Document:

Exhibit 10.1

    Exhibit
      10.1

    

    FORBEARANCE
      AGREEMENT

    

    This
      Forbearance Agreement (“Agreement”)
      is
      made as of November 29, 2006 by and between SEQUIAM CORPORATION, a California
      corporation having a place of business and mailing address at 300 Sunport Lane,
      Orlando, Florida 32809 (“Borrower”)
      and
      Stephen A. Ross, as duly authorized agent for the TRUST UNDER THE WILL OF JOHN
      SVENNINGSEN, having a place of business and mailing address at 33 Whitney
      Avenue, New Haven, Connecticut 06510 (“Holder”).

    

    BACKGROUND:

    

    
      	
              A.

            	
              On
                May 18, 2005, Borrower and Holder’s predecessor-in-interest, Lee Harrison
                Corbin, Attorney-in-Fact, for the Trust Under the Will of John
                Svenningsen, entered into that certain Securities Purchase Agreement
                (the
                “SPA”),
                pursuant to which, among other things, Borrower agreed to issue a
                warrant
                to Holder to purchase up to 10,025,000 of Borrower’s common
                stock.

            

    

    

    
      	
              B.

            	
              In
                connection with the SPA, on May 18, 2005, Borrower executed that
                certain
                Amended, Restated and Consolidated Senior Secured Term Note in favor
                of
                Holder’s predecessor-in-interest, Lee Harrison Corbin, Attorney-in-Fact,
                for the Trust Under the Will of John Svenningsen (the “Note”),
                pursuant to which, among other things, Holder agreed to advance certain
                amounts to Borrower and to consolidate certain existing loans and
                other
                credit accommodations into a single note evidencing principal indebtedness
                of $3,650,000 (the “Loan”).
                

            

    

    

    
      	
              C.

            	
              The
                SPA and the Note, together with all other agreements, notes, instruments,
                warrants, security agreements, and other documents previously, now
                or
                hereafter executed and delivered to Holder governing the transactions
                between Holder and Borrower, including without limitation, the Loan,
                as
                same may have been or be amended, restated, supplemented or modified
                from
                time to time, are collectively referred to herein as the “Loan
                Documents”.

            

    

    

    
      	
              D.

            	
              Borrower
                has previously acknowledged and agreed that certain defaults and/or
                events
                and/or conditions which, upon declaration by Holder and/or with notice
                or
                the lapse of time, or both, would become events of default under
                the Loan
                Documents, have occurred and are continuing, which if declared and
                the
                obligations under the Loan Documents accelerated,
                would entitle Holder to immediate payment in full of all obligations
                under
                the Loan Documents
                and would also entitle Holder to exercise all rights and remedies
                provided
                for under the Loan Documents if repayment in full of the obligations
                thereunder did not occur. 

            

    

    

    
      	
              E.

            	
              Borrower
                has requested,
                and Holder, has agreed, in accordance with the terms and conditions
                set
                forth herein, to forbear from declaring an event of default under
                the Loan
                Documents and exercising all rights and remedies provided Holder
                thereunder, including without limitation, taking action to collect
                payment
                in full of the obligations under the Loan Documents.
                

            

    

    

    NOW,
      THEREFORE, Holder and Borrower agree as follows: 

    

    1.  Incorporation
      of Recitals.
      Each
      of
      the foregoing recitals is hereby acknowledged and affirmed as being accurate
      and
      complete and is hereby incorporated as part of this Agreement.

