Document:

USD$

			
	USD$250,000

	  

	Vancouver, BC

	 

	  

	       June 24, 2010

 

PROMISSORY NOTE 

FOR VALUE RECEIVED, Fero Industries, Inc., a Colorado corporation (the “Borrower”), promises to pay to the order of Peter Hogendoorn, an individual, with an address at 13288 Amble Green Place, Surrey, BC, Canada V4A 6P5, (the “Holder”), the principal amount of Two Hundred Fifty Thousand Dollars ($250,000), together with interest incurred thereon as hereinafter provided (the "Funds").  Any payments of amounts due hereunder shall be in such currency of the United States at the time of payment as shall be legal tender for the payment of public or private debts.

1.

Use of Funds. The Funds shall be remitted by the Holder, or its assign, to the Trust Account of Synergy Business Lawyers, with offices located at PO Box 12577, Suite 2480 - 1066 West Hastings Street, Vancouver, B.C. Canada V6E 3X2, to be held in trust for the benefit of Gvest Inc. and to be released to Gvest Inc. on Borrower's behalf in accordance with instructions delivered by Borrower, or its counsel, to Synergy Business Lawyers. 

2. 

Interest.  Prior to the date upon which this Note becomes due and payable as described herein, the unpaid balance of the principal amount shall accrue simple interest at a rate equal to 1% over the average Prime Rate during the term of this Note. For the purposes of this Promissory Note, "Prime Rate" means the per annum rate of interest announced periodically by the Royal Bank of Canada at its main branch, Vancouver, British Columbia, as its "prime interest rate" and used by it as a reference rate for calculating rates of interest on Canadian dollar commercial loans made in Canada. A statement of an officer of said bank as to the amount of its Prime Rate shall be conclusive as between the parties. Interest shall be compounded annually and shall be computed on the basis of a 360-day year. 

3. 

Repayment. Except as otherwise provided herein, all principal and interest accrued and unpaid hereunder shall become due thirty days (30) from the date of execution hereof (the “Maturity Date”), and shall be payable by the Borrower to the Holder in full on the Maturity Date; thereafter, by mutual agreement of the parties hereto, the principal and all accrued interest thereon shall be due and payable within ten (10) days of written demand by Holder provided that, this Note may be repaid in whole or in part by the Borrower without penalty or premium at any time and from time to time prior to the Maturity Date.

4. 

Events of Default. 

Borrower will be in default if any of the following occur:

(a)

Borrower fails to make any payment when due;

(b)

Borrower breaks any promise Borrower has made to Holder, or Borrower fails to perform promptly at the time and strictly in the manner provided in this Note or in any other agreement or loan Borrower has with Holder;

(c)

Borrower becomes insolvent, a receiver is appointed for any part of Borrower's property, Borrower makes an assignment for the benefit of creditors, or any proceeding is commenced either by Borrower or against Borrower under any bankruptcy or insolvency laws.

5. 

Assignment. This Note may be assigned, transferred or otherwise negotiated by the Holder without the prior written consent of the Borrower.

6. 

Severability. In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in any such event, such provision(s) only shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and in no way shall be affected, prejudiced or disturbed thereby.

7. 

Successors and Assigns. All covenants, agreements and undertakings in this Note by or on behalf of any of the parties shall bind and inure to the benefit of the respective successors and permitted assigns of the parties whether so expressed or not.

8. 

Notices. Any and all notices, requests, consents and demands required or permitted to be given hereunder shall be in writing, delivered to the legal addresses of the parties hereto. Either party may change by notice the address to which notices to it are to be addressed.

9.

Waiver of Presentment. The Borrower and all endorsers and guarantors of this Note herein, if any, waive presentment for payment, demand, protest, notice of protest for nonpayment and notice of dishonor of this Note; waive all other demands and notices in connection with the delivery, acceptance, performance and enforcement of this Note; and consent to any extension or postponement of the time of payment or any other indulgence.

10. 

Governing. This Note shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Colorado, without giving effect to the conflict of law provisions thereof.

11.

Expenses. The Borrower hereby agrees to pay to the Holder all expenses incurred by the Holder, including reasonable attorneys' fees, in enforcing and collecting amounts due hereunder.

