Document:

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                                                                    EXHIBIT 4(D)

                   LONG TERM INCENTIVE SHARE OPTION PLAN, 1989
                           (AS AMENDED APRIL 26, 2000)

1. INTERPRETATION

     In this Plan, the following terms shall have the following meanings:

     (a)  "Board" means the Board of Directors of the Corporation;

     (b)  "Common Shares" means the Common Shares of the Corporation;

     (c)  "Committee" means the Compensation Committee of the Board constituted
          in accordance with paragraph 3 hereof;

     (d)  "Corporation" means Westcoast Energy Inc. and any successor or
          continuing corporation resulting from any form of corporate
          reorganization;

     (e)  "Early Termination Date" means the day on which an Option terminates
          prior to the Normal Expiration Date;

     (f)  "Expiry Date" means the Normal Expiration Date or the Early
          Termination Date, as the case may be;

     (g)  "Market Price" of the Common Shares at any date means the price per
          Common Share equal to the average of the daily high and low board lot
          trading prices at which the Common Shares traded on The Toronto Stock
          Exchange on the five trading days on which a board lot was traded
          immediately preceding such date;

     (h)  "Normal Expiration Date" means, in respect of any Option, the day
          determined by the Committee on which the Option would normally
          terminate, which day shall in no event be later than ten years after
          the Option Date;

     (i)  "Option" means an option to purchase Common Shares pursuant to the
          Plan;

     (j)  "Option Agreement" means an agreement entered into between the
          Corporation and a Participant pursuant to which an Option is granted
          to a Participant, which agreement shall contain such provisions not
          inconsistent with the Plan as the Committee may determine;

     (k)  "Option Date" means the date on which the Committee grants an Option
          to a Participant;

     (l)  "Option Shares" means the Common Shares which a Participant is
          entitled to purchase pursuant to an Option Agreement;

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     (m)  "Participant" means any officer or manager of the Corporation or any
          of its Subsidiaries who is selected by the Committee to participate in
          the Plan and who has entered into an Option Agreement with the
          Corporation;

     (n)  "Plan" means the Long Term Incentive Share Option Plan, 1989 of the
          Corporation as amended from time to time;

     (o)  "Purchase Price" means the purchase price of Common Shares under an
          Option Agreement, as determined in accordance with paragraph 6(d)
          hereof;

     (p)  "Subsidiary" means any other Corporation of which more than 50 percent
          of the outstanding Voting Shares are owned or controlled, directly or
          indirectly, by the Corporation, by one or more Subsidiaries of the
          Corporation or by the Corporation and one or more of its Subsidiaries.
          "Voting Shares" means shares of the capital stock of a corporation
          having the right to elect directors of the Corporation;

     (q)  "Fair Market Value" means in respect of a Share Appreciation Right,
          the Market Price of one Common Share determined as of the day on which
          any Share Appreciation Rights are exercised by a Participant; and

     (r)  "Share Appreciation Rights" means the share appreciation rights
          granted pursuant to paragraph 7 of the Plan.

2. PURPOSE OF THE PLAN

     The purpose of the Plan is to provide an opportunity to officers and
     managers of the Corporation and its Subsidiaries to share in the growth of
     the value of the Corporation through increases in the price of its Common
     Shares. The Plan is designed to be an integral part of the total
     compensation programme for those officers and managers.

3. ADMINISTRATION

     The Plan shall be administered by the Committee, which shall be composed of
     three Directors who are not officers or managers for the Corporation or any
     of its Subsidiaries and who have not been and are not eligible to
     participate in the Plan. The Committee shall have the full and complete
     authority to interpret the Plan, to establish, amend and rescind rules and
     regulations for its administration and to make such other determinations as
     it deems necessary or advisable to administer the Plan.