    

    2.  Forbearance.
      Subject
      to the satisfaction of the terms and conditions set forth herein, until that
      date (the “Forbearance
      Termination Date”),
      which
      is the earliest to occur of (a) December 15, 2006, or (b) the date of the
      occurrence of any one or more of the events of default under this Agreement
      set
      forth in Section 6 below, Holder will not exercise or enforce its rights or
      remedies against Borrower to which Holder would be entitled under the terms
      of
      the Loan Documents by reason of the existing events of default thereunder;
      provided that
      such
      forbearance shall not act as a waiver of Holder's right to enforce any such
      right or remedy after the Forbearance Termination Date. Furthermore, nothing
      contained herein shall be construed as requiring Holder to extend the
      Forbearance Termination Date. Notwithstanding anything to the contrary set
      forth
      in any of the Loan Documents, Borrower agrees to pay in full in cash on the
      Forbearance Termination Date the outstanding principal amount of all obligations
      to Holder under the Loan Documents, together with all interest thereon
      (including any and all interest accruing at the default rate of interest) and
      all costs, fees and expenses of Holder incurred in connection therewith.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    3. Payments/Forbearance
      Fees. In
      consideration hereof by its execution of this Agreement, Borrower hereby
      authorizes Holder to charge, on the date hereof, to its revolving loan account
      a
      forbearance fee of $0. 

    

    4.  Cross-Default
      and Cross-Collateralization.
      Borrower
      agrees that (a) all collateral previously, now or hereafter pledged by Borrower
      to Holder as collateral security for any loans, obligations or liabilities
      of
      any kind or description of Borrower to Holder shall serve as security for all
      obligations and (b) a default by any of Borrower under the terms of this
      Agreement or any of the other Loan Documents shall constitute a default in
      and
      to all obligations and under all of the Loan Documents. Further, Borrower hereby
      agrees to execute and deliver to Holder any and all documents and to do all
      things that Holder may require, in its sole and absolute discretion, to give
      effect to the cross-collateralization and cross-default of such
      obligations.

    

    5. Ratification
      of Existing Agreements.
      Borrower reaffirms all of the terms, conditions, representations and warranties
      of the Loan Documents (except as expressly set forth herein) and acknowledge
      that all of the Obligations are, by Borrower’s execution of this Agreement,
      ratified and confirmed in all respects by Borrower. Borrower acknowledges that
      all of its obligations, indebtedness and liabilities to Holder under the Loan
      Documents are joint and several. 

    

    6. Events
      of Default.
      The
      occurrence of any one or more of the following events shall constitute an event
      of default under this Agreement, it being expressly acknowledged and agreed
      that
      TIME IS OF THE ESSENCE: (a) an
      event
      of default under the Loan Documents (other than those events of default of
      which
      Holder is aware and exist at the time of execution of this Agreement); (b)
      the
      failure of Borrower to comply with the terms of this Agreement or failure to
      furnish any document or report required to be furnished hereunder; (c) the
      initiation of any federal or state bankruptcy, insolvency or similar proceeding
      by Borrower; (d) the initiation of any federal or state bankruptcy, insolvency
      or similar proceeding against any Obligor which is not dismissed or withdrawn
      within 90 days after the commencement of such proceeding; (e) the commencement
      of litigation or legal proceedings by Borrower against Holder or any of its
      affiliates; (f) the
      filing or commencement of any indictment, charge or proceeding, whether criminal
      or civil, pursuant to Federal or state law against Borrower; or (g) failure
      of
      Borrower to cooperate with Holder personnel in the performance of any
      investigation or examination of Borrower’s business, properties, assets,
      liabilities and prospects, of a scope and substance satisfactory to
      Holder.
      Upon
      the
      occurrence of any event of default under this Agreement, Holder may, at its
      option and without notice to Borrower, exercise any and all rights and remedies
      pursuant to the Loan Documents in such manner as Holder in its sole and
      exclusive discretion determines.