12.

Entire Agreement. This Note contains the entire agreement between the Borrower and the Holder with respect to the subject matter hereof, and supersedes every course of dealing, other conduct or oral agreement or representation previously made by the Holder. No change in this Note shall be effective unless made in a writing duly executed by the Holder and the Borrower.

IN WITNESS WHEREOF, the Borrower has caused this Note to be signed on the date first set forth above.

FERO INDUSTRIES, INC.

/s/   Kyle Schlosser

By: Kyle Schlosser 

Dated: June 24, 2010

1Exhibit 10.1

 

WAIVER TO THE CREDIT AGREEMENT

 

WAIVER
(this “Waiver”), dated as of June 30,
2010, among TERRA NITROGEN, LIMITED PARTNERSHIP, a Delaware limited partnership
(the “Borrower”), TERRA NITROGEN COMPANY,
L.P., a Delaware limited partnership (“TNCLP”), TERRA
NITROGEN GP, INC., a Delaware corporation (“TNGP”),
the Lenders party hereto, and CITICORP USA, INC., as administrative agent
and collateral agent for the Lenders and the Issuers (in such capacities, the “Administrative Agent”), amends the CREDIT AGREEMENT, dated
as of December 21, 2004 (as amended, supplemented or otherwise modified
from time to time, including previous amendments hereto, the “Credit Agreement”), among the Borrower, TNCLP, the financial
institutions from time to time party thereto as lenders (the “Lenders”), the financial institutions from time to time
party thereto as issuing banks (the “Issuers”) and
the Administrative Agent.

 

W I T N E S S E T H :

 

WHEREAS,
pursuant to the Credit Agreement, the Lenders have agreed to make Loans to the
Borrower and to issue Letters of Credit for the account of the Borrower;

 

WHEREAS,
pursuant to the terms of the exchange offer and the Agreement and Plan of
Merger dated as of March 12, 2010, by and among CF Industries Holdings, Inc.
(“CF”), Composite Merger Corporation (“Mergersub”), an indirect wholly-owned subsidiary of CF, and
Terra Industries, Inc., a Maryland corporation (“Terra”), on April 15,
2010, CF completed the acquisition of Terra by effecting the merger of
Mergersub with and into Terra (the “CF Acquisition”).  As a result of the CF Acquisition, Terra is
now an indirect, wholly-owned subsidiary of CF;

 

WHEREAS,
the Borrower, TNCLP and TNGP are indirect, wholly-owned subsidiaries of Terra;

 

WHEREAS,
the CF Acquisition resulted in a Change of Control under the Credit Agreement
(the “Specified Default”);

 

WHEREAS,
the Borrower, TNCLP and TNGP have requested, and the Lenders party hereto and
the Administrative Agent have agreed, subject to the limitations and conditions
set forth herein, to waive the Specified Default from the Waiver Effective
Date (as defined below) until September 28, 2010 (the “Waiver Period”);

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
provisions hereinafter contained, the parties hereto hereby agree as follows:

 

1.             Defined
Terms.  Capitalized
terms used herein and not defined herein but defined in the Credit Agreement
are used herein as defined in the Credit Agreement.

 

2.             Waiver.  Effective as of the Waiver Effective Date,
the Requisite Lenders hereby waive the Specified Default solely for (and
during) the Waiver Period; provided, that
the waiver set forth in this Section 2 shall not excuse or otherwise waive
any failure by any Loan Party to comply with any other terms of any Loan Document;
provided, further,
that

 

1

 

immediately
following the expiration of the Waiver Period, the Specified Default shall
become an Event of Default.

 

 

3.             Conditions
Precedent to the Effectiveness of this Waiver.  This Waiver shall become
effective on the date (the “Waiver Effective Date”)
when the following conditions precedent have been satisfied:

 

(a)           Certain Documents.  The Administrative Agent shall have received
on or before the Waiver Effective Date, all of the following, each of which
shall be in form and substance satisfactory to the Administrative Agent:

 

(i)            this Waiver, executed by the
Borrower, TNCLP, TNGP and the Administrative Agent and the Requisite Lenders;

 

(ii)           a consent to this Waiver in
the form attached hereto as Exhibit A executed by each Unsecured
Guarantor; and

 

(iii)          such additional
documentation as the Administrative Agent or the Lenders may reasonably
require.

