Document:

exv10w1

Exhibit 10.1

EXECUTION COPY

DISTRIBUTION AGREEMENT

January 26, 2009

J.P. Morgan Securities Inc.

277 Park Avenue

New York, New York 10172

Ladies and Gentlemen:

     Freeport-McMoRan Copper & Gold Inc., a Delaware corporation (the “Company”), confirms its
agreement with J.P. Morgan Securities Inc., as agent and/or principal under any Terms Agreement (as
defined in Section 1(a) below) (“you” or “JPMS”), with respect to the issuance and sale from time
to time by the Company, in the manner and subject to the terms and conditions described below (this
“Agreement”), of shares (the “Shares”) of common stock, $0.10 par value per share (the “Common
Stock”), of the Company having an aggregate Gross Sales Price (as defined in Section 2(b) below) of
up to $750,000,000 (the “Maximum Amount”) on the terms set forth in Section 1 of this Agreement.
The Shares are described in the Prospectus referred to below.

     The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement on Form S-3 (No. 333-140997) for the registration of the Shares under the
Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder
(collectively, the “Act”); the Registration Statement (as defined below) sets forth the material
terms of the offering, sale and plan of distribution of the Shares and contains additional
information concerning the Company and its business. Except where the context otherwise requires,
“Registration Statement”, as used herein, means the registration statement, as amended at the time
of such registration statement’s effectiveness for purposes of Section 11 of the Act, as such
section applies to JPMS, including (1) all documents filed as a part thereof or incorporated, or
deemed to be incorporated, by reference therein and (2) any information contained or incorporated
by reference in a prospectus filed with the Commission pursuant to Rule 424(b) under the Act, to
the extent such information is deemed, pursuant to Rule 430B or Rule 430C under the Act, to be part
of the registration statement at the effective time. Except where the context otherwise requires,
“Basic Prospectus”, as used herein, means the prospectus dated March 1, 2007, filed as part of the
Registration Statement, including the documents incorporated by reference therein as of the date of
such prospectus. Except where the context otherwise requires, “Prospectus Supplement”, as used
herein, means the most recent prospectus supplement relating to the Shares, to be filed by the
Company with the Commission pursuant to Rule 424(b) under the Act on or before the second business
day after the date hereof (or such earlier time as may be required under the Act), in the form
furnished by the Company to JPMS in connection with the offering of the Shares. Except where the
context otherwise requires, “Prospectus”, as used herein, means the Prospectus Supplement (and any
additional prospectus supplement prepared in accordance with the provisions of Sections 4(b) or
4(h) of this Agreement and filed in accordance with the provisions of Rule 424(b)) together with
the Basic Prospectus attached to or used with the Prospectus Supplement. “Permitted Free Writing
Prospectuses”, as used herein, has the meaning set forth in Section 3(b). Any reference herein to
the Registration Statement, the Basic Prospectus, the Prospectus Supplement, the Prospectus or any
Permitted Free Writing Prospectus shall, unless otherwise stated, be deemed to refer to and

 

 

include the documents, if any, incorporated, or deemed to be incorporated, by reference
therein (the “Incorporated Documents”), including, unless the context otherwise requires, the
documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to the
terms “amend”, “amendment” or “supplement” with respect to the Registration Statement, the Basic
Prospectus, the Prospectus Supplement, the Prospectus or any Permitted Free Writing Prospectus
shall, unless stated otherwise, be deemed to refer to and include the filing of any document under
the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder (collectively, the “Exchange Act”) on or after the initial effective date of the
Registration Statement or the date of the Basic Prospectus, the Prospectus Supplement, the
Prospectus or such Permitted Free Writing Prospectus, as the case may be, and deemed to be
incorporated therein by reference.

     The Company and JPMS agree as follows:

	 	1.	 	Issuance and Sale.
	 
	 	(a)	 	Upon the basis of the representations and warranties and subject to the terms
and conditions set forth herein, on any Exchange Business Day (as defined below)
selected by the Company, the Company and JPMS shall enter into an agreement in
accordance with Section 2 hereof regarding the number of Shares to be placed by JPMS
and the manner in which and other terms upon which such placement is to occur (each
such transaction being referred to as an “Agency Transaction” or a “Transaction”). The
Company may also offer to sell the Shares directly to JPMS, as principal, in which
event it will enter into a separate agreement (each, a “Terms Agreement”) in
substantially the form of Exhibit F hereto, relating to such sale in accordance with
Section 2(g) of this Agreement. As used in this Agreement, (i) the “Term” shall be the
period commencing on the date hereof and ending on the earliest of (x) the date on
which the Gross Sales Price of Shares issued and sold pursuant to this Agreement and
any Terms Agreements is equal to the Maximum Amount and (y) the termination of this
Agreement pursuant to Section 8 or 9 (the “Termination Date”), (ii) an “Exchange
Business Day” means any day during the Term that is a trading day for the Exchange, and
(iii) “Exchange” means the New York Stock Exchange.
	 
	 	(b)	 	Subject to the terms and conditions set forth below, the Company appoints JPMS
as agent in connection with the offer and sale of Shares in any Agency Transactions
entered into hereunder. JPMS will use commercially reasonable efforts to sell such
Shares in accordance with the terms and conditions hereof and of the applicable
Transaction Notice (as defined below). Neither the Company nor JPMS shall have any
obligation to enter into an Agency Transaction. The Company shall be obligated to
issue and sell through JPMS, and JPMS shall be obligated to use commercially reasonable
efforts, as provided herein and in the applicable Transaction Notice, to place Shares
issued by the Company only if and when a Transaction Notice related to such an Agency
Transaction has been delivered by JPMS and accepted by the Company as provided in
Section 2 below.

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	 	(c)	 	JPMS, as agent in any Agency Transaction, hereby covenants and agrees not to
make any sales of the Shares on behalf of the Company, pursuant to this Agreement,
other than (i) by means of ordinary brokers’ transactions between members of the
Exchange that qualify for delivery of a Prospectus in accordance with Rule 153 under
the Act and meet the definition of an “at the market offering” under Rule 415(a)(4)
under the Act (such transactions are hereinafter referred to as “At the Market
Offerings”) and (ii) such other sales of the Shares on behalf of the Company in its
capacity as agent of the Company as shall be agreed by the Company and JPMS in writing.
	 
	 	(d)	 	JPMS will confirm in writing to the Company the number of Shares sold on any
Exchange Business Day, the related Gross Sales Price and, if Shares are to be sold in
an Agency Transaction in an At the Market Offering, the related Net Sales Price (as
each of such terms is defined in Section 2(b) below) no later than the opening of
trading on the immediately following Exchange Business Day.
	 
	 	(e)	 	If the Company shall default on its obligation to deliver Shares to JPMS
pursuant to the terms of any Agency Transaction or Terms Agreement, (i) the Company
shall hold JPMS harmless against any loss, claim or damage arising from or as a result
of such default by the Company and (ii) notwithstanding such default, pay to JPMS any
fee to which it would otherwise be entitled in connection with such sale.
	 
	 	2.	 	Transaction Notices.
	 
	 	(a)	 	The Company may, from time to time during the Term, propose to JPMS that they
enter into an Agency Transaction, to be executed on a specified Exchange Business Day
or over a specified period of Exchange Business Days. If JPMS agrees to the terms of
such proposed Transaction or if the Company and JPMS mutually agree to modified terms
for such proposed Transaction, then JPMS shall promptly send to the Company by the
means set forth under Section 11 hereof a notice, substantially in the form of Exhibit
A hereto (each, a “Transaction Notice”), confirming the agreed terms of such proposed
Transaction. If the Company wishes such proposed Transaction to become a binding
agreement between it and JPMS, the Company shall promptly indicate its acceptance
thereof by countersigning and returning such Transaction Notice to JPMS or sending a
written acceptance of such Transaction Notice to JPMS, in each case by the means set
forth under Section 11 hereof. The terms reflected in a Transaction Notice shall
become binding on JPMS and the Company only if accepted by the Company no later than
the times specified in Section 2(b) below. Each Transaction Notice shall specify,
among other things:

     (i) the Exchange Business Day(s) on which the Shares subject to such
Transaction are intended to be sold (each, a “Purchase Date”);

     (ii) the maximum number of Shares that the Company intends to sell (the
“Specified Number of Shares”) on, or over the course of, such Purchase

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Date(s); provided that the number of Shares sold on each such Purchase Date
shall be no more than 25% of the average daily trading volume in the Common Stock on
the Exchange for the 30 Exchange Business Days preceding the date of delivery of the
Transaction Notice, or as otherwise agreed between the Company and JPMS; and

     (iii) the lowest price (if any) at which the Company is willing to sell Shares
on each such Purchase Date (each, a “Floor Price”).

     The Company shall have responsibility for maintaining records with respect to
the aggregate dollar amount of Shares sold, or for otherwise monitoring the
availability of Shares for sale under the Registration Statement. In the event that
more than one Transaction Notice with respect to any Purchase Date(s) is accepted by
the Company, the latest of any executed Transaction Notice shall govern any sales of
Shares for the relevant Purchase Date(s), except to the extent of any action
occurring pursuant to a prior accepted Transaction Notice and prior to the
acceptance of such latest Transaction Notice. The Company or JPMS may, upon notice
to the other party hereto by telephone (confirmed promptly by telecopy or electronic
mail), suspend the offering of the Shares; provided, however, that such suspension
or termination shall not affect or impair the parties’ respective obligations with
respect to the Shares sold hereunder prior to the giving of such notice.
Notwithstanding the foregoing, if the terms of any Agency Transaction contemplate
that Shares shall be sold on more than one Purchase Date, then the Company and JPMS
shall mutually agree to such additional terms and conditions as they deem necessary
in respect of such multiple Purchase Dates, and such additional terms and conditions
shall be binding to the same extent as any other terms contained in the relevant
Transaction Notice.

	 	(b)	 	JPMS’s commission shall be 1.25% of the actual sales price of the Shares (the
“Gross Sales Price”) sold pursuant to this Agreement (the Gross Sales Price less JPMS’s
commission is referred to herein at the “Net Sales Price”) and such rate of
compensation shall not apply when JPMS acts as principal.
	 
	 	(c)	 	Payment of the Net Sales Price for Shares sold by the Company on any Purchase
Date pursuant to a Transaction Notice shall be made to the Company by federal funds
wire transfer to the account of the Company, the details of which are set forth on
Schedule III hereto, against delivery of such Shares to JPMS. Such payment and
delivery shall be made at or about 10:00 a.m., local time in New York, New York, on the
third Exchange Business Day (or such other day as may, from time to time, become
standard industry practice for settlement of such a securities issuance) following each
Purchase Date (each, a “Closing Date”).
	 