    

      7. Release
      of Holder.
      By
      execution of this Agreement, Borrower acknowledges and confirms that it does
      not
      have any offsets, defenses or claims against Holder, or any of its subsidiaries,
      affiliates, officers, directors, employees, agents, representatives, trustees,
      attorneys, predecessors, successors or assigns whether asserted or unasserted.
      To the extent that such offsets, defenses or claims may exist, Borrower and
      each
      of its successors, assigns, parents, subsidiaries, affiliates, predecessors,
      employees, agents, representatives, heirs and executors, as applicable
      (collectively, “Releasors”),
      jointly and severally, release and forever discharge Holder, its subsidiaries,
      affiliates, officers, directors, employees, agents, representatives, trustees,
      attorneys, predecessors, successors and assigns, both present and former
      (collectively the “Holder
      Affiliates”)
      of and
      from any and all manner of actions, causes of action, suits, debts,
      controversies, damages, judgments, executions, claims and demands whatsoever,
      asserted or unasserted, in law or in equity, which Releasors ever had or now
      have against Holder and/or Holder Affiliates, including, without limitation,
      any
      presently existing claim or defense whether or not presently suspected,
      contemplated or anticipated.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8. Lien
      And Setoff.
      Borrower hereby grants to Holder a lien, security interest and right of setoff
      as security for all of such party’s obligations, whether now existing or
      hereafter arising, upon and against all deposits, credits, collateral and
      property of such party, now or hereafter in the possession, custody, safekeeping
      or control of Holder or any entity under the control of Holder, or in transit
      to
      any of them. At any time, without demand or notice, Holder may setoff the same
      or any part thereof and apply the same to any obligation of Borrower, as
      applicable, even though unmatured and regardless of the adequacy of any other
      collateral securing such liabilities or obligations. ANY AND ALL RIGHTS OF
      BORROWER TO REQUIRE HOLDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT
      TO
      ANY OTHER COLLATERAL WHICH SECURES ITS LIABILITY UNDER THE LOAN DOCUMENTS,
      PRIOR
      TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR
      OTHER PROPERTY OF SUCH PARTY, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
      WAIVED. 

    

    9. No
      Waiver by Holder.
      Nothing
      in this Agreement shall extend to or affect in any way any of the obligations
      or
      any of the rights of Holder and remedies of Holder arising under the Loan
      Documents, and Holder shall not be deemed to have waived any or all of such
      rights or remedies with respect to any default or event or condition which,
      with
      notice or the lapse of time, or both, would become a default under the Loan
      Documents and which upon Borrower’s execution and delivery of this Agreement
      might otherwise exist or which might hereafter occur.

    

    10. Acknowledgment/Waiver
      of Legal Counsel.
      Borrower
      represents and warrants that (1) it is represented by legal counsel of its
      choice, is fully aware of the terms contained in this Agreement and has
      voluntarily and without coercion or duress of any kind, entered into this
      Agreement and the documents executed in connection with this Agreement; or
      (2)
      it has knowingly and intentionally waived its right to have legal counsel of
      its
      choice review and represent it with respect to the negotiation and preparation
      of this Agreement. 

    

    11. Entire
      Agreement; Binding Affect.
      This
      Agreement constitutes the entire and final agreement among the parties and
      there
      are no agreements, understandings, warranties or representations among the
      parties except as set forth herein. This Agreement will inure to the benefit
      and
      bind the respective heirs, administrators, executors, representatives,
      successors and permitted assigns of the parties hereto. Nothing in this
      Agreement or in the Loan Documents, expressed or implied, is intended to confer
      upon any party other than the parties hereto and thereto any rights, remedies,
      obligations or liabilities under or by reason of this Agreement or the Loan
      Documents.

    

    12. Governing
      Law.
      This
      Agreement is executed and delivered in the State of New York (the “State”)
      and it
      is the desire and intention of the parties that it be in all respects
      interpreted according to the laws of the State. Borrower specifically and
      irrevocably consents to the jurisdiction and venue of the federal and state
      courts of the State with respect to all matters concerning this Agreement or
      the
      Loan Documents or the enforcement of any of the foregoing. Borrower agrees
      that
      the execution and performance of this Agreement shall have a State situs
      and
      accordingly, consents to personal jurisdiction in the State.

    

    13. Organization
      and Authority.
      Borrower
      represents and warrants that it is duly organized, validly existing and in
      legal
      good standing in its State of incorporation and that it has the power and
      authority to enter into this Agreement. 

