Document:

Change in Control Agreement - James G. Perkins

 Exhibit 10.17 
 CHANGE IN CONTROL AGREEMENT 
 BETWEEN 
 PHOSPHATE HOLDINGS, INC. 
 AND 
 JAMES G. PERKINS 
 THIS AGREEMENT, is by and between PHOSPHATE
HOLDINGS, INC., a Delaware corporation (the “Corporation”), and JAMES G. PERKINS (the “Executive”) and is effective on the date
established pursuant to Section 15 of this Agreement (the “Effective Date”). 
 WITNESSETH: 
 WHEREAS, the Executive is a valuable employee of the Corporation or a Subsidiary of the Corporation, an integral part of its management, and a key
participant in the decision-making process relative to short-term and long-term planning and policy for the Corporation; and 
 WHEREAS, the
Corporation wishes to encourage the Executive to continue his career and services with the Corporation or a Subsidiary, as the case may be, following a Change in Control; and 
 WHEREAS, the Board has determined that it would be in the best interests of the Corporation and its shareholders to assure continuity in the management
of the Corporation’s, including Subsidiaries’, administration and operations in the event of a Change in Control by entering into this Agreement with the Executive; 
 NOW THEREFORE, it is hereby agreed by and between the parties hereto as follows: 
 1. DEFINITIONS. 
 (a) “Board” shall mean the Board of Directors of the Corporation. 
 (b) “Cause” shall mean the
Executive’s fraud or dishonesty which has resulted or is likely to result in material economic damage to the Corporation or a Subsidiary of the Corporation, as determined in good faith by a vote of at least two-thirds of the non-employee
directors of the Corporation at a meeting of the Board at which the Executive is provided an opportunity to be heard. 
 (c) “Change
in Control” shall mean the occurrence of any of the following: 
 (i) a sale of assets representing fifty percent (50%) or
more of the net book value and of the fair market value of the Corporation’s consolidated assets (in a single transaction or in a series of related transactions); 

 (ii) a merger or consolidation involving the Corporation or any subsidiary of the Corporation after the
completion of which: (A) in the case of a merger (other than a triangular merger) or a consolidation involving the Corporation, the shareholders of the Corporation immediately prior to the completion of such merger or consolidation beneficially
own (within the meaning of Rule 13d-3, promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or comparable successor rules), directly or indirectly, outstanding voting securities representing less
than fifty percent (50%) of the combined voting power of the surviving entity in such merger or consolidation, and (B) in the case of a triangular merger involving the Corporation or a Subsidiary, the shareholders of the Corporation
immediately prior to the completion of such merger beneficially own (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rules), directly or indirectly, outstanding voting securities representing less than
fifty percent (50%) of the combined voting power of the surviving entity in such merger and less than fifty percent (50%) of the combined voting power of the parent of the surviving entity in such merger; 
 (iii) an acquisition by any person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act or any comparable
successor provisions), other than any employee benefit plan, or related trust, sponsored or maintained by the Corporation or an affiliate of the Corporation and other than in a merger or consolidation of the type referred to in clause
“(ii)” of this Section 1(c), of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rules) of outstanding voting securities of the Corporation representing more than
thirty percent (30%) of the combined voting power of the Corporation (in a single transaction or series of related transactions); 
 (iv) in the event that the individuals who, as of the Effective Date, are members of the Corporation’s Board of Directors (the “Incumbent Board”), cease for any reason to constitute at least fifty percent (50%) of
the Corporation’s Board of Directors. (If the election, or nomination for election by the Corporation’s shareholders, of any new member of the Board of Directors is approved by a vote of at least fifty percent (50%) of the Incumbent
Board, such new member of the Board of Directors shall be considered as a member of the Incumbent Board.); or 
 (v) any other transaction
or series of transactions that would have substantially the same effect as the change of control events described in (i) through (iv) above 
 (d) “Compensation” shall mean the Executive’s annual base salary at the time of termination. 
 (e) “Constructive Discharge” shall mean any of the following: 
 (i) any material failure by the Corporation to
comply with any of the provisions of this Agreement which has not been cured within thirty (30) days (or if the breach cannot be cured within thirty (30) days, the Corporation has not commenced and is not diligently pursuing such cure)
after written notice of such material failure is delivered to the Corporation; 
  

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 (ii) the Corporation or a Subsidiary requiring the Executive to be based at any office or location more
than 50 (fifty) miles from the location at which the Executive was based on the day prior to the Change in Control; 
 (iii) a reduction
which is more than twenty-five percent (25%) in (A) the Executive’s annual rate of base salary or maximum annual bonus opportunity, or (B) the long-term incentive compensation the Executive has the opportunity to earn, determined
in the aggregate if multiple long-term incentive opportunities exist, as in effect immediately prior to the Change in Control (except if such reduction is a part of a reduction for all senior management); 
 (iv) the Corporation’s failure to require a successor entity to assume and agree to perform the Corporation’s obligations pursuant to
Section 9; or 
 (v) a reduction which is more than de minimis in the long term disability and life insurance coverage provided
to the Executive under the Corporation’s life insurance and long term disability plans as in effect immediately prior to the Change in Control. 
 No such event described hereunder shall constitute Constructive Discharge unless the Executive has given written notice to the Corporation specifying the event relied upon for such termination within one year after
the occurrence of such event (but in no event later than the Ending Date) and the Corporation has not remedied such within thirty (30) days of receipt of such notice. The Corporation and Executive, upon mutual written agreement, may waive any
of the foregoing provisions which would otherwise constitute a Constructive Discharge. 
 (f) “Coverage Period” shall begin
on the Starting Date and end on the Ending Date. 
 (g) “Disability” shall mean an injury or illness which permanently
prevents the Executive from performing services to the Corporation and which qualifies the Executive for payments under the Corporation’s long-term disability plan. 
 (h) “Ending Date” shall be the date which is twenty-four (24) full calendar months following the date on which a Change in Control occurs. 
 (i) “Starting Date” shall be the date on which a Change in Control occurs. 
 (j) “Subsidiary” means any corporation of which more than fifty percent (50%) of the outstanding stock having ordinary voting power
to elect a majority of the board of directors of such corporation is now or hereafter owned, directly or indirectly, by the Corporation. 
  