	 	(d)	 	If, as provided in the related Transaction Notice, a Floor Price has been
agreed to by the parties with respect to a Purchase Date, and JPMS thereafter
determines and notifies the Company that the Gross Sales Price for such Transaction
would not be at least equal to such Floor Price, then the Company shall not be
obligated

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	 	 	 	to issue and sell through JPMS, and JPMS shall not be obligated to place, the Shares
proposed to be sold pursuant to such Transaction on such Purchase Date.
	 
	 	(e)	 	Under no circumstances shall the Gross Sales Price of the Shares sold pursuant
to this Agreement and any Terms Agreements exceed the Maximum Amount.
	 
	 	(f)	 	If either party hereto has reason to believe that the exemptive provisions set
forth in Rule 101(c)(1) of Regulation M under the Exchange Act are not satisfied with
respect to the Shares, it shall promptly notify the other party and sales of the Shares
under this Agreement, any Transaction Notice or any Terms Agreement shall be suspended
until that or other exemptive provisions have been satisfied in the judgment of each
party. On or prior to the delivery of a prospectus that is required (whether
physically or through compliance with Rule 172 under the Act or any similar rule) in
connection with the offering or sale of the Shares, JPMS shall calculate the average
daily trading volume (as defined by Rule 100 of Regulation M under the Exchange Act) of
the Common Stock based on market data provided by Bloomberg L.P. or such other sources
as agreed upon by JPMS and the Company.
	 
	 	(g)	 	(i) If the Company wishes to issue and sell the Shares pursuant to this
Agreement but other than as set forth in Section 2(a) of this Agreement (each such
sale, a “Placement”), it will notify JPMS of the proposed terms of such Placement. If
JPMS, acting as principal, wishes to accept such proposed terms (which it may decline
to do for any reason in its sole discretion) or, following discussions with the
Company, wishes to accept amended terms, JPMS and the Company will enter into a Terms
Agreement setting forth the terms of such Placement.

(ii) The terms set forth in a Terms Agreement will not be binding on the Company or
JPMS unless and until the Company and JPMS have each executed such Terms Agreement
accepting all of the terms of such Terms Agreement. In the event of a conflict
between the terms of this Agreement and the terms of a Terms Agreement, the terms of
such Terms Agreement will control.
	 
	 	(h)	 	Each sale of the Shares to JPMS in a Placement shall be made in accordance with
the terms of this Agreement and a Terms Agreement, which will provide for the sale of
such Shares to, and the purchase thereof by, JPMS. Such Terms Agreement may also
specify certain provisions relating to the reoffering of such Shares by JPMS. The
commitment of JPMS to purchase the Shares pursuant to any Terms Agreement shall be
deemed to have been made on the basis of the representations and warranties of the
Company herein contained and shall be subject to the terms and conditions herein set
forth. Any such Terms Agreement shall specify the number of the Shares to be purchased
by JPMS pursuant thereto, the price to be paid to the Company for such Shares, any
provisions relating to rights of, and default by, underwriters acting together with
JPMS in the reoffering of the Shares, the time and date (each such time and date being
referred to herein as a “Time of Delivery”) and the place of delivery of and payment
for such Shares.

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	 	(i)	 	The Company agrees that any offer to sell, any solicitation of an offer to buy,
or any sales of Shares or any other equity security of the Company shall only be
effected by or through JPMS on any single given day; provided, however, that the
foregoing limitation shall not apply to (i) the exercise of any option, warrant, right
or any conversion privilege set forth in the instrument governing such security or (ii)
sales solely to employees or security holders of the Company or its subsidiaries, or to
a trustee or other person acquiring such securities for the accounts of such persons.

     3. Representations and Warranties of the Company. The Company represents and warrants
to JPMS, on and as of (i) the date hereof, (ii) each date on which the Company accepts a
Transaction Notice (a “Time of Acceptance”), (iii) each Time of Sale (as defined below) and each
Closing Date (each such date listed in (i) through (iv), a “Representation Date”) that:

	 	(a)	 	There is no order preventing or suspending the use of the Registration
Statement or the Prospectus; the Registration Statement complied when it initially
became effective, complies as of the date hereof and, as amended or supplemented, at
each Representation Date will comply, in all material respects, with the requirements
of the Act; the conditions to the use of Form S-3 in connection with the offering and
sale of the Shares as contemplated hereby have been satisfied; the Registration
Statement meets, and the offering and sale of the Shares as contemplated hereby
complies with, the requirements of Rule 415 under the Act (including, without
limitation, Rule 415(a)(5)); the Prospectus complied or will comply, at the time it was
or will be filed with the Commission and complies as of each Representation Date, in
all material respects, with the requirements of the Act; the Registration Statement did
not, as of the time of its initial effectiveness, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading; as of each Time of Acceptance,
each Time of Sale and each Closing Date, the Prospectus, as then amended or
supplemented, together with all of the then issued Permitted Free Writing Prospectuses,
if any, will not contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that the
Company makes no representation or warranty with respect to any statement contained in
the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus in
reliance upon and in conformity with information concerning JPMS and furnished in
writing by or on behalf of JPMS expressly for use in the Registration Statement, the
Prospectus or such Permitted Free Writing Prospectus, which consists of the information
set forth on Schedule II hereto (the “Agent Information”). “Time of Sale”
means, (i) with respect to each offering of Shares pursuant to this Agreement, the time
of JPMS’s initial entry into contracts with investors for the sale of such Shares and
(ii) with respect to each offering of Shares pursuant to any relevant Terms Agreement,
the time of sale of such Shares.

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	 	(b)	 	Prior to the execution of this Agreement, the Company has not, directly or
indirectly, offered or sold any of the Shares by means of any “prospectus” (within the
meaning of the Act) or used any “prospectus” (within the meaning of the Act) in
connection with the offer or sale of the Shares, in each case other than the Basic
Prospectus. The Company represents and agrees that, unless it obtains the prior
consent of JPMS, until the termination of this Agreement, it has not made and will not
make any offer relating to the Shares that would constitute an “issuer free writing
prospectus”, as defined in Rule 433, or that would otherwise constitute a “free writing
prospectus”, as defined in Rule 405. Any such free writing prospectus relating to the
Shares consented to by JPMS is hereinafter referred to as a “Permitted Free Writing
Prospectus”. The Company represents that it has complied and will comply in all
material respects with the requirements of Rule 433 applicable to any Permitted Free
Writing Prospectus, including timely filing with the Commission where required,
legending and record keeping. The conditions set forth in one or more of subclauses
(i) through (iv), inclusive, of Rule 433(b)(1) under the Act are satisfied, and the
registration statement relating to the offering of the Shares contemplated hereby, as
initially filed with the Commission, includes a prospectus that, other than by reason
of Rule 433 or Rule 431 under the Act, satisfies the requirements of Section 10 of the
Act; neither the Company nor JPMS is disqualified, by reason of subsection (f) or (g)
of Rule 164 under the Act, from using, in connection with the offer and sale of the
Shares, “free writing prospectuses” (as defined in Rule 405 under the Act) pursuant to
Rules 164 and 433 under the Act; the Company is not an “ineligible issuer” (as defined
in Rule 405 under the Act) as of the eligibility determination date for purposes of
Rules 164 and 433 under the Act with respect to the offering of the Shares contemplated
by the Registration Statement.
	 
	 	(c)	 	The Incorporated Documents, when they were filed with the Commission, conformed
in all material respects to the requirements of the Act or the Exchange Act, as
applicable, and none of such documents contained an untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not
misleading; and any further documents so filed and incorporated by reference in the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus, when
such documents become effective or are filed with the Commission, as the case may be,
will conform in all material respects to the requirements of the Act or the Exchange
Act, as applicable.
	 
	 	(d)	 	The consolidated financial statements of the Company and its subsidiaries and
of Phelps Dodge Corporation (“Phelps Dodge”) and its subsidiaries and the related notes
thereto included or incorporated by reference in the Registration Statement, the
Prospectus and any Permitted Free Writing Prospectus comply in all material respects
with the applicable requirements of the Act and the Exchange Act, as applicable, and
present fairly the financial position of (i) the Company and its consolidated
subsidiaries, in the case of the consolidated financial statements of the Company and
its subsidiaries, and (ii) Phelps Dodge and its consolidated subsidiaries, in the case
of the consolidated financial statements of Phelps Dodge

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	 	 	 	and its subsidiaries, in each case as of the dates indicated and the results of
their respective operations and the changes in their respective cash flows for the
periods specified; such financial statements have been prepared in conformity with
generally accepted accounting principles applied on a consistent basis throughout
the periods covered thereby, except as otherwise disclosed in the financial
statement footnotes, and the supporting schedules included or incorporated by
reference in the Registration Statement, the Prospectus and any Permitted Free
Writing Prospectus present fairly the information required to be stated therein; the
other financial information included or incorporated by reference in the
Registration Statement, the Prospectus and any Permitted Free Writing Prospectus has
been derived from the accounting records of the Company and its subsidiaries or
Phelps Dodge and its subsidiaries, as the case may be, and presents fairly the
information shown thereby; and the pro forma financial information and the related
notes thereto included or incorporated by reference in the Registration Statement,
the Prospectus and any Permitted Free Writing Prospectus have been prepared in
accordance with the applicable requirements of the Act and the Exchange Act, as
applicable, and the assumptions underlying such pro forma financial information are
reasonable and are included or incorporated by reference in the Registration
Statement, the Prospectus and any such Permitted Free Writing Prospectus.
	 
	 	(e)	 	Since the date of the most recent financial statements of the Company included
or incorporated by reference in the Registration Statement, the Prospectus and any
Permitted Free Writing Prospectus, (i) no material change in the capital stock or
long-term debt of the Company or any of its subsidiaries has occurred, (ii) no dividend
or distribution of any kind has been declared, set aside for payment, paid or made by
the Company on any class of capital stock, except dividends declared and paid pursuant
to the terms of the Company’s outstanding preferred stock, (iii) there has not been any
material adverse change, nor any development that would reasonably be expected to have
a material adverse change, in or affecting the business, properties, management,
financial position, results of operations or prospects of the Company and its
subsidiaries, taken as a whole, (iv) neither the Company nor any of its subsidiaries
has entered into any transaction or agreement that is material to the Company and its
subsidiaries, taken as a whole, or incurred any liability or obligation, direct or
contingent, that is material to the Company and its subsidiaries, taken as a whole, and
(v) neither the Company nor any of its subsidiaries has sustained any loss or
interference with its business from fire, explosion, flood or other calamity, whether
or not covered by insurance, or from any labor disturbance or dispute or any action,
order or decree of any court or arbitrator or governmental or regulatory authority
that, in the case of this clause (v), individually or in the aggregate, has had or
would reasonably be expected to have a Material Adverse Effect (as defined in Section
3(f)), except, in each case (i) through (v), as otherwise disclosed in the Registration
Statement, the Prospectus or any Permitted Free Writing Prospectus.
	 
	 	(f)	 	The Company and each of its Identified Subsidiaries (as defined below) have
been duly organized and are validly existing and in good standing under the laws of

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	 	 	 	their respective jurisdictions of organization, are duly qualified to do business
and are in good standing in each jurisdiction in which their respective ownership or
lease of property or the conduct of their respective businesses requires such
qualification, and have all power and authority necessary to own or hold their
respective properties and to conduct the businesses in which they are engaged,
except where the failure to be so qualified, in good standing or have such power or
authority would not, individually or in the aggregate, have a material adverse
effect on the business, properties, management, financial position, results of
operations or prospects of the Company and its subsidiaries taken as a whole (a
“Material Adverse Effect”). As used in this Agreement, “Identified Subsidiary”
means the subsidiaries listed in Schedule I to this Agreement. The Company
does not have any significant subsidiaries that are not listed on Schedule I
hereto.
	 
	 	(g)	 	The Company has an authorized capitalization as set forth in the Registration
Statement, the Prospectus and any Permitted Free Writing Prospectus; all the
outstanding shares of capital stock of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable and are not subject to any
pre-emptive or similar rights; except as described in or expressly contemplated by the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus, there
are no outstanding rights (including, without limitation, pre-emptive rights), warrants
or options to acquire, or instruments convertible into or exchangeable for, any shares
of capital stock or other equity interests in the Company or any of its subsidiaries,
nor any contracts, commitments, agreements, understandings or arrangements of any kind
relating to the issuance of any capital stock of the Company or any such subsidiary,
any such convertible or exchangeable securities or any such rights, warrants or
options; the capital stock of the Company conforms in all material respects to the
description thereof contained in the Registration Statement, the Prospectus and any
Permitted Free Writing Prospectus; and all the outstanding shares of capital stock or
other equity interests of each Identified Subsidiary of the Company have been duly and
validly authorized and issued, are fully paid and non-assessable (except, in the case
of any foreign subsidiary, for directors’ qualifying shares) and are owned directly or
indirectly by the Company, free and clear of any lien, charge, encumbrance, security
interest, restriction on voting or transfer or any other claim of any third party
(except as otherwise described in the Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus).
	 
	 	(h)	 	The Company has full right, power and authority to execute and deliver this
Agreement and any Terms Agreement and perform its obligations hereunder or thereunder;
and all action required to be taken for the due and proper authorization, execution and
delivery by it of this Agreement and any Terms Agreement and the consummation by it of
the transactions contemplated hereby and thereby has been duly and validly taken (or,
in the case of any Terms Agreement, such action will have been duly and validly
authorized), subject, in the case of the issuance and sale of Shares, to the execution
and delivery of a Transaction Notice by the persons specified in the resolutions of the
pricing committee of the Company’s board of directors.

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	 	(i)	 	This Agreement has been, and any Terms Agreement will have been, duly
authorized, executed and delivered by the Company.
	 
	 	(j)	 	This Agreement conforms in all material respects to the description thereof
contained in the Registration Statement, the Prospectus and any Permitted Free Writing
Prospectus.
	 
	 	(k)	 	The Shares to be issued and sold by the Company hereunder or under any Terms
Agreement have been duly authorized by the Company and, when issued and delivered and
paid for as provided herein or in any Terms Agreement, will be duly and validly issued,
will be fully paid and nonassessable and will conform to the description thereof in the
Registration Statement, the Prospectus, and any Permitted Free Writing Prospectus; the
Shares and all other shares of outstanding capital stock of the Company conform to the
description thereof contained in the Registration Statement, the Prospectus and any
Permitted Free Writing Prospectus; and the shareholders of the Company do not have any
preemptive or similar rights with respect to the Shares.
	 
	 	(l)	 	Neither the Company nor any of its subsidiaries is (i) in violation of its
charter or by-laws or similar organizational documents; (ii) in default, and no event
has occurred that, with notice or lapse of time or both, would constitute such a
default, in the due performance or observance of any term, covenant or condition
contained in any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by which
the Company or any of its subsidiaries is bound or to which any of the property or
assets of the Company or any of its subsidiaries is subject; or (iii) in violation of
any law or statute or any judgment, order, rule or regulation of any court or
arbitrator or governmental or regulatory authority, except, in the case of clauses (ii)
and (iii) above, for any such default or violation that would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect.
	 
	 	(m)	 	The execution, delivery and performance by the Company of this Agreement or any
Terms Agreement, the issuance and sale of the Shares, the compliance by the Company
with the terms hereof or of any Terms Agreement and the consummation of the
transactions contemplated hereby or by any Terms Agreement will not (i) conflict with
or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Company or any of its subsidiaries
pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Company or any of its subsidiaries is a party or by which
the Company or any of its subsidiaries is bound or to which any of the property or
assets of the Company or any of its subsidiaries is subject, (ii) result in any
violation of the provisions of the charter or by-laws or similar organizational
documents of the Company or any of its Identified Subsidiaries or (iii) result in the
violation of any law or statute or any judgment, order, rule or regulation of any court
or arbitrator or governmental

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	 	 	 	or regulatory authority, except, in the case of clauses (i) and (iii) above, for any
such conflict, breach, violation or default that would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.

	 	(n)	 	No consent, approval, authorization, order, registration or qualification of or
with any court or arbitrator or governmental or regulatory authority is required for
the execution, delivery and performance by the Company of this Agreement or any Terms
Agreement, the issuance and sale of the Shares and compliance by the Company with the
terms hereof or of any Terms Agreement and the consummation of the transactions
contemplated hereby or by any Terms Agreement, except for those that have been obtained
and for the registration of the Shares under the Act and such consents, approvals,
authorizations, orders and registrations or qualifications as may be required under
applicable state securities laws.
	 
	 	(o)	 	Except as described in the Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which the Company or any of
its subsidiaries is a party or to which any property of the Company or any of its
subsidiaries is the subject that, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect; to the best knowledge of the Company, no
such investigations, actions, suits or proceedings are threatened or contemplated by
any governmental or regulatory authority or threatened by others; and (i) there are no
current or pending legal, governmental or regulatory actions, suits or proceedings that
are required under the Act to be described in the Registration Statement or the
Prospectus that are not so described in the Registration Statement or the Prospectus
and (ii) there are no statutes, regulations or contracts or other documents that are
required under the Act to be filed as exhibits to the Registration Statement or
described in the Registration Statement or the Prospectus that are not so filed as
exhibits to the Registration Statement or described in the Registration Statement or
the Prospectus.
	 
	 	(p)	 	Ernst & Young LLP, who have audited certain consolidated financial statements
of the Company and its subsidiaries are independent public accountants with respect to
the Company and its subsidiaries within the applicable rules and regulations adopted by
the Commission and the Public Company Accounting Oversight Board (United States) (the
“PCAOB”) and as required by the Act. PricewaterhouseCoopers LLP, who have audited
certain consolidated financial statements of Phelps Dodge and its subsidiaries, were
independent public accountants with respect to Phelps Dodge and its subsidiaries within
the applicable rules and regulations adopted by the Commission and the PCAOB and as
required by the Act at the dates of the financial statements of Phelps Dodge and its
subsidiaries incorporated by reference in the Registration Statement and the
Prospectus.
	 
	 	(q)	 	The Company and its subsidiaries have good and marketable title in fee simple
to, or have valid rights to lease or otherwise use, all items of real and personal

11

 

	 	 	 	property that are material to the businesses of the Company and its subsidiaries,
taken as a whole, in each case free and clear of all liens, encumbrances, claims and
defects and imperfections of title except those that (i) do not materially interfere
with the use made and proposed to be made of such property by the Company and its
subsidiaries, (ii) are disclosed in the Registration Statement, the Prospectus or
any Permitted Free Writing Prospectus or (iii) would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.
	 
	 	(r)	 	The Company and its subsidiaries own or possess adequate rights to use all
material patents, patent applications, trademarks, service marks, trade names,
trademark registrations, service mark registrations, copyrights, licenses and know-how
(including trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures) necessary for the conduct, in all
material respects, of their businesses, taken as a whole; and the conduct of their
businesses, taken as a whole, will not conflict in any material respect with any such
rights of others, and the Company and its subsidiaries have not received any notice of
any material claim of infringement or conflict with any such rights of others.
	 
	 	(s)	 	No relationship, direct or indirect, exists between or among the Company or any
of its subsidiaries, on the one hand, and the directors, officers, stockholders or
other affiliates of the Company or any of its subsidiaries, on the other, that is
required by the Act to be described in the Registration Statement or the Prospectus and
that is not so described in such documents.
	 
	 	(t)	 	Neither the Company nor any of its subsidiaries is, and after giving effect to
the offering and sale of the Shares and the application of the proceeds thereof as
described in the Registration Statement, the Prospectus or any Permitted Free Writing
Prospectus, will not be an “investment company” or an entity “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940, as
amended, and the rules and regulations of the Commission thereunder.
	 
	 	(u)	 	The Company and its subsidiaries have filed all federal, state, local and
foreign tax returns required to be filed or have requested extensions of the filing
deadlines therefore, except in any case where the failure to so file would not
reasonably be expected to have a Material Adverse Effect; the Company and its
subsidiaries have paid all federal, state, local and foreign taxes required to be paid
through the date hereof, except any such taxes that are being contested in good faith
by appropriate proceedings and for which the Company, to the extent required by
generally accepted accounting principles (“GAAP”), has set aside on its books adequate
reserves, except for any inadequate reserves that would not, individually or in the
aggregate, have a Material Adverse Effect; and except as otherwise disclosed in the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus, there
is no tax deficiency that has been, or would reasonably be expected to be, asserted
against the Company or any of its subsidiaries or any

12

 

	 	 	 	of their respective properties or assets, except those as would not, individually or
in the aggregate, have a Material Adverse Effect.

	 	(v)	 	The Company and its subsidiaries possess all licenses, certificates, permits
and other authorizations issued by, and have made all declarations and filings with,
the appropriate federal, state, local or foreign governmental or regulatory authorities
that are necessary for the ownership or lease of their respective properties or the
conduct of their respective businesses as described in the Registration Statement, the
Prospectus and any Permitted Free Writing Prospectus, except where the failure to
possess or make the same would not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect; and except as described in the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus,
neither the Company nor any of its subsidiaries has received notice of any revocation
or modification of any such license, certificate, permit or authorization or has any
reason to believe that any such license, certificate, permit or authorization will not
be renewed in the ordinary course, except where such revocation, modification or
renewal would not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect.
	 
	 	(w)	 	Except as described in the Registration Statement, Prospectus or any Permitted
Free Writing Prospectus, no labor disturbance by or dispute with employees of the
Company or any of its subsidiaries exists or, to the knowledge of the Company, is
contemplated or threatened, except for those as would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.
	 
	 	(x)	 	(i) Except as described in the Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus, the Company and its subsidiaries (A) are, and at all
prior times were, in compliance with any and all applicable federal, state, local and
foreign laws, rules, regulations, requirements, decisions and orders relating to the
protection of human health or safety, the environment, natural resources, hazardous or
toxic substances or wastes, pollutants or contaminants (collectively, “Environmental
Laws”), (B) have received and are in compliance with all permits, licenses,
certificates or other authorizations or approvals required of them under applicable
Environmental Laws to conduct their respective businesses, and (C) have not received
notice of any actual or potential liability under or relating to any Environmental
Laws, including for the investigation or remediation of any disposal or release of
hazardous or toxic substances or wastes, pollutants or contaminants, and have no
knowledge of any event or condition that would reasonably be expected to result in any
such notice, and (ii) except as described in the Registration Statement, the Prospectus
or any Permitted Free Writing Prospectus, there are no costs or liabilities associated
with Environmental Laws of or relating to the Company or its subsidiaries, except in
the case of each of (i) and (ii) above, for any such failure to comply, or failure to
receive required permits, licenses or approvals, or cost or liability, as would not,
individually or in the aggregate, have a Material Adverse Effect.

13

 

	 	(y)	 	(i) Each employee benefit plan, within the meaning of Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the
Company or any member of its “Controlled Group” (defined as any organization which is a
member of a controlled group of corporations within the meaning of Section 414 of the
Internal Revenue Code of 1986, as amended (the “Code”)) would have any liability (each,
a “Plan”) has been maintained in material compliance with its terms and the
requirements of any applicable statutes, orders, rules and regulations, including but
not limited to ERISA and the Code; (ii) no prohibited transaction, within the meaning
of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any
Plan excluding transactions effected pursuant to a statutory or administrative
exemption; (iii) for each Plan that is subject to the funding rules of Section 412 of
the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in
Section 412 of the Code, whether or not waived, has occurred or is reasonably expected
to occur; (iv) the fair market value of the assets of each Plan exceeds the present
value of all benefits accrued under such Plan (determined based on those assumptions
used to fund such Plan), except for any liability as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; (v) no “reportable
event” (within the meaning of Section 4043(c) of ERISA) has occurred or is reasonably
expected to occur, except for any reportable event as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; and (vi) neither
the Company nor any member of its Controlled Group has incurred, nor reasonably expects
to incur, any liability under Title IV of ERISA (other than contributions to the Plan
or premiums to the Pension Benefit Guaranty Corporation, in the ordinary course and
without default) in respect of a Plan (including a “multiemployer plan”, within the
meaning of Section 4001(a)(3) of ERISA), except for any liability as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.
	 
	 	(z)	 	The Company maintains an effective system of “disclosure controls and
procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is designed to
ensure that information required to be disclosed by the Company in reports that it
files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the Commission’s rules and forms, including
controls and procedures designed to ensure that such information is accumulated and
communicated to the Company’s management as appropriate to allow timely decisions
regarding required disclosure. The Company has carried out evaluations of the
effectiveness of its disclosure controls and procedures as required by Rule 13a-15 of
the Exchange Act.
	 
	 	(aa)	 	The Company maintains systems of “internal control over financial reporting”
(as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of
the Exchange Act and have been designed by, or under the supervision of, the Company’s
principal executive and principal financial officers, or persons performing similar
functions, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for

14

 

	 	 	 	external purposes in accordance with GAAP, including, but not limited to, internal
accounting controls sufficient to provide reasonable assurance that (i) transactions
are executed in accordance with management’s general or specific authorizations;
(ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management’s general or
specific authorization; and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. Except as disclosed in the Registration Statement,
the Prospectus or any Permitted Free Writing Prospectus, there are no material
weaknesses in the Company’s internal control over financial reporting.
	 
	 	(bb)	 	The Company and its subsidiaries have insurance covering their respective
properties, operations, personnel and businesses, including business interruption
insurance, which insurance is in amounts and insures against such losses and risks as
the Company believes in its reasonable judgment are adequate to protect the Company and
its subsidiaries and their respective businesses; and neither the Company nor any of
its subsidiaries has (i) received notice from any insurer or agent of such insurer that
capital improvements or other expenditures are required or necessary to be made in
order to continue such insurance or (ii) any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain
similar coverage at reasonable cost from similar insurers as may be necessary to
continue its business, except where such notice or non-renewal would not reasonably be
expected to have a Material Adverse Effect.
	 
	 	(cc)	 	Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or other person associated with or
acting on behalf of the Company or any of its subsidiaries has (i) used any corporate
funds for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds; (iii)
violated or is in violation of any provision of the Foreign Corrupt Practices Act of
1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other
unlawful payment.
	 
	 	(dd)	 	The operations of the Company and its subsidiaries are and have been conducted
at all times in compliance with applicable financial recordkeeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”) and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any
of its subsidiaries with respect to the Money Laundering Laws is pending or, to the
best knowledge of the Company, threatened.

15

 

	 	(ee)	 	None of the Company, any of its subsidiaries or, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of
its subsidiaries is currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the
Company will not directly or indirectly use the proceeds of the offering of the Shares
hereunder or under any Terms Agreement, or lend, contribute or otherwise make available
such proceeds to any subsidiary, joint venture partner or other person or entity, for
the purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.
	 
	 	(ff)	 	No subsidiary of the Company is currently prohibited, directly or indirectly,
under any agreement or other instrument to which it is a party or is subject, from
paying any dividends to the Company, from making any other distribution on such
subsidiary’s capital stock, from repaying to the Company any loans or advances to such
subsidiary from the Company or from transferring any of such subsidiary’s properties or
assets to the Company or any other subsidiary of the Company, except, in each case, as
described in the Registration Statement, the Prospectus or any Permitted Free Writing
Prospectus.
	 
	 	(gg)	 	Neither the Company nor any of its subsidiaries is a party to any contract,
agreement or understanding with any person (other than this Agreement) that would
reasonably be expected to give rise to a valid claim against the Company or any of its
subsidiaries or JPMS for a brokerage commission, finder’s fee or like payment in
connection with the offering and sale of the Shares.
	 
	 	(hh)	 	No person has the right to require the Company or any of its subsidiaries to
register any securities for sale under the Act by reason of the filing of the
Registration Statement with the Commission or the issuance and sale of the Shares.
	 
	 	(ii)	 	The Company has not taken, directly or indirectly, any action designed to or
that would reasonably be expected to cause or result in any stabilization or
manipulation of the price of the Shares.
	 
	 	(jj)	 	Neither the issuance, sale and delivery of the Shares nor the application of
the proceeds thereof by the Company as described in the Registration Statement, the
Prospectus and any Permitted Free Writing Prospectus will violate Regulation T, U or X
of the Board of Governors of the Federal Reserve System or any other regulation of such
Board of Governors.
	 
	 	(kk)	 	No forward-looking statement (within the meaning of Section 27A of the Act and
Section 21E of the Exchange Act) included or incorporated by reference in the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus has
been made or reaffirmed without a reasonable basis or has been disclosed other than in
good faith.

16

 

	 	(ll)	 	Nothing has come to the attention of the Company that has caused the Company to
believe that the statistical and market-related data included or incorporated by
reference in the Registration Statement, the Prospectus and any Permitted Free Writing
Prospectus is not based on or derived from sources that are reliable and accurate in
all material respects.
	 
	 	(mm)	 	There is and has been no failure on the part of the Company or any of the
Company’s directors or officers, in their capacities as such, to comply with any
provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated
in connection therewith, including Section 402 related to loans and Sections 302 and
906 related to certifications.
	 
	 	(nn)	 	The Company is not an “ineligible issuer” and is a “well-known seasoned
issuer”, in each case as defined under the Act and at the times specified in the Act in
connection with the offering of the Shares. The Company has paid the registration fee
for this offering pursuant to Rule 457 under the Act.
	 
	 	(oo)	 	The Common Stock is registered pursuant to Section 12(b) of the Exchange Act,
and the Company has taken no action designed to, or likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act or delisting
the Common Stock from the Exchange nor has the Company received any notification that
the Commission or the Exchange is contemplating terminating such registration or
listing. The outstanding shares of the Common Stock have been approved for listing and
the Shares being sold hereunder have been approved for listing, subject only to
official notice of issuance, on the Exchange.
	 
	 	(pp)	 	There are no transfer taxes or other similar fees or charges under federal law
or the laws of any state, or any political subdivision thereof, required to be paid in
connection with the execution and delivery of this Agreement or the issuance and sale
by the Company of the Shares.
	 
	 	(qq)	 	The Common Stock is an “actively-traded security” excepted from the
requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of
such rule.
	 
	 	(rr)	 	Any certificate signed by any officer of the Company or any subsidiary
delivered to JPMS or to counsel for JPMS pursuant to or in connection with this
Agreement shall be deemed a representation and warranty by the Company to JPMS as to
the matters covered thereby.
	 
	 	4.	 	Certain Covenants of the Company. The Company hereby agrees with JPMS:
	 
	 	(a)	 	For so long as the delivery of a prospectus is required (whether physically or
through compliance with Rule 172 under the Act or any similar rule) in connection with
the offering or sale of the Shares, before amending or supplementing the Registration
Statement or the Prospectus (in each case, other than due to the filing of an
Incorporated Document), (i) to furnish to JPMS a copy

17

 

	 	 	 	of each such proposed amendment or supplement within a reasonable period of time
before filing any such amendment or supplement with the Commission, (ii) that the
Company will not use or file any such proposed amendment or supplement to which JPMS
reasonably objects, unless the Company’s legal counsel has advised the Company that
filing such document is required by law, and (iii) that the Company will not use or
file any Permitted Free Writing Prospectus to which JPMS reasonably objects.
	 
	 	(b)	 	To prepare a Prospectus Supplement, with respect to any Shares sold by the
Company pursuant to this Agreement in a form previously approved by JPMS and to file
such Prospectus Supplement pursuant to Rule 424(b) under the Act (and within the time
periods required by Rule 424(b) and Rules 430A, 430B or 430C under the Act) and to file
any Permitted Free Writing Prospectus to the extent required by Rule 433 under the Act
and to provide copies of the Prospectus and such Prospectus Supplement and each
Permitted Free Writing Prospectus (to the extent not previously delivered or filed on
the Commission’s Electronic Data Gathering, Analysis and Retrieval system or any
successor system thereto (collectively, “EDGAR”)) to JPMS via e-mail in “.pdf” format
on such filing date to an e-mail account designated by JPMS and, at JPMS’s request, to
also furnish copies of the Prospectus and such Prospectus Supplement to each exchange
or market on which sales were effected as may be required by the rules or regulations
of such exchange or market.
	 
	 	(c)	 	To file promptly all reports and any definitive proxy or information statements
required to be filed by the Company with the Commission pursuant to Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act for so long as the delivery of a prospectus is
required (whether physically or through compliance with Rule 172 under the Act or any
similar rule) in connection with the offering or sale of the Shares, and during such
same period to advise JPMS, promptly after the Company receives notice thereof, (i) of
the time when any amendment to the Registration Statement has been filed or has become
effective or any supplement to the Prospectus, any Permitted Free Writing Prospectus or
any amended Prospectus has been filed with the Commission, (ii) of the issuance by the
Commission of any stop order or any order preventing or suspending the use of any
prospectus relating to the Shares or the initiation or threatening of any proceeding
for that purpose, pursuant to Section 8A of the Act, (iii) of any objection by the
Commission to the use of Form S-3ASR by the Company pursuant to Rule 401(g)(2) under
the Act, (iv) of the suspension of the qualification of the Shares for offering or sale
in any jurisdiction, of the initiation or threatening of any proceeding for any such
purpose, (v) of any request by the Commission for the amendment of the Registration
Statement or the amendment or supplementation of the Prospectus or for additional
information, (vi) of the occurrence of any event as a result of which the Prospectus or
any Permitted Free Writing Prospectus as then amended or supplemented includes any
untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of
the circumstances existing when the Prospectus or any such Permitted Free Writing

18

 

	 	 	 	Prospectus is delivered to a purchaser, not misleading and (vii) of the receipt by
the Company of any notice of objection of the Commission to the use of the
Registration Statement or any post-effective amendment thereto.
	 
	 	(d)	 	In the event of the issuance of any such stop order or of any such order
preventing or suspending the use of any such prospectus or suspending any such
qualification, to use promptly its commercially reasonable efforts to obtain its
withdrawal.
	 
	 	(e)	 	To furnish such information as may be required and otherwise to cooperate in
qualifying the Shares for offering and sale under the securities or blue sky laws of
such states as JPMS may reasonably designate and to maintain such qualifications in
effect so long as required for the distribution of the Shares; provided that the
Company shall not be required to qualify as a foreign corporation, become a dealer of
securities, or become subject to taxation in, or to consent to the service of process
under the laws of, any such state.
	 
	 	(f)	 	To make available to JPMS at its offices in New York City, without charge, as
soon as practicable after the Registration Statement becomes effective, and thereafter
from time to time to furnish to JPMS, as many copies of the Prospectus and the
Prospectus Supplement (or of the Prospectus or Prospectus Supplement as amended or
supplemented if the Company shall have made any amendments or supplements thereto and
documents incorporated by reference therein after the effective date of the
Registration Statement) and each Permitted Free Writing Prospectus as JPMS may
reasonably request for so long as the delivery of a prospectus is required (whether
physically or through compliance with Rule 172 under the Act or any similar rule); and
for so long as this Agreement is in effect, the Company will prepare and file promptly
such amendment or amendments to the Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus as may be necessary to comply with the requirements
of Section 10(a)(3) of the Act.
	 
	 	(g)	 	To furnish or make available to JPMS during the term of this Agreement and for
a period of two years thereafter (i) copies of any reports or other communications
which the Company shall send to its stockholders or shall from time to time publish or
publicly disseminate and (ii) copies of all annual, quarterly and current reports filed
with the Commission on Forms 10-K, 10-Q and 8-K, or such other similar form as may be
designated by the Commission, and to furnish to JPMS from time to time during the term
of this Agreement such other information as JPMS may reasonably request regarding the
Company or its subsidiaries, in each case as soon as such reports, communications,
documents or information becomes available or promptly upon the request of JPMS, as
applicable; provided, however, that the Company shall have no obligation to provide
JPMS with any document filed on EDGAR or included on the Company’s Internet website.
	 
	 	(h)	 	If, at any time during the term of this Agreement, any event shall occur or
condition shall exist as a result of which it is necessary in the reasonable opinion

19

 

	 		 	of counsel for JPMS or counsel for the Company, to further amend or supplement the
Prospectus or any Free Writing Prospectus as then amended or supplemented in order
that the Prospectus or any such Free Writing Prospectus will not include an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements therein not misleading,
in light of the circumstances existing at the time the Prospectus or any such Free
Writing Prospectus is delivered to a purchaser, or if it shall be necessary, in the
reasonable opinion of either such counsel, to amend or supplement the Registration
Statement, the Prospectus or any Free Writing Prospectus in order to comply with the
requirements of the Act, in the case of such a determination by counsel for the
Company, immediate notice shall be given, and confirmed in writing, to JPMS to cease
the solicitation of offers to purchase the Shares in JPMS’s capacity as agent, and,
in either case, the Company will promptly prepare and file with the Commission such
amendment or supplement, whether by filing documents pursuant to the Act, the
Exchange Act or otherwise, as may be necessary to correct such untrue statement or
omission or to make the Registration Statement, the Prospectus or any such Free
Writing Prospectus comply with such requirements.
	 
	 	(i)	 	To generally make available to its security holders as soon as reasonably
practicable, but not later than 90 days after the close of the period covered thereby,
an earnings statement (in a form complying with the provisions of Section 11(a) under
the Act and Rule 158 of the Commission promulgated thereunder) covering the
twelve-month period beginning not later than the first day of the Company’s fiscal
quarter next following the “effective date” (as defined in such Rule 158) of the
Registration Statement.
	 
	 	(j)	 	To apply the net proceeds from the sale of the Shares in the manner described
in the Registration Statement or the Prospectus under the caption “Use of Proceeds”.
	 
	 	(k)	 	The Company will not, and will cause its subsidiaries not to, take, directly or
indirectly, any action designed to cause or result in, or that constitutes or might
reasonably be expected to constitute, the stabilization or manipulation of the price of
any security of the Company to facilitate the sale or resale of the Shares; provided
that nothing herein shall prevent the Company from filing or submitting reports under
the Exchange Act or issuing press releases in the ordinary course of business.
	 
	 	(l)	 	(i) Except as otherwise agreed between the Company and JPMS, to pay all costs,
expenses, fees and taxes in connection with (A) the preparation and filing of the
Registration Statement (including registration fees pursuant to Rule 456(b)(1)(i) under
the Act), the Prospectus, any Permitted Free Writing Prospectus and any amendments or
supplements thereto, and the printing and furnishing of copies of each thereof to JPMS
and to dealers (including costs of mailing and shipment), (B) the registration, issue
and delivery of the Shares, (C) the preparation, printing and delivery to JPMS of this
Agreement, the Shares, and such other documents as may be required in connection with
the offer, purchase, sale, issuance or delivery

20

 

	 		 	of the Shares and any cost associated with electronic delivery of any of the
foregoing by JPMS to investors, (D) the qualification of the Shares for offering and
sale under state laws and the determination of their eligibility for investment
under state law as aforesaid (including the reasonable legal fees and filing fees
and other disbursements of counsel for JPMS in connection therewith) and the
printing and furnishing of copies of any blue sky surveys or legal investment
surveys to JPMS, (E) the listing of the Shares on the Exchange and any registration
thereof under the Exchange Act, (F) any filing for review of the public offering of
the Shares by FINRA, (G) the fees and disbursements of counsel to the Company and
(H) the performance of the Company’s other obligations hereunder; provided that JPMS
shall be responsible for any transfer taxes on resale of Shares by it, any costs and
expenses associated with the sale and marketing of the Shares and fees of its
counsel other than as specifically provided above or elsewhere in this Agreement.
	 
	 	 	 	(ii) If this Agreement is terminated (A) by the Company in accordance with the
provisions of Section 9 hereof at any time prior to the offer and sale of Shares
with an aggregate Gross Sales Price of $250,000,000 or (B) by JPMS in accordance
with provisions of Section 8 hereof after June 30, 2009 and prior to the offer and
sale of Shares with an aggregate Gross Sales Price of $250,000,000, in each case
under this Agreement and all Terms Agreements, the Company shall reimburse JPMS for
all of its out-of-pocket expenses, including the reasonable fees and disbursements
of a single counsel for JPMS incurred by it in connection with the offering
contemplated by this Agreement; provided that the Company will not be obligated to
reimburse any expenses pursuant to this clause 4(l)(ii) in excess of $350,000.
	 
	 	(m)	 	The Company will not, and JPMS covenants that it will not, distribute any
offering material in connection with the offer and sale of the Shares, other than the
Registration Statement, the Prospectus, any Permitted Free Writing Prospectus and other
materials permitted by the Act or the rules and regulations promulgated thereunder.
	 
	 	(n)	 	During each period commencing on the date of each Transaction Notice and ending
after the close of business on the Purchase Date for the related Transaction, the
Company will not (i) offer, pledge, announce the intention to sell, sell, contract to
sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase or otherwise transfer or dispose of,
directly or indirectly, any shares of its Common Stock or any securities convertible
into, or exercisable or exchangeable for, such shares or (ii) enter into any swap or
other agreement that transfers, in whole or in part, any of the economic consequences
of ownership of such shares, whether any such transaction described in clause (i) or
(ii) above is to be settled by delivery of shares or such other securities, in cash or
otherwise, without the prior written consent of JPMS, other than the Shares to be sold
hereunder and any securities of the Company issued pursuant to, or upon the exercise or
conversion of any securities of the Company that are outstanding at the time such
Transaction

21

 

	 	 	 	Notice is delivered and issued pursuant to, the Company’s equity incentive plans
disclosed in the Prospectus.
	 
	 	(o)	 	The Company will, pursuant to reasonable procedures developed in good faith,
retain copies of each Permitted Free Writing Prospectus that is not filed with the
Commission in accordance with Rule 433 under the Act.
	 
	 	(p)	 	To use its reasonable efforts to cause the Shares to be listed on the Exchange.
	 
	 	(q)	 	That it consents to JPMS trading in the Common Stock for JPMS’s own account and
for the account of its clients at the same time as sales of the Shares occur pursuant
to this Agreement.

     5. Execution of Agreement. JPMS’s obligation to execute this Agreement shall be
subject to the satisfaction of the following conditions in connection with, and on the intended
date of the execution of, this Agreement:

	 	(a)	 	the Company shall have delivered to JPMS:

     (i) an officer’s certificate signed by one of its executive officers certifying
as to the matters set forth in Exhibit B hereto;

     (ii) an opinion of the General Counsel or an Assistant General Counsel of the
Company, addressed to JPMS and dated the date of this Agreement, in the form of
Exhibit C hereto;

     (iii) an opinion and a 10b-5 statement of Jones, Walker, Waechter, Poitevent,
Carrère & Denègre LLP, special counsel for the Company, addressed to JPMS and dated
the date of this Agreement, in the form of Exhibit D hereto;

     (iv) a letter of Ernst & Young LLP, dated the date of this Agreement and
addressed to JPMS, in a form reasonably satisfactory to JPMS and its counsel;

     (v) evidence reasonably satisfactory to JPMS and its counsel that the
Registration Statement has become effective;

     (vi) evidence reasonably satisfactory to JPMS and its counsel that the Shares
have been approved for listing on the Exchange, subject only to notice of issuance
on or before the date hereof;

     (vii) resolutions duly adopted by the Company’s board of directors, and
certified by an officer of the Company, authorizing the Company’s execution of this
Agreement and the consummation by the Company of the transactions contemplated
hereby, including the issuance of the Shares; and

     (viii) such other documents as JPMS shall reasonably request; and

22

 

	 	(b)	 	JPMS shall have received the favorable opinion of Cravath, Swaine & Moore LLP,
special counsel for JPMS, as to the matters set forth in Exhibit E hereto.

     6. Additional Covenants of the Company. The Company further covenants and agrees with
JPMS as follows:

	 	(a)	 	Each acceptance of a Transaction Notice by the Company and each execution and
delivery by the Company of a Terms Agreement shall be deemed to be (i) an affirmation
that the representations and warranties of the Company herein contained and contained
in any certificate delivered to JPMS pursuant hereto are true and correct at the Time
of Acceptance or the date of such Terms Agreement and (ii) an undertaking that such
representations and warranties will be true and correct on any Time of Sale, any
Closing Date and at the time of delivery to JPMS of Shares pursuant to the Transaction
Notice or the Time of Delivery, as applicable, as though made at and as of each such
time (it being understood that such representations and warranties shall relate to the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus as
amended and supplemented to the time of such Transaction Notice).
	 
	 	(b)	 	Each time that (i) the Registration Statement, the Prospectus or any Permitted
Free Writing Prospectus shall be amended or supplemented (including, except as noted in
the proviso at the end of this subsection (b), by the filing of any Incorporated
Document, but excluding any prospectus supplement filed pursuant to Section 4(b)
hereof) or (ii) the Shares are delivered to JPMS pursuant to a Terms Agreement, in each
case, the Company shall, unless JPMS agrees otherwise, furnish or cause to be furnished
to JPMS forthwith a certificate, dated the date of filing with the Commission or the
date of effectiveness of such amendment or supplement, as applicable, as to the matters
set forth in Exhibit B hereto at the time of the filing or effectiveness of such
amendment or supplement, as applicable, as though made at and as of such time (except
that such statements shall be deemed to relate to the Registration Statement, the
Prospectus or any Permitted Free Writing Prospectus as amended and supplemented to such
time) or, in lieu of such certificate, a certificate of the same tenor as the
certificate referred to in Section 5(a)(i) hereof, modified as necessary to relate to
the Registration Statement, the Prospectus or any Permitted Free Writing Prospectus as
amended and supplemented to the time of delivery of such certificate; provided,
however, that the Company will not be required to furnish such a certificate to JPMS in
connection with the filing of a Current Report on Form 8-K unless (A) such Current
Report on Form 8-K is filed at any time during which either a Transaction Notice is in
effect or a prospectus relating to the Shares is required to be delivered under the Act
and (B) JPMS has reasonably requested such a certificate based upon the event or events
reported in such Current Report on Form 8-K.
	 
	 	(c)	 	Each time that (i) the Registration Statement, the Prospectus or any Permitted
Free Writing Prospectus shall be amended or supplemented (including, except as noted in
the proviso at the end of this subsection (c), by the filing of any

23

 

	 	 	 	Incorporated Document, but excluding any prospectus supplement filed pursuant to
Section 4(b) hereof) or (ii) the Shares are delivered to JPMS pursuant to a Terms
Agreement, in each case, the Company shall, unless JPMS agrees otherwise, furnish or
cause to be furnished forthwith to JPMS and to counsel for JPMS the written opinions
of (A) Jones, Walker, Waechter, Poitevent, Carrère & Denègre LLP, special counsel
for the Company, and (B) the General Counsel of the Company, an Assistant General
Counsel of the Company or other counsel satisfactory to JPMS, dated the date of
filing with the Commission or the date of effectiveness of such amendment or
supplement, as applicable, in form and substance reasonably satisfactory to JPMS, of
the same tenor as the opinions referred to in Section 5(a)(iii) and Section 5(a)(ii)
hereof, respectively, but modified as necessary to relate to the Registration
Statement, the Prospectus or any Permitted Free Writing Prospectus as amended and
supplemented to the time of delivery of such opinions or, in lieu of such opinions,
counsel last furnishing such opinions to JPMS shall furnish JPMS with letters
substantially to the effect that JPMS may rely on such last opinions to the same
extent as though they were dated the date of such letters authorizing reliance
(except that statements in such last opinions shall be deemed to relate to the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus as
amended and supplemented to the time of delivery of such letters authorizing
reliance); provided, however, that the Company will not be required to furnish such
opinions to JPMS in connection with the filing of a Current Report on Form 8-K
unless (1) such Current Report on Form 8-K is filed at any time during which either
a Transaction Notice is in effect or a prospectus relating to the Shares is required
to be delivered under the Act and (2) JPMS has reasonably requested such opinions
based upon the event or events reported in such Current Report on Form 8-K.
	 
	 	(d)	 	Each time that (i) the Registration Statement, the Prospectus or any Permitted
Free Writing Prospectus shall be amended or supplemented (including, except as noted in
the proviso at the end of this subsection (d), by the filing of any Incorporated
Document, but excluding any prospectus supplement filed pursuant to Section 4(b)
hereof) or (ii) the Shares are delivered to JPMS pursuant to a Terms Agreement, in each
case, the Company shall, unless JPMS agrees otherwise, cause Ernst & Young LLP promptly
to furnish to JPMS a letter, dated the date of filing with the Commission or the date
of effectiveness of such amendment or supplement, as applicable, of the same tenor as
the letter referred to in Section 5(a)(iv) hereof, but modified to relate to the
Registration Statement, the Prospectus or any Permitted Free Writing Prospectus as
amended and supplemented to the date of such letter; provided, however, that the
Company will not be required cause Ernst & Young LLP to furnish such letter to JPMS in
connection with the filing of a Current Report on Form 8-K unless (A) such Current
Report on Form 8-K is filed at any time during which either a Transaction Notice is in
effect or a prospectus relating to the Shares is required to be delivered under the Act
and (B) JPMS has reasonably requested such a letter based upon the event or events
reported in such Current Report on Form 8-K.

24

 

	 	(e)	 	To disclose in its quarterly reports on Form 10-Q, in its annual report on Form
10-K and/or, in prospectus supplements, the number of the Shares sold through JPMS
under this Agreement, the net proceeds to the Company from the sale of the Shares and
the compensation paid by the Company with respect to sales of the Shares pursuant to
this Agreement during the relevant quarter.

     7. Conditions of JPMS’s Obligation. JPMS’s obligation to solicit purchases on an
agency basis for the Shares or otherwise take any action pursuant to a Transaction Notice that has
been accepted by the Company and to purchase the Shares pursuant to any Terms Agreement shall be
subject to the satisfaction of the following conditions:

	 	(a)	 	At the time of acceptance of the Transaction Notice, at the time of the
commencement of trading on the Exchange on the Purchase Date and at the time of closing
on the Closing Date or, with respect to a transaction pursuant to a Terms Agreement, at
the Time of Sale and at the Time of Delivery:

     (i) The representations and warranties on the part of the Company herein
contained or contained in any certificate of an officer or officers of the Company
delivered pursuant to the provisions hereof shall be true and correct in all
respects.

     (ii) The Company shall have performed and observed its covenants and other
obligations hereunder and/or under any Terms Agreement, as the case may be, in all
material respects.

     (iii) With respect to an Agency Transaction, from the date of delivery of the
Transaction Notice until the Closing Date, or, with respect to a transaction
pursuant to a Terms Agreement, from the Time of Sale until the Time of Delivery,
trading in the Common Stock on the Exchange shall not have been suspended.

     (iv) From the date of this Agreement, no event or condition of a type described
in Section 3(e) hereof shall have occurred or shall exist, which event or condition
is not described in any Permitted Free Writing Prospectus (excluding any amendment
or supplement thereto) or the Prospectus (excluding any amendment or supplement
thereto) and the effect of which in the reasonable judgment of JPMS makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of the
Shares on the Closing Date or at the Time of Delivery, as the case may be, on the
terms and in the manner contemplated by this Agreement or any Terms Agreement, as
the case may be, any Permitted Free Writing Prospectus and the Prospectus.

     (v) The Shares to be issued pursuant to the Transaction Notice or pursuant to a
Terms Agreement, as applicable, shall have been approved for listing on the
Exchange, subject only to notice of issuance.

     (vi) (A) No action shall have been taken and no statute, rule, regulation or
order shall have been enacted, adopted or issued by any federal, state or foreign
governmental or regulatory authority that would, as of the Closing Date or as of

25

 

the Time of Delivery, as the case may be, prevent the issuance or sale of the
Shares and (B) no injunction or order of any federal, state or foreign court shall
have been issued that would, as of the Closing Date or as of the Time of Delivery,
as the case may be, prevent the issuance or sale of the Shares.

     (vii) (A) No order suspending the effectiveness of the Registration Statement
shall be in effect, and no proceeding for such purpose or pursuant to Section 8A
under the Act shall be pending before or threatened by the Commission; (B) the
Prospectus and each Permitted Free Writing Prospectus shall have been timely filed
with the Commission under the Act (in the case of any Permitted Free Writing
Prospectus, to the extent required by Rule 433 under the Act); (C) all requests by
the Commission for additional information shall have been complied with to the
satisfaction of JPMS; and (D) no suspension of the qualification of the Shares for
offering or sale in any jurisdiction, and no initiation or threatening of any
proceedings for any of such purposes, will have occurred and be in effect at the
time the Company accepts a Transaction Notice.

     (viii) No amendment or supplement to the Registration Statement, the Prospectus
or any Permitted Free Writing Prospectus shall have been filed to which JPMS shall
have reasonably objected in writing.

	 	(b)	 	At every date specified in Sections 6(b), 6(c) and 6(d) hereof and on such
other dates as reasonably requested by JPMS, JPMS shall have received the officer’s
certificates, opinions of counsel and accountants’ letters provided for under
Sections 6(b), 6(c) and 6(d), respectively.

     8. Termination by JPMS. If the solicitation of purchases on an agency basis of the
Shares, as contemplated by this Agreement, is not carried out by JPMS for any reason permitted
under this Agreement or if such sale is not carried out because the Company is unable to comply in
all material respects with any of the terms of this Agreement or any Terms Agreement, the Company
shall not be under any obligation or liability under this Agreement (except to the extent provided
in Sections 4(l) and 10 hereof) and JPMS shall be under no obligation or liability to the Company
under this Agreement (except to the extent provided in Section 10 hereof) or to one another
hereunder.

     JPMS may terminate this Agreement for any reason upon giving prior written notice to the
Company. Any such termination shall be without liability of any party to any other party, except
that the provisions of Sections 4(g) and 4(i) (to the extent any Shares have been sold pursuant to
this Agreement) and Sections 4(l) and 10 hereof shall remain in full force and effect
notwithstanding such termination.

     In the case of any purchase by JPMS pursuant to a Terms Agreement, the obligations of JPMS
pursuant to such Terms Agreement shall be subject to termination at any time at or prior to the
Time of Delivery, if, (a) since the time of execution of the Terms Agreement or the respective
dates as of which information is given in the Registration Statement, the Prospectus and any
Permitted Free Writing Prospectus, (i) trading generally shall have been materially suspended or
materially limited on or by, as the case may be, any of the Exchange, the American

26

 

Stock Exchange or the NASDAQ Global Select Market, (ii) trading of any securities of the
Company shall have been suspended on any exchange or in any over-the counter market, (iii) a
general moratorium on commercial banking activities in New York shall have been declared by either
Federal or New York State authorities, (iv) there shall have occurred any attack on, or outbreak or
escalation of hostilities or act of terrorism involving, the United States, or any change in
financial markets or any calamity or crisis that, in each case, in JPMS’s judgment, is material and
adverse or (v) any material disruption of settlements of securities or clearance services in the
United States that would materially impair settlement and clearance with respect to the Shares and
(b) in the case of any of the events specified in clauses (a)(i) through (v), such event singly or
together with any other such event specified in clauses (a)(i) through (v) makes it, in JPMS’s
judgment, impracticable to market the Shares on the terms and in the manner contemplated in the
Prospectus. If JPMS elects to terminate its obligations pursuant to this paragraph, the Company
shall be notified promptly in writing.

     9. Termination by Company. The Company may terminate this Agreement in its sole
discretion at any time upon prior written notice to JPMS.

     10. Indemnity and Contribution.

	 	(a)	 	The Company agrees to indemnify and hold harmless JPMS, its affiliates,
directors and officers and each person, if any, who controls JPMS within the meaning of
Section 15 of the Act or Section 20 of the Exchange Act, from and against any and all
losses, claims, damages and liabilities (including, without limitation, reasonable out
of pocket legal fees and other expenses incurred in connection with any suit, action or
proceeding or any claim asserted, as such fees and expenses are incurred) that arise
out of, or are based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement or caused by any omission or
alleged omission to state therein a material fact required to be stated therein or
necessary in order to make the statements therein not misleading or (ii) any untrue
statement or alleged untrue statement of a material fact contained in the Prospectus
(or any amendment or supplement thereto), any Permitted Free Writing Prospectus (or any
amendment or supplement thereto) or caused by any omission or alleged omission to state
therein a material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading, in each case except
insofar as such losses, claims, damages or liabilities arise out of, or are based upon,
any untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any Agent Information, it being understood and
agreed that the only such information furnished by JPMS consists of the information
described as such in subsection (b) below.
	 
	 	(b)	 	JPMS agrees to indemnify and hold harmless the Company, its directors, its
officers who signed the Registration Statement and each person, if any, who controls
the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange
Act to the same extent as the indemnity set forth in paragraph (a) above, but only with
respect to any losses, claims, damages or liabilities that arise out of, or are based
upon, any untrue statement or omission or alleged untrue

27

 

	 	 	 	statement or omission made in reliance upon and in conformity with any information
relating to JPMS furnished to the Company in writing by JPMS expressly for use in
the Registration Statement, the Basic Prospectus, the Prospectus (or any amendment
or supplement thereto) or any Permitted Free Writing Prospectus, it being understood
and agreed that the only such information furnished by JPMS consists of the
information set forth on Schedule II attached hereto.
	 
	 	(c)	 	If any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any person in
respect of which indemnification may be sought pursuant to either paragraph (a) or (b)
above, such person (the “Indemnified Person”) shall promptly notify the person against
whom such indemnification may be sought (the “Indemnifying Person”) in writing;
provided that the failure to notify the Indemnifying Person shall not relieve it from
any liability that it may have under this Section 10 except to the extent that it has
been materially prejudiced (through the forfeiture of substantive rights or defenses)
by such failure; and provided, further, that the failure to notify the Indemnifying
Person shall not relieve it from any liability that it may have to an Indemnified
Person otherwise than under this Section 10. If any such proceeding shall be brought
or asserted against an Indemnified Person and it shall have notified the Indemnifying
Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to
the Indemnified Person (who shall not, without the consent of the Indemnified Person,
be counsel to the Indemnifying Person) to represent the Indemnified Person and any
others entitled to indemnification pursuant to this Section 10 that the Indemnifying
Person may designate in such proceeding and shall pay the fees and expenses of such
counsel related to such proceeding, as incurred. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person unless
(i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to
the contrary; (ii) the Indemnifying Person has failed within a reasonable time to
retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified
Person shall have reasonably concluded that there may be legal defenses available to it
that are different from or in addition to those available to the Indemnifying Person;
or (iv) the named parties in any such proceeding (including any impleaded parties)
include both the Indemnifying Person and the Indemnified Person and representation of
both parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood and agreed that the Indemnifying
Person shall not, in connection with any proceeding or related proceeding in the same
jurisdiction, be liable for the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be paid or reimbursed as they are incurred. Any such separate firm for
JPMS, its affiliates, directors and officers and any control persons of JPMS shall be
designated in writing by JPMS and any such separate firm for the Company, its
directors, its officers who signed the Registration Statement and any control persons
of the Company shall be designated in writing by the Company. The

28

 

	 	 	 	Indemnifying Person shall not be liable for any settlement of any proceeding
effected without its written consent, but, if settled with such consent or if there
be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify
each Indemnified Person from and against any loss or liability by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an
Indemnified Person shall have requested that an Indemnifying Person reimburse the
Indemnified Person for fees and expenses of counsel as contemplated by this
paragraph, the Indemnifying Person shall be liable for any settlement of any
proceeding effected without its written consent if (A) such settlement is entered
into more than 30 days after receipt by the Indemnifying Person of such request and
(B) the Indemnifying Person shall not have reimbursed the Indemnified Person in
accordance with such request prior to the date of such settlement. No Indemnifying
Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Person is or could have been a party and indemnification could have been
sought hereunder by such Indemnified Person, unless such settlement (x) includes an
unconditional release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are the
subject matter of such proceeding and (y) does not include any statement as to or
any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.
	 
	 	(d)	 	If the indemnification provided for in paragraphs (a) and (b) above is
unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute
to the amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company, on the one hand, and JPMS, on the other,
from the offering of the Shares or (ii) if the allocation provided by clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not only
the relative benefits referred to in clause (i) but also the relative fault of the
Company, on the one hand, and JPMS, on the other, in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative benefits received by the
Company, on the one hand, and JPMS, on the other, shall be deemed to be in the same
respective proportions as the net proceeds (before deducting expenses) received by the
Company from the sale of the Shares and the total underwriting discounts and
commissions received by JPMS in connection therewith bear to the aggregate Gross Sales
Price. The relative fault of the Company, on the one hand, and JPMS, on the other,
shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or by JPMS, and the
parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.

29

 

	 	(e)	 	The Company and JPMS agree that it would not be just and equitable if
contribution pursuant to this Section 10 were determined by pro rata allocation or by
any other method of allocation that does not take account of the equitable
considerations referred to in paragraph (d) above. The amount paid or payable by an
Indemnified Person as a result of the losses, claims, damages and liabilities referred
to in paragraph (d) above shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses incurred by such Indemnified Person in
connection with any such action or claim. Notwithstanding the provisions of this
Section 10, in no event shall JPMS be required to contribute any amount in excess of
the amount by which the total underwriting discounts and commissions received by JPMS
with respect to the offering of the Shares exceeds the amount of any damages that JPMS
has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.
	 
	 	(f)	 	The remedies provided for in this Section 10 are not exclusive and shall not
limit any rights or remedies which may otherwise be available to any Indemnified Person
at law or in equity.

     11. Notices. All notices and other communications under this Agreement and any Terms
Agreement shall be in writing and shall be deemed to have been duly given if mailed or transmitted
and confirmed by any standard form of communication, and, if to JPMS, shall be sufficient in all
respects if delivered or sent to J.P. Morgan Securities Inc., 383 Madison Avenue, 4th
Floor, New York, New York 10179, to the attention of the Equity Syndicate Desk (facsimile number
(212) 622-8358), the Special Equities Group (facsimile number (212) 622-0398) and Lisa M. Hunt
(facsimile number (212) 622-0398), and, if to the Company, shall be sufficient in all respects if
delivered or sent to the Company at the offices of the Company at One North Central Avenue,
Phoenix, Arizona 85004, to the attention of the Chief Financial Officer, with a copy to Dionne M.
Rousseau at Jones, Walker, Waechter, Poitevent, Carrère & Denègre LLP, 8555 United Plaza Boulevard,
4th Floor, Baton Rouge, Louisiana 70809 (facsimile number (225) 248-2010).
Notwithstanding the foregoing, Transaction Notices shall be delivered to the Company via e-mail in
“.pdf” format to Kathleen L. Quirk (kathleen_quirk@fmi.com), with copies to Dionne M. Rousseau
(drousseau@joneswalker.com) and Monique A. Cenac (mcenac@joneswalker.com), and receipt confirmed by
telephone at (212) 622-7027 and an acceptance of a Transaction Notice shall be delivered to JPMS by
facsimile at (212) 622-0398, Attention: Lisa M. Hunt and James F. Smith or Steve Dearing and
receipt confirmed by telephone to Bryan D. Weiser at (602) 366-8589 or, if he is unavailable, to
David Kepper at (504) 582-4632.

     12. No Fiduciary Relationship. The Company acknowledges and agrees that JPMS is
acting solely in the capacity of an arm’s length contractual counterparty to the Company with
respect to the offering of Shares contemplated hereby (including in connection with determining the
terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the
Company or any other person. Additionally, JPMS is not advising the Company or any other person as
to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The

30

 

Company shall consult with its own advisors concerning such matters and shall be responsible
for making its own independent investigation and appraisal of the transactions contemplated hereby,
and JPMS shall have no responsibility or liability to the Company with respect thereto. Any review
by JPMS of the Company, the transactions contemplated hereby or other matters relating to such
transactions will be performed solely for the benefit of JPMS and shall not be on behalf of the
Company.

     13. Governing Law; Construction. This Agreement, any Terms Agreement and any claim,
counterclaim or dispute of any kind or nature whatsoever arising out of or in any way relating to
this Agreement or any Terms Agreement (“Claim”), directly or indirectly, shall be governed by, and
construed in accordance with, the laws of the State of New York, other than rules governing choice
of applicable law. The Section headings in this Agreement and any Terms Agreement have been
inserted as a matter of convenience of reference and are not a part of this Agreement or any Terms
Agreement.

     14. Submission to Jurisdiction. Except as set forth below, no Claim may be commenced,
prosecuted or continued in any court other than the courts of the State of New York located in the
City and County of New York or in the United States District Court for the Southern District of New
York, which courts shall have nonexclusive jurisdiction over the adjudication of such matters, and
the Company consents to the jurisdiction of such courts and personal service with respect thereto.
Each of JPMS and the Company, on its behalf and, to the extent permitted by applicable law, on
behalf of its stockholders and affiliates, waives all right to trial by jury in any action,
proceeding or counterclaim, whether based upon contract, tort or otherwise, in any way arising out
of or relating to this Agreement or any Terms Agreement. The Company agrees that a final and
non-appealable judgment in any such action, proceeding or counterclaim brought in any such court
shall be conclusive and binding upon the Company and may be enforced in any other courts in the
jurisdiction of which the Company is or may be subject, by suit upon such judgment.

     15. Parties in Interest. The agreements set forth herein and in any Terms Agreement
have been and are made solely for the benefit of JPMS and the Company and, to the extent provided
in Section 10 hereof, the controlling persons, directors and officers referred to in such section,
and their respective successors, assigns, heirs, personal representatives and executors and
administrators. No other person, partnership, association or corporation (including a purchaser,
as such purchaser, from JPMS) shall acquire or have any right under or by virtue of this Agreement
or any Terms Agreement.

     16. Counterparts. This Agreement and any Terms Agreement may be signed in
counterparts (which may include counterparts delivered by any standard form of telecommunication),
each of which shall be an original and all of which together shall constitute one and the same
instrument.

     17. Successors and Assigns. This Agreement shall be binding upon JPMS and the Company
and their respective successors and assigns and any successor or assign of any substantial portion
of the Company’s and JPMS’s respective businesses and/or assets.

31

 

     18. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company and JPMS contained in this Agreement or made by or on
behalf of the Company or JPMS pursuant to this Agreement or any certificate delivered pursuant
hereto shall survive the delivery of and payment for the Shares and shall remain in full force and
effect, regardless of any termination of this Agreement or any investigation made by or on behalf
of the Company or JPMS.

     19. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under Act and
(b) the term “significant subsidiary” has the meaning set forth in Rule 1-02 of Regulation S-X
under the Exchange Act.

     20. Amendments or Waivers. No amendment or waiver of any provision of this Agreement,
nor any consent or approval to any departure therefrom, shall in any event be effective unless the
same shall be in writing and signed by the parties hereto.

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

     A lending affiliate of JPMS may have lending relationships with issuers of securities
underwritten or privately placed by JPMS. To the extent required under the securities laws,
prospectuses and other disclosure documents for securities underwritten or privately placed by JPMS
will disclose the existence of any such lending relationships and whether the proceeds of the issue
will be used to repay debts owed to affiliates of JPMS.

     JPMS and one or more of its affiliates may make markets in the Common Stock or other
securities of the Company, in connection with which they may buy and sell, as agent or principal,
for long or short account, shares of the Common Stock or other securities of the Company, at the
same time that JPMS is acting as agent pursuant to this Agreement; provided that JPMS acknowledges
and agrees that any such transactions are not being, and shall not be deemed to have been,
undertaken at the request or direction of, or for the account of, the Company, and that the Company
has and shall have no control over any decision by JPMS and its affiliates to enter into any such
transactions.

32

 

     If the foregoing correctly sets forth the understanding among the Company and JPMS, please so
indicate in the space provided below for the purpose, whereupon this letter and your acceptance
shall constitute a binding agreement between the Company and JPMS.

	 	 	 	 	 
	 

	 	Very truly yours,	 	 
	 
	 	 	 	 
	 

	 	FREEPORT-MCMORAN COPPER & GOLD INC.	 	 
	 
	 	 	 	 
	 

	 	By:    /s/
Kathleen L. Quirk	 	 
	 

	 	 

Name: Kathleen L. Quirk
	 	 
	 

	 	Title: Executive Vice President,
Chief Financial Officer and Treasurer
	 	 

Accepted and agreed to as of the

date first above written:

J.P. MORGAN SECURITIES INC.

By:
 /s/ Adam Chodos                    

Name: Adam Chodos

Title: Vice President

Signature Page to the Distribution Agreementexv10w2

Exhibit 10.2

     FIRST AMENDMENT dated as of January 22, 2009 (this “First
Amendment”), in respect of the AMENDED AND RESTATED CREDIT AGREEMENT
(the “Parent Credit Agreement”) dated as of July 10, 2007, among
FREEPORT-MCMORAN COPPER & GOLD INC., a Delaware corporation (the
“Borrower”), the Lenders party thereto, the Issuing Banks party
thereto, and JPMORGAN CHASE BANK, N.A. (“JPMCB”), as
Administrative Agent and as Collateral Agent, and MERRILL LYNCH, PIERCE,
FENNER & SMITH INCORPORATED, as Syndication Agent.

          The Borrower has requested that the Parent Credit Agreement be amended and restated as set
forth in Section 2 below and the parties hereto are willing so to amend the Parent Credit
Agreement.

          In consideration of the premises and the agreements, provisions and covenants herein
contained, the parties hereto hereby agree, on the terms and subject to the conditions set forth
herein, as follows:

          SECTION 1. Defined Terms. Capitalized terms used and not defined herein have the
meanings given to them in the Parent Credit Agreement.

          SECTION 2. Amendment. The definition of “Consolidated EBITDA” is hereby amended,
effective as of the Amendment Effective Date (as defined below), by inserting at the end thereof
the following paragraph:

“Notwithstanding anything to the contrary contained herein, (A) Consolidated
EBITDA for the quarterly period ending September 30, 2008, shall be equal to (1)
the amount determined as otherwise provided above minus (2) an amount (the
“Third Quarter Reduction”) not to exceed $715,000,000, and (B)
Consolidated EBITDA for the quarterly period ending December 31, 2008, shall be
equal to (1) the amount determined as otherwise provided above plus (2) the Third
Quarter Reduction.”

          SECTION 3. Representations and Warranties. The Borrower represents and warrants as
of the date hereof and as of the Amendment Effective Date that, before and after giving effect to
this First Amendment (a) the representations and warranties of each Loan Party set forth in the
Loan Documents are true and correct in all material respects, except where such representations and
warranties expressly relate to an earlier date, in which case such representations and warranties
shall have been true and correct in all material respects as of such earlier date and (b) no
Default has occurred and is continuing.

          SECTION 4. Amendment Fee. The Borrower agrees to pay on the Amendment Effective Date
to each Lender that shall have delivered a counterpart on or prior to 3:00 p.m., New York time, on
January 22, 2009, an amendment fee (the “Amendment Fee”) in an amount equal to 0.125% of
the aggregate Commitments of such

 

2

Lender. The Amendment Fee shall be payable on and subject to the occurrence of the Amendment
Effective Date. The Amendment Fee shall be payable in immediately available funds and shall not be
refundable.

          SECTION 5. Effectiveness. The amendment provided for in Section 2 hereof shall
become effective on the date (the “Amendment Effective Date”) on which (a) the
Administrative Agent shall have received counterparts of this First Amendment from Lenders
constituting the Required Lenders and from the Borrower, in each case signed on behalf of each such
party, and (b) each Lender that shall have delivered a counterpart on or prior to 3:00 p.m., New
York time, on January 22, 2009, shall have received the Amendment Fee.

          SECTION 6. Effect of Waiver and Amendment. Except as expressly set forth herein,
this First Amendment shall not by implication or otherwise limit, impair, constitute a waiver of,
or otherwise affect, the rights and remedies of the Lenders under the Parent Credit Agreement or
any related document, and shall not alter, modify, amend, limit or in any way affect any of the
terms, conditions, obligations, covenants or agreements contained in the Parent Credit Agreement or
any related document, all of which are ratified and affirmed in all respects and shall continue in
full force and effect. Nothing herein shall be deemed to entitle the Borrower to a consent to, or
a waiver, amendment, modification or other change of, any of the terms, conditions, obligations,
covenants or agreements contained in the Parent Credit Agreement or any other related document in
similar or different circumstances.

          SECTION 7. Applicable Law. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 8. Counterparts. This First Amendment may be executed in two or more
counterparts, each of which shall constitute an original but all of which when taken together shall
constitute but one contract. Delivery of an executed counterpart of a signature page of this First
Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this
First Amendment. This First Amendment shall constitute a “Loan Document” for all purposes of the
Parent Credit Agreement and the other Loan Documents.

          SECTION 9. Expenses. The Borrower agrees to reimburse the Administrative Agent for
all reasonable out-of-pocket expenses incurred by it in connection with this First Amendment,
including the reasonable fees, charges and disbursements of Cravath, Swaine & Moore LLP and other
counsel for the Administrative Agent.

          SECTION 10. Headings. The headings of this First Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

 

3

          IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed by
their respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	FREEPORT-MCMORAN COPPER & GOLD INC.,

 	 
	 	     by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

4

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., 

individually, as Administrative Agent, Collateral Agent, Issuing Bank and Swingline Lender,

 	 
	 	    by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

5

	 	 	 	 	 

Signature Page to be executed by Lenders

under the Parent Credit Agreement

	 	 	 	 	 
	 	SIGNATURE PAGE to the FIRST AMENDMENT dated as of January 22, 2009, in respect of the AMENDED AND RESTATED CREDIT AGREEMENT dated as of July 10, 2007, among FREEPORT-MCMORAN COPPER & GOLD INC., the Lenders party thereto, the Issuing Banks party thereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent and as Collateral Agent, and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Syndication Agent. 

 	 
	 	Lender:  	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:

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