    

    14. Counterparts.
      This
      Agreement may be executed in counterparts, each of which will be deemed an
      original document, but all of which will constitute a single document. This
      document will not be binding on or constitute evidence of a contract between
      the
      parties until such time as a counterpart of this document has been executed
      by
      each of the parties and a copy thereof delivered to each party under this
      Agreement.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    15. WAIVER
      OF JURY TRIAL.
      BORROWER KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE
      OR HEREAFTER HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR
      PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE UNDERLYING
      TRANSACTIONS. BORROWER CERTIFIES THAT NEITHER HOLDER NOR ANY OF ITS
      REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
      THAT
      HOLDER WOULD NOT IN THE EVENT OF ANY SUCH SUIT, SEEK TO ENFORCE THIS WAIVER
      OF
      RIGHT TO TRIAL BY JURY.

    

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    

    [SIGNATURES
      APPEAR ON THE FOLLOWING PAGE]

    
      
         

        

         

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement as an instrument under seal as of the
      day
      and year first written above.

    

    
      	
              WITNESS:

               

               

               

              _______________________________________                

              Print
                Name:____________________________________     

               

              _______________________________________

              Print
                Name: ____________________________________     

            	
               

               

               

               

              ____________________________________________

              Stephen
                A. Ross, duly authorized agent for the TRUST
                UNDER THE WILL OF JOHN SVENNINGSEN

            
	
              WITNESSES:

               

               

              ______________________________________

              Print
                Name: __________________________________     

               

              ______________________________________

              Print
                Name: __________________________________     

            	
              SEQUIAM
                CORPORATION

               

               

               

              By:     
                ________________________________      

              Its:
                ___________________________     

              (Duly
                Authorized)

            

    

    

    STATE
      OF
      CONNECTICUT )

    )
      ss: New
      Haven

    COUNTY
      OF
      NEW HAVEN )

    

    On
      this
      ___ day of November, 2006, before me, the undersigned personally appeared
      Stephen A. Ross, who acknowledged himself to be the duly authorized
      agent for
      the
      TRUST UNDER THE WILL OF JOHN SVENNINGSEN, and that he, as such duly authorized
      agent, being authorized so to do, executed the foregoing instrument as his
      and
      its free act and deed for the purposes therein contained, by signing his name
      to
      the foregoing instrument by himself as such authorized agent.

    

    In
      Witness Whereof, I hereunto set my hand.

    

    ____________________________________

    Notary
      Public

    My
      Commission Expires:

    

    STATE
      OF
      FLORIDA )

    )
      ss.
      ____________

    COUNTY
      OF_________________ )

    

    On
      this
      ___ day of November, 2006, before me, the undersigned officer, personally
      appeared ____________________ who acknowledged himself to be the _________
      of
      SEQUIAM CORPORATION, a California corporation, and that he, as such __________,
      being authorized so to do, executed the foregoing instrument as his and its
      free
      act and deed for the purposes therein contained, by signing the name of the
      corporation by himself as such officer.

    

    In
      Witness Whereof, I hereunto set my hand.

    

    

    ____________________________________

    Notary
      Public

    My
      Commission Expires: 

     

    
      
        
        

      

      
        5exv4wxay

 

Exhibit 4(a)

     This Security is in global form within the meaning of the Indenture hereinafter referred
to and is registered in the name of The Depository Trust Company, a New York corporation (“DTC”),
or a nominee of DTC, which may be treated by the Company, the Trustee and any agent thereof as
owner and holder of this Security for all purposes.

     Unless this certificate is presented by an authorized representative of DTC to the Company or
its agent for registration of transfer, exchange, or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Securities in definitive form in the
limited circumstances referred to in the Indenture, this global Security may not be transferred
except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of
DTC or by DTC or any such nominee to a successor depositary or a nominee of such successor
depositary.

			
	 	 	 
	Registered
	 	Principal Amount: $500,000,000
	CUSIP No. 73755L AD 9	 	 

POTASH CORPORATION OF SASKATCHEWAN INC.

5.875% Notes due December 1, 2036

     POTASH CORPORATION OF SASKATCHEWAN INC., a Canadian corporation (hereinafter called the
“Company,” which term shall include any successor entity under the Indenture), for value received,
hereby promises to pay to Cede & Co., as nominee for DTC, or registered assigns, upon presentation,
the principal sum of FIVE HUNDRED MILLION DOLLARS ($500,000,000) on December 1, 2036 and to pay
interest thereon from December 4, 2006 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually in arrears on June 1 and December 1 in
each year, commencing June 1, 2007, at the rate of 5.875% per annum, until the entire principal amount
hereof is paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest, which shall be May 15 or November 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular Record Date, and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the

 

 

payment of Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not more than 15 days and not less than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in the Indenture.

     Payment of the principal of, interest on and Additional Amounts, if any, with respect to this
global Security will be paid to DTC for the purpose of permitting DTC to credit the principal and
interest received by it in respect of this global Security to the accounts of the beneficial owners
thereof; provided, however, that if this Security is not a global Security, payment of the
principal of, interest on and Additional Amounts, if any, with respect to this Security will be
made at the office or agency of the Trustee in The City of New York, or elsewhere as provided in
the Indenture, in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; and provided, further, that at the option
of the Company payment of interest may be made by (a) check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (b) transfer to an
account of the Person entitled thereto located inside the United States.

     Additional provisions of this Security are set forth following the signature page hereof,
which provisions shall for all purposes have the same effect as if set forth at this place.

2

 

IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed
this 4th day of
December, 2006.

	 	 	 	 	 
	 	POTASH CORPORATION OF SASKATCHEWAN INC.

 	 
	 	By:  	 	 
	 	Name:  	Wayne R. Brownlee 	 
	 	Title:  	Senior Vice President, Treasurer
and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	Joseph A. Podwika	 
	 	Title:  	Senior Vice President, General
Counsel and Secretary 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This
is one or all of the Securities of the series designated “5.875% Notes due December 1, 2036”
pursuant to the within-mentioned Indenture.

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK,

as Trustee

	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 
	 

3

 

5.875% Notes due December 1, 2036

     This Security is one or all of a duly authorized issue of securities of the Company (herein
called the “Securities”) issued and to be issued in one or more series under an Indenture, dated as
of February 27, 2003 (herein called the “Indenture”), between the Company and The Bank of Nova
Scotia Trust Company of New York, as trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one or all of the series designated as the “5.875% Notes due December 1, 2036.”

     The Securities in this series are redeemable, in whole or in part, at the Company’s option at
any time and from time to time at a Redemption Price equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed and (ii) the sum of the present values of the
Remaining Scheduled Payments discounted to the relevant Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the
Adjusted Treasury Rate plus 20
basis points, together with, in each case, accrued interest on the principal amount of the
Securities to be redeemed to the Redemption Date.

     In connection with such optional redemption, the following defined terms apply:

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity (computed as of the second Business Day immediately
preceding that Redemption Date) of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for that Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Securities of this series.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) on the third Business Day preceding that Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the Federal Reserve Bank of New
York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such
release (or any successor release) is not published or does not contain such prices on such
Business Day, (A) the average of the Reference Treasury Dealer Quotations for that Redemption Date,
after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the
Independent Investment Banker for the Securities obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all such Quotations.

4

 

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Company to act as the “Independent Investment Banker.”

     “Reference Treasury Dealer” means Credit Suisse Securities (USA) LLC and its successors and
two other nationally recognized investment banking firms each of which is a primary U.S. Government
securities dealer in New York City (herein called a “Primary Treasury Dealer”) specified from time
to time by the Company; provided, however, that if any of the foregoing shall cease to be a Primary
Treasury Dealer, the Company shall substitute therefor another nationally recognized investment
banking firm that is a Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker by such Reference
Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding that
Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be redeemed, the
remaining scheduled payments of the principal thereof and interest thereon that would be due after
the related Redemption Date but for such redemption; provided, however, that, if that Redemption
Date is not an Interest Payment Date with respect to such Security, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued
thereon to that Redemption Date.

     Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of the Securities in this series to be redeemed. On and after any
Redemption Date, interest will cease to accrue on the Securities in this series or any portion
thereof called for redemption. On or before any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent money sufficient to pay the Redemption Price of and accrued interest
on the Securities in this series to be redeemed on such date. If less than all the Securities in
this series are to be redeemed, the Securities to be redeemed shall be selected by the Trustee at
the Company’s direction by such method as the Company and the Trustee shall deem fair and
appropriate. The Redemption Price shall be calculated by the Independent Investment Banker, and the
Company, the Trustee and any Paying Agent for the Securities of this series shall be entitled to
rely on such calculation.

     If a Change of Control Triggering Event occurs, unless the Company has exercised its right to
redeem the Securities as described above, it will be required to make an offer to repurchase all,
or any part, (equal to $1,000 or an integral multiple thereof) of each Holder’s Securities pursuant
to the offer described below (the “Change of Control Offer”) on the terms set forth herein. In the
Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the
aggregate principal amount of Securities repurchased plus accrued and unpaid interest, if any, on
the Securities repurchased, to the date of purchase (the “Change of Control Payment”).

     Within 30 days following any Change of Control Triggering Event, the Company will be required
to mail a notice to Holders of Securities describing the transaction or transactions that

5

 

constitute the Change of Control Triggering Event and offering to repurchase the Securities on the
date specified in the notice, which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the
procedures required herein and described in such notice. The Company must comply with the
requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and any other securities laws and regulations thereunder to the extent those laws and
regulations are applicable in connection with the repurchase of the Securities as a result of a
Change of Control Triggering Event. To the extent that the provisions of any securities laws or
regulations conflict with the Change of Control provisions herein, the Company will be required to
comply with the applicable securities laws and regulations and will not be deemed to have breached
its obligations under the Change of Control provisions herein by virtue of such conflicts.

     On the Change of Control Payment Date, the Company will be required, to the extent lawful, to:

     (a) accept for payment all Securities or portions of Securities properly tendered pursuant to
the Change of Control Offer;

     (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of
all Securities or portions of Securities properly tendered; and

     (c) deliver or cause to be delivered to the Trustee the Securities properly accepted together
with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of
Securities being purchased by the Company.

     The Paying Agent will be required to promptly mail to each Holder who properly tendered
Securities, the purchase price for such Securities and the Trustee will be required to promptly
authenticate and mail (or cause to be transferred by book entry) to each such Holder a new Security
equal in principal amount to any unpurchased portion of the Securities surrendered, if any;
provided that each new Security will be in a principal amount of $1,000 or an integral multiple
thereof.

     For purposes of the foregoing discussion of a repurchase at the option of Holders, the
following definitions are applicable:

     “Below Investment Grade Rating Event” means the rating on the Securities is changed from an
Investment Grade Rating to below an Investment Grade Rating by each of the Rating Agencies (as defined below) on any date from the date
of the public notice of an arrangement that could result in a Change of Control until the end of
the 60-day period following public notice of the occurrence of the Change of Control (which 60-day
period shall be extended so long as the rating of the Securities is under publicly announced
consideration for possible downgrade by any of the Rating Agencies).

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger, amalgamation,
arrangement or consolidation), in one or a series of related transactions, of all or

6

 

substantially all of the Company’s properties or assets and those of its subsidiaries taken as a
whole to any Person other than the Company or one of its subsidiaries; (2) the consummation of any
transaction (including, without limitation, any merger, amalgamation, arrangement or consolidation)
the result of which is that any Person becomes the beneficial owner, directly or indirectly, of
more than 50% of the total voting power in the aggregate of all classes of the Company’s voting
stock normally entitled to vote in elections of directors; or (3) the first day on which a majority
of the members of the Company’s Board of Directors are not Continuing Directors.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Company’s
Board of Directors who (1) was a member of such Board of
Directors on November 30, 2006; or (2) was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such Board of Directors at
the time of such nomination or election (either by a specific vote or by approval of the Company’s
proxy statement in which such member was named as a nominee for election as a director, without
objection to such nomination).

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Person” means any individual, partnership, corporation, limited liability company, joint
stock company, business trust, trust, unincorporated association, joint venture or other entity, or
a government or political subdivision or agency thereof.

     “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either Moody’s or S&P ceases
to rate the Securities or fails to make a rating of the Securities publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as
certified by a resolution of its Board of Directors) as a replacement agency for Moody’s or S&P, or
both of them, as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     The failure by the Company to comply with its obligations in the event of a Change of Control
Triggering Event described above will constitute an Event of Default with respect to the
Securities.

7

 

     The Indenture contains provisions for defeasance of (a) the entire indebtedness of the Company
on this Security and (b) certain restrictive covenants and the related defaults and Events of
Default applicable to the Company, in each case, upon compliance by the Company with certain
conditions set forth in the Indenture, which provisions apply to this Security. This Security is
not subject to repayment at the Holder’s option.

     If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture. Notwithstanding the previous sentence, if an
Event of Default occurs as a result of the failure by the Company to comply with its obligations in
the event of a Change of Control Triggering Event as described above, the principal of, and any
premium and accrued interest on the Notes will become immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder of the Securities.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default and offered the Trustee reasonable
indemnity and the Trustee shall not have received from the Holders of a majority in principal
amount of the Securities of this series at the time Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Security for the enforcement of any payment of principal hereof or any interest on
or after the respective due dates expressed herein.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in principal amount of the Outstanding Securities. The
Indenture also contains provisions permitting the Holders of specified percentages in principal
amount of the Securities at the time Outstanding, on behalf of the Holders of all Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

8

 

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any Place of Payment where
the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar for
the Securities duly executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series, of authorized denomination and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations set forth therein, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series of a different authorized denomination, as
requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee, nor any such agent shall be affected by notice to
the contrary.

     The obligations of the Company under the Indenture and this Security and all documents
delivered in the name of the Company in connection herewith and therewith do not and shall not
constitute personal obligations of the directors, officers, employees, agents or shareholders of
the Company or any of them, and shall not involve any claim against or personal liability on the
part of any of them, and all persons including the Trustee shall look solely to the assets of the
Company for the payment of any claim thereunder or for the performance thereof and shall not seek
recourse against such directors, officers, employees, agents or shareholders of the Company or any
of them or any of their personal assets for such satisfaction. The performance of the obligations
of the Company under the Indenture and this Security and all documents delivered in the name of the
Company in connection therewith shall not be deemed a waiver of any rights or powers of the Company
or its directors or its shareholders under the Company’s Articles of Incorporation.

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     The Indenture and the Securities, including this Security, shall be governed by and construed
in accordance with the law of the State of New York.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused “CUSIP” numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the

9

 

correctness or accuracy of such CUSIP numbers as printed on the Securities, and reliance may
be placed only on the other identification numbers printed hereon.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

10

 

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

 

(Please Print or Typewrite Name and Address, including Zip Code, of Assignee)

 

the within Security of Potash Corporation of Saskatchewan Inc. and _________ ___

hereby does irrevocably constitute and appoint

 

Attorney to transfer said Security on the books of the within-named Company

with full power of substitution in the premises

Dated: _______________________________________________

Signature _____________________________________________

NOTICE: The signature to this assignment must correspond with the name as it
appears on the first page of the within Security in every particular, without
alteration or enlargement or any change whatever.

Signature Guaranteed: _____________________________________________

NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution”
that is a member or participant in a “signature guarantee program” (e.g., the
Securities Transfer Agents Medallion Program, the Stock Exchange Medallion
Program and the New York Stock Exchange Medallion Program).

11

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