4. PARTICIPANTS AND ALLOTMENTS

     On the recommendation of the Chief Executive Officer of the Corporation,
     the Committee shall, in its sole discretion, determine from time to time
     those officers and managers of the Corporation and its Subsidiaries to whom
     Options should be granted, the Expiry Date, the number of Common Shares in
     respect of which an Option should be granted to any such officer or
     manager, and such other terms and conditions of the Option Agreement, not

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     inconsistent with the Plan, as the Committee in its discretion may
     determine. An Option granted by the Committee to such an officer or manager
     pursuant to the Plan is subject to, and shall be of no force and effect
     until, the execution and delivery of an Option Agreement by both the
     Corporation and the officer or manager to whom the Option is granted.

5. COMMON SHARES RESERVED

     Subject to adjustment in accordance with paragraph 8 hereof, the total
     number of Common Shares which may be reserved for issuance and which may be
     issued pursuant to the Plan shall not exceed 9,000,000 Common Shares. Any
     Common Shares covered by any Option Agreement which remain unpurchased upon
     expiration or termination of such Option Agreement, shall become part of
     the Common Shares reserved for issuance but unallocated: provided, however,
     that in no event may the number of Common Shares issued under the Plan
     exceed the total number of Common Shares reserved for issuance hereunder.
     So long as Options are outstanding under the Plan, the Board shall at all
     times reserve a sufficient number of unissued Common Shares to enable all
     of such Options to be exercised in accordance with their terms.

6. CERTAIN TERMS OF OPTION AGREEMENTS

     (a)  Each Option shall terminate on its Normal Expiration Date.

     (b)  The Committee may in respect of any Option specify a number or
          percentage of Common Shares that a Participant may exercise in any
          specified period, year or number of years.

     (c)  An Option exercisable under the Plan is not exercisable as to less
          than 100 Common Shares at any one time and can be exercised only in
          blocks of 100 Common Shares or a multiple thereof.

     (d)  The Purchase Price shall be the price per Common Share, equal to the
          Market Price determined as of the Option Date. The Purchase Price of
          Common Shares as to which an Option is exercised shall be paid in full
          in Canadian funds by certified cheque or bank draft payable to or to
          the order of the Corporation at the time of exercise.

     (e)  If, subsequent to the Option Date and before the Normal Expiration
          Date of an Option, a Participant ceases to be an officer or manager of
          the Corporation or any of its Subsidiaries for any reason including
          death and permanent disability, the Option may be exercised up to a
          date six months after the date on which the Participant ceases to be
          such an officer or a manager or up to the Normal Expiration Date,
          whichever date shall first occur, but only as to such number of Common
          Shares in respect of which the Option would have been exercisable
          under the Option Agreement on the date on which the Participant ceases
          to be such an officer or manager. However, if the Participant ceases
          to be an officer or manager of the Corporation as a result of
          retirement directly from active service with the Corporation, then the
          Option may be exercised up to a date twenty-four months after the date
          on which the Participant ceases to be an officer or manager or up to
          the Normal Expiration Date, whichever date shall first occur, but only
          as to such number of Common

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          Shares in respect of which the Option would have been exercisable
          under the Option Agreement on the date which is twenty-four months
          after the date on which the Participant ceases to be an officer or
          manager.

     (f)  For the purposes of subparagraph 6(e), the rights exercisable under an
          Option Agreement after the death of a Participant may be exercised by
          the person or persons to whom the Participant's rights under the
          Option Agreement pass by will or applicable law or, if no such person
          has such right, by the deceased Participant's executors or
          administrators.

     (g)  No Option, Share Appreciation Rights or any interest therein shall be
          assignable or otherwise transferred by a Participant except by will or
          the laws governing the devolution of property in the event of death.
          During the lifetime of a Participant, an Option and any Share
          Appreciation Rights shall only be exercisable by the Participant or
          the Participant's legal representative.

