Restated
Credit Agreement have agreed to extend credit to FCX and PTFI, in each case subject to the terms
and conditions set forth in the applicable Credit Agreement. The obligations of such lenders to
extend such credit are conditioned upon, among other things, the execution and delivery of this
Agreement. The Subsidiary Parties are affiliates of FCX and PTFI, will derive substantial benefits
from the extension of credit to FCX and PTFI pursuant to the Credit Agreements and are willing to
execute and deliver this Agreement in order to induce such lenders to extend such credit.
Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Parent Credit Agreement. (a) Except as otherwise expressly provided herein,
capitalized terms used in this Agreement, not otherwise defined herein and defined in the Parent
Credit Agreement shall have the meanings specified in the Parent Credit Agreement. Unless the
context otherwise requires, all terms defined in the New York UCC (as defined herein) and not
defined in this Agreement have the meanings specified therein; the term “instrument” shall have the
meaning specified in Article 9 of the New York UCC.

          (b) The rules of construction specified in Section 1.03 of the Parent Credit Agreement also
apply to this Agreement.

          SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

          “Account Debtor” means any Person who is or who may become obligated to FCX under, with
respect to or on account of an Account.

 

 

  2

          “Article 9 Collateral” has the meaning assigned to such term in Section 4.01.

          “Collateral” means Article 9 Collateral and Pledged Collateral.

          “Credit Agreements” has the meaning assigned to such term in the preliminary statement of this
Agreement.

          “Cyprus Amax Limited Collateral” means that portion of the Pledged Collateral (if any) that,
pursuant to Section 10.8 of the Cyprus Amax Notes Indenture, is required to equally and ratably
secure the Cyprus Amax Notes Non-Excluded Obligations.

          “Cyprus Amax Notes” means the 7-3/8% Notes due 2007 of PD and outstanding on the Effective
Date.

          “Cyprus Amax Noteholders” means the holders from time to time of the Cyprus Amax Notes.

          “Cyprus Amax Notes Indenture” means the Indenture dated as of May 17, 1995, between PD (as
successor in interest to Cyprus Amax Minerals Company, a Delaware corporation), and the Cyprus Amax
Notes Trustee, as amended, supplemented or otherwise modified on or prior to the Effective Date.

          “Cyprus Amax Notes Obligations” means at any time the obligations in respect of Cyprus Amax
Notes constituting the “Securities” (within the meaning of Section 1.1 of the Cyprus Amax Notes
Indenture) at such time.

          “Cyprus Amax Notes Non-Excluded Obligations” means at any time the Cyprus Amax Notes
Obligations at such time to the extent that such obligations are required under Section 10.8 of the
Cyprus Amax Notes Indenture to be equally and ratably secured with the Secured Obligations (after
giving effect to the proviso in such Section 10.8 or any such other limitation on or qualification
or exception to such requirement).

          “Cyprus Amax Notes Trustee” means The Bank of New York Trust Company, N.A., in its capacity as
trustee under the Cyprus Amax Notes Indenture (or any successor trustee in such capacity).

          “Excluded Accounts” means, collectively, (a) payroll, trust, withholding tax or other
fiduciary accounts, (b) accounts that may be made subject to Liens pursuant to clause (c), (f), (l)
or (n) of Section 6.02 of the Credit Agreements and (c) accounts to the extent holding cash reserve
funds for environmental liabilities, assurances and reclamations.

          “Existing JV Restrictions” has the meaning assigned to such term in Section 5.06(a).

 

 

  3

          “FCX 6-7/8% Notes” means the 6-7/8% Senior Notes due 2014 of FCX and outstanding on the
Effective Date.

          “FCX 10-1/8% Notes” means the 10-1/8% Senior Notes due 2010 of FCX and outstanding on the
Effective Date.

          “FCX 6-7/8% Notes Indenture” means the Indenture dated as of February 3, 2004, between FCX and
the FCX Notes Trustee, as amended, supplemented or otherwise modified on or prior to the Effective
Date.

          “FCX 10-1/8% Notes Indenture” means the Indenture dated as of January 29, 2003, between FCX
and the FCX Notes Trustee, as amended, supplemented or otherwise modified on or prior to the
Effective Date.

          “FCX 6-7/8% Notes Obligations” means at any time the obligations in respect of FCX 6-7/8%
Notes constituting the “Securities” (within the meaning of Section 1.01 of the FCX 6-7/8% Notes
Indenture) at such time.

          “FCX 10-1/8% Notes Obligations” means at any time the obligations in respect of FCX 10-1/8%
Notes constituting the “Securities” (within the meaning of Section 1.01 of the FCX 10-1/8% Notes
Indenture) at such time.

          “FCX Noteholders” means the holders from time to time of the FCX Notes.

          “FCX Notes” means, collectively, the FCX 6-7/8% Notes and the FCX 10-1/8% Notes.

          “FCX Notes Indentures” means, collectively, the FCX 6-7/8% Notes Indenture and the FCX 10-1/8%
Notes Indenture.

          “FCX Notes Non-Excluded Obligations” means at any time (i) the FCX 6-7/8% Notes Obligations at
such time to the extent that such obligations are required under Section 4.13 of the FCX 6-7/8%
Notes Indenture to be equally and ratably secured with the other Secured Obligations (after giving
effect to the proviso in such Section 4.13 or any such other limitation on or qualification or
exception to such requirement) and (ii) the FCX 10-1/8% Notes Obligations at such time to the
extent that such obligations are required under Section 4.13 of the FCX 10-1/8% Notes Indenture to
be equally and ratably secured with the other Secured Obligations (after giving effect to the
proviso in such Section 4.13 or any such other applicable limitation on or qualification or
exception to such requirement).

          “FCX Notes Trustees” means The Bank of New York, a New York banking corporation, in its
capacity as trustee under each of the FCX Notes Indentures (or any successor trustee in any such
capacity).

          “Federal Securities Laws” has the meaning assigned to such term in Section 5.03.

 

 

  4

          “Grantors” means FCX and the Subsidiary Grantors.

          “Guaranteed Obligations” means the Secured Obligations other than the FCX Notes Non-Excluded
Obligations.

          “Guaranteed Parties” means the Secured Parties other than the FCX Noteholders and any
successor or assign of a FCX Noteholder.

          “Guarantors” means FCX and the Subsidiary Guarantors.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset and (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset.

          “Loan Group Default” means a “Default” under either Credit Agreement.

          “Loan Group Document Obligations” means, collectively, the Obligations and the Obligations (as
defined in the Restated Credit Agreement).

          “Loan Group Documents” means, collectively, the Loan Documents and the Loan Documents (as
defined in the Restated Credit Agreement).

          “Loan Group Event of Default” means an “Event of Default” under either Credit Agreement.

          “Loan Group Issuing Banks” means, collectively, the Issuing Banks and the Issuing Banks (as
defined in the Restated Credit Agreement).

          “Loan Group Lenders” means, collectively, the Lenders and the Lenders (as defined in the
Restated Credit Agreement).

          “Loan Group Party” means, collectively, the Loan Parties and the Loan Parties (as defined in
the Restated Credit Agreement).

          “Loan Group Revolving Lenders” means, collectively, the Revolving Lenders and the Revolving
Lenders (as defined in the Restated Credit Agreement).

          “New York UCC” means the Uniform Commercial Code as from time to time in effect in the State
of New York.

          “Non-Scheduled Indebtedness” means Indebtedness of any Subsidiary that is owing to FCX that is
less than $25,000,000 in the aggregate for all such Indebtedness of such Subsidiary owing to FCX.

          “Pledged Collateral” has the meaning assigned to such term in Section 3.01.

 

 

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          “Pledged Equity Interests” has the meaning assigned to such term in Section 3.01.

          “Pledged Indebtedness” has the meaning assigned to such term in Section 3.01.

          “Pledged Securities” means any promissory notes, stock certificates or other securities
certificates or instruments now or hereafter included in the Pledged Collateral, including any
certificates or instruments representing or evidencing any Pledged Collateral.

          “Proceeds” has the meaning specified in Section 9-102 of the New York UCC.

          “Secured Obligations” means (a) the Loan Group Document Obligations, (b) the due and punctual
payment and performance of all obligations of FCX or any Restricted Subsidiary under each Permitted
Secured Hedge, (c) the due and punctual payment and performance of all obligations owed from time
to time by FCX or any Restricted Subsidiary to JPMCB, a Loan Group Lender or an Affiliate of a Loan
Group Lender in respect of cash management services provided to FCX or any Restricted Subsidiary,
(d) the due and punctual payment and performance of all obligations owed from time to time by FCX
or any Restricted Subsidiary to the Loan Group Revolving Lenders or Affiliates of Loan Group
Revolving Lenders in respect of any Purchasing Card Program and (e) the FCX Notes Non-Excluded
Obligations, in each case including obligations in respect of overdrafts, temporary advances,
interest and fees; provided that in no event shall any obligations in respect of any
Secured Obligations described in clause (b), (c) or (d) hereof, in each case provided by an
Affiliate of a Lender, constitute Secured Obligations for the purpose of any Security Document
governed by the laws of Chile or Indonesia unless (A) in the case of Security Documents governed by
the laws of Chile, such documents have been amended to identify the Affiliate as a secured party
thereunder and (B) in the case of Security Documents governed by the laws of Indonesia, the
documents evidencing such Permitted Secured Hedge, cash management service or Purchasing Card
Program, as applicable, contain the following language:

     “We [name of Permitted Secured Hedge Counterparty/Cash Management Provider/Card
Program Provider] hereby confirm that by entering into this [insert name of contract]
[Permitted Secured Hedge/documents evidencing cash management services/documents evidencing
card programs], intend to be party to the Third Amended and Restated FCX/ISI Pledge
Agreement (PTII Shares) (the “PTII Pledge Agreement”) and, after the satisfaction of the
Full Stock Pledge Condition or the Partial Stock Pledge Condition, the Fourth Amended and
Restated FCX Pledge Agreement (PTFI Shares) (the “PTFI Pledge Agreement”), in each case
among JPMorgan Chase Bank, N.A., as Collateral Agent (the “Collateral Agent”) on behalf of
the Secured Parties (as defined in the PTII Pledge Agreement or the PTFI Pledge Agreement,
if applicable) and the applicable Pledgor(s), and agree that we shall be bound by all the
provisions of the PTII Pledge Agreement and, if applicable, the PTFI Pledge Agreement, as
if

 

 

  6

we had been an original party thereto. We further agree to notify the Collateral Agent
of our entering into this [insert name of contract] and agree that the Collateral Agent may
rely upon our undertaking and agreement given herein. We understand that we shall not be
bound by the provisions of the PTII Pledge Agreement nor be entitled to the benefits
thereof until such notice is given to the Collateral Agent.”

          “Secured Parties” means (a) the Loan Group Lenders, (b) the Collateral Agent, (c) the Agents
(as defined in each of the Credit Agreements), (d) the Loan Group Issuing Banks, (e) each
counterparty to a Permitted Secured Hedge, (f) each Loan Group Lender or Affiliate of any Loan
Group Lender providing cash management services the obligations under which constitute Secured
Obligations, (g) each Loan Group Revolving Lender and each Affiliate of a Loan Group Revolving
Lender providing any Purchasing Card Program to FCX or any Restricted Subsidiary, (h) the FCX
Noteholders and (i) the successors and assigns of each of the foregoing.

          “Security Interest” has the meaning assigned to such term in Section 4.01.

          “Specified Pledged Indebtedness” means Pledged Indebtedness other than Non-Scheduled
Indebtedness.

          “Specified Pledged Securities” means Pledged Securities other than in respect of Non-Scheduled
Indebtedness.

          “Specified Restrictions” has the meaning assigned to such term in Section 5.06(b).

          “Subsidiary Grantors” means (a) the Subsidiaries identified on Schedule I under the caption
“Subsidiary Grantors” and (b) each other Subsidiary that becomes a party to this Agreement as a
Subsidiary Grantor after the Effective Date.

          “Subsidiary Guarantors” means (a) the Subsidiaries identified on Schedule I under the caption
“Subsidiary Guarantors” and (b) each other Subsidiary that becomes a party to this Agreement as a
Subsidiary Guarantor after the Effective Date.

