8-KMaterial Agreements

FREEPORT-MCMORAN INC 8-K Report, Material Agreement (Jan 24, 2005)

Filed January 24, 2005For Securities:FCX

Summary

Freeport-McMoRan Inc. (FCX) filed an 8-K on January 24, 2005, to disclose material definitive agreements entered into by its subsidiary, FM Services Company. The primary focus is on the renewal and amendment of consulting agreements with two directors of FCX, B. M. Rankin, Jr. and J. Bennett Johnston, Jr. For Mr. Rankin, the consulting agreement has been extended for an additional year, through December 31, 2005, with no changes to the existing terms. For Mr. Johnston, his consulting arrangement includes an additional $50,000 for services rendered on a McMoRan Exploration Co. (MMR) project and a further $50,000 upon successful completion. MMR will reimburse FM Services for these consulting fees related to its project, under an existing services agreement where FM Services provides various support functions to MMR.

Key Highlights

  • 1Renewal of consulting agreement with FCX Director B. M. Rankin, Jr. for one year (January 1, 2005 - December 31, 2005).
  • 2Supplemental agreement with FCX Director J. Bennett Johnston, Jr. for consulting services related to a McMoRan Exploration Co. (MMR) project.
  • 3Mr. Johnston to receive an additional $50,000 for services rendered and $50,000 upon successful completion of the MMR project.
  • 4McMoRan Exploration Co. (MMR) will reimburse FM Services for consulting fees paid to Mr. Johnston for MMR's project.
  • 5FM Services Company, a subsidiary of FCX, is the party entering into these supplemental agreements.
  • 6All original terms of Mr. Rankin's consulting agreement remain unchanged.
  • 7FM Services provides ongoing executive, technical, administrative, accounting, financial, tax, and other services to MMR.

Frequently Asked Questions

The 8-K discloses supplemental consulting agreements entered into by FM Services Company, a subsidiary of FCX. These agreements involve renewing a consulting contract with FCX Director B. M. Rankin, Jr. and amending the consulting arrangement with FCX Director J. Bennett Johnston, Jr. concerning projects for McMoRan Exploration Co. (MMR).

Yes, for J. Bennett Johnston, Jr., there is an additional $50,000 for services rendered and a potential additional $50,000 upon successful completion of the MMR project. The agreement with B. M. Rankin, Jr. has been renewed for an additional year without changes to its existing terms.

McMoRan Exploration Co. (MMR) will reimburse FM Services Company for the consulting fees paid to Mr. Johnston that are related to MMR's project. This reimbursement is in line with an existing services agreement between FM Services and MMR.

FM Services Company is a wholly owned subsidiary of Freeport-McMoRan Inc. (FCX). McMoRan Exploration Co. (MMR) is a separate entity that has a services agreement with FM Services, under which FM Services provides various operational and administrative support and is reimbursed for specific costs, such as the consulting fees paid to Mr. Johnston for MMR's projects.