7. SHARE APPRECIATION RIGHTS

     Each grant of Share Appreciation Rights shall be set out in an Option
     Agreement containing the terms and conditions required in this paragraph,
     and such other terms and conditions not inconsistent therewith as the
     Committee, in its sole discretion, may deem appropriate. Share Appreciation
     Rights shall be exercisable at such times and to the extent set out in the
     Option Agreement to which they relate, and in no event shall any Share
     Appreciation Rights be exercisable either before the Option Date or after
     the Normal Expiration Date or Early Termination Date of any Option
     Agreement. Subject to the provisions of the Plan and the applicable Option
     Agreements, Share Appreciation Rights may be exercised from time to time
     during the term of an Option Agreement. Once a Participant exercises any of
     the Share Appreciation Rights, the equivalent the Option will be cancelled.

     In the event a Participant elects to exercise any of the Share Appreciation
     Rights granted pursuant to an Option Agreement, the Corporation shall
     determine the value of the Share Appreciation Rights so exercisable which
     shall be an overall amount determined by multiplying

     (a)  the amount by which the Fair Market Value exceeds the Purchase Price
          of one Common Share specified in the applicable Option Agreement; by

     (b)  the number of Common Shares in respect of which such Share
          Appreciation Rights are so exercised;

     and the overall amount so determined shall be paid to the Participant

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     (c)  as to 50 percent, by the issue to the Participant of that number of
          Common Shares determined by dividing 50 percent of the overall amount
          by the Fair Market Value, rounded down to the nearest whole Common
          Share; and

     (d)  as to the balance of the amount, by a payment in cash to the
          Participant.

8. ALTERATION OF SHARE CAPITAL

     In the event

     (a)  of any change in the Common Shares through subdivision, consolidation,
          reclassification, amalgamation, merger or otherwise;

     (b)  of any stock dividend to holders of Common Shares;

     (c)  that any rights are granted to holders of Common Shares to purchase
          Common Shares at prices substantially below Fair Market Value; or

     (d)  that as the result of any recapitalization, merger, consolidation or
          otherwise the Common Shares are converted into or become exchangeable
          for any other shares

     then in any such case the number of Common Shares available for Options,
     the number of Common Shares covered by outstanding Options and the price
     per Common Share in such Options shall be proportionately adjusted by the
     Board to prevent substantial dilution or enlargement of the rights granted
     to, or available for, holders of Options.

9. COMMON SHARES FULLY PAID AND NON-ASSESSABLE

     All Common Shares issued upon the exercise of any Option shall be issued as
     fully paid and non- assessable Common Shares.

10. CONDITIONS OF ISSUANCE OF COMMON SHARES

     If at any time the Board should determine, in its sole discretion, that it
     is necessary or desirable as a condition to the issuance of any Common
     Shares pursuant to an Option Agreement to

     (a)  register or qualify such Common Shares upon, or obtain the consent or
          approval, of any stock exchange on which the Common Shares are listed
          and/or

     (b)  register or qualify such Common Shares under any laws of Canada or any
          Province thereof, or the United States or any state thereof, or to
          obtain the consent or approval of any regulatory authority thereof,

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     then the issuance of any Common Shares shall not be made unless and until
     such registration, qualification, consent or approval has been effected or
     obtained free of any conditions not acceptable to the Board.

11. AMENDMENT AND DISCONTINUANCE

     The Board may from time to time, with the prior consent of The Toronto
     Stock Exchange, alter, suspend or discontinue the Plan, provided that such
     alteration, suspension or discontinuance shall not divest any Participant
     of any rights such Participant may have under any Option Agreement
     theretofore executed and delivered by the Corporation and the Participant.
     Any amendments to the Plan which are required by applicable laws to be
     approved by the shareholders of the Corporation shall not become effective
     until so approved. Subject to the provisions of this paragraph, the Board
     may terminate the Plan at any time.

12. EFFECTIVE DATE OF PLAN

     The Plan shall become effective on January 1, 1990, but only if the Plan is
     approved by the affirmative vote of the holders of a majority of the Common
     Shares represented and entitled to vote at the Annual Meeting of the
     shareholders of the Corporation to be held on April 26, 1989, or at any
     adjournment thereof.

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                       RETIREMENT AND CONSULTING AGREEMENT

     This Retirement and Consulting Agreement ("Agreement") made and entered
into this 26th day of April, 2001, by and between BURTON M. JOYCE, hereinafter
referred to as "Executive", and TERRA INDUSTRIES INC., a Maryland corporation
having offices at 600 Fourth Street, Sioux City, Iowa 51101, which, including
its subsidiary and affiliate companies, is hereinafter referred to as "Company"
or "Terra".

     WHEREAS, the parties agree that Executive will retire from active
employment with Terra as set forth below; and

     WHEREAS, the parties desire that the Executive provide certain consulting
services during the term of this Agreement; and

     WHEREAS, the parties desire that Executive be provided certain payments and
other benefits in connection with such retirement and as consideration for such
consulting services.

     NOW, THEREFORE, the parties hereto mutually agree as follows:

     1.   Retirement; Employment Termination
          ----------------------------------

          Executive agrees to retire effective April 26, 2001 and hereby resigns
     as President and Chief Executive Officer of Terra as of such date.
     Executive agrees to serve as a director of the Company and as

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     Vice-Chairman of the Board of Directors for a one-year period commencing on
     the date of the annual meeting of shareholders of the Company on April 26,
     2001. Executive also agrees to serve as Chairman of the Board of Directors
     of Terra Nitrogen Corporation for a one year period. Executive's membership
     and offices on these Boards of Directors may be extended by mutual
     agreement.

     2.   Payments/Benefits
          ------------------

          a.   Consulting Payments. As consideration for Executive's consulting
               ------------------
               services described in Section 4 hereof, the Company shall pay
               Executive $550,000 in four equal quarterly installments on August
               1, 2001, November 1, 2001, February 1, 2002, and May 1, 2002. The
               Company shall also pay Executive $550,000 per year for the
               balance of the consulting period, such payments to be made on
               June 1, 2002, June 1, 2003, June 1, 2004, and June 1, 2005.

          b.   Retirement Benefits. Executive agrees to elect joint and survivor
               -------------------
               benefits under the Retirement Plan of Terra Industries Inc. (the
               "Qualified Plan") and under the Terra Industries Inc. Excess
               Benefit Plan (the "SERP") commencing May 1, 2004. The Company
               agrees to pay Executive, and his surviving spouse in the case of
               his death,

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               during each month in which payments are made to either of them
               pursuant to the Company's Qualified Plan and SERP, an amount
               equal to $30,000 less the sum of the payments payable from these
               two plans during that month.

          c.   Health Insurance Benefits. Executive shall be provided with
               -------------------------
               medical and dental insurance benefits (subject to Executive's
               payment of any contribution to the cost of such benefits required
               from employees of the Company generally) at substantially the
               level provided to Executive prior to the retirement effective
               date until May 1, 2004. After that date Executive shall qualify
               for the Company's retiree medical and dental benefits program
               based on credited service of 17.8 years.

          d.   Life and Other Insurance Benefits. Executive shall be provided
               ---------------------------------
               with insurance coverage under the Company's Basic and Optional
               Life Insurance Plans, Accidental Death and Dismemberment Plan,
               and Short- and Long-Term Disability Plans (subject to Executive's
               payment of any contribution to the cost of such insurance
               coverage required from employees of the Company generally) at
               substantially the levels provided to Executive prior to
               retirement until May 1, 2004.

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          e.   Restricted Stock and Stock Options. Executive's
               -----------------------------------
               previously-granted stock options and restricted stock shall
               continue to vest according to their terms for a period of 12
               months after the effective date of his retirement, at which time
               all outstanding but unvested restricted stock and stock options
               shall immediately vest. All of Executive's stock options shall be
               exercisable until May 1, 2003.

          f.   Reimbursement of Office Expenses. The Company agrees to reimburse
               --------------------------------
               the Executive up to $65,000 for the cost of secretarial services
               and office space at a location other than Terra Centre for a
               three-year period until May 1, 2004.

     3.   Executive Retention Agreement
          ------------------------------

          Upon execution of this Agreement by Executive and Company, the
     parties' Executive Retention Agreement dated December 31, 1998 shall
     terminate and be null and void. Executive acknowledges that no change of
     control or other event has occurred to trigger a payment of benefits to
     Executive under the Executive Retention Agreement or any other agreement or
     benefit plan. However, the Company agrees to reimburse Executive on a
     grossed-up basis in the event any excise tax becomes payable by him under
     Section 4999 of the Internal Revenue Code with respect to any payments made
     hereunder.

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     4.   Consulting Services
          -------------------

          Executive Agrees to provide consulting services to the Company for a
     five-year period commencing on April 26, 2001, the effective date of his
     retirement. Executive shall consult with the Company with respect to
     strategic issues, capital structure, mergers and acquisitions, and other
     issues as requested by the Company's Board of Directors and the President
     and Chief Executive Officer. Terra shall pay all reasonable and documented
     travel or related expenses incurred by Executive in connection with the
     provision of such services. The consulting period may be terminated by
     either party effective May 1, 2004. In the event of such termination, the
     Company shall pay the Executive $1,100,000 in a lump sum on June 1, 2004 in
     satisfaction of all remaining consulting fee payments hereunder.

     5.   Executive Covenants
          -------------------

          a.   Confidentiality. Executive acknowledges that during his
               ---------------
               employment with Terra he has seen, worked with, and had access to
               information relating to employees employed by Terra and its
               subsidiaries, and other information relating to Terra's business
               not available to the general public ("Confidential Information").
               Executive agrees that he shall not disclose any Confidential
               Information to any third party or

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               use or disclose the Confidential Information or his knowledge
               thereof in working for future clients or employers. The term
               "Confidential Information" shall include only information
               relating specifically to Terra's products, business or employees
               not available to the general public and shall not include
               general, publicly-available information. Executive certifies that
               upon termination of his consultancy with Terra he will take no
               papers, records or documents of any kind containing or referring
               to Confidential Information.

          b.   Nondisclosure. Neither Executive nor the Company shall disclose
               -------------
               the existence of this Agreement or its terms to anyone except (i)
               those outside advisors of Executive and Company which have a need
               to know such information for tax or other planning purposes or
               (ii) as is necessary for the enforcement of this Agreement or
               (iii) as required by law.

          c.   Release. In consideration for the promises made by the parties
               -------
               and the payments to be made by Terra under this Agreement, the
               sufficiency of which is hereby acknowledged, Executive, with the
               intention of binding himself, his heirs, executors and assigns,
               hereby releases and forever discharges Terra and any entity
               related to Terra, as well as its or their predecessors,
               successors and assigns,

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               officers, directors, attorneys, agents, representatives, and
               employees, past, present and future, individually and
               collectively, from any and all claims, demands, causes of actions
               or liabilities, which Executive ever had, or now has, or may have
               upon or by reason of any matter, cause or thing whatsoever,
               whether known or unknown, suspected or unsuspected, arising out
               of or in any way connected with his employment and/or the
               termination thereof. Without limiting the generality of the
               foregoing, this release applies to any right which Executive has
               or may have to commence or maintain a charge or action alleging
               discrimination under any federal, state or local statute (whether
               before a court or an administrative agency), including the Age
               Discrimination in Employment Act of 1967, Title VII of the Civil
               Rights Act of 1964, the Americans with Disabilities Act of 1990,
               and the Employee Retirement Income Security Act of 1974, and any
               right which Executive has or may have to commence or maintain a
               claim or action alleging wrongful termination, breach or
               contract, defamation, commission of tort, or any combination
               thereof, whether based in law or in equity. Executive agrees not
               to make, assert or maintain any charge, claim, demand or action
               which would be covered by

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               this release. If Executive breaches this provision, he agrees to
               indemnify Terra against all liability, costs and expenses,
               including reasonable attorneys' fees, related to such breach.

     6.   ADEA Waiver and Full Understanding of Terms
          -------------------------------------------

          Executive acknowledges that this Agreement includes a waiver of any
     rights and claims arising under the Age Discrimination in Employment Act of
     1967. Executive understands he is not waiving rights or claims that may
     arise after the date this Agreement is executed. Executive acknowledges
     that the consideration he is receiving in exchange for his waiver of the
     rights and claims specified herein exceeds anything of value to which he
     already is entitled. Executive acknowledges that he was advised to consult
     with an attorney prior to executing this Agreement. Executive acknowledges
     that he has entered into this Agreement knowingly and voluntarily with full
     understanding of its terms and after having had the opportunity to seek and
     receive advice and counsel from his attorney. Executive acknowledges that
     he was given a period of at least twenty-one (21) days within which to
     consider this Agreement and has waived said period. Executive understands
     that he may revoke this Agreement during the seven (7) days following the
     execution of this Agreement and that the Agreement shall not become
     effective or enforceable until that seven (7) day revocation period has
     expired.

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     7.   Withholding
          -----------

          Notwithstanding any other provision hereof, the Company may, to the
     extent required by law, withhold applicable federal, state and local income
     and other taxes from any payments due to Executive hereunder.

     8.   Memberships/Company Assets
          --------------------------

          Executive will relinquish any corporate-paid memberships, except where
     pre-paid, held in his name at the effective day of his retirement.
     Executive will also return to the Company any Company-owned assets in his
     possession at the end of the consulting period described in this Agreement.

     9.   Applicable Law
          --------------

          This Agreement shall be governed by and construed in accordance with
     the laws of the State of Iowa applicable to contracts made and to be
     performed therein.

     10.  Arbitration
          -----------

          Any dispute or controversy between the Company and the Executive,
     whether arising out of or relating to this Agreement or otherwise, shall be
     settled by arbitration administered in Sioux City, Iowa in accordance with
     the Commercial Arbitration Rules of the American

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     Arbitration Association then in effect, and judgment on the award rendered
     by the arbitrator may be entered in any court having jurisdiction. The
     Company shall pay the cost of any arbitration conducted hereunder.

     11.  Attorney Fees
          -------------

          The Company shall reimburse the Executive for any reasonable attorney
     fees incurred by him in connection with his pursuing or defending (or
     preparing to pursue or defend), whether in arbitration or litigation, any
     claim or dispute involving the interpretation and performance of this
     Agreement.

     12.  Successors.
          ----------

          The Company will require any successor or assign (whether direct or
     indirect, by purchase, merger, consolidation or otherwise) to all or
     substantially all of the business and/or assets of the Company, expressly,
     absolutely and unconditionally to assume and agree to perform this
     Agreement in the same manner and to the same extent that the Company would
     be required to perform it if no such succession or assignment had taken
     place. As used in this Agreement, "Company" shall mean the Company as
     hereinbefore defined and any successor or assign to its business and/or
     assets as aforesaid which executes and delivers the agreement provided for
     in this Section 12 or which becomes bound by all

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     the terms and provisions of this Agreement by operation of law or
     otherwise.

     13.  Entire Agreement
          ---------------

          This Agreement constitutes the entire agreement between the parties
     with respect to the subject matter hereof and, except as expressly provided
     herein, supersedes all other agreements concerning employment termination
     between the Company and Executive. This Agreement may be changed only by a
     written agreement executed by the Company and Executive.

                                      * * *

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     WHEREFORE, the parties have executed this Agreement on the 26th day of
April, 2001.

EXECUTIVE:                                  TERRA INDUSTRIES INC:

/s/  B. M. Joyce                            /s/  Edward G. Beimfohr
----------------------------------------    ------------------------------------
Burton M. Joyce                             By:

  4/26/01                                    4/26/01
----------------------------------------    ------------------------------------
Date                                        Date

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