          “Subsidiary Parties” means, collectively, the Subsidiary Grantors and the Subsidiary
Guarantors.

ARTICLE II

Guarantee

          SECTION 2.01. Guarantee. Each Guarantor unconditionally guarantees, jointly with the other
Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual
payment and performance of the Guaranteed Obligations now existing or at any time outstanding (it
being understood that FCX shall not guarantee obligations in respect of loans and letters of credit
requested by FCX to the extent FCX is directly obligated in respect thereof under the Credit
Agreements). Each of the

 

 

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Guarantors further agrees that the Guaranteed Obligations may be extended or renewed, in whole
or in part, without notice to or further assent from it, and that it will remain bound upon its
guarantee notwithstanding any extension or renewal of any Guaranteed Obligation. Each of the
Guarantors waives presentment to, demand of payment from and protest to FCX or any other Loan Group
Party of any of the Guaranteed Obligations, and also waives notice of acceptance of its guarantee
and notice of protest for nonpayment.

          SECTION 2.02. Guarantee of Payment. Each of the Guarantors further agrees that its guarantee
hereunder constitutes a guarantee of payment when due and not of collection. Each of the
Guarantors waives any right to require that any resort be had by the Collateral Agent or any other
Person to any security held for the payment of the Guaranteed Obligations or to any balance of any
deposit account or credit on the books of the Collateral Agent or any other Person in favor of FCX
or any other Person.

          SECTION 2.03. No Limitations. (a) Except for termination or release of a Guarantor’s
obligations hereunder as expressly provided in Section 9.13, the obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise.
Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall
not be discharged or impaired or otherwise affected by (i) the failure of the Collateral Agent or
any other Guaranteed Party to assert any claim or demand or to enforce any right or remedy under
the provisions of any Loan Group Document or otherwise; (ii) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, any Loan Group Document or
any other agreement, including with respect to any other Guarantor under this Agreement; (iii) the
release of any security held by the Collateral Agent or any other Guaranteed Party for the
Guaranteed Obligations or any of them; (iv) any default, failure or delay, wilful or otherwise, in
the performance of the Guaranteed Obligations; or (v) any other act or omission that may or might
in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge
of any Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash
of all the Guaranteed Obligations). Each Guarantor expressly authorizes the Guaranteed Parties, to
the fullest extent permitted by applicable law, to take and hold security for the payment and
performance of the Guaranteed Obligations, to exchange, waive or release any or all such security
(with or without consideration), to enforce or apply such security and direct the order and manner
of any sale thereof in their sole discretion or to release or substitute any one or more other
guarantors or obligors upon or in respect of the Guaranteed Obligations, all without affecting the
obligations of any Guarantor hereunder.

          (b) To the fullest extent permitted by applicable law, each Guarantor waives any defense
based on or arising out of any defense of FCX or any other Loan Group Party or the unenforceability
of the Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause
of the liability of FCX or any other Loan Group Party, other than the indefeasible payment in full
in cash of all the Guaranteed

 

 

  8

Obligations. The Collateral Agent and the other Guaranteed Parties may, at their election,
foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales,
accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of
the Guaranteed Obligations, make any other accommodation with FCX or any other Loan Group Party or
exercise any other right or remedy available to them against FCX or any other Loan Group Party,
without affecting or impairing in any way the liability of any Guarantor hereunder except to the
extent the Guaranteed Obligations have been fully and indefeasibly paid in full in cash or the
guarantee of such Guarantor has been terminated or released pursuant to Section 9.13. To the
fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any
such election even though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor
against FCX or any other Loan Group Party, as the case may be, or any security.

          SECTION 2.04. Reinstatement. Each of the Guarantors agrees that its guarantee hereunder
shall, to the fullest extent permitted by applicable law, continue to be effective or be
reinstated, as the case may be, if at any time payment of any Guaranteed Obligation, or any part
thereof, is rescinded or must otherwise be restored by the Collateral Agent or any other Guaranteed
Party upon the bankruptcy or reorganization of FCX, any other Loan Group Party or otherwise.

          SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in
limitation of any other right that the Collateral Agent or any other Guaranteed Party has at law or
in equity against any Guarantor by virtue hereof, upon the failure of any Loan Group Party to pay
any Guaranteed Obligation that such Loan Group Party is obligated to pay, when and as the same
shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise,
each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Collateral
Agent for distribution to the applicable Guaranteed Parties in cash the amount of such unpaid
Guaranteed Obligation. Upon payment by any Guarantor of any sums to the Collateral Agent as
provided above, all rights of such Guarantor against FCX or any other Loan Group Party arising as a
result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subject to Article VI.

          SECTION 2.06. Information. Each Guarantor assumes all responsibility for being and keeping
itself informed of FCX’s and each other Loan Group Party’s financial condition and assets, and of
all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the
nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees
that none of the Collateral Agent or the other Guaranteed Parties will have any duty to advise such
Guarantor of information known to it or any of them regarding such circumstances or risks.

 

 

  9

ARTICLE III

Pledge of Securities

          SECTION 3.01. Pledge. As security for the payment or performance, as the case may be, in
full of the Secured Obligations (and, to the extent provided in Section 7.01(b), the Cyprus Amax
Notes Non-Excluded Obligations), each Grantor hereby assigns and pledges to the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Parties (and, to the extent
provided in Section 7.01(b), the Cyprus Amax Noteholders), and hereby grants to the Collateral
Agent, its successors and assigns, for the ratable benefit of the Secured Parties (and, to the
extent provided in Section 7.01(b), the Cyprus Amax Noteholders), a security interest in, all of
such Grantor’s right, title and interest in, to and under (a) the shares of capital stock and other
Equity Interests owned by it and listed on Schedule II, as such Schedule may be supplemented from
time to time pursuant to Section 3.02(c), and all certificates representing any of such Equity
Interests (collectively, the “Pledged Equity Interests”); (b)(i) the Indebtedness of any Subsidiary
that is owing to FCX as of the Effective Date, including the Specified Pledged Indebtedness listed
on Schedule II, (ii) any Indebtedness of any Subsidiary that is owing to FCX in the future and
(iii) all promissory notes and any other instruments evidencing such Indebtedness (collectively,
the “Pledged Indebtedness”); (c) subject to Section 3.06, all payments of principal or interest,
dividends, cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds
received in respect of, the securities and instruments referred to in clauses (a) and (b) above;
(d) subject to Section 3.06, all rights and privileges of such Grantor with respect to the
securities, instruments and other property referred to in clauses (a), (b) and (c) above; and (e)
all Proceeds of any of the foregoing (the items referred to in clauses (a) through (e) above being
collectively referred to as the “Pledged Collateral”).

          TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers,
privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties (and, to the extent provided
in Section 7.01(b), the Cyprus Amax Noteholders), forever; subject, however, to the terms,
covenants and conditions hereinafter set forth.

          SECTION 3.02. Delivery of the Pledged Collateral. (a) Each Grantor agrees promptly to
deliver or cause to be delivered to the Collateral Agent any and all Specified Pledged Securities.

          (b) FCX will cause any Indebtedness for borrowed money in excess of $25,000,000 owed to it by
any Subsidiary to be evidenced by a duly executed promissory note that is pledged and delivered to
the Collateral Agent pursuant to the terms hereof.

          (c) Upon delivery to the Collateral Agent, any Specified Pledged Securities shall be
accompanied by stock powers duly executed in blank or other instruments of transfer reasonably
satisfactory to the Collateral Agent. Each delivery of Specified Pledged Securities and each
pledge of Pledged Equity Interests or Specified

 

 

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Pledged Indebtedness after the Effective Date shall be accompanied by a schedule describing
the Pledged Securities so delivered or the Pledged Equity Interests or Specified Pledged
Indebtedness so pledged, which schedule shall be attached to Schedule II hereto and made a part
thereof; provided that failure to so attach any such schedule shall not affect the validity of such
pledge of such Specified Pledged Securities. Each schedule so delivered shall supplement any prior
schedules so delivered and in the event a schedule is delivered in connection with a pledge that
will be subject to a Specified Restriction the schedule so delivered shall include a description in
reasonable detail of the applicable restrictions.

          (d) Each Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time
to time to file in any relevant jurisdiction any initial financing statements with respect to the
Pledged Collateral of such Grantor or any part thereof and amendments thereto that (i) identify the
Pledged Collateral of such Grantor and (ii) contain the information required by Article 9 of the
Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement
or amendment, including whether such Grantor is an organization, the type of organization and any
organizational identification number issued to such Grantor. Each Grantor agrees to provide such
information to the Collateral Agent promptly upon request.

          (e) The security interests granted in Section 3.01 are granted as security only and shall not
subject the Collateral Agent, any Cyprus Amax Noteholder or any other Secured Party to, or in any
way alter or modify, any obligation or liability of any Grantor with respect to or arising out of
the Pledged Collateral.

          SECTION 3.03. Representations, Warranties and Covenants. The Grantors jointly and severally
represent, warrant and covenant to and with the Collateral Agent, for the benefit of the Secured
Parties and the Cyprus Amax Noteholders that:

     (a) Schedule II correctly sets forth the percentage of the issued and outstanding
units of each class of the Equity Interests of the issuer thereof represented by the
Pledged Equity Interests and includes sufficient Equity Interests, intercompany
Indebtedness and promissory notes required to satisfy the Collateral and Guarantee
Requirement (as collectively defined in each of the Credit Agreements);

     (b) except to the extent any failure to be so authorized or issued would not, in the
aggregate, be adverse to the interests of the Secured Parties in any material respect, the
Pledged Equity Interests and Specified Pledged Indebtedness have been duly and validly
authorized and issued by the issuers thereof and (i) in the case of Pledged Equity
Interests, are fully paid and nonassessable and (ii) in the case of Pledged Indebtedness,
are valid and binding obligations of the issuers thereof, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting creditors’ rights
generally, concepts of reasonableness and general principles of equity, regardless of
whether considered in a proceeding in equity or at law;

 

 

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     (c) except for the security interests granted hereunder, each of the Grantors (i) is
and, subject to any transfers made in compliance with each of the Credit Agreements, will
continue to be the direct owner, beneficially, and to the extent applicable, of record, of
the Equity Interests and Specified Pledged Indebtedness indicated on Schedule II as owned
by such Grantor, (ii) holds the same free and clear of all Liens, other than Liens created
by this Agreement and Permitted Encumbrances, (iii) will make no assignment, pledge,
hypothecation or transfer of, or create or permit to exist any security interest in or
other Lien on, the Pledged Collateral, other than Liens created by this Agreement,
Permitted Encumbrances and transfers made in compliance with each of the Credit Agreements,
and (iv) will, to the extent commercially reasonable, defend its title or interest thereto
or therein against any and all Liens (other than the Lien created by this Agreement and
Permitted Encumbrances), however arising, of all Persons whomsoever;

     (d) except for the Existing JV Restrictions, the Specified Restrictions, restrictions
expressly permitted by the Credit Agreements, and restrictions and limitations imposed by
the Loan Group Documents or securities laws generally, the Pledged Collateral is and will
continue to be freely transferable and assignable, and none of the Pledged Collateral is or
will be subject to any option, right of first refusal, shareholders agreement, charter or
by-law provisions or contractual restriction of any nature that might prohibit, impair,
delay or otherwise affect the pledge of such Pledged Collateral hereunder, the sale or
disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and
remedies hereunder;

     (e) each of the Grantors has the power and authority to pledge the Pledged Collateral
pledged by it hereunder in the manner hereby done or contemplated;

     (f) no consent or approval of any Governmental Authority, any securities exchange or
any other Person was or is necessary to the validity of the pledge effected hereby (other
than such consents and approvals as have been obtained and are in full force and effect and
other than the Existing JV Restrictions or, in the case of a pledge effected after the
Effective Date, any Specified Restriction);

     (g) by virtue of the execution and delivery by the Grantors of this Agreement, when
any Specified Pledged Securities are delivered to the Collateral Agent in accordance with
this Agreement, the Collateral Agent will obtain a legal, valid and perfected lien upon and
security interest in such Specified Pledged Securities as security for the payment and
performance of the Secured Obligations (and, to the extent provided in Section 7.01(b), the
Cyprus Amax Notes Non-Excluded Obligations); and

     (h) the pledge effected hereby is effective to vest in the Collateral Agent, for the
benefit of the Secured Parties (and, to the extent provided in Section 7.01(b), the Cyprus
Amax Noteholders), the rights of the Collateral Agent in the Pledged Collateral as set
forth herein.

