Promissory Note to Geduld Capital Management LLC



 Exhibit 10.4 
  
 EX-10.4 PROMISSORY NOTE to Geduld Capital Management LLC 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. EXCEPT AS CONTEMPLATED BY THE
SECURITIES PURCHASE AGREEMENT BETWEEN RENTECH, INC. AND THE ORIGINAL HOLDER OF THIS NOTE, THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND
ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO RENTECH, INC. THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 PROMISSORY NOTE 
  
 FOR VALUE RECEIVED, RENTECH, INC., a Colorado corporation (the “Borrower”), hereby promises to pay to Geduld Capital Management LLC, a limited
liability company organized under the laws of the state of Florida, or its registered assigns or successors in interest (the “Holder”), on order, the sum of: 
  
 Two Hundred Fifty Thousand Dollars ($250,000), (the “Principal Amount”), together with any accrued and
unpaid interest hereon, on November 18, 2005 (as such date may be extended by the Holder in its sole discretion) (the “Maturity Date”) if not sooner paid. 
  
 Capitalized terms used herein without definition shall have the meanings ascribed to such terms in that certain Securities
Purchase Agreement dated as of the date hereof between the Borrower and the Holder (the “Purchase Agreement”). 
  
 The following terms shall apply to this Note: 
  
 ARTICLE I 
 DISBURSEMENTS; INTEREST;
PRE PAYMENT 
  
 1.1 During the term of this Note, the Holder
shall disburse the sum of $250,000 to Borrower within one business day from the date of execution hereof. 
  
 1.2 Interest payable on this Note shall accrue on the outstanding principal amount from the date of each Disbursement at a rate per annum (the
“Interest Rate”) equal to eight and one-half percent (8.5%). If not sooner paid, the entire amount of principal and accrued interest shall be paid in full on November 18, 2005. 
  
 1.3 Borrower may prepay any portion of the outstanding Principal Amount at
any time prior to the Maturity Date without the consent of the Holder; provided that such prepayment shall be accompanied by all interest that has accrued and remains unpaid with respect to the Principal Amount being prepaid. 
  
 ARTICLE II 
 EVENTS OF DEFAULT 
  
 Upon the occurrence and continuance of an Event of Default beyond any applicable grace period, the Holder may make all sums of principal, interest and other fees then remaining unpaid hereon and all other amounts
payable hereunder immediately due and payable. 
  
 The occurrence
of any of the following events is an “Event of Default”: 
  
 2.1 Failure to Pay Principal or Interest. The Borrower fails to pay when due any installment of principal or interest hereon in accordance herewith, and in any such case, such failure shall continue for a
period of fifteen (15) days following the date upon which any such payment was due. 







 2.2 Breach of Covenant. The Borrower breaches any covenant or any other term or condition of this
Note or the Purchase Agreement in any material respect, and such breach, if subject to cure, continues for a period of thirty (30) days after the occurrence thereof. 
  
 2.3 Breach of Representations and Warranties. Any representation or warranty made by the Borrower in this Note or the
Purchase Agreement, shall be false or misleading in any material respect on the date that such representation or warranty was made or deemed made. 
  
 2.4 Royster-Clark Agreement. Failure to enter into a binding agreement with Royster-Clark, Inc. on or before February 17, 2005 for the purchase by
Borrower or Borrower’s subsidiary or affiliate for the purchase of all the issued and outstanding stock of Royster-Clark Nitrogen, Inc. 
  
 DEFAULT RELATED PROVISIONS 
  
 Following the occurrence and continuance of an Event of Default beyond any applicable cure period hereunder, the Borrower shall deliver to Holder the
Borrower’s stock purchase warrant, for the purchase of 54,825 shares of the Borrower’s common stock, on the same terms and conditions, and exercise price of $1.14 per share, as the Stock Purchase Warrant issued to Geduld Capital Management
LLC concurrently with the execution and delivery of this Note. 
  
 ARTICLE III 
 MISCELLANEOUS 
  
 3.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
  
 3.2 Notices. Any notice herein required or permitted to be given shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party notified, (b) when sent by confirmed telex or
facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit
with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Borrower at the address provided in the Purchase Agreement executed in connection herewith,
and to the Holder at the address provided in the Purchase Agreement for such Holder, or at such other address as the Borrower or the Holder may designate by ten days advance written notice to the other parties hereto. 
  
 3.3 Amendment Provision. The term “Note” and all reference
thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented. 
  
 3.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and
its successors and assigns, and may be assigned by the Holder in accordance with the requirements of the Purchase Agreement. This Note shall not otherwise be assigned by the Borrower without the consent of the Holder. 
  
 3.5 Governing Law. This Note shall be governed by and construed in
accordance with the laws of the state of Colorado, without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state
courts of Colorado or in the federal courts located in the state of Colorado. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note is
invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any








 such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability
of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s
obligations to Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court in favor of the Holder. 
  

3.6 Note and Payment Made in Colorado. The Holder and Borrower stipulate and agree that this Note and the Loan have been made in the State of
Colorado, and that payment of the Note and interest on the Note shall be deemed made in the State of Colorado, and payment of interest shall be governed and controlled by the laws of the State of Colorado, without regard to principles of conflicts
of laws. 
  
 3.7 Maximum Payments. Nothing contained herein
shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower. 
  
 3.8 Construction. Each party acknowledges that its legal counsel participated in the preparation of this Note and,
therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to favor any party against the other. 
  
 3.9 Cost of Collection. If default is made in the payment of this
Note, the Borrower shall pay to Holder reasonable costs of collection, including reasonable attorney’s fees. 
  
 IN WITNESS WHEREOF, Borrower has caused this Promissory Note to be signed in its name effective as of this 19th day of November, 2004. 

 

			
	Rentech, Inc., a Colorado corporation
		
	By:	 	 /s/ Dennis L. Yakobson


	Name:	 	Dennis L. Yakobson
	Title:	 	President and Chief Executive Officer
		
	By:	 	 /s/ Ronald C. Butz


	Name:	 	Ronald C. Butz
	Title:	 	Secretary