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 2. TERM. 
 This Agreement shall be effective as of the Starting Date and shall continue thereafter until the twenty-four (24) month anniversary of such date;
provided, however, the Corporation’s obligations, if any, to provide payments and/or benefits pursuant to Section 3 of this Agreement and the obligations of the Corporation and the Executive under Section 5 of this Agreement shall
survive the termination of this Agreement. 
 3. SEVERANCE BENEFITS. 
 (a) If the Executive’s employment with the Corporation and all Subsidiaries is terminated by the Corporation or a Subsidiary for any reason other
than Cause, death, or Disability (for avoidance of doubt, transfer of employment between or among the Corporation and any of its Subsidiaries shall not constitute a termination of employment by the Corporation or a Subsidiary for purposes of this
Agreement), or by the Executive in the event of a Constructive Discharge, in either case at any time during the Coverage Period, then, 
 (i) within five (5) business days after such termination, the Corporation shall pay or cause to be paid to the Executive (or if the Executive dies after termination of employment but before receiving all payments to which he has become
entitled hereunder, to the estate of the Executive) the following amounts: 
 (A) accrued but unpaid salary and accrued but unused vacation
in accordance with the Corporation’s or a Subsidiary’s, as the case may be, employment policies, as may be amended from time to time; and 
 (B) a lump-sum cash amount equal to 1.99 times the Executive’s Compensation; and 
 (ii) for a period
commencing with the month in which termination of employment shall have occurred and ending twelve (12) months thereafter, the Executive and, as applicable, the Executive’s covered dependents shall be entitled to all benefits under the
Corporation’s welfare benefit plans (within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended), as if the Executive were still employed during such period, at the same level of benefits and at
the same dollar cost to the Executive as is available to all of the Corporation’s senior executives generally. If and to the extent that equivalent benefits shall not be payable or provided under any such plan, the Corporation shall pay or
provide (or cause to be paid or provided) equivalent benefits on an individual basis. The benefits provided in accordance with this Section 3(a)(ii) shall be secondary to any comparable benefits provided by another employer and subject to any
provisions in a written employment contract between the Corporation or a Subsidiary and the Executive providing greater benefits. 
 (b)
(i) If Independent Tax Counsel (as that term is defined below) determines that the aggregate payments and benefits provided or to be provided to the Executive pursuant to this Agreement, and any other payments and benefits provided or to

  

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be provided to the Executive from the Corporation or any of its Subsidiaries or other affiliates or any successors thereto constitute “parachute
payments” as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) (or any successor provision thereto) (“Parachute Payments”) that would be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then, except as otherwise provided in the next sentence, such Parachute Payments shall be reduced to the extent necessary, so that no portion thereof shall be subject to
the Excise Tax. If Independent Tax Counsel determines that the Executive would receive in the aggregate greater payments and benefits on an after tax basis if the Parachute Payments were not reduced pursuant to this Section 3(b), then no such
reduction shall be made; provided, however, that in such case the provisions of Sections 3(b)(ii) and 3(b)(iii) shall not be operative. The determination of the Independent Tax Counsel under this subsection (i) shall be final and binding on all
parties hereto. The determination of which payments or benefits shall be reduced to avoid the Excise Tax shall be determined in the sole discretion of the Corporation; provided, however, that unless the Executive gives written notice specifying a
different order to the Corporation to effectuate the limitations described above, the Corporation shall first reduce or eliminate, as the case may be, those payments or benefits that will cause a dollar-for-dollar reduction in total Parachute
Payments, and then by reducing or eliminating other Parachute Payments, to the extent possible, in reverse order beginning with payments or benefits that are to be paid the farthest in time from the date the reduction or elimination is to be made.
Any notice given by the Executive pursuant to the preceding sentence, unless prohibited by law, shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlement to any
benefits or compensation. For purposes of this Section 3(b), “Independent Tax Counsel” shall mean a lawyer, a certified public accountant with a nationally recognized accounting firm, or a compensation consultant with a
nationally recognized actuarial and benefits consulting firm with expertise in the area of executive compensation tax law, who shall be selected by the Corporation and shall be acceptable to the Executive (the Executive’s acceptance not to be
unreasonably withheld), and whose fees and disbursements shall be paid by the Corporation. 
 (ii) Executive shall notify the Corporation in
writing within thirty (30) days of any claim by the Internal Revenue Service that, if successful, would require the payment by the Executive of an Excise Tax. Upon receipt of such notice, the Corporation may, in its sole discretion, either
contest such claim, provide the Executive with an additional payment (a “Gross-Up Payment”) intended to reimburse the Executive for any such Excise Tax and all taxes (including any Excise Tax) imposed upon the Gross-Up Payment and
any interest or penalties with respect to such taxes (except to the extent such interest or penalty results from the Executive’s failure to act in accordance with the Corporation’s or a Subsidiary’s reasonable directions or the
Executive’s failure to exercise due care), or do nothing. If the Corporation notifies the Executive in writing that it desires to contest such claim and that it will bear the costs and provide the indemnification as required by this sentence,
the Executive shall: 
 (A) give the Corporation any information reasonably requested by the Corporation relating to such claim; 

 

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 (B) take such action in connection with contesting such claim as the Corporation shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Corporation; 
 (C) cooperate with the Corporation in good faith in order to effectively contest the claim; and 
 (D) permit the Corporation to participate in any proceedings relating to the claim; provided, however, that the Corporation shall pay (or cause to be
paid) directly all costs and expenses (including any interest and penalties, except to the extent such interest or penalty results from the Executive’s failure to act in accordance with the Corporation’s or a Subsidiary’s reasonable
directions or the Executive’s failure to exercise due care) incurred in connection with the contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income or other tax, including interest and
penalties with respect thereto (except to the extent such interest or penalty results from the Executive’s failure to act in accordance with the Corporation’s or a Subsidiary’s reasonable directions or the Executive’s failure to
exercise due care), imposed as a result of such representation and payment of costs and expenses. The Corporation shall control all proceedings taken in connection with such contest; provided, however, that if the Corporation directs the Executive
to pay such claim and sue for a refund, the Corporation shall, unless prohibited by law, advance (or cause to be advanced) the amount of such payment to the Executive, on an interest-free basis and shall indemnify and hold the Executive harmless, on
an after-tax basis, from any Excise Tax or income or other tax, including interest or penalties with respect thereto (except to the extent such interest or penalty results from the Executive’s failure to act in accordance with the
Corporation’s or a Subsidiary’s reasonable directions or the Executive’s failure to exercise due care), imposed with respect to such advance or with respect to any imputed income with respect to such advance. If the advancement
described in the preceding sentence is prohibited by law, the Corporation and the Executive shall cooperate in an effort to determine an alternative approach to payment of the claim in a manner permitted by applicable law and consistent with
original intent and economic benefit to the Executive of this provision. 
 (iii) If, after the receipt by the Executive of an amount
advanced by the Corporation pursuant to Section 3(b)(ii), the Executive becomes entitled to receive a refund with respect to a payment by the Corporation with respect to such claim, the Executive shall, within ten (10) days after the
receipt of such refund, pay to the Corporation the amount of such refund, together with any interest paid or credited thereon after taxes applicable thereto. 
 (iv) Notwithstanding anything herein to the contrary, this Section 3(b) shall be interpreted (and, if determined by the Corporation to be necessary, refunded) to the extent necessary to fully comply with the
Sarbanes-Oxley Act and Section 409A of the Code; provided that the Corporation agrees to maintain, to the maximum extent practicable, the original intent and economic benefit to the Executive of the applicable provision without violating the
provisions of the Sarbanes-Oxley Act and Code Section 409A. 
  