 

 

  12

          SECTION 3.04. Certification of Limited Liability Company and Limited Partnership Interests.
(a) Each Grantor acknowledges and agrees that each interest in any limited liability company or
limited partnership pledged hereunder that is represented by a certificate, a “security” within the
meaning of Article 8 of the New York UCC and governed by Article 8 of the Uniform Commercial Code
of the applicable jurisdiction shall at all times hereafter be represented by a certificate, a
“security” within the meaning of Article 8 of the New York UCC and governed by Article 8 of the
Uniform Commercial Code of such jurisdiction.

          (b) Each Grantor further acknowledges and agrees that (i) the interests in any limited
liability company or limited partnership pledged hereunder and not represented by a certificate
shall not be a “security” within the meaning of Article 8 of the New York UCC and shall not be
governed by Article 8 of the Uniform Commercial Code of the applicable jurisdiction and (ii) the
Grantors shall at no time elect to treat any such interest as a “security” within the meaning of
Article 8 of the New York UCC or issue any certificate representing such interest (except that the
Grantors may elect to so treat any such interest as a “security” and issue any certificate
representing such interest if simultaneously therewith the applicable Grantor delivers such
certificate to the Collateral Agent).

          (c) In the event the interests in any limited liability company or limited partnership not
represented by a certificate are pledged by a Grantor hereunder after the Effective Date such
Grantor shall simultaneously therewith provide the Collateral Agent with the information required
by the applicable jurisdiction for the filing of a financing statement (or an amendment to a
financing statement) with respect to the uncertificated interests so pledged.

          SECTION 3.05. Registration in Nominee Name; Denominations. The Collateral Agent, on behalf
of the Secured Parties and the Cyprus Amax Noteholders, shall have the right to hold the Specified
Pledged Securities in the name of the applicable Grantor, endorsed or assigned in blank or in favor
of the Collateral Agent or, at any time upon the occurrence and during the continuance of a Loan
Group Event of Default (but subject to any applicable Existing JV Restriction or any applicable
Specified Restriction), in its own name (as pledgee) or the name of its nominee (as pledgee or as
sub-agent). Upon the occurrence and during the continuance of a Loan Group Event of Default, each
Grantor will promptly give to the Collateral Agent copies of any notices or other communications
received by it with respect to Pledged Securities registered in the name of such Grantor. Upon the
occurrence and during the continuance of a Loan Group Event of Default, the Collateral Agent shall
have the right to exchange the certificates representing Pledged Securities for certificates of
smaller or larger denominations for any purpose consistent with this Agreement.

          SECTION 3.06. Voting Rights; Dividends and Interest. (a) Unless and until a Loan Group
Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified
the Grantors that their rights under this Section 3.06 are being suspended:

 

 

  13

     (i) Each Grantor shall be entitled to exercise any and all voting and/or other
consensual rights and powers inuring to an owner of Pledged Equity Interests or Pledged
Indebtedness or any part thereof for any purpose consistent with the terms of this
Agreement, the Credit Agreements and the other Loan Group Documents.

     (ii) The Collateral Agent shall execute and deliver to each Grantor, or cause to be
executed and delivered to such Grantor, all such proxies, powers of attorney and other
instruments as such Grantor may reasonably request for the purpose of enabling such Grantor
to exercise the voting and/or consensual rights and powers it is entitled to exercise
pursuant to subparagraph (i) above.

     (iii) Each Grantor shall be entitled to receive and retain any and all dividends,
interest, principal and other distributions paid on or distributed in respect of the
Pledged Equity Interests and the Pledged Indebtedness to the extent and only to the extent
that such dividends, interest, principal and other distributions are permitted by, and
otherwise paid or distributed in accordance with, the terms and conditions of the Credit
Agreements, the other Loan Group Documents and applicable laws; provided that any noncash
dividends, interest, principal or other distributions that would constitute Pledged Equity
Interests or Pledged Indebtedness, whether resulting from a subdivision, combination or
reclassification of the outstanding Equity Interests of the issuer of any Pledged Equity
Interests or received in exchange for Pledged Equity Interests or Pledged Indebtedness or
any part thereof, or in redemption thereof, or as a result of any merger, consolidation,
acquisition or other exchange of assets to which such issuer may be a party or otherwise,
shall be and become part of the Pledged Collateral, and, if any such Pledged Equity
Interests or Pledged Indebtedness shall constitute Specified Pledged Securities, such
Specified Pledged Securities shall be held in trust for the benefit of the Collateral Agent
and shall be forthwith delivered to the Collateral Agent in the same form as so received
(with any necessary endorsement).

          (b) Upon the occurrence and during the continuance of a Loan Group Event of Default, after
the Collateral Agent shall have notified the Grantors of the suspension of their rights under
paragraph (a)(iii) of this Section 3.06, then all rights of any Grantor to dividends, interest,
principal or other distributions that such Grantor is authorized to receive pursuant to paragraph
(a)(iii) of this Section 3.06 shall cease, and all such rights shall thereupon become vested in the
Collateral Agent, which shall have the sole and exclusive right and authority to receive and retain
such dividends, interest, principal or other distributions. All dividends, interest, principal or
other distributions received by any Grantor contrary to the provisions of this Section 3.06 shall
be held in trust for the benefit of the Collateral Agent, shall be segregated from other property
or funds of such Grantor and shall be forthwith delivered to the Collateral Agent upon demand in
the same form as so received (with any necessary endorsement). Any and all money and other
property paid over to or received by the Collateral Agent pursuant to the provisions of this
paragraph (b) shall be retained by the Collateral Agent in an account to be established by the
Collateral Agent upon receipt of such money or other property and

 

 

  14

shall be applied in accordance with the provisions of Section 5.02. After all Loan Group
Events of Default have been cured or waived and FCX has delivered to the Collateral Agent a
certificate to that effect, the Collateral Agent shall promptly repay to each Grantor (without
interest) all dividends, interest, principal or other distributions that such Grantor would
otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.06
and that remain in such account.

          (c) Upon the occurrence and during the continuance of a Loan Group Event of Default, after
the Collateral Agent shall have notified the Grantors of the suspension of their rights under
paragraph (a)(i) of this Section 3.06, then, subject to any applicable Existing JV Restriction or
Specified Restriction, all rights of any Grantor to exercise the voting and consensual rights and
powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 3.06, and the
obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and
all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole
and exclusive right and authority to exercise such voting and consensual rights and powers;
provided that, unless otherwise directed by Loan Group Lenders constituting “Required Lenders”
under each of the Credit Agreements, the Collateral Agent shall have the right from time to time
following and during the continuance of a Loan Group Event of Default to permit the Grantors to
exercise such rights. After all Loan Group Events of Default have been cured or waived and FCX has
delivered to the Collateral Agent a certificate to that effect, the voting and consensual rights
and powers the Grantors are otherwise entitled to exercise pursuant to paragraph (a)(i) of this
Section 3.06 shall be restored.

          (d) Any notice given by the Collateral Agent to the Grantors suspending their rights under
paragraph (a) of this Section 3.06 may (i) be given by telephone if promptly confirmed in writing,
(ii) be given to one or more of the Grantors at the same or different times and (iii) suspend the
rights of the Grantors under paragraph (a)(i) or paragraph (a)(iii) in part without suspending all
such rights (as specified by the Collateral Agent in its sole and absolute discretion) and without
waiving or otherwise affecting the Collateral Agent’s rights to give additional notices from time
to time suspending other rights so long as a Loan Group Event of Default has occurred and is
continuing.

          (e) Upon the occurrence and during the continuance of a Loan Group Event of Default, each
Grantor holding any Pledged Indebtedness under which the obligor is a Subsidiary that is organized
under the laws of Indonesia hereby expressly authorizes the Collateral Agent (or its agents) to
directly collect any and all amounts owed in respect of such Pledged Indebtedness from such
Subsidiary and to do and perform all things necessary or useful to claim and receive such amounts.

ARTICLE IV

Security Interests in Personal Property

          SECTION 4.01. Security Interest. (a) As security for the payment or performance, as the
case may be, in full of the Secured Obligations, FCX hereby assigns and pledges to the Collateral
Agent, its successors and assigns, for the ratable benefit of

 

 

  15

the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns,
for the ratable benefit of the Secured Parties, a security interest (the “Security Interest”) in,
all right, title or interest in or to any and all of the following assets and properties now owned
or at any time hereafter acquired by FCX or in which FCX now has or at any time in the future may
acquire any right, title or interest (collectively, the “Article 9 Collateral”):

     (i) all Accounts the Account Debtor of which is a Subsidiary;

     (ii) all Deposit Accounts (other than Excluded Accounts);

     (iii) all Securities Accounts (other than Excluded Accounts), all Financial Assets
credited thereto and all Security Entitlements held therein;

     (iv) all books and records pertaining to the Article 9 Collateral; and

     (v) to the extent not otherwise included, all Proceeds and products of any and all of
the foregoing and all collateral security and guarantees given by any Person with respect
to any of the foregoing.

          (b) FCX hereby irrevocably authorizes the Collateral Agent at any time and from time to time
to file in any relevant jurisdiction any initial financing statements with respect to the Article 9
Collateral or any part thereof and amendments thereto that (i) identify the Article 9 Collateral
and (ii) contain the information required by Article 9 of the Uniform Commercial Code of the
jurisdiction in which FCX is located for the filing of any financing statement or amendment,
including whether FCX is an organization, the type of organization and any organizational
identification number issued to FCX. FCX agrees to provide such information to the Collateral
Agent promptly upon request.

          (c) The Security Interest is granted as security only and shall not subject the Collateral
Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of
FCX with respect to or arising out of the Article 9 Collateral.

          SECTION 4.02. Representations and Warranties. FCX represents and warrants to the Collateral
Agent and the Secured Parties that:

          (a) FCX has good and valid rights in and title to the Article 9 Collateral with respect to
which it has purported to grant a Security Interest hereunder and has full power and authority to
grant to the Collateral Agent the Security Interest in such Article 9 Collateral pursuant hereto
and to execute, deliver and perform its obligations in accordance with the terms of this Agreement,
without the consent or approval of any other Person other than any consent or approval that has
been obtained.

          (b) The Perfection Certificate has been duly prepared, completed and executed and the
information set forth therein, including the exact legal name of each Grantor, is correct and
complete as of the Effective Date. The Uniform Commercial Code financing statements or other
appropriate filings, recordings or registrations

 

 

  16

prepared by the Collateral Agent based upon the
information provided to the Collateral Agent in the Perfection Certificate for filing in each governmental, municipal or other office
specified in Schedule 2 to the Perfection Certificate (or specified by notice from FCX to the
Collateral Agent after the Effective Date in the case of filings, recordings or registrations
required by Section 5.03 or 5.12 of the Credit Agreements), are all the filings, recordings and
registrations with Governmental Authorities that are necessary to establish a legal, valid and
perfected security interest in favor of the Collateral Agent (for the ratable benefit of the
Secured Parties and, to the extent provided in Section 7.01(b), the Cyprus Amax Noteholders) in
respect of all Collateral in which the security interests granted hereunder may be perfected by
filing, recording or registration with Governmental Authorities in the United States (or any
political subdivision thereof) and its territories and possessions, and no further or subsequent
filing, refiling, recording, rerecording, registration or reregistration with Governmental
Authorities is necessary in any such jurisdiction, except as provided under applicable law with
respect to the filing of continuation statements.

          (c) The Security Interest constitutes (i) a legal and valid security interest in all the
Article 9 Collateral securing the payment and performance of the Secured Obligations and (ii)
subject to the filings described in Section 4.02(b), a perfected security interest in all Article 9
Collateral in which a security interest may be perfected by filing, recording or registering with
Governmental Authorities a financing statement or analogous document in the United States (or any
political subdivision thereof) and its territories and possessions pursuant to the Uniform
Commercial Code. The Security Interest is and shall be prior to any other Lien on any of the
Article 9 Collateral other than Permitted Encumbrances that have priority as a matter of law and
Liens expressly permitted to be prior to or pari passu with the Security Interest pursuant to
Section 6.02 of the Credit Agreements.

          (d) The Article 9 Collateral is owned by FCX free and clear of any Lien, except for Liens
expressly permitted pursuant to Section 6.02 of the Credit Agreements. No Grantor has filed or
consented to the filing of (i) any financing statement or analogous document under the Uniform
Commercial Code or any other applicable laws covering any Collateral or (ii) any assignment in
which a Grantor assigns any Collateral or any security agreement or similar instrument covering any
Collateral with any foreign governmental, municipal or other office, which financing statement or
analogous document, assignment, security agreement or similar instrument is still in effect,
except, in each case, for Liens expressly permitted pursuant to Section 6.02 of the Credit
Agreements.

          SECTION 4.03. Covenants. (a) Each Grantor agrees promptly to notify the Collateral Agent in
writing of any change (i) in its legal name, (ii) in its type of organization or corporate
structure, (iii) in its Federal Taxpayer Identification Number or organizational identification
number or (iv) in its jurisdiction of organization. Each Grantor agrees to promptly provide the
Collateral Agent with certified organizational documents reflecting any of the changes described in
the first sentence of this paragraph. Each Grantor agrees not to effect or permit any change
referred to in the preceding sentence unless all filings have been made under the Uniform
Commercial Code or

 

 

  17

otherwise that are required in order for the Collateral Agent to continue at all
times following such change to have a valid, legal and, to an extent no less than existed prior to
such change, perfected security interest in all the Collateral subject to no Liens other than Liens
permitted thereon under Section 6.02 of the Credit Agreements.

          (b) FCX shall, at its own expense, use commercially reasonable efforts to defend title to the
Article 9 Collateral against all Persons and to defend the Security Interest of the Collateral
Agent in the Article 9 Collateral and the priority thereof against any Lien not expressly permitted
pursuant to Section 6.02 of the Credit Agreements.

          (c) FCX agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly
filed all such further instruments and documents and take all such actions as the Collateral Agent
may from time to time reasonably request to better assure, preserve, protect and perfect the
Security Interest and the rights and remedies created hereby, including the payment of any fees and
taxes required in connection with the execution and delivery of this Agreement, the granting of the
Security Interest and the filing of any financing statements or other documents in connection
herewith or therewith; provided that (i) no Grantor shall be required to deliver any certificated
security or instrument included in the Pledged Collateral, or provide control with respect to any
security included in the Pledged Collateral, except as provided in Article III hereof, (ii) no
Grantor shall be required to provide control with respect to any securities account, security
entitlement or deposit account, except as provided in Section 4.04 hereof and (iii) no Grantor
shall be required to take any action to perfect, or make any representation with respect to the
perfection of, any security interest in any deposit account referred to in clause (y) of Section
4.04(a) or in any securities account referred to in clause (y) of Section 4.04(b).

          (d) Upon the occurrence and during the continuance of a Loan Group Event of Default, the
Collateral Agent, at its option, may discharge past due taxes, assessments, charges, fees, Liens,
security interests or other encumbrances at any time levied or placed on the Article 9 Collateral
and not permitted pursuant to Section 6.02 of the Credit Agreements, and FCX agrees to reimburse
the Collateral Agent on demand for any payment made or any expense reasonably incurred by the
Collateral Agent pursuant to the foregoing authorization; provided that nothing in this paragraph
shall be interpreted as excusing FCX from the performance of, or imposing any obligation on the
Collateral Agent or any Secured Party to cure or perform, any covenants or other promises of FCX
with respect to taxes, assessments, charges, fees, Liens, security interests or other encumbrances
as set forth herein or in the other Loan Group Documents.

          (e) FCX shall remain liable to observe and perform all the conditions and obligations to be
observed and performed by it under each contract, agreement or instrument relating to the Article 9
Collateral, all in accordance with the terms and conditions thereof, and FCX agrees to indemnify
and hold harmless the Collateral Agent and the other Secured Parties from and against any and all
liability for such performance.

          (f) FCX shall not make or permit to be made an assignment, pledge or hypothecation of the
Article 9 Collateral or grant any other Lien in respect of the Article

 

 

  18

9 Collateral, except as
permitted by the Credit Agreements. FCX shall not make or permit to be made any transfer of the Article 9 Collateral and FCX shall remain at all times
in possession of the Article 9 Collateral, except that unless and until the Collateral Agent shall
notify FCX that a Loan Group Event of Default shall have occurred and be continuing and that during
the continuance thereof FCX shall not sell, convey, lease, assign, transfer or otherwise dispose of
any Article 9 Collateral (which notice may be given by telephone if promptly confirmed in writing),
FCX may use and dispose of the Article 9 Collateral in any lawful manner not inconsistent with the
provisions of this Agreement, the Credit Agreements or any other Loan Group Document.

          SECTION 4.04. Other Actions. In order to further insure the attachment, perfection and
priority of, and the ability of the Collateral Agent to enforce, the Security Interest, FCX agrees,
at its own expense, to take the following actions with respect to the following Article 9
Collateral:

          (a) Deposit Accounts. For each deposit account that FCX at any time opens or maintains, FCX
shall, except in the case of (x) Excluded Accounts or (y) deposit accounts holding balances
(excluding intra-day balances), taken together with the fair market value of the securities
accounts excluded from the requirements of Section 4.04(b) under clause (y) thereof, not in excess
of $50,000,000, either (at FCX’s option) (i) cause the depositary bank to agree to comply with
instructions from the Collateral Agent to such depositary bank directing the disposition of funds
from time to time credited to such deposit account, without further consent of FCX or any other
Person, pursuant to a customary agreement reasonably satisfactory to the Collateral Agent, or (ii)
arrange for the Collateral Agent to become the customer of the depositary bank with respect to the
deposit account, with FCX being permitted, only with the consent of the Collateral Agent, to
exercise rights to withdraw funds from such deposit account. The Collateral Agent agrees with FCX
that the Collateral Agent shall not give any such instructions or withhold any withdrawal rights
from FCX unless a Loan Group Event of Default has occurred and is continuing, or, after giving
effect to any withdrawal, would occur. The provisions of this paragraph shall not apply to (A) any
deposit account for which FCX, the depositary bank and the Collateral Agent have entered into a
cash collateral agreement specially negotiated among FCX, the depositary bank and the Collateral
Agent for the specific purpose set forth therein and (B) deposit accounts for which the Collateral
Agent is the depositary.

          (b) Securities Accounts. Except (x) in the case of securities accounts that are Excluded
Accounts or (y) securities accounts holding securities or other financial assets with a fair market
value, taken together with the aggregate balances (excluding intra-day balances) of the deposit
accounts excluded from the requirements of Section 4.04(a) under clause (y) thereof, not in excess
of $50,000,000, if any securities or other financial assets now or hereafter held or acquired by
FCX are held by FCX or its nominee through a securities account, FCX shall immediately notify the
Collateral Agent thereof and, at the Collateral Agent’s request and option, pursuant to a customary
agreement in form and substance reasonably satisfactory to the Collateral Agent, either (at FCX’s
option) (i) cause the securities intermediary in respect of such securities account to agree to
comply with entitlement orders from the Collateral Agent to such securities

 

 

  19

intermediary as to such
security entitlements, without further consent of FCX or such nominee, or (ii) arrange for the Collateral Agent to become the entitlement holder with
respect to such securities account, with FCX being permitted, only with the consent of the
Collateral Agent, to exercise rights to withdraw or otherwise deal with such securities account,
any security entitlement held therein or credited thereto and any financial asset in respect
thereof. The Collateral Agent agrees with FCX that the Collateral Agent shall not give any such
entitlement orders to any securities intermediary and shall not withhold its consent to the
exercise of any withdrawal or dealing rights by FCX, unless a Loan Group Event of Default has
occurred and is continuing, or, after giving effect to any such exercise of withdrawal or dealing
rights, would occur. The provisions of this paragraph shall not apply to any financial assets
credited to (A) a securities account for which FCX, the securities intermediary and the Collateral
Agent have entered into a cash collateral agreement specifically negotiated among FCX, the
securities intermediary and the Collateral Agent for the specific purpose set forth therein and (B)
a securities account for which the Collateral Agent is the securities intermediary.

ARTICLE V

Remedies

          SECTION 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of a
Loan Group Event of Default, each Grantor agrees to deliver each item of Collateral to the
Collateral Agent on demand, and it is agreed that the Collateral Agent shall have the right to take
any of or all the following actions at the same or different times and with or without legal
process and with or without prior notice or demand for performance, to take possession of the
Article 9 Collateral and without liability for trespass to enter any premises where the Article 9
Collateral may be located for the purpose of taking possession of or removing the Article 9
Collateral and, generally, to exercise any and all rights afforded to a secured party under the
Uniform Commercial Code or other applicable law. Without limiting the generality of the foregoing,
each Grantor agrees that the Collateral Agent shall have the right, subject to the mandatory
requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral
at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon
credit or for future delivery as the Collateral Agent shall deem appropriate. The Collateral Agent
shall be authorized at any such sale of securities (if it deems it advisable to do so) to restrict
the prospective bidders or purchasers to Persons who will represent and agree that they are
purchasing the Collateral for their own account for investment and not with a view to the
distribution or sale thereof, and upon consummation of any such sale the Collateral Agent shall
have the right to assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any sale of Collateral shall hold the property sold
absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives
(to the extent permitted by law) all rights of redemption, stay and appraisal which such Grantor
now has or may at any time in the future have under any rule of law or statute now existing or
hereafter enacted.

          The Collateral Agent shall give the applicable Grantors 10 days’ written

 

 

  20

notice (which each
Grantor agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral Agent’s
intention to make any sale of Collateral. Such notice, in the case of a public sale, shall state
the time and place for such sale and, in the case of a sale at a broker’s board or on a securities
exchange, shall state the board or exchange at which such sale is to be made and the day on which
the Collateral, or portion thereof, will first be offered for sale at such board or exchange. Any
such public sale shall be held at such time or times within ordinary business hours and at such
place or places as the Collateral Agent may fix and state in the notice (if any) of such sale. At
any such sale, the Collateral , or portion thereof, to be sold may be sold in one lot as an
entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion)
determine. The Collateral Agent shall not be obligated to make any sale of any Collateral if it
shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall
have been given. The Collateral Agent may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by announcement at the time and
place fixed for sale, and such sale may, without further notice, be made at the time and place to
which the same was so adjourned. In case any sale of all or any part of the Collateral is made on
credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until
the sale price is paid by the purchaser or purchasers thereof, but the Collateral Agent shall not
incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the
Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like
notice. At any public (or, to the extent permitted by law, private) sale made pursuant to this
Agreement, any Secured Party or Cyprus Amax Noteholder may bid for or purchase, free (to the extent
permitted by law) from any right of redemption, stay, valuation or appraisal on the part of any
Grantor (all said rights being also hereby waived and released to the extent permitted by law), the
Collateral or any part thereof offered for sale and may make payment on account thereof by using
any claim then due and payable to such Secured Party or noteholder from any Grantor as a credit
against the purchase price, and such Secured Party or noteholder may, upon compliance with the
terms of sale, hold, retain and dispose of such property without further accountability to any
Grantor therefor. For purposes hereof, a written agreement to purchase the Collateral or any
portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out
such sale pursuant to such agreement and no Grantor shall be entitled to the return of the
Collateral or any portion thereof subject thereto, notwithstanding the fact that after the
Collateral Agent shall have entered into such an agreement all Loan Group Events of Default shall
have been remedied and the obligations secured hereby paid in full. As an alternative to
exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit
or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion
thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or
pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of
this Section 5.01 shall be deemed to conform to the commercially reasonable standards as provided
in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions.

