Exhibit 10.1.24



TERRA INDUSTRIES INC.

2005 OFFICERS AND KEY EMPLOYEES
INCENTIVE PLAN



|· | Participation Terras President and Chief Executive Officer (CEO) and the Terra officers and key employees the CEO selects to participate.
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|· | Authority  The CEO selects the bonus target for each participant and evaluates each participants goal achievement. The Compensation Committee of the Board of Directors
approves the totals of the Plans targeted bonuses (the Pool) and amounts awarded.
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|· | Goals Each participant selects goals for the year. The CEO approves all goals and any changes in goals during the year. Each participant evaluates his/her goal achievement in
January 2006. The CEO accepts each participants goal achievement or modifies it to recognize the value of the goal achievement to Terra, changed conditions, etc.
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|· | Bonuses awarded  While bonuses paid to each participant are subject to the CEOs judgment and Compensation Committees approval, the total of bonuses paid will depend
on Terras 2005 income from continuing operations (Income) as follows:
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| | · | If Terras 2005 Income is less than $30 million  Discretionary bonuses of as much as 50% of each participants targeted bonus (year-end base salary times the percentage bonus
target selected by the CEO) may be paid based on Terras overall performance and each participants goal achievement.
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| | · | If Terras 2005 Income is $30 million  Bonuses totaling 50% of the Pool will be paid based on the individual and aggregate goal achievement of the Plans participants.
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| | · | If Terras 2005 Income is more than $30 million but not greater than $105 million  The portion of the Pool paid will be increased by 1% for each $0.5 million Terras 2005
Income is above $30 million to a maximum payment of 200% of the Pool.
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| | · | If Terras 2005 Income exceeds $105 million  Bonuses in excess of 200% of the Pool may be awarded solely at the Compensation Committees discretion.
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|· | Payment of bonuses  Bonuses will be paid after the Compensation Committee has approved the discretionary bonuses, if any, or, in the event Terras 2005 Income is $30 million
or more, the bonus Pool calculation and distribution. To receive a bonus, a participant must be a Terra employee on the day the bonuses are paid.
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