 

(b)           Representations and
Warranties.  Each of the
representations and warranties made by the Borrower or the Guarantors set forth
in Section 4 hereof shall be true and correct as of the Waiver Effective
Date.

 

(c)           No Event of Default.  No Default or Event of Default shall have
occurred and be continuing on the Waiver Effective Date.

 

(d)           Fees and Expenses Paid.  The Borrower shall have paid to the
Administrative Agent (i) for the account of each Lender party hereto, the
fee referred to in Section 7 hereof and (ii) in accordance with Section 11.3
of the Credit Agreement, all outstanding costs and expenses of the
Administrative Agent, including the reasonable fees and out-of-pocket expenses
of counsel for the Administrative Agent incurred prior to or otherwise in
connection with this Waiver and any other Loan Document.

 

4.             Representations
and Warranties.  On and as of the date hereof, and as of the
Waiver Effective Date, after giving effect to this Waiver, each of the Borrower
and TNCLP hereby represents and warrants to the Lenders as follows:

 

(a)           Each of the representations
and warranties contained in Article IV of the Credit Agreement, the other
Loan Documents or in any certificate, document or financial or other statement
furnished at any time under or in connection therewith are true and correct in
all material respects on and as of the Waiver Effective Date, except to the
extent that such representations and warranties specifically relate to a
specific date, in which case such representations and warranties shall be true
and correct in all material respects as of such specific date; provided, however, that
references therein to the “Credit Agreement”
shall be deemed to include this Waiver; and

 

(b)           No Default or Event of
Default has occurred and is continuing.

 

5.             Continuing
Effect; No Other Waiver. 
Except as expressly amended hereby, all of the terms and provisions of
the Credit Agreement and the other Loan Documents

 

2

 

are
and shall remain in full force and effect. 
The waiver contained herein shall not constitute an amendment or waiver
of any provision of the Credit Agreement or the other Loan Documents or for any
other purpose, except as expressly set forth herein.

 

6.             Loan
Documents.  This Waiver is deemed to be a “Loan Document” for the purposes of the Credit Agreement.

 

7.             Fees.  As consideration for a Lender consenting to
this Waiver, the Borrower agrees to pay on the Waiver Effective Date to the
Administrative Agent, for the account of such Lender, a fee equal to 0.125% of
the sum of such Lender’s Revolving Credit Commitment currently in effect
provided that the Administrative Agent shall have received (by facsimile or
otherwise) this Waiver executed from such Lender by 5:00 p.m. (New York
time) on June 29, 2010 or such later time as the Borrower and the
Administrative Agent may agree.

 

8.             Costs
and Expenses.  The Borrower and TNCLP agree to pay on demand
all reasonable and documented out-of-pocket costs and expenses of the
Administrative Agent in connection with the preparation, execution and delivery
of this Waiver and other instruments and documents to be delivered pursuant
hereto, including the reasonable and documented fees and out-of-pocket expenses
of counsel for the Administrative Agent with respect thereto.

 

9.             Governing
Law; Counterparts; Miscellaneous.

 

(a)           This Waiver shall be
governed by, and construed and interpreted in accordance with, the law of the
State of New York.

 

(b)           This Waiver may be executed
in any number of counterparts and by the different parties on separate
counterparts, each of which counterparts when executed and delivered shall be
an original, but all of which shall together constitute one and the same
instrument.

 

(c)           Section captions used
in this Waiver are for convenience only and shall not affect the construction
of this Waiver.

 

(d)           From and after the Waiver
Effective Date, all references in the Credit Agreement to the “Agreement” shall
be deemed to be references to such Agreement as modified hereby and this Waiver
and the Credit Agreement shall be read together and construed as a single
instrument.

 

[signature pages follow]

 

3

 

IN
WITNESS WHEREOF, the undersigned parties have executed this Waiver to the
Credit Agreement to be effective for all purposes as of Waiver Effective Date.

 

	
   

  	
  Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  TERRA
  NITROGEN, LIMITED PARTNERSHIP

  
	
   

  	
   

  	
  BY:
  TERRA NITROGEