Document:

exv10w4

 

Exhibit 10.4

     FIRST AMENDMENT (the “Amendment”) to the Change of Control Agreement (the
“Agreement”) dated as of                         , 200  , by and between [                    ] (the
“Executive”) and Phelps Dodge Corporation, a New York corporation (the
“Corporation”), dated as of July    , 2006. Terms used without definition herein shall have
the respective meanings set forth in the Agreement.

     WHEREAS, the Corporation entered into the Agreement with the Executive to enhance the best
interests of the Corporation and provide value to its shareholders by minimizing the risk of the
departure or distraction of the Executive to the detriment of the Corporation and its shareholders
in the context of a potential or actual Change of Control;

     WHEREAS, the Corporation has entered into a definitive agreement dated as of June 25, 2006
(the “Combination Agreement”) pursuant to which the Corporation will combine with Inco
Limited pursuant to a plan of arrangement under the laws of Canada (the “Transaction”);

     WHEREAS, the consummation of the Transaction will constitute a Change of Control for purposes
of the Agreement; and

     WHEREAS, pursuant to and in accordance with Section 11(g) of the Agreement, the Corporation
and the Executive have determined that, in light of and subject to the consummation of the
Transaction, it is in the mutual best interests of the Corporation, its shareholders and the
Executive to amend the Agreement to reduce certain of the Executive’s rights and entitlements under
the Agreement and to make the other changes set forth in this Amendment.

AMENDMENT

     NOW THEREFORE, in consideration of the premises and the mutual covenants and promises
contained herein and for other good and valuable consideration, the Corporation and the Executive
hereby agree as follows:

	1.	 	This Amendment shall be effective as of the Effective Time (as such term is defined in the
Combination Agreement). In the event that the Combination Agreement is terminated prior to
the occurrence of the Effective Time or if the Effective Time does not otherwise occur on or
prior to January 1, 2007, this Amendment shall be null and void ab initio and shall have no
force or effect.

The parties hereto acknowledge and agree that the Amendment shall apply solely with respect
to the Transaction and shall not apply with respect to any other transaction (including,
without limitation, any transaction that is consummated subsequent to the Transaction) that,
if consummated, would constitute a Change of Control for purposes of the Agreement.

	2.	 	Section 5 of the Agreement is hereby amended to replace subsection (d) thereunder with the
following new subsection (d):

	 	“(d)	 	GOOD REASON. For purposes of this Change of Control
Agreement, the term “Good Reason” means that you have terminated your

 

 

	 	 	 	employment with the Corporation and all subsidiaries of the Corporation on
account of one or more of the following events (and you have not agreed to
such event in writing):

	 	(i)	 	a material reduction in the duties and
responsibilities you held immediately prior to such Change of Control;

	 	(ii)	 	a reduction by the Corporation or any
subsidiary of the Corporation in your base salary or your target bonus
opportunity under the Corporation’s Annual Incentive Compensation Plan
(or any successor plan thereto) as in effect immediately prior to such
Change of Control;

	 	(iii)	 	a material reduction in the aggregate level
of benefits from those provided to you immediately prior to the Change
of Control under the Corporation’s employee benefit plans and
programs, not taking into account any reduction that is generally
applicable to all employees eligible to participate in any such plan
or program; or

	 	(iv)	 	the Corporation’s or any subsidiary’s
requiring you to be based anywhere other than a location within 50
miles of your location immediately prior to such Change of Control.”

	3.	 	The remaining provisions of the Agreement shall remain in full force and effect.

	4.	 	Miscellaneous

	 	(a)	 	Employment at Will. This Amendment shall neither obligate the Corporation or
any subsidiary of the Corporation to continue you in its employ (or to employ you in
any particular office or to perform any specified responsibility) nor obligate you to
continue in the employ of the Corporation or any subsidiary of the Corporation.

	 	(b)	 	Successors. This Amendment shall be binding upon and inure to the benefit of
the Executive, the Executive’s estate and the Corporation and any successor of the
Corporation, but neither this Amendment nor any rights arising hereunder may be
assigned or pledged by you.

	 	(c)	 	Governing Law. This Amendment shall be governed by the laws of the State of New
York.

	 	(d)	 	Severability. If any provision of this Amendment as applied to either party or
to any circumstances shall be adjudged by a court of competent jurisdiction to be void
or unenforceable, the same shall in no way affect any other provision of this Amendment
or the validity or enforceability of this Amendment.

2

 

	 	(e)	 	Confidentiality. The Executive hereby agrees that he or she will not disclose
to any person or entity (other than to his or her personal legal advisor on a
need-to-know basis), the nature and content of any negotiations, discussions,
presentations or other communications with respect to this Amendment or, prior to the
public disclosure of this Amendment by the Corporation, the existence or the terms and
conditions of this Amendment.

          IN WITNESS WHEREOF, the Corporation has duly executed this Amendment by its authorized
representative and the Executive has hereunto set [his] [her] hand, in each case as of the date of
this Amendment.

	 	 	 	 	 	 	 
	 	 	PHELPS DODGE CORPORATION
	 
	 	 	 	 	 	 
	 
	 

	 	 
	 	By:	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

3exv10w5

 

Exhibit 10.5

     FIRST AMENDMENT (the “Amendment”) to each of the various Stock Option Agreements (the
“Option Agreements”) by and between [                    ] (the “Executive”) and Phelps Dodge
Corporation, a New York corporation (the “Corporation”), dated as of                         , 2006. Terms
used without definition herein shall have the respective meanings set forth in the applicable
Option Agreement or the Corporation’s 2003 Stock Option and Restricted Stock Plan (the
“Plan”).

     WHEREAS, the Corporation has awarded Options to the Executive pursuant to the Plan or a
predecessor plan (as evidenced by the Option Agreements) for the purpose of incentivizing the
Executive to improve the performance of the Corporation and create value for its shareholders;

     WHEREAS, each Option is governed by the terms of the applicable Option Agreement and the Plan;

     WHEREAS, the Corporation expects to enter into a definitive agreement dated on or about June
25, 2006 (the “Combination Agreement”) pursuant to which the Corporation will combine with
Inco Limited pursuant to a plan of arrangement under the laws of Canada (the
“Transaction”);

     WHEREAS, the consummation of the Transaction will constitute a Change of Control for purposes
of the Option Agreements and the Plan; and

     WHEREAS, pursuant to and in accordance with Section 7 of the Plan, the Corporation and the
Executive have determined that, in light of and subject to the consummation of the Transaction, it
is in the mutual best interests of the Corporation, its shareholders and the Executive to amend the
Option Agreements to reduce certain of the Executive’s rights and entitlements under the Option
Agreements and the Plan and to make the other changes set forth in this Amendment.

AMENDMENT

     NOW THEREFORE, in consideration of the premises and the mutual covenants and promises
contained herein and for other good and valuable consideration, the Corporation and the Executive
hereby agree as follows:

	1.	 	This Amendment shall be effective as of the Effective Time (as such term is defined in the
Combination Agreement). In the event that the Combination Agreement is terminated prior to
the occurrence of the Effective Time or if the Effective Time does not otherwise occur on or
prior to January 1, 2007, this Amendment shall be null and void ab initio and shall have no
force or effect.

The parties hereto acknowledge and agree that the Amendment shall apply solely with respect
to the Transaction and shall not apply with respect to any other transaction (including,
without limitation, any transaction that is consummated subsequent to the Transaction)
that, if consummated, would constitute a Change of Control for purposes of the Option
Agreements and the Plan.

 

 

	2.	 	Section 2 of each Option Agreement is hereby amended to delete subsection (b) thereof.

	3.	 	Section 4 of each Option Agreement is hereby amended to delete the phrase “not earlier than
six months from the Grant Date” from the proviso included in the second sentence thereof.

	4.	 	Section 1 of Supplement B to each Option Agreement is hereby amended to delete the phrase
“not earlier than six months from the date on which the Option was granted and” from the first
sentence thereof.

	5.	 	Section 1 of Supplement B to each Option Agreement is hereby amended to replace subsection c.
thereof with the following subsection c.:

     “c. Good Reason. For purposes of the definition of Qualifying Termination, “Good
Reason” means a termination of employment with the Corporation and its Subsidiaries by the
Employee on account of one or more of the following events (and the Employee has not agreed
to such event in writing):

     (i) a material reduction in the duties and responsibilities held by the
Employee immediately prior to such Change of Control;

     (ii) a reduction by the Corporation or any Subsidiary of the Employee’s base
salary or target bonus opportunity under the Corporation’s Annual Incentive
Compensation Plan (or any successor plan thereto) as in effect immediately prior to
such Change of Control;

     (iii) a material reduction in the aggregate level of benefits from those
provided to the Employee immediately prior to the Change of Control under the
Corporation’s employee benefit plans and programs, not taking into account any
reduction that is generally applicable to all employees eligible to participate in
any such plan or program; or

     (iv) the Corporation’s or any Subsidiary’s requiring the Employee to be based
anywhere other than a location within 50 miles of his or her location immediately
prior to such Change of Control.”

	6.	 	The remaining provisions of each Option Agreement shall remain in full force and effect.

	7.	 	Confidentiality. The Executive hereby agrees that he or she will not disclose to any person
or entity (other than to his or her personal legal advisor on a need-to-know basis), the
nature and content of any negotiations, discussions, presentations or other communications
with respect to this Amendment or, prior to the public disclosure of this Amendment by the
Corporation, the existence or the terms and conditions of this Amendment.

	8.	 	Governing Law. This Amendment shall be governed by the laws of the State of New York.

2

 

          IN WITNESS WHEREOF, the Corporation has duly executed this Amendment by its authorized
representative and the Executive has hereunto set his hand, in each case as of the date of this
Amendment.

	 	 	 	 	 	 	 
	 	 	PHELPS DODGE CORPORATION
	 
	 	 	 	 	 	 
	 
	 

	 	 
	 	By:	 	 
	 

	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	[Name]	 	 
	 

	 	 	 	[Title]	 	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]