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 (c) In the event of any termination of the Executive’s employment described in Section 3(a) or
Section 3(b), the Executive shall be under no obligation to seek other employment, and there shall be no offset against amounts due the Executive under this Agreement on account of any remuneration attributable to any subsequent employment;
provided, however, to the extent the Executive receives medical and health benefits from a subsequent employer, medical and health benefits provided pursuant to Section 3(a)(ii)(C) shall be secondary to those received from the subsequent
employer. 
 (d) It is intended that the payments and benefits provided under this Agreement are in lieu of, and not in addition to,
severance payments and benefits provided under any employment contract, severance, change in control or similar plan or policy of the Corporation or a Subsidiary or under any other employment contract, severance, change in control or similar
agreements with the Corporation or any Subsidiary, whether written or oral (“Other Severance Benefits”). Unless otherwise provided herein or waived by the Executive, Other Severance Benefits the Executive receives, or will receive
in the future, shall reduce payments and benefits provided hereunder. 
 4. NATURE OF
OBLIGATION. 
 The Corporation shall not be required to establish a special or separate fund or other
segregation of assets to assure payments under this Agreement, and, if the Corporation shall make any investments to aid it in meeting its obligations hereunder, the Executive shall have no right, title or interest in or to any such investments
except as may otherwise be expressly provided in a separate written instrument relating to such investments. Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any
kind or a fiduciary relationship between the Corporation and the Executive or any other person. To the extent that any person acquires a right to receive payments under this Agreement such right shall be no greater than the right of an unsecured
creditor. 
 5. FULL SETTLEMENT; LITIGATION EXPENSES;
ARBITRATION. 
 (a) Except as provided below, the Corporation’s obligation to make or cause to be made
the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Corporation or a Subsidiary may have
against the Executive or others. The Corporation agrees to pay, upon written demand therefor by the Executive, all legal fees and expenses the Executive reasonably incurs as a result of any dispute or contest (regardless of the outcome thereof) by
or with the Corporation or others regarding the validity or enforceability of, or liability under, any provision of this Agreement, plus in each case, interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code.
Notwithstanding the foregoing, the Executive agrees to repay to the Corporation any such fees and expenses paid or advanced by the Corporation if and to the extent that the Corporation or such others obtains a 

  

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judgment or determination that the Executive’s claim was frivolous or was without merit from the arbitrator or a court of competent jurisdiction from
which no appeal may be taken, whether because the time to do so has expired or otherwise. Notwithstanding any provision hereof or in any other agreement, the Corporation may offset any other obligation it has to the Executive by the amount of such
repayment. In any such action brought by the Executive for damages or to enforce any provisions of this Agreement, he shall be entitled to seek both legal and equitable relief and remedies, including, without limitation, specific performance of the
Corporation’s obligations hereunder, in his sole discretion. 
 (b) In the event of any dispute or difference between the Corporation
and the Executive with respect to the subject matter of this Agreement and the enforcement of rights hereunder, either the Executive or the Corporation may, by written notice to the other, require such dispute or difference to be submitted to
arbitration. The arbitrator or arbitrators shall be selected by agreement of the parties or, if they cannot agree on an arbitrator or arbitrators within thirty (30) days after the Executive has notified the Corporation of his desire to have the
question settled by arbitration, then the arbitrator or arbitrators shall be selected by the American Arbitration Association (the “AAA”) upon the application of the Executive. The determination reached or award rendered in such
arbitration shall be final and binding on both parties without any right of appeal or further dispute, subject to the applicable state or federal laws relating to arbitration determinations or awards. Enforcement of an arbitration award by such
arbitrator may be sought in any court of competent jurisdiction. The arbitrators shall not be bound by judicial formalities and may abstain from following the strict rules of evidence and shall interpret this Agreement as an honorable engagement and
not merely as a legal obligation. Unless otherwise agreed by the parties, any such arbitration shall take place in Jackson, Mississippi, and shall be conducted in accordance with the Rules of the AAA. The Executive’s expenses for such
proceeding shall be paid, or repaid to the Corporation as the case may be, as provided in subsection (a) of this Section 5. 
 6.
TAX WITHHOLDING. 
 The Corporation may withhold from any payments made under this
Agreement all federal, state or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 
 7.
ENTIRE UNDERSTANDING. 
 This Agreement contains the entire understanding between the
Corporation and the Executive with respect to the subject matter hereof and supersedes any prior severance, change in control or similar agreement between the Corporation and the Executive; provided, however, that, except as otherwise provided in
this Section 7 and in Section 3(c), this Agreement shall not affect or operate to reduce any benefit or compensation inuring to the Executive of any kind elsewhere provided. 
  

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 8. SEVERABILITY. 
 If, for any reason, any one or more of the provisions or part of a provision contained in this Agreement shall be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement not held so invalid, illegal or unenforceable, and each other provision or part of a
provision shall to the full extent consistent with law continue in full force and effect. 
 9. CONSOLIDATION,
MERGER, OR SALE OF ASSETS. 
 If the Corporation
consolidates or merges into or with, or transfers all or substantially all of its assets to, another entity the term “Corporation” as used herein shall mean such other entity and this Agreement shall continue in full force and
effect. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by this Agreement, the Corporation shall require such successor expressly and unconditionally to assume and agree to
perform the Corporation’s obligations under this Agreement, in the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place. 
 10. NOTICES. 
 All notices, requests, demands and other communications required or permitted hereunder shall be given in writing and shall be deemed to have been duly given if delivered or mailed, postage prepaid, first class as follows: 

			
	 To the Corporation:
	  	 Phosphate Holdings, Inc.
 100 Webster
Circle
 Madison, MS 39110

		
	 To the Executive:
	  	 At the address (or to the facsimile number)
 last
shown on the records of the Corporation

 or to such other address as either party shall have previously specified in writing to the other. 
 11. NO ATTACHMENT. 
 Except as required by law, no right by the Executive or his estate to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or
hypothecation or to execution, attachment, levy or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect. 
  

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 12. BINDING AGREEMENT. 
 This Agreement shall be binding upon, and shall inure to the benefit of, the Executive and the Corporation and their respective permitted successors and
assigns. 
 13. MODIFICATION AND WAIVER. 
 Prior to the date of a Change in Control or, if earlier, the date of a public announcement of a transaction or event which if consummated would be a
Change in Control (“Pre-Change in Control Event”), this Agreement may be terminated, modified or amended by action of a majority of the members of the Board. After a Change in Control or Pre-Change in Control Event, this Agreement
may not be terminated, modified or amended except by an instrument in writing signed by the parties hereto. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any
provision of this Agreement, except by written instrument signed by the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate
only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 
 14. HEADINGS OF NO EFFECT. 
 The section headings contained in this Agreement are included solely for convenience of reference and shall not in any way affect the meaning or
interpretation of any of the provisions of this Agreement. 
 15. EFFECTIVE DATE AND
EXECUTIVE ACKNOWLEDGMENTS. 
 This Agreement shall become effective on the Starting Date. The
Executive acknowledges that he has read and understands the provisions of this Agreement. The Executive further acknowledges that he has been given an opportunity for his legal counsel to review this Agreement and that the provisions of this
Agreement are reasonable and that he has received a copy of this Agreement. 
 16. NOT COMPENSATION
FOR OTHER PLANS. 
 Except for amounts paid pursuant to
Section 3(a)(i)(A) that are considered compensation, earnings or wages for purposes of any employee benefit plan of the Corporation or its Subsidiaries, it is understood by all parties hereto that amounts paid and benefits provided hereunder
are not to be considered compensation, earnings or wages for purpose of any employee benefit plan of the Corporation or its Subsidiaries. 
 17. RELEASE. 
 Notwithstanding any provision herein to the contrary, the Corporation shall not
have any obligation to pay (or cause to be paid) any amount or provide any benefit 

  

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under this Agreement unless and until the Executive executes a release of the Corporation, its Subsidiaries and other affiliates and related parties, in such
form as the Corporation may reasonably request, of all claims against the Corporation, its Subsidiaries and other affiliates and related parties relating to the Executive’s employment and termination thereof and unless and until any revocation
period applicable to such release has expired. 
 18. GOVERNING LAW. 
 This Agreement and its validity, interpretation, performance, and enforcement shall be governed by the laws of Mississippi. 
 19. CODE SECTION 409A. 
 (a) If any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause the Executive to incur any additional tax or interest under Code Section 409A or any
regulations or Treasury guidance promulgated thereunder, the Corporation shall, after consulting with the Executive, reform such provision to comply with Code Section 409A; provided that the Corporation agrees to make only such changes as are
necessary to bring such provisions into compliance with Code Section 409A and to maintain, to the maximum extent practicable, the original intent and economic benefit to the Executive of the applicable provision without violating the provisions
of Code Section 409A. 
 (b) Notwithstanding any provision to the contrary in this Agreement, if the Executive is deemed on the date of
termination of employment to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is required to be delayed in compliance with
Section 409A(a)(2)(B) such payment or benefit shall not be made or provided (subject to the last sentence hereof) prior to the earlier of (i) the expiration of the six (6) month period measured from the date of the Executive’s
“separation from service” (as such term is defined in Treasury Regulations issued under Code Section 409A) or (ii) the date of his death (the “Deferral Period”). Upon the expiration of the Deferral Period, all
payments and benefits deferred pursuant to this Section 19 (whether they would have otherwise been payable in a single sum or in installments in the absence of such deferral) shall be paid or reimbursed to the Executive in a lump sum, and any
remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. Notwithstanding the foregoing, to the extent that the foregoing applies to the provision of any
ongoing welfare benefits to the Executive that would not be required to be delayed if the premiums therefor were paid by the Executive, the Executive shall pay the full cost of premiums for such welfare benefits during the Deferral Period and the
Corporation shall pay (or cause to be paid) to the Executive an amount equal to the amount of such premiums paid by the Executive during the Deferral Period promptly after its conclusion. 
  

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 20. STOCK OPTION VESTING. 
 Upon the occurrence of a Change in Control, Executive shall become immediately vested with respect to one hundred percent (100%) of the unvested
portion of any stock options, stock appreciation rights, restricted stock and such other awards pursuant to the Corporation’s or Subsidiary’s option and equity incentive award plans or agreements and any shares of stock issued upon
exercise thereof that Executive then holds. 
 IN WITNESS WHEREOF, the Corporation and the Executive both intending to be legally bound have
duly executed and delivered this Agreement, to be effective as of the date set forth in Section 15. 
  

			
	PHOSPHATE HOLDINGS, INC.
		
	By:	 	 /s/    Robert E. Jones

		
	Its:	 	 Chief Executive Officer

		
	Date:	 	 September 22, 2008

	
	EXECUTIVE
	
	 /s/    James G. Perkins

	
	JAMES G. PERKINS
		
	 Date:
	 	 September 22, 2008

  

 122008 Stock Option and Stock Appreciation Right Plan

 Exhibit 10.18 
  
  
  
  
 PHOSPHATE HOLDINGS, INC. 
 2008
STOCK OPTION AND STOCK APPRECIATION RIGHT PLAN 
 FOR NON-EMPLOYEE DIRECTORS 

 TABLE OF CONTENTS 
  

							
	1.	 	Purpose	  	1
			
	2.	 	Definitions	  	1
			
	3.	 	Administration	  	3
		 	(a)	  	Authority of the Committee	  	3
		 	(b)	  	Manner of Exercise of Committee Authority	  	4
		 	(c)	  	Limitation of Liability	  	4
			
	4.	 	Stock Subject to Plan	  	4
		 	(a)	  	Overall Number of Shares Available for Delivery	  	4
		 	(b)	  	Application of Limitation to Grants of Awards	  	5
		 	(c)	  	Availability of Shares Not Issued under Awards	  	5
		 	(d)	  	Stock Offered	  	5
				
	5.	 	Eligibility	  		  	5
			
	6.	 	Specific Terms of Awards	  	5
		 	(a)	  	General	  	5
		 	(b)	  	Options	  	5
		 	(c)	  	Stock Appreciation Rights	  	6
			
	7.	 	Certain Provisions Applicable to Awards	  	7
		 	(a)	  	Termination of Service	  	7
		 	(b)	  	Stand-Alone, Additional, Tandem, and Substitute Awards	  	7
		 	(c)	  	Term of Awards	  	7
		 	(d)	  	Form and Timing of Payment under Awards; Deferrals	  	7
			
	8.	 	Subdivision or Consolidation; Recapitalization; Change in Control; Reorganization	  	8
		 	(a)	  	Existence of Plan and Awards	  	8
		 	(b)	  	Subdivision or Consolidation of Shares	  	8
		 	(c)	  	Corporate Recapitalization.	  	9
		 	(d)	  	Additional Issuances	  	9
		 	(e)	  	Change in Control	  	9
			
	9.	 	General Provisions	  	9
		 	(a)	  	Restricted Securities	  	9
		 	(b)	  	Transferability.	  	10
		 	(c)	  	Changes to this Plan and Awards	  	11
		 	(d)	  	Limitation on Rights Conferred under Plan	  	11
		 	(e)	  	Nonexclusivity of this Plan	  	12
		 	(f)	  	Fractional Shares	  	12
		 	(g)	  	Severability	  	12
		 	(h)	  	Governing Law	  	12
		 	(i)	  	Conditions to Delivery of Stock	  	12

							
		 	(j)	  	 Arbitration
	  	13
		 	(k)	  	 Plan Effective Date
	  	13

 PHOSPHATE HOLDINGS, INC. 
 2008 Stock Option and Stock Appreciation Right Plan 
 1. Purpose. The
purpose of the Phosphate Holdings, Inc. 2008 Stock Option and Stock Appreciation Right Plan (the “Plan”) is to provide a means through which Phosphate Holdings, Inc., a Delaware corporation (the
“Company”), and its Subsidiaries may attract and retain able persons as directors of the Company, and its Subsidiaries, and to provide a means whereby those persons upon whom the responsibilities of the successful
administration and management of the Company, and its Subsidiaries, rest, and whose present and potential contributions to the welfare of the Company, and its Subsidiaries, are of importance, can acquire and maintain stock ownership, or awards the
value of which is tied to the performance of the Company, thereby strengthening their concern for the welfare of the Company, and its Subsidiaries, and their desire to remain in service to the Company. Accordingly, this Plan primarily provides for
the granting of Options and Stock Appreciation Rights, or a combination of the foregoing, as is best suited to the circumstances of the particular individual as provided herein. 
 2. Definitions. For purposes of this Plan, the following terms shall be defined as set forth below, in addition to such terms defined in
Section 1 hereof: 
 (a) “Award” means any Option or SAR, together with any other right or
interest granted to a Participant under this Plan. 
 (b) “Beneficiary” means one or more persons,
trusts or other entities which have been designated by a Participant, in his or her most recent written beneficiary designation filed with the Committee, to receive the benefits specified under this Plan upon such Participant’s death or to
which Awards or other rights are transferred if and to the extent permitted under Subsection 9(b) hereof. If, upon a Participant’s death, there is no designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means
the persons, trusts or other entities entitled by will or the laws of descent and distribution to receive such benefits. 
 (c) “Board” means the Company’s Board of Directors. 
 (d) “Change in
Control” means the occurrence of any of the following events: 
 (i) The agreement to acquire or a tender offer
for beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act by any Person, of 50% or more of either (x) the then outstanding shares of Stock (the “Outstanding Stock”) or (y) the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes
of this Subsection 1(d)(i), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or
related trust) 

  

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sponsored or maintained by the Company or any corporation controlled by the Company or, (D) any acquisition by any corporation pursuant to a transaction
which complies with clauses (A), and (B) of paragraph (ii) below, or (E) any acquisition by investors (immediately prior to such acquisition) in the Company for financing purposes, as determined by the Committee in its sole
discretion. 
 (ii) Consummation of a reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Company or an acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the Outstanding Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of,
respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company, or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, and (B) at least a majority of the members of the
board of directors of the corporation resulting from such Business Combination were members of the Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
 (iii) Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 
 (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder
and successor provisions and regulations thereto. 
 (f) “Committee” means, unless the Board
determines otherwise, the Compensation Committee of the Board; provided, however, that following such time as the Company has any class of equity security registered pursuant to Section 12 of the Exchange Act, the Committee shall consist
solely of two or more directors, each of whom shall be a “non-employee director” within the meaning of Rule 16b-3. 
 (g) “Effective Date” means April 29, 2008. 
 (h) “Eligible
Person” means all non-employee directors of the Company. 
 (i) “Exchange Act” means the
Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto. 
 (j) “Fair Market Value” means, as of any specified date, (i) if the Stock is listed on a national securities exchange, the closing sales price of the Common Stock as reported on the stock
exchange composite tape on that date (or if no sales occur on that date, on the last preceding date on which such sales of the Stock are so reported); (ii) if the Stock is not traded on 

  

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a national securities exchange but is traded over the counter at the time a determination of its fair market value is required to be made under the Plan, the
price of the last trade on the most recent date on which the Stock was publicly traded; or (iii) in the event Stock is not publicly traded at the time a determination of its value is required to be made under the Plan, the amount determined by
the Committee in its discretion in such manner as it deems appropriate, taking into consideration all factors the Committee deems appropriate including without limitation, the Nonqualified Deferred Compensation Rules. 
 (k) “Nonqualified Deferred Compensation Rules” means the limitations or requirements of section 409A of the Code
and the regulations promulgated thereunder. 
 (l) “Option” means a right, granted to a Participant
under Subsection 6(b) hereof, to purchase Stock at a specified price during specified time periods. 
 (m)
“Participant” means a person who has been granted an Award under this Plan which remains outstanding, including a person who is no longer an Eligible Person. 
 (n) “Person” means any person or entity of any nature whatsoever, specifically including an individual, a firm, a
company, a corporation, a partnership, a limited liability company, a trust or other entity; a Person, together with that Person’s Affiliates and Associates (as those terms are defined in Rule 12b-2 under the Exchange Act, provided that
“registrant” as used in Rule 12b-2 shall mean the Company), and any Persons acting as a partnership, limited partnership, joint venture, association, syndicate or other group (whether or not formally organized), or otherwise acting jointly
or in concert or in a coordinated or consciously parallel manner (whether or not pursuant to any express agreement), for the purpose of acquiring, holding, voting or disposing of securities of the Company with such Person, shall be deemed a single
“Person.” 
 (o) “Securities Act” means the Securities Act of 1933 and the rules and
regulations promulgated thereunder, or any successor law, as it may be amended from time to time. 
 (p)
“Stock” means the Company’s Common Stock, par value $0.01 per share, and such other securities as may be substituted (or resubstituted) for Stock pursuant to Section 8. 
 (q) “Stock Appreciation Right” or “SAR” means a right granted to a Participant under
Subsection 6(c) hereof. 
 (r) “Subsidiary” means with respect to the Company, any corporation or
other entity of which a majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by the Company. 
 3. Administration. 
 (a) Authority of the Committee. Subject to the express
provisions of the Plan, the Committee shall have the authority, in its sole and absolute discretion, to (i) adopt, amend, and rescind administrative and interpretive rules and regulations relating to the Plan; (ii) determine the Eligible
Persons to whom, and the time or times at which, Awards shall be 

  

 3 

 
granted; (iii) determine the amount of cash and the number of shares of Stock or Stock Appreciation Rights, or any combination thereof, that shall be
the subject of each Award; (iv) determine the terms and provisions of each Award agreement (which need not be identical), including provisions defining or otherwise relating to (A) the term and the period or periods and extent of
exercisability of the Options, (B) the extent to which the transferability of shares of Stock issued or transferred pursuant to any Award is restricted, (C) except as otherwise provided herein, the effect of termination of the service
relationship with the Company, of a Participant on the Award, and (D) the effect of approved leaves of absence (consistent with any applicable regulations of the Internal Revenue Service); (v) accelerate the time of exercisability of any
Award that has been granted; (vi) construe the respective Award agreements and the Plan; (vii) make determinations of the Fair Market Value of the Stock pursuant to the Plan; (viii) delegate its duties under the Plan to such agents as
it may appoint from time to time; and (ix) make all other determinations, perform all other acts, and exercise all other powers and authority necessary or advisable for administering the Plan, including the delegation of those ministerial acts
and responsibilities as the Committee deems appropriate. The Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan, in any Award, or in any Award agreement in the manner and to the extent it deems
necessary or desirable to carry the Plan into effect, and the Committee shall be the sole and final judge of that necessity or desirability. The determinations of the Committee on the matters referred to in this Subsection 3(a) shall be final and
conclusive. 
 (b) Manner of Exercise of Committee Authority. Any action of the Committee shall be final, conclusive
and binding on all persons, including the Company, its Subsidiaries, stockholders, Participants, Beneficiaries, and transferees under Subsection 9(b) hereof or other persons claiming rights from or through a Participant. The express grant of any
specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to officers or managers of the Company or any Subsidiary, or
committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions, including administrative functions, as the Committee may determine. 
 (c) Limitation of Liability. The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report
or other information furnished to him or her by any officer or employee of the Company or a Subsidiary, the Company’s legal counsel, independent auditors, consultants or any other agents assisting in the administration of this Plan. Members of
the Committee and any officer or employee of the Company or a Subsidiary acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to this Plan, and
shall, to the fullest extent permitted by law, be indemnified and held harmless by the Company with respect to any such action or determination. 
 4. Stock Subject to Plan. 
 (a) Overall Number of Shares Available for Delivery. Subject to adjustment
in a manner consistent with any adjustment made pursuant to Section 8, the total number of shares of Stock reserved and available for issuance in connection with Awards under this Plan shall not exceed 81,081 shares. 
  

 4 

 (b) Application of Limitation to Grants of Awards. No Award may be granted if the
number of shares of Stock to be delivered in connection with such Award exceeds the number of shares of Stock remaining available under this Plan minus the number of shares of Stock issuable in settlement of or relating to then-outstanding Awards.
The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of shares of Stock actually delivered
differs from the number of shares previously counted in connection with an Award. 
 (c) Availability of Shares Not Issued
under Awards. Shares of Stock subject to an Award under this Plan that expire or are canceled, forfeited, settled in cash or otherwise terminated without an issuance of shares to the Participant, including (i) the number of shares withheld
in payment of any exercise or purchase price of an Award or taxes relating to Awards, and (ii) the number of shares surrendered in payment of any exercise or purchase price of an Award or taxes relating to any Award, will again be available for
Awards under this Plan. 
 (d) Stock Offered. The shares to be delivered under the Plan shall be made available from
(i) authorized but unissued shares of Stock, (ii) Stock held in the treasury of the Company, or (iii) previously issued shares of Stock reacquired by the Company, including shares purchased on the open market. 
 5. Eligibility. Awards may be granted under this Plan only to Persons who are Eligible Persons at the time of grant thereof or in connection with
the severance or retirement of Eligible Persons. 
 6. Specific Terms of Awards. 
 (a) General. Awards may be granted on the terms and conditions set forth in this Section 6. In addition, the Committee may
impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to Subsection 9(c)), such additional terms and conditions, not inconsistent with the provisions of this Plan, as the Committee shall determine, including terms
requiring forfeiture of Awards in the event of termination of the Participant’s service relationship with the Company, and terms permitting a Participant to make elections relating to his or her Award. The Committee shall retain full power and
discretion to accelerate, waive or modify, at any time, any term or condition of an Award that is not mandatory under this Plan. 
 (b) Options. The Committee is authorized to grant Options to Participants on the following terms and conditions: 
 (i) Exercise Price. Each Option agreement shall state the exercise price per share of Stock (the “Exercise Price”). 
 (ii) Time and Method of Exercise. The Committee shall determine the time or times at which or the circumstances under which an Option may be exercised in whole or in part (including based on achievement of
performance goals and/or future service requirements), the methods by which such exercise price may be paid or deemed to be paid, the form of such payment, including without limitation cash, Stock, other Awards or awards granted under other plans of
the Company or any Subsidiary, or other property (including notes or other 

  

 5 

 
contractual obligations of Participants to make payment on a deferred basis), and the methods by or forms in which Stock will be delivered or deemed to be
delivered to Participants. In the case of an exercise whereby the Exercise Price is paid with Stock, such Stock shall be valued as of the date of exercise. 
 (c) Stock Appreciation Rights. The Committee is authorized to grant SARs to Participants on the following terms and conditions: 
 (i) Right to Payment. A SAR shall confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the
excess of (A) the Fair Market Value of one share of Stock on the date of exercise over (B) the grant price of the SAR as determined by the Committee. 
 (ii) Rights. A SAR granted shall be exercisable as determined by the Committee and set forth in the Award agreement governing the
SAR, which Award agreement shall comply with the following provisions: 
 (A) Each Award agreement shall state the total
number of shares of Stock to which the SAR relates. 
 (B) Each Award agreement shall state the time or periods in which the
right to exercise the SAR or a portion thereof shall vest and the number of shares of Stock for which the right to exercise the SAR shall vest at each such time or period. 
 (C) Each Award agreement shall state the date at which the SARs shall expire if not previously exercised. 
 (D) Each SAR shall entitle a participant, upon exercise thereof, to receive payment of an amount determined by multiplying: 

(1) the difference obtained by subtracting the Fair Market Value of a share of Stock on the date of grant of the SAR from the Fair
Market Value of a share of Stock on the date of exercise of that SAR, by 
 (2) the number of shares as to which the SAR has
been exercised. 
 (iii) Terms. Except as otherwise provided herein, the Committee shall determine at the date of grant
or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the method of exercise, method of
settlement, form of consideration payable in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Participants, whether or not a SAR shall be in tandem or in combination with any other Award, and any other
terms and conditions of any SAR. SARs may be either freestanding or in tandem with other Awards. 
  

 6 

 7. Certain Provisions Applicable to Awards. 
 (a) Termination of Service. Except as provided herein, the treatment of an Award upon a termination of the service relationship by
and between a Participant and the Company or any Subsidiary shall be specified in the agreement controlling such Award. 
 (b)
Stand-Alone, Additional, Tandem, and Substitute Awards. Awards granted under this Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or
any award granted under another plan of the Company, any Subsidiary, or any business entity to be acquired by the Company or a Subsidiary, or any other right of a Participant to receive payment from the Company or any Subsidiary. Such additional,
tandem and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award or award, the Committee shall require the surrender of such other Award or award in consideration for the grant
of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the Company or any Subsidiary, in which the value of Stock subject to the Award is equivalent in value
to the cash compensation, or in which the exercise price, grant price or purchase price of the Award in the nature of a right that may be exercised is equal to the Fair Market Value of the underlying Stock minus the value of the cash compensation
surrendered. 
 (c) Term of Awards. Except as specified herein, the term of each Award shall be for such period as may
be determined by the Committee; provided, however, that in no event shall the term of any Option or SAR exceed a period of ten years. 
 (d) Form and Timing of Payment under Awards; Deferrals. Subject to the terms of this Plan and any applicable Award agreement, payments to be made by the Company or a Subsidiary upon the exercise of an Option or
other Award or settlement of an Award may be made in such forms as the Committee shall determine, including without limitation cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a
deferred basis. Except as otherwise provided herein, the settlement of any Award may be accelerated, and cash paid in lieu of Stock in connection with such settlement, in the discretion of the Committee or upon occurrence of one or more specified
events (in addition to a Change in Control). Installment or deferred payments may be required by the Committee (subject to Subsection 9(c) of this Plan, including the consent provisions thereof in the case of any deferral of an outstanding Award not
provided for in the original Award agreement) or permitted at the election of the Participant on terms and conditions established by the Committee. Payments may include, without limitation, provisions for the payment or crediting of reasonable
interest on installment or deferred payments or other amounts in respect of installment or deferred payments denominated in Stock. Any deferral shall only be allowed as is provided in a separate deferred compensation plan adopted by the Company.
This Plan shall not constitute an “employee benefit plan” for purposes of section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. 
  

