Exhibit 10.25
FM SERVICES
Affiliate of
Freeport-McMoRan Copper & Gold Inc.
FM Services Company Telephone:(000) 000-0000
0000 Xxxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
X.X. Xxx 00000
Xxx Xxxxxxx, XX 00000
FM Services Company Telephone: (000) 000-0000
0000 Xxxxxxx Xxxxxx
Xxx Xxxxxxx, XX 00000
Supplemental Agreement Providing an Extension to
Consulting Agreement of January 1, 1991
Dear Xx. Xxxxxx:
Reference is made to the consulting agreement of January 1,
1991 (the "Consulting Agreement") between you and Freeport-
McMoRan Inc. (the "Company").
By way of this Supplemental Agreement, the Company would
like to extend your Consulting Agreement through December
31, 1998, with an increase in your quarterly consulting fee,
effective January 1, 1998, to $51,500. This Supplemental
Agreement shall also serve to substitute, effective
immediately, FM Services Company for Freeport-McMoRan Inc.
as the Company for all purposes in the Consulting Agreement.
FM Services Company succeeds Freeport-McMoRan Inc. as the
entity which administers the Consulting Agreement.
Additionally, by way of this Supplemental Agreement, the
Company would like to amend your Consulting Agreement to
provide for medical coverage for you and your eligible
dependents under the FMS Medical Plan. Coverage under the
FMS Medical Plan will replace your current coverage through
Freeport-McMoRan Inc. Any benefits under the FMS Medical
Plan which are paid to you or on your behalf will be
considered taxable income to you, and will be grossed-up for
tax purposes by the Company. Such tax gross-up payment will
be calculated using the formula detailed on the attached
Schedule A. All other terms and conditions of the
Consulting Agreement shall remain unchanged.
Please confirm that the foregoing correctly sets forth our
understanding with respect to this matter by signing both
originals of this Supplemental Agreement and returning one
to me.
Very truly yours,
By:/S/ Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
President
FM Services Company
AGREED TO AND ACCEPTED
BY: /S/ X. X. Xxxxxx, Xx.
X. X. Xxxxxx, Xx.
DATE: 12/18/97
SCHEDULE A
Formula for Calculating Tax Gross-up Payment for FMS Medical
Plan Benefits Paid To Or On Behalf Of X. X. Xxxxxx
_ Amount of Medical Plan benefits paid = A
_ Maximum federal tax rate applicable to
individuals for the year in which Medical
Plan benefits are paid = B
_ Maximum tax rate for the State of Texas
applicable to individuals for the year in
which Medical Plan benefits are paid = C
Tax Gross-Up Payment = [A x (B+C)] / [1-(B+C)]