          SECTION 5.02. Application of Proceeds. The Collateral Agent shall apply the proceeds of any
collection or sale of Collateral, including any Collateral

 

 

  21

consisting of cash, as follows:

     FIRST, to the payment of all costs and expenses incurred by the Collateral Agent in
connection with such collection or sale or otherwise in connection with this Agreement, any
other Loan Group Document or any of the obligations secured hereby, including all court
costs and the fees and expenses of its agents and legal counsel, the repayment of all
advances made by the Collateral Agent hereunder or under any other Loan Group Document on
behalf of any Grantor and any other costs or expenses incurred in connection with the
exercise of any right or remedy hereunder or under any other Loan Group Document;

     SECOND, subject to the last sentence of Section 7.01(b), to the payment in full of the
Secured Obligations (the amounts so applied to be distributed among the Secured Parties pro
rata in accordance with the amounts of the Secured Obligations owed to them on the date of
any such distribution); and

     THIRD, to the Grantors, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

The Collateral Agent shall have absolute discretion as to the time of application of any such
proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the
Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Collateral Agent or such officer or be answerable in any way for the misapplication
thereof.

          SECTION 5.03. Securities Act. In view of the position of the Grantors in relation to the
Pledged Collateral, or because of other current or future circumstances, a question may arise under
the Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted
analogous in purpose or effect (such Act and any such similar statute as from time to time in
effect being called the “Federal Securities Laws”) with respect to any disposition of the Pledged
Collateral permitted hereunder. Each Grantor understands that compliance with the Federal
Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the
Collateral Agent were to attempt to dispose of all or any part of the Pledged Collateral, and might
also limit the extent to which or the manner in which any subsequent transferee of any Pledged
Collateral could dispose of the same. Similarly, there may be other legal restrictions or
limitations affecting the Collateral Agent in any attempt to dispose of all or part of the Pledged
Collateral under applicable Blue Sky or other state securities laws or similar laws analogous in
purpose or effect. Each Grantor recognizes that in light of such restrictions and limitations the
Collateral Agent may, with respect to any sale of the Pledged Collateral, limit the purchasers to
those who will agree, among other things, to acquire such Pledged Collateral for their own account,
for investment, and not with a view to the distribution or resale thereof. Each Grantor
acknowledges and agrees that in light of such restrictions and limitations, the Collateral Agent,
in its sole and absolute discretion

 

 

  22

(a) may proceed to make such a sale whether or not a
registration statement for the purpose of registering such Pledged Collateral or part thereof shall
have been filed under the Federal Securities Laws and (b) may approach and negotiate with a single potential purchaser
to effect such sale. Each Grantor acknowledges and agrees that any such sale might result in
prices and other terms less favorable to the seller than if such sale were a public sale without
such restrictions. In the event of any such sale, the Collateral Agent shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral at a price that
the Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under
the circumstances, notwithstanding the possibility that a substantially higher price might have
been realized if the sale were deferred until after registration as aforesaid or if more than a
single purchaser were approached. The provisions of this Section 5.03 will apply notwithstanding
the existence of a public or private market upon which the quotations or sales prices may exceed
substantially the price at which the Collateral Agent sells.

          SECTION 5.04. Registration. Each Grantor agrees that, upon the occurrence and during the
continuance of a Loan Group Event of Default, if for any reason the Collateral Agent desires to
sell any of the Pledged Collateral at a public sale, it will, at any time and from time to time,
upon the written request of the Collateral Agent, use commercially reasonable efforts to take or to
cause the issuer of such Pledged Collateral to take such action and prepare, distribute and/or file
such documents, as are required or advisable in the reasonable opinion of counsel for the
Collateral Agent to permit the public sale of such Pledged Collateral. Each Grantor further agrees
to indemnify, defend and hold harmless the Collateral Agent, each other Secured Party, each Cyprus
Amax Noteholder, any underwriter and their respective officers, directors, affiliates and
controlling persons from and against all loss, liability, expenses, costs of counsel (including,
without limitation, reasonable fees and expenses to the Collateral Agent of legal counsel), and
claims (including the costs of investigation) that they may incur insofar as such loss, liability,
expense or claim arises out of or is based upon any alleged untrue statement of a material fact
contained in any prospectus (or any amendment or supplement thereto) or in any notification or
offering circular, or arises out of or is based upon any alleged omission to state a material fact
required to be stated therein or necessary to make the statements in any thereof not misleading,
except insofar as the same may have been caused by any untrue statement or omission based upon
information furnished in writing to such Grantor or the issuer of such Pledged Collateral by the
Collateral Agent, any other Secured Party or any Cyprus Amax Noteholder expressly for use therein.
Each Grantor further agrees, upon such written request referred to above, to use commercially
reasonable efforts to qualify, file or register, or cause the issuer of such Pledged Collateral to
qualify, file or register, any of the Pledged Collateral under the Blue Sky or other securities
laws of such states as may be requested by the Collateral Agent and keep effective, or cause to be
kept effective, all such qualifications, filings or registrations. Each Grantor will bear all
costs and expenses of carrying out its obligations under this Section 5.04. Each Grantor
acknowledges that there is no adequate remedy at law for failure by it to comply with the
provisions of this Section 5.04 and that such failure would not be adequately compensable in
damages, and therefore agrees that its agreements contained in this Section 5.04 may be
specifically enforced.

 

 

23

          SECTION 5.05. No Marshalling of Assets Required. To the extent permitted by applicable law,
each Grantor, Guarantor, Secured Party and Cyprus Amax
Noteholder hereby irrevocably and unconditionally waives and releases (or is deemed to waive
and release) any right to a marshalling of assets, including, without limitation, any right to
require any collection be made under any FI Security Document.

          SECTION 5.06. Existing JV Restrictions; Specified Restrictions. (a) Notwithstanding any
other provision herein to the contrary, (i) no remedy shall be exercised in respect of Equity
Interests in Cyprus El Abra Corporation (“CEA”) or any parent company of CEA that is a
Subsidiary of Cyprus Amax Minerals Company (“Amax”) other than in compliance with Section
20 of the CMA Shareholders Agreement dated as of June 28, 1994, among Corporacion Nacional del
Cobre de Chile, CEA and Amax, (ii) no remedy shall be exercised in respect of Equity Interests in
Phelps Dodge Morenci Inc. other than in compliance with Sections 14 and 16 of the Operating
Agreement dated as of February 7, 1986, among Sumitomo Metal Mining Arizona, Inc., Phelps Dodge
Morenci, Inc and PD and (iii) no remedy shall be exercised in respect of Equity Interests in PD
Chile Finance Company other than in compliance with (x) Section 4.01 of the Principals Agreement
dated as of September 18, 1992 among PD, Sumitomo Metal Mining Co., Ltd., Sumitomo Corporation and
Sumitomo Metal Mining Arizona, Inc. and (y) Section 5.1(a) of the Subscription Agreement dated as
of December 15, 2005, among Sumitomo Metal Mining Co., Ltd., Sumitomo Corporation, Sumitomo Metal
Mining Arizona, Inc., SMMA Candelaria, Inc., PD, PD Ojos Del Salado, Inc. and Compania Contractual
Minera Ojos Del Salado, S.A. (the restrictions and limitations imposed by Section 20, 14, 16, 4.01
and 5.1(a) of the agreements referred to above being collectively called the “Existing JV
Restrictions”).

          (b) Notwithstanding any other provision herein to the contrary, no remedy shall be exercised
in respect of Equity Interests pledged hereunder after the Effective Date in violation of any
applicable restriction or limitation (x) imposed by agreements governing joint ventures or
arrangements with Governmental Authorities or (y) imposed under the governing documents of any
Indebtedness permitted by Section 6.01(a)(iv), (v), (x), (xi) or (xii) of the Credit Agreements to
the extent any such restriction or limitation is permitted under Section 6.10 of the Credit
Agreements, in each case including provisions requiring the consent of a joint venture partner,
Governmental Authority or holders of such permitted Indebtedness to the exercise of a remedy
hereunder and provisions providing for rights of first refusal (all such restrictions and
limitation in respect of Equity Interests pledged after the Effective Date and set forth on
Schedule II hereto being called the “Specified Restrictions”).

ARTICLE VI

Indemnity, Subrogation and Subordination

          SECTION 6.01. Indemnity and Subrogation. In addition to all such rights of indemnity and
subrogation as the Guarantors may have under applicable law (but subject to Section 6.03), FCX
agrees that (a) in the event a payment of an obligation shall be made by any Subsidiary Guarantor
under this Agreement, FCX shall indemnify such

 

24

Subsidiary Guarantor for the full amount of such
payment and such Subsidiary Guarantor shall be subrogated to the rights of the Person to whom such
payment shall have been
made to the extent of such payment and (b) in the event any assets of any Subsidiary Grantor
shall be sold pursuant to this Agreement or any other Loan Group Document to satisfy in whole or in
part an obligation owed to any Secured Party or Cyprus Amax Noteholder, FCX shall indemnify such
Subsidiary Grantor in an amount equal to the greater of the book value or the fair market value of
the assets so sold.

          SECTION 6.02. Contribution and Subrogation. Each Subsidiary Guarantor and Subsidiary Grantor
(a “Contributing Party”) agrees (subject to Section 6.03) that, in the event a payment shall be
made by any other Subsidiary Guarantor hereunder in respect of any Guaranteed Obligation or assets
of any other Grantor shall be sold pursuant to any Loan Group Document to satisfy any obligation
secured hereby and such other Subsidiary Guarantor or Subsidiary Grantor (the “Claiming Party”)
shall not have been fully indemnified by FCX as provided in Section 6.01, the Contributing Party
shall indemnify the Claiming Party in an amount equal to the amount of such payment or the greater
of the book value or the fair market value of such assets, as the case may be, in each case
multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on
the date hereof and the denominator shall be the aggregate net worth of all the Subsidiary
Guarantors and Subsidiary Grantors on the date hereof (or, in the case of any Subsidiary Guarantor
or Subsidiary Grantor becoming a party hereto pursuant to Section 9.14, the date of the supplement
hereto executed and delivered by such Subsidiary Guarantor or Subsidiary Grantor). Any
Contributing Party making any payment to a Claiming Party pursuant to this Section 6.02 shall be
subrogated to the rights of such Claiming Party under Section 6.01 to the extent of such payment.

          SECTION 6.03. Subordination. Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors and Grantors under Sections 6.01 and 6.02 and all other
rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the Secured Obligations (other than the
FCX Notes Non-Excluded Obligations). No failure on the part of FCX or any Guarantor or Grantor to
make the payments required by Sections 6.01 and 6.02 (or any other payments required under
applicable law or otherwise) shall in any respect limit the obligations and liabilities of any
Guarantor or Grantor with respect to its obligations hereunder, and each Guarantor and Grantor
shall remain liable for the full amount of the obligations of such Guarantor or Grantor hereunder.

ARTICLE VII

Ratable Obligations

          SECTION 7.01. Equal and Ratable Security. (a) This Agreement is intended (i) to cause the
Collateral (other than the Cyprus Amax Limited Collateral) to secure the FCX Notes Non-Excluded
Obligations equally and ratably with all other Secured Obligations and (ii) to cause the Cyprus
Amax Limited Collateral to secure the

 

25

FCX Notes Non-Excluded Obligations equally and ratably with
all other obligations secured hereby, in each case to the extent (but only to the extent) required
by Section 4.13 of each of the FCX Notes Indentures and shall be construed and enforced to give
effect to such intention.

          (b) This Agreement is also intended to cause the Cyprus Amax Limited Collateral to secure the
Cyprus Amax Notes Non-Excluded Obligations equally and ratably with all Secured Obligations to the
extent (but only to the extent) required by Section 10.8 of the Cyprus Amax Notes Indenture and
shall be construed and enforced to give effect to such intention. In furtherance of the foregoing,
to the extent that this Agreement grants a security interest in or Lien on any Cyprus Amax Limited
Collateral, then such security interest or Lien shall secure the Cyprus Amax Notes Non-Excluded
Obligations equally and ratably with the Secured Obligations, to the extent (but only to the
extent) required by Section 10.8 of the Cyprus Amax Notes Indenture. Notwithstanding any provisions
of this Agreement to the contrary, the Collateral Agent shall apply any proceeds of Cyprus Amax
Limited Collateral that are to be distributed pursuant to clause SECOND of Section 5.02 to the
payment of the Cyprus Amax Notes Non-Excluded Obligations equally and ratably with the Secured
Obligations.