 7 

 8. Subdivision or Consolidation; Recapitalization; Change in Control; Reorganization. 

(a) Existence of Plan and Awards. The existence of this Plan and the Awards granted hereunder shall not affect in any way the
right or power of the Board or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company,
any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other
corporate act or proceeding. 
 (b) Subdivision or Consolidation of Shares. The terms of an Award and the number of
shares of Stock authorized pursuant to Section 4 for issuance under the Plan shall be subject to adjustment from time to time, in accordance with the following provisions: 
 (i) If at any time, or from time to time, the Company shall subdivide as a whole (by a Stock split, by the issuance of a distribution on
Stock payable in Stock, or otherwise) the number of shares of Stock then outstanding into a greater number of shares of Stock, then (A) the maximum number of shares of Stock available in connection with the Plan or Awards as provided in
Section 4 shall be increased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the number of shares of Stock (or other kind of shares or securities) that may be acquired
under any Award shall be increased proportionately, and (C) the price (including the exercise price) for each share of Stock (or other kind of shares or securities) subject to then outstanding Awards shall be reduced proportionately, without
changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions. 
 (ii) If at any time, or from time to time, the Company shall consolidate as a whole (by reverse Stock split, or otherwise) the number of shares of Stock then outstanding into a lesser number of shares of Stock, (A) the maximum number
of shares of Stock available in connection with the Plan or Awards as provided in Section 4 shall be decreased proportionately, and the kind of shares or other securities available for the Plan shall be appropriately adjusted, (B) the
number of shares of Stock (or other kind of shares or securities) that may be acquired under any Award shall be decreased proportionately, and (C) the price (including the exercise price) for each share of Stock (or other kind of shares or
securities) subject to then outstanding Awards shall be increased proportionately, without changing the aggregate purchase price or value as to which outstanding Awards remain exercisable or subject to restrictions. 
 (iii) Whenever the number of shares of Stock subject to outstanding Awards and the price for each share of Stock subject to outstanding
Awards are required to be adjusted as provided in this Subsection 8(b), the Committee shall promptly prepare, and deliver to each Participant, a notice setting forth, in reasonable detail, the event requiring adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the change in price and the number of shares of Stock, other securities, cash, or property purchasable subject to each Award after giving effect to the adjustments. 
  

 8 

 (iv) Adjustments under Subsections 8(b)(i) and (ii) shall be made by the Committee,
and its determination as to what adjustments shall be made and the extent thereof shall be final, binding, and conclusive. No fractional interest shall be issued under the Plan on account of any such adjustments. 
 (c) Corporate Recapitalization. 
 (i) If the Company recapitalizes, reclassifies its capital stock, or otherwise changes its capital structure (a “recapitalization”), the number and class of shares of Stock covered by an Option
or a SAR theretofore granted shall be adjusted so that such Option or SAR shall thereafter cover the number and class of shares of stock and securities to which the holder would have been entitled pursuant to the terms of the recapitalization if,
immediately prior to the recapitalization, the holder had been the holder of record of the number of shares of Stock then covered by such Option or SAR and the share limitations provided in Section 4 shall be adjusted in a manner consistent
with the recapitalization. 
 (ii) In the event of changes in the outstanding Stock by reason of recapitalization,
reorganizations, mergers, consolidations, combinations, exchanges or other relevant changes in capitalization (including, but not limited to, an extraordinary dividend) occurring after the date of the grant of any Award and not otherwise provided
for by this Section 8, any outstanding Awards and any agreements evidencing such Awards shall be subject to adjustment by the Committee at its discretion as to the number and price of shares of Stock or other consideration subject to such
Awards. In the event of any such change in the outstanding Stock, the share limitations provided in Section 4 may be appropriately adjusted by the Committee, whose determination shall be conclusive. 
 (d) Additional Issuances. Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class or
securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible
into such shares or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to Awards theretofore granted or the
purchase price per share, if applicable. 
 (e) Change in Control. Immediately prior to a Change in Control, the time
at which all Options or SARs then outstanding may be exercised shall be accelerated, and the Committee, acting in its sole discretion without the consent or approval of any holder, may require that such Option or SAR must be exercised in full for a
limited period of time on or before a specified date (before or after such Change in Control) fixed by the Committee, after which specified date all unexercised Options or SARs and all rights of holders thereunder shall terminate. 
 9. General Provisions. 
 (a)
Restricted Securities. Resales of “restricted securities,” as defined in Rule 144 as such rule has been promulgated by the Securities and Exchange Commission under the 

  

 9 

 
Securities Act as from time to time in effect and applicable to the Plan and Participants, shall be in compliance with the Securities Act or an exemption
therefrom. Such Stock may bear a legend if determined necessary by the Committee in substantially the following form: 
 “THE SHARES OF
STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THE SHARES MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED, OR OTHERWISE DISPOSED OF UNTIL THE HOLDER
HEREOF PROVIDES EVIDENCE SATISFACTORY TO PHOSPHATE HOLDINGS, INC. (WHICH, IN THE DISCRETION OF PHOSPHATE HOLDINGS, INC., MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO PHOSPHATE HOLDINGS, INC.) THAT SUCH OFFER, SALE, PLEDGE, TRANSFER, OR OTHER
DISPOSITION WILL NOT VIOLATE APPLICABLE FEDERAL OR STATE LAWS.” 
 (b) Transferability. 
 (i) Permitted Transferees. The Committee may, in its discretion, permit a Participant to transfer all or any portion of an Option,
or authorize all or a portion of an Option to be granted to an Eligible Person to be on terms which permit transfer by such Participant; provided that, in either case the transferee or transferees must be a child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, in each case with respect to the Participant, any
person sharing the Participant’s household (other than a tenant or employee of the Company), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or the Participant)
control the management of assets, or any other entity in which these persons (or the Participant) own more than fifty percent of the voting interests (collectively, “Permitted Transferees”); provided further that,
(X) there may be no consideration for any such transfer and (Y) subsequent transfers of Options transferred as provided above shall be prohibited except subsequent transfers back to the original holder of the Option and transfers to other
Permitted Transferees of the original holder. Agreements evidencing Options with respect to which such transferability is authorized at the time of grant must be approved by the Committee, and must expressly provide for transferability in a manner
consistent with this Subsection 9(b)(i). 
 (ii) Qualified Domestic Relations Orders. An Option or Stock Appreciation
Right may be transferred to a Permitted Transferee pursuant to a domestic relations order entered or approved by a court of competent jurisdiction upon delivery to the Company of written notice of such transfer and a certified copy of such order.

 (iii) Other Transfers. Except as expressly permitted by Subsections 9(b)(i) and 9(b)(ii), Awards shall not be
transferable other than by will or the laws of descent and distribution. 
  

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 (iv) Effect of Transfer. Following the transfer of any Award as contemplated by
Subsections 9(b)(i), 9(b)(ii) or 9(b)(iii), (A) such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that the term “Participant” shall be
deemed to refer to the Permitted Transferee, the recipient under a qualified domestic relations order, or the estate or heirs of a deceased Participant, as applicable, to the extent appropriate to enable the Participant to exercise the transferred
Award in accordance with the terms of this Plan and applicable law and (B) the provisions of the Award relating to exercisability shall continue to be applied with respect to the original Participant and, following the occurrence of any
applicable events described therein, the Awards shall be exercisable by the Permitted Transferee, the recipient under a qualified domestic relations order, or the estate or heirs of a deceased Participant, as applicable, only to the extent and for
the periods that would have been applicable in the absence of the transfer. 
 (v) Procedures and Restrictions. Any
Participant desiring to transfer an Award as permitted under Subsections 9(b)(i), 9(b)(ii) or 9(b)(iii) shall make application therefor in the manner and time specified by the Committee and shall comply with such other requirements as the Committee
may require to assure compliance with all applicable securities laws. The Committee shall not give permission for such a transfer if it may not be made in compliance with all applicable federal, state and foreign laws. 
 (vi) Registration. To the extent the issuance to any Permitted Transferee of any shares of Stock issuable pursuant to Awards
transferred as permitted in this Subsection 9(b) is not registered pursuant to the effective registration statement of the Company generally covering the shares to be issued pursuant to this Plan to initial holders of Awards, the Company shall not
have any obligation to register the issuance of any such shares of Stock to any such transferee. 
 (c) Changes to this
Plan and Awards. The Board may amend, alter, suspend, discontinue or terminate this Plan or the Committee’s authority to grant Awards under this Plan without the consent of stockholders or Participants, except that any amendment or
alteration to this Plan, including any increase in any share limitation, shall be subject to the approval of the Company’s stockholders not later than the annual meeting next following such Board action if such stockholder approval is required
by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine to submit other such changes to
this Plan to stockholders for approval; provided, however, that, without the consent of an affected Participant, no such Board action may materially and adversely affect the rights of such Participant under any previously granted and
outstanding Award. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue or terminate any Award theretofore granted and any Award agreement relating thereto, except as otherwise provided in this Plan;
provided, however, that, without the consent of an affected Participant, no such Committee action may materially and adversely affect the rights of such Participant under such Award. 
 (d) Limitation on Rights Conferred under Plan. Neither this Plan nor any action taken hereunder shall be construed as
(i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the service of the Company or a 

  

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Subsidiary, (ii) interfering in any way with the right of the Company or a Subsidiary to terminate any Eligible Person’s or Participant’s
service relationship at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under this Plan or to be treated uniformly with other Participants or employees or other service providers of the Company, or
(iv) conferring on a Participant any of the rights of a stockholder of the Company unless and until the Participant is duly issued or transferred shares of Stock in accordance with the terms of an Award. 
 (e) Nonexclusivity of this Plan. Neither the adoption of this Plan by the Board nor its submission to the stockholders of the
Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable. Nothing contained in this Plan shall be construed to prevent
the Company or any Subsidiary from taking any corporate action which is deemed by the Company or such Subsidiary to be appropriate or in its best interest, whether or not such action would have an adverse effect on this Plan or any Award made under
this Plan. No employee, beneficiary or other person shall have any claim against the Company or any Subsidiary as a result of any such action. 
 (f) Fractional Shares. No fractional shares of Stock shall be issued or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, other Awards or other property shall be issued
or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
 (g) Severability. If any provision of this Plan is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully
severable and the Plan shall be construed and enforced as if the illegal or invalid provision had never been included herein. 
 (h) Governing Law. All questions arising with respect to the provisions of the Plan and Awards shall be determined by application of the laws of the State of Mississippi without giving effect to any conflict of law provisions
thereof, except to the extent Mississippi state law is preempted by federal law. The obligation of the Company to sell and deliver Stock hereunder is subject to applicable federal and state laws and to the approval of any governmental authority
required in connection with the authorization, issuance, sale, or delivery of such Stock. 
 (i) Conditions to Delivery of
Stock. Nothing herein or in any Award granted hereunder or any Award agreement shall require the Company to issue any shares with respect to any Award if that issuance would, in the opinion of counsel for the Company, constitute a violation of
the Securities Act or any similar or superseding statute or statutes, any other applicable statute or regulation, or the rules of any applicable securities exchange or securities association, as then in effect. At the time of any exercise of an
Option or Stock Appreciation Right, the Company may, as a condition precedent to the exercise of such Option or Stock Appreciation Right, require from the Participant (or in the event of his or her death, his or her legal representatives, heirs,
legatees, or distributees) such written representations, if any, concerning the holder’s intentions with regard to the retention or disposition of the shares of Stock being acquired pursuant to the Award and such written covenants and
agreements, if any, as to the manner of disposal of such shares as, in the opinion of counsel to the Company, may be 

  

 12 

 
necessary to ensure that any disposition by that holder (or in the event of the holder’s death, his or her legal representatives, heirs, legatees, or
distributees) will not involve a violation of the Securities Act or any similar or superseding statute or statutes, any other applicable state or federal statute or regulation, or any rule of any applicable securities exchange or securities
association, as then in effect. 
 (j) Arbitration. If any dispute arises out of this Plan or any Award Agreement
governing an Award granted pursuant to this Plan, the “complaining party” shall give the “other party” written notice of such dispute. The other party shall have 10 business days to resolve the dispute to the complaining
party’s satisfaction. If the dispute is not resolved by the end of such period, the complaining party may by written notice (the “Arbitration Notice”) demand arbitration of the dispute as set out below, and each party
hereto expressly agrees to submit to, and be bound by, such arbitration, in lieu of a jury trial. 
 (i) Each party will,
within 10 business days of the Arbitration Notice, nominate an arbitrator, who shall be a non-neutral arbitrator. Each nominated arbitrator must be someone experienced in dispute resolution and of good character without moral turpitude and not
within the employ or direct or indirect influence of the nominating party. The two nominated arbitrators will, within 10 business days of nomination, agree upon a third arbitrator, who shall be neutral. If the two appointed arbitrators cannot agree
on a third arbitrator within such period, the parties may seek such an appointment through any permitted court proceeding or by the American Arbitration Association (“AAA”). The three arbitrators will set the rules and timing
of the arbitration, but will generally follow the rules of the AAA and this Agreement where same are applicable and shall provide for a reasoned opinion. 
 (ii) The arbitration hearing will in no event take place more than 90 days after the appointment of the third arbitrator. 
 (iii) The arbitration will take place in Madison, Mississippi, unless otherwise unanimously agreed to by the parties. 
 (iv) The results of the arbitration and the decision of the arbitrators will be final and binding on the parties and each party agrees and acknowledges that these results shall be enforceable in a court of law.

 (v) Each party shall be responsible for paying their own costs and expenses, including attorneys’ fees, which arise as
a result of the arbitration. 
 (k) Plan Effective Date. This Plan has been adopted by the Board effective as of
April 29, 2008. 
  

 13

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