          SECTION 7.02. Ratable Application of Proceeds. In making the allocations required by Section
5.02 among the Secured Parties and the Cyprus Amax Noteholders, the Collateral Agent may
conclusively rely upon information supplied by FCX or any holder of Loan Group Document Obligations
as to the amounts of unpaid principal and interest and other amounts outstanding with respect to
the Loan Group Document Obligations, information supplied by the FCX Notes Trustees as to the
amounts of unpaid FCX Notes Non-Excluded Obligations and information supplied by the Cyprus Amax
Notes Trustee as to the amount of unpaid Cyprus Amax Notes Non-Excluded Obligations, and the
Collateral Agent shall have no liability to any of the Secured Parties or the Cyprus Amax
Noteholders for actions taken in reliance on such information; provided that nothing in this
sentence shall prevent any Loan Group Party from contesting any amounts claimed by any Secured
Party or Cyprus Amax Noteholder in any information so supplied. In addition, for purposes of
making the allocations required by Section 5.02 among the Secured Parties and the Cyprus Amax
Noteholders, with respect to any amount that is denominated in any currency other than U.S.
dollars, the Collateral Agent shall, on or prior to the applicable distribution, convert such
amount into an amount of U.S. dollars based upon the relevant exchange rate as of a recent date
selected by the Collateral Agent in its reasonable discretion. All distributions made by the
Collateral Agent pursuant to Section 5.02 to the Secured Parties and the Cyprus Amax Noteholders
shall be (subject to any decree of any court of competent jurisdiction) final, absent manifest
error, and the Collateral Agent shall have no duty to inquire as to the application by the FCX
Notes Trustees or the Cyprus Amax Notes Trustee of any amounts distributed to them for distribution
to the FCX Noteholders or the Cyprus Amax Noteholders.

          SECTION 7.03. Application of Moneys Distributable to Ratable Obligations. The Collateral
Agent shall make all payments and distributions that are to be made by it hereunder on account of
(a) the FCX Notes to the applicable FCX Notes

 

26

Trustee for redistribution to the FCX Noteholders and
(b) the Cyprus Amax Noteholders to the Cyprus Amax Notes Trustee for redistribution to the Cyprus
Amax Noteholders.

          SECTION 7.04. Delivery of Indentures. On or prior to the Effective Date, FCX shall deliver
to the Collateral Agent a true and complete copy of each FCX Notes Indenture and the Cyprus Amax
Notes Indenture and all other instruments governing any of the FCX Notes or the Cyprus Amax Notes,
including all amendments thereto entered into on or prior to the Effective Date. FCX shall also
deliver to the Collateral Agent, promptly upon the execution thereof, a true and complete copy of
any amendment, modification or supplement to any such indenture or instrument entered into after
the Effective Date.

          SECTION 7.05. Information as to Secured Parties and Indenture Trustees. FCX shall deliver to
the Collateral Agent from time to time after the date hereof upon request of the Collateral Agent a
list setting forth as of a date not more than 30 days prior to the date of such delivery, (a)(i)
the aggregate unpaid amount of the FCX Notes Non-Excluded Obligations outstanding as of such date
and (ii) the respective names and addresses of each FCX Notes Trustee and (b)(i) the aggregate
unpaid amount of the Cyprus Amax Notes Non-Excluded Obligations outstanding as of such date and
(ii) the name and address of the Cyprus Amax Notes Trustee. In addition, FCX will promptly notify
the Collateral Agent of each change in the identity of any such trustee. Promptly following the
Effective Date, FCX will request each FCX Notes Trustee and the Cyprus Amax Notes Trustee to
deliver to the Collateral Agent the names of the officers authorized to give directions hereunder
on its behalf. FCX will also request that each such trustee notify the Collateral Agent of any
change of the officers authorized to give directions hereunder on its behalf prior to the date of
any such change. If the Collateral Agent does not receive the names of the officers of each FCX
Notes Trustee and the Cyprus Amax Notes Trustee authorized to give directions hereunder on such
trustee’s behalf, the Collateral Agent may rely on any person purporting to be authorized to give
directions hereunder on behalf of such trustee. If the Collateral Agent is not informed of changes
of the officers of a FCX Notes Trustee or the Cyprus Amax Notes Trustee authorized to give
directions hereunder on its behalf, the Collateral Agent may rely on the information with respect
to such trustee previously provided to the Collateral Agent.

ARTICLE VIII

The Collateral Agent

          SECTION 8.01. Exculpatory Provisions. (a) The Collateral Agent shall not be responsible in
any manner whatsoever for the correctness of any recitals, statements, representations or
warranties herein or in any other Loan Group Document, all of which are made solely by the Loan
Group Parties party thereto. The Collateral Agent makes no representations as to the value or
condition of the Collateral or any part thereof, or as to the title of the Loan Group Parties party
thereto or as to the security afforded by this Agreement or any other Loan Group Document, or as to
the validity, enforceability, legality or sufficiency of this Agreement, the other Loan Group

 

27

Documents, the Secured Obligations or the Cyprus Amax Notes Non-Excluded Obligations, and the
Collateral Agent shall incur no liability or responsibility in respect of any such matters.

          (b) The Collateral Agent shall not be required to ascertain or inquire as to the performance
by the Loan Group Parties of any of the covenants or agreements contained herein, in any other Loan
Group Document, in any FCX Notes Indenture or in the Cyprus Amax Notes Indenture. Whenever it is
necessary, or in the opinion of the Collateral Agent advisable, for the Collateral Agent to
ascertain (i) the amount of Secured Obligations then held by any of the Secured Parties, (ii) the
amount of the Cyprus Amax Notes Non-Excluded Obligations then held by any of the Cyprus Amax
Noteholders or (iii) the amount of any distribution or payment to be made hereunder, the Collateral
Agent may rely on a certificate of such Secured Parties or the administrative agents under the
Credit Agreements, in the case of the Loan Group Document Obligations, or a certificate of the
applicable FCX Notes Trustee, in the case of the FCX Notes, or a certificate of the Cyprus Amax
Notes Trustee, in the case of the Cyprus Amax Notes, and, if such Secured Party or such
administrative agent, or such trustee, as applicable, shall not give such information to the
Collateral Agent, such person shall not be entitled to receive distributions hereunder (in which
case distributions to those persons who have supplied such information to the Collateral Agent
shall be calculated by the Collateral Agent using, for those persons who have not supplied such
information, the list then most recently delivered by FCX pursuant to Section 7.05), and the amount
so calculated to be distributed to any person who fails to give such information shall be held in
trust for such person until such person does supply such information to the Collateral Agent,
whereupon on the next distribution the amount distributable to such person shall be recalculated
using such information and distributed to it, with any undistributed balance being distributed as
otherwise provided herein. Nothing in the preceding sentence shall prevent any Loan Group Party
from contesting any amounts claimed by any Secured Party or trustee in any certificate so supplied.

          (c) Except as herein otherwise expressly provided, the Collateral Agent shall be under no
obligation or duty to take any discretionary action or exercise any discretionary powers under this
Agreement or any other Loan Group Document if taking such action (i) would subject the Collateral
Agent to a tax in any jurisdiction where it is not then subject to a tax or (ii) would require the
Collateral Agent to qualify to do business in any jurisdiction where it is not then so qualified,
unless the Collateral Agent receives security or indemnity satisfactory to it against such tax (or
equivalent liability), or any liability resulting from such qualification, in each case as results
from the taking of such action under this Agreement or any other Loan Group Document.

          (d) The Collateral Agent shall have the same rights with respect to any Secured Obligation
held by it as any other Secured Party and may exercise such rights as though it were not the
Collateral Agent hereunder, and may accept deposits from, lend money to, and generally engage in
any kind of banking or trust business with, any of the Loan Group Parties as if it were not the
Collateral Agent.

          (e) The Collateral Agent shall not be liable for any action taken or omitted

 

28

to be taken in
accordance with this Agreement or the other Loan Group Documents except for its own gross
negligence, bad faith or willful misconduct.

          SECTION 8.02. Delegation of Duties. The Collateral Agent may execute
any of the powers herein or in any other Loan Group Document and perform any duty hereunder or
under any other Loan Group Document either directly or by or through agents or attorneys-in-fact.
The exculpatory provisions of this Article VIII shall apply to any such agent or attorney-in-fact
and shall apply to their respective activities. The Collateral Agent and any such agent or
attorney-in-fact shall be entitled to advice of counsel concerning all matters pertaining to such
powers and duties. The Collateral Agent shall not be responsible for the negligence or misconduct
of any agents or attorneys-in-fact selected by it without gross negligence, bad faith or willful
misconduct.

          SECTION 8.03. Reliance by Collateral Agent. (a) Whenever in the administration of this
Agreement or the other Loan Group Documents the Collateral Agent shall deem it necessary or
desirable that a factual matter be proved or established by any Loan Group Party, other Secured
Party, Cyprus Amax Noteholder or other person in connection with the Collateral Agent taking,
suffering or omitting any action hereunder or thereunder, such matter (unless other evidence in
respect thereof is herein specifically prescribed) may be deemed to be conclusively proved or
established by a certificate of a responsible officer of FCX or any other Loan Group Party, such
other Secured Party, the Cyprus Amax Notes Trustee or such other person delivered to the Collateral
Agent, and such certificate shall be full warrant to the Collateral Agent for any action taken,
suffered or omitted in reliance thereon, subject, however, to the provisions of Section 8.04.

          (b) The Collateral Agent may rely, and shall be fully protected in acting, upon any
resolution, statement, certificate, instrument, opinion, report, notice, request, consent, order,
bond or other paper or document which it has no reason to believe to be other than genuine and to
have been signed or presented by the proper party or parties or, in the case of cables, telecopies,
telexes or electronic communications, to have been sent by the proper party or parties. In the
absence of its own gross negligence, bad faith or willful misconduct, the Collateral Agent may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon any certificates or opinions furnished to the Collateral Agent and conforming to the
requirements of this Agreement. The Collateral Agent shall have the right at any time to seek
instructions concerning the administration of this Agreement and the other Loan Group Documents
from any court of competent jurisdiction.

          SECTION 8.04. Limitations on Duties of Collateral Agent. (a) The Collateral Agent shall be
obligated to perform such duties and only such duties as are specifically set forth in this
Agreement and the other Loan Group Documents. Without limiting the generality of the foregoing,
the Collateral Agent (a) shall not be subject to any fiduciary or other implied duties, regardless
of whether a Loan Group Default has occurred and is continuing, and (b) shall not have any duty to
take any discretionary action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby or by any other Loan Group Document that the Collateral

 

29

Agent
is instructed in writing to exercise by the “Required Lenders” under each of the Credit Agreements
(or such other number of lenders or percentage of lenders as shall be necessary under the
circumstances as provided in each of the Credit Agreements). By acceptance of the benefits under
this Agreement and the other Loan Group Documents,
the holders of any obligation secured hereby (other than the administrative agents under the
Credit Agreements, the Loan Group Issuing Banks and the Loan Group Lenders in their capacities as
such) shall be deemed to have agreed that they shall not be entitled to, and shall not, (i) direct
the actions of the Collateral Agent hereunder or under any other Loan Group Document, (ii) have the
right to consent to any amendment, supplement, waiver or other modification to this Agreement or
any other Loan Group Document or to any release of Collateral or guarantees, (iii) take any action,
or commence any legal proceeding seeking, to require, compel or cause the Collateral Agent to
enforce any of the provisions of this Agreement or any other Loan Group Document against any Loan
Group Party or to exercise any remedy hereunder or thereunder, (iv) take any action, or commence
any legal proceeding seeking, to prevent or enjoin the Collateral Agent from taking any action
(including the enforcement of any provisions of this Agreement or any other Loan Group Document
against any Loan Group Party, the exercise of any remedy hereunder or thereunder, the release of
any other Loan Group Document, the release of any Collateral or guarantees, the consent to any
amendment or modification of this Agreement or any other Loan Group Document or the grant of any
waiver hereunder or thereunder), or refraining from taking any such action, in accordance with this
Agreement or any Loan Group Document, as the case may be, or (v) otherwise take any action, or
commence any legal proceeding seeking to delay, hinder or otherwise impair the Collateral Agent in
taking any such action in accordance with this Agreement or any other Loan Group Document. By
acceptance of the benefits under this Agreement and the other Loan Group Documents, the holders of
obligations secured hereby (other than the administrative agents under the Credit Agreements, the
Loan Group Issuing Banks and the Loan Group Lenders in their capacities as such), as secured
parties hereunder, will be deemed to have acknowledged and agreed that the provisions of the
preceding sentence are intended to induce the Loan Group Lenders and the Loan Group Parties to
permit such persons to be secured parties under this Agreement and under the other Loan Group
Documents to the extent provided herein and therein, and are being relied upon by the Loan Group
Lenders and the Loan Group Parties as consideration therefor.

          (b) Beyond its duties as to the custody thereof as expressly provided herein or in any other
Loan Group Document and to account to the Secured Parties, the Cyprus Amax Noteholders and the Loan
Group Parties for moneys and other property received by it hereunder or under any other Loan Group
Document, the Collateral Agent shall not have any duty to the Loan Group Parties, to the Secured
Parties or to the Cyprus Amax Noteholders as to any Collateral in its (or its agents’ or nominees’)
possession or control, or any income thereon or as to the preservation of rights against prior
parties or any other rights pertaining thereto.

          SECTION 8.05. Resignation of the Collateral Agent. The Collateral Agent may resign and a
successor Collateral Agent may be appointed as provided in Article VIII of the Credit Agreements.

 

30

          SECTION 8.06. Co-Collateral Agents; Separate Collateral Agents. (a) If at any time or times
it shall be necessary or prudent in order to conform to any law of any jurisdiction in which any of
the Collateral shall be located, or to avoid any violation of law or imposition on the Collateral
Agent of taxes by such jurisdiction not otherwise
imposed on the Collateral Agent, or the Collateral Agent shall be advised by counsel,
satisfactory to it, that it is necessary or prudent in the interest of any of the Secured Parties
or the Cyprus Amax Noteholders, or the Collateral Agent shall deem it desirable for its own
protection in the performance of its duties hereunder or under any other Loan Group Document, the
Collateral Agent and any other Loan Group Party requested by the Collateral Agent shall execute and
deliver all instruments and agreements necessary or proper to constitute another bank or trust
company, or one or more other persons approved by the Collateral Agent and (except if a Loan Group
Default shall have occurred and be continuing) FCX, which approval shall not be unreasonably
withheld or delayed, either to act as co-collateral agent or co-collateral agents under this
Agreement or under any of the other Loan Group Documents, jointly with the Collateral Agent
originally named herein or therein or any successor Collateral Agent, or to act as separate
collateral agent or collateral agents under this Agreement or under any of the other Loan Group
Documents. If FCX or any other Loan Group Party so requested by the Collateral Agent shall not
have executed such instruments and agreements within 10 days after it receives a written request
from the Collateral Agent to do so, or if a Loan Group Default shall have occurred and be
continuing, the Collateral Agent may act under the foregoing provisions of this Section 8.06(a)
without the concurrence of such Loan Group Parties and execute and deliver such instruments and
agreements on behalf of such Loan Group Parties. Each of the Loan Group Parties hereby appoints
the Collateral Agent as its agent and attorney to act for it under the foregoing provisions of this
Section 8.06(a) in either of such contingencies.

          (b) Every separate collateral agent and every co-collateral agent, other than any successor
Collateral Agent appointed pursuant to Section 8.05, shall, to the extent permitted by law, be
appointed and act and be such, subject to the following provisions and conditions:

     (i) all rights, powers, duties and obligations conferred upon the Collateral Agent in
respect of the custody, control and management of moneys, papers or securities shall be
exercised solely by the Collateral Agent or any agent appointed by the Collateral Agent;

     (ii) all rights, powers, duties and obligations conferred or imposed upon the
Collateral Agent hereunder and under the relevant other Loan Group Documents shall be
conferred or imposed and exercised or performed by the Collateral Agent and such separate
collateral agent or separate collateral agents or co-collateral agent or co-collateral
agents, jointly, as shall be provided in the instrument appointing such separate collateral
agent or separate collateral agents or co-collateral agent or co-collateral agents, except
to the extent that under any law of any jurisdiction in which any particular act or acts
are to be performed the Collateral Agent shall be incompetent or unqualified to perform
such act or acts, or unless the performance of such act or acts would result in the
imposition of any

 

31

tax on the Collateral Agent which would not be imposed absent such joint
act or acts, in which event such rights, powers, duties and obligations shall be exercised
and performed by such separate collateral agent or separate collateral agents or
co-collateral agent or co-collateral agents;

     (iii) no power given hereby or by the relevant other Loan Group Documents to, or which
is provided herein or therein may be exercised by, any such co-collateral agent or
co-collateral agents or separate collateral agent or separate collateral agents shall be
exercised hereunder or thereunder by such co-collateral agent or co-collateral agents or
separate collateral agent or separate collateral agents except jointly with, or with the
consent in writing of, the Collateral Agent, anything contained herein to the contrary
notwithstanding;

     (iv) no collateral agent hereunder shall be personally liable by reason of any act or
omission of any other collateral agent hereunder; and

     (v) FCX and the Collateral Agent, at any time by an instrument in writing executed by
them jointly, may accept the resignation of or remove any such separate collateral agent or
co-collateral agent and, in that case by an instrument in writing executed by them jointly,
may appoint a successor to such separate collateral agent or co-collateral agent, as the
case may be, anything contained herein to the contrary notwithstanding. If FCX shall not
have executed any such instrument within 10 days after it receives a written request from
the Collateral Agent to do so, or if a Loan Group Default shall have occurred and be
continuing, the Collateral Agent shall have the power to accept the resignation of or
remove any such separate collateral agent or co-collateral agent and to appoint a successor
without the concurrence of FCX, FCX hereby appointing the Collateral Agent its agent and
attorney to act for it in such connection in such contingency. If the Collateral Agent
shall have appointed a separate collateral agent or separate collateral agents or
co-collateral agent or co-collateral agents as above provided, the Collateral Agent may at
any time, by an instrument in writing, accept the resignation of or remove any such
separate collateral agent or co-collateral agent and the successor to any such separate
collateral agent or co-collateral agent shall be appointed by FCX and the Collateral Agent,
or by the Collateral Agent alone pursuant to this Section 8.06(b).

          SECTION 8.07. Representatives of Secured Parties. If requested by the Collateral Agent, any
person (other than the administrative agents under the Credit Agreements) which shall be designated
as the duly authorized representative of one or more Secured Parties or the Cyprus Amax Noteholders
to act as such in connection with any matters pertaining to this Agreement or the Collateral shall
present to the Collateral Agent such documents, including opinions of counsel, as the Collateral
Agent may reasonably require, in order to demonstrate to the Collateral Agent the authority of such
person to act as the representative of such Secured Parties or Cyprus Amax Noteholders (it being
understood that the holders of the Loan Group Document Obligations are represented hereunder by the
administrative agent under each of the Credit Agreements, the FCX Noteholders are represented
hereunder by the relevant FCX Notes Trustee and

 

32

the Cyprus Amax Noteholders are represented
hereunder by the Cyprus Amax Notes Trustee).

          SECTION 8.08. Consent and Agreement by Secured Parties. By acceptance of the benefits of the
relevant Loan Group Documents, each Secured Party
and Cyprus Amax Noteholder shall be deemed irrevocably (i) to consent to the appointment of
the Collateral Agent as its agent hereunder and under the relevant Loan Group Documents, (ii) to
confirm that the Collateral Agent shall have the authority to act as the exclusive agent of such
Secured Party or noteholder for enforcement of any provisions of this Agreement and the other Loan
Group Documents against any Loan Group Party or the exercise of remedies hereunder or thereunder,
(iii) to agree that such Secured Party or noteholder shall not take any action to enforce any
provisions of this Agreement or any other Loan Group Document against any Loan Group Party or to
exercise any remedy hereunder or thereunder and (iv) to agree to be bound by the terms of this
Agreement and the other Loan Group Documents.

ARTICLE IX

Miscellaneous

          SECTION 9.01. Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in Section 9.01 of the Credit
Agreements. All communications and notices hereunder to any Subsidiary Party shall be given to it
in care of FCX as provided in Section 9.01 of the Credit Agreements.

          SECTION 9.02. Waivers; Amendment. (a) No failure or delay by the Collateral Agent, the Loan
Group Issuing Banks or any Loan Group Lender in exercising any right or power hereunder or under
any other Loan Group Document shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such
a right or power, preclude any other or further exercise thereof or the exercise of any other right
or power. The rights and remedies of the Collateral Agent, the Loan Group Issuing Banks and the
Loan Group Lenders hereunder and under the other Loan Group Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or consent to any departure by any Loan Group Party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section 9.02, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a loan or issuance of a
letter of credit under either Credit Agreement shall not be construed as a waiver of any Loan Group
Default, regardless of whether the Collateral Agent, any Loan Group Lender or any Loan Group
Issuing Bank may have had notice or knowledge of such Loan Group Default at the time. No notice or
demand on any Loan Group Party in any case shall entitle any Loan Group Party to any other or
further notice or demand in similar or other circumstances.

          (b) Neither this Agreement nor any provision hereof may be waived,

 

33

amended or modified except
pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the Loan
Group Party or Loan Group Parties with respect to which such waiver, amendment or modification is
to apply, subject to any consent required in accordance with Section 9.02 of each of the Credit
Agreements.

          SECTION 9.03. Collateral Agent’s Fees and Expenses; Indemnification. (a) The parties hereto
agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred
hereunder as provided in Section 9.03 of each of the Credit Agreements.

          (b) Without limitation of its indemnification obligations under the other Loan Group
Documents, each Grantor and each Guarantor jointly and severally agrees to indemnify the Collateral
Agent and the other Indemnitees (as collectively defined in Section 9.03 of each of the Credit
Agreements) against, and hold each Indemnitee (as so defined) harmless from, any and all losses,
claims, damages, liabilities and related expenses, including the fees, charges and disbursements of
any counsel for any Indemnitee (as so defined), incurred by or asserted against any Indemnitee (as
so defined) arising out of, in connection with, or as a result of (i) the execution or delivery of
any Loan Group Document or any other agreement or instrument contemplated thereby, the performance
by the parties to the Loan Group Documents of their respective obligations thereunder or the
consummation of the Transactions or any other transactions contemplated thereby, (ii) any loan or
letter of credit made or issued under the Credit Agreements or the use of the proceeds therefrom
(including any refusal by any Loan Group Issuing Bank to honor a demand for payment under a letter
of credit so issued if the documents presented in connection with such demand do not strictly
comply with the terms of such letter of credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property currently or formerly owned or operated by FCX or any
of its Subsidiaries, or any Environmental Liability related in any way to FCX or any of its
Subsidiaries, other than losses, claims, damages, liabilities and related costs and expenses
arising from a release of Hazardous Materials or Environmental Liability (except releases of
Hazardous Materials or Environmental Liabilities actually caused by FCX or any of its Subsidiaries
or any of their respective tenants, contractors or agents) to the extent (and only to the extent)
first occurring and first existing after title to the relevant real property or facility is vested
in any Agent (as collectively defined in each of the Credit Agreements) or Loan Group Lender or
other party after the completion of foreclosure proceedings or the granting of a deed-in-lieu of
foreclosure or similar transfer of title, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory and regardless of whether any Indemnitee (as so defined) is a party thereto;
provided that such indemnity shall not, as to any Indemnitee (as so defined), be available to the
extent that such losses, claims, damages, liabilities or related expenses are determined by a court
of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee (as so defined).

          (c) Any such amounts payable as provided hereunder shall be additional Secured Obligations
secured hereby and by the other Loan Group Documents. The provisions of this Section 9.03 shall
remain operative and in full force and effect

 

34

regardless of the termination of this Agreement or
any other Loan Group Document, the consummation of the transactions contemplated hereby, the
repayment of any of the Secured Obligations, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Group Document, or any investigation made by or on
behalf of the Collateral Agent or any other Secured Party. All amounts due under this
Section 9.03 shall be payable on written demand therefor.

          SECTION 9.04. Successors and Assigns. Whenever in this Agreement any of the parties hereto
is referred to, such reference shall be deemed to include the permitted successors and assigns of
such party; and all covenants, promises and agreements by or on behalf of any Guarantor, Grantor or
the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

          SECTION 9.05. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Loan Group Parties in the Loan Group Documents and in the certificates or
other instruments prepared or delivered in connection with or pursuant to this Agreement or any
other Loan Group Document shall be considered to have been relied upon by the Loan Group Lenders
and shall survive the execution and delivery of the Loan Group Documents and the making of any
loans and issuance of any letters of credit under the Credit Agreements, regardless of any
investigation made by any Loan Group Lender or on its behalf and notwithstanding that the
Collateral Agent, any Loan Group Issuing Bank or any Loan Group Lender may have had notice or
knowledge of any Loan Group Default or incorrect representation or warranty at the time any credit
is extended under the Credit Agreements, and shall continue in full force and effect as long as the
principal of or any accrued interest on any loan or any fee or any other amount payable under any
Loan Group Document is outstanding and unpaid or any letter of credit issued thereunder is
outstanding and so long as the commitments to extend credit under the Credit Agreements have not
expired or terminated.

          SECTION 9.06. Counterparts; Effectiveness; Several Agreement. This Agreement may be executed
in counterparts, each of which shall constitute an original but all of which when taken together
shall constitute a single contract. Delivery of an executed signature page to this Agreement by
telecopy shall be as effective as delivery of a manually executed counterpart of this Agreement.
This Agreement shall become effective as to any Loan Group Party when a counterpart hereof executed
on behalf of such Loan Group Party shall have been delivered to the Collateral Agent and a
counterpart hereof shall have been executed on behalf of the Collateral Agent, and thereafter shall
be binding upon such Loan Group Party and the Collateral Agent and their respective permitted
successors and assigns, and shall inure to the benefit of such Loan Group Party, the Collateral
Agent, the other Secured Parties and the Cyprus Amax Noteholders and their respective permitted
successors and assigns, except that no Loan Group Party shall have the right to assign or transfer
its rights or obligations hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly contemplated by this Agreement or the
Credit Agreements. This Agreement shall be construed as a separate agreement with respect to each
Loan Group

 

35

Party and may be amended, modified, supplemented, waived or released with respect to any
Loan Group Party without the approval of any other Loan Group Party and without affecting the
obligations of any other Loan Group Party hereunder. Except as otherwise provided herein or in the
Credit Agreements, this Agreement shall also be construed as a separate agreement with respect to
each of the “Obligations” referred to in the definition
of Loan Group Document Obligations and may be amended, modified, supplemented, waived,
terminated or released with respect to either of such Obligations without the approval of holders
of such other Obligations and without affecting the obligations of any Loan Group Party with
respect to such other Obligations.

          SECTION 9.07. Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

          SECTION 9.08. Right of Set-Off. If an “Event of Default” under either Credit Agreement shall
have occurred and be continuing, each Loan Group Lender under such Credit Agreement and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing (although such obligations may
be unmatured) by such Loan Group Lender or Affiliate to or for the credit or the account of any
Subsidiary Party against any of and all the obligations then due of such Subsidiary Party now or
hereafter existing under this Agreement owed to such Loan Group Lender, irrespective of whether or
not such Loan Group Lender shall have made any demand under this Agreement. Each Loan Group Lender
or Affiliate of a Loan Group Lender that shall have effected a set off and application pursuant to
the foregoing shall provide notice thereof to FCX and the Collateral Agent; provided that any
failure to give or any delay in giving such notice shall not affect the validity of any such set
off and application under this Section. The rights of each Loan Group Lender under this Section
9.08 are in addition to other rights and remedies (including other rights of set-off) which such
Loan Group Lender may have.

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

          (b) Each of the Loan Group Parties hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any other Loan Group Document, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York

 

36

State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement or any other Loan Group Document shall affect any right that the Collateral Agent,
any Loan Group Issuing Bank or any Loan
Group Lender may otherwise have to bring any action or proceeding relating to this Agreement
or any other Loan Group Document against any Grantor or Guarantor, or its properties in the courts
of any jurisdiction.

          (c) Each of the Loan Group Parties hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement or any other Loan Group Document in any court referred to in paragraph (b) of this
Section 9.09. Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Group Document
will affect the right of any party to this Agreement to serve process in any other manner permitted
by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN GROUP DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION 9.10.

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Security Interest Absolute. Except for termination or release of a Grantor’s
or Guarantor’s obligations hereunder as expressly provided in Section 9.13, all rights of the
Collateral Agent hereunder, the Security Interest, the grant of a security interest in the Pledged
Collateral and all obligations of each Grantor and

 

37

Guarantor hereunder shall be absolute and
unconditional irrespective of (a) any lack of validity or enforceability of either Credit
Agreement, any other Loan Group Document, any agreement with respect to any of the obligations
secured hereby or any other agreement or instrument relating to any of the foregoing, (b) any
change in the time, manner or place of payment of, or in any other term of, all or any of the
obligations
secured hereby, or any other amendment or waiver of or any consent to any departure from
either Credit Agreement, any other Loan Group Document or any other agreement or instrument, (c)
any exchange, release or non-perfection of any Lien on other collateral, or any release or
amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing
all or any of the obligations secured hereby, or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Grantor or Guarantor in respect of the
obligations secured hereby or this Agreement, other than, in the case of a Grantor, the
indefeasible payment in full in cash of all the obligations secured hereby and, in the case of a
Guarantor, the indefeasible payment in full in cash of all the Guaranteed Obligations.

          SECTION 9.13. Termination or Release. (a) This Agreement, the Guarantees made herein, the
Security Interest and all other security interests granted hereby shall terminate in their entirety
when all the Loan Group Document Obligations (other than contingent indemnification, expense
reimbursement, tax gross-up and yield protection obligations to the extent no claim therefor has
been asserted) have been paid in full and the Loan Group Lenders have no further commitment to lend
under the Credit Agreements, the Loan Group Issuing Banks have no further obligation to issue
letters of credit under the Credit Agreements, the LC Exposure (as collectively defined in each of
the Credit Agreements) has been reduced to zero or, with the consent of each affected Loan Group
Issuing Bank, cash collateralized pursuant to arrangements satisfactory to such Loan Group Issuing
Bank (which arrangements result in the release of the Loan Group Lenders from their obligation to
make payments in respect of L/C Disbursements (as so defined)).

          (b) A Subsidiary Party shall automatically be released from its obligations hereunder and any
security interest granted by such Subsidiary Party (or in the Equity Interests of such Subsidiary
Party) shall be automatically released upon the consummation of any transaction permitted by each
of the Credit Agreements as a result of which such Subsidiary Party ceases to be a Subsidiary of
FCX; provided that the “Required Lenders” under each of the Credit Agreements shall have consented
to such transaction (to the extent required by the Credit Agreements) and the terms of such consent
did not provide otherwise.

          (c) Upon any sale or other transfer by any Grantor of any Collateral that is permitted under
the Credit Agreements, or upon the effectiveness of any written consent to the release of the
security interest granted hereby in any Collateral pursuant to Section 9.02 of each of the Credit
Agreements, the security interest in such Collateral shall be automatically released.

          (d) Subject to Section 9.18(e) of each of the Credit Agreements, at any time following the
Investment Grade Date when there is no outstanding Tranche B Term

 

38

Loan, upon written notice from
FCX and at FCX’s expense, the Collateral Agent shall terminate and release all the Collateral under
this Agreement.

          (e) The Liens granted hereunder to secure the FCX Notes Non-Excluded Obligations shall
terminate with respect to any series of FCX Notes at such time as the
Liens granted hereunder to secure the other Secured Obligations are no longer subject to the
requirement under Section 4.13 of the applicable FCX Notes Indenture to equally and ratably secure
such FCX Notes Non-Excluded Obligations, whether as a result of the repayment in full of such
series of FCX Notes or otherwise. The Liens granted hereunder to secure the Cyprus Amax Notes
Non-Excluded Obligations shall terminate at such time as the Liens granted hereunder to secure the
Secured Obligations are no longer subject to the requirement under Section 10.8 of the Cyprus Amax
Notes Indenture to equally and ratably secure the Cyprus Amax Notes Non-Excluded Obligations,
whether as a result of the repayment in full of the Cyprus Amax Notes or otherwise.

          (f) In connection with any termination or release pursuant to paragraph (a), (b), (c), (d) or
(e), the Collateral Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all
documents that such Grantor shall reasonably request to evidence such termination or release;
provided that, in the case of a release pursuant to paragraph (e), the Collateral Agent
shall have received evidence reasonably satisfactory to it as to the satisfaction of the
requirements set forth in paragraph (e) for any such release. Any execution and delivery of
documents pursuant to this Section 9.13 shall be without recourse to or warranty by the Collateral
Agent.

          SECTION 9.14. Additional Subsidiaries. Upon execution and delivery by the Collateral Agent
and a Subsidiary of an instrument in the form of Exhibit I hereto, such Subsidiary shall become a
Subsidiary Guarantor and/or Subsidiary Grantor (as specified in such instrument) hereunder with the
same force and effect as if originally named as a Subsidiary Guarantor and/or Subsidiary Grantor
herein. The execution and delivery of any such instrument shall not require the consent of any
other Loan Group Party hereunder. The rights and obligations of each Loan Group Party hereunder
shall remain in full force and effect notwithstanding the addition of any new Subsidiary as a party
to this Agreement.

          SECTION 9.15. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby appoints the
Collateral Agent the attorney-in-fact of such Grantor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument that the Collateral
Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment is
irrevocable and coupled with an interest. Without limiting the generality of the foregoing, the
Collateral Agent shall have the right, upon the occurrence and during the continuance of a Loan
Group Event of Default, with full power of substitution either in the Collateral Agent’s name or in
the name of such Grantor (a) to receive, endorse, assign and/or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral
or any part thereof; (b) to demand, collect, receive payment of, give receipt for and give
discharges and releases of all or any of the Collateral; (c) to send verifications of accounts
receivable to any Account Debtor; (d) to commence and prosecute any and all

 

39

suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise
realize on all or any of the Collateral or to enforce any rights in respect of any Collateral; (e)
to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all
or any of the Collateral; (f) to notify, or to require any Grantor to notify, the obligors of any
Pledged Indebtedness to make payment
directly to the Collateral Agent; and (g) to use, sell, assign, transfer, pledge, make any
agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other
acts and things necessary to carry out the purposes of this Agreement, as fully and completely as
though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided
that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to
make any commitment or to make any inquiry as to the nature or sufficiency of any payment received
by the Collateral Agent, or to present or file any claim or notice, or to take any action with
respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof
or any property covered thereby. The Collateral Agent, the other Secured Parties and the Cyprus
Amax Noteholders shall be accountable only for amounts actually received as a result of the
exercise of the powers granted to them herein (if any), and neither they nor their officers,
directors, employees or agents shall be responsible to any Grantor for any act or failure to act
hereunder, except for their own gross negligence or wilful misconduct.

 

 

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

	 	 	 	 	 	 	 
	 	 	FREEPORT-MCMORAN COPPER & GOLD INC.,
	 
	 	 	 	 	 	 
	 

	 	 	 	by	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., AS COLLATERAL AGENT,
	 
	 	 	 	 	 	 
	 

	 	 	 	by	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:

 

 

	 	 	 	 	 	 	 
	 	 	EACH OF THE SUBSIDIARIES LISTED ON SCHEDULE I HERETO,
	 
	 	 	 	 	 	 
	 

	 	 	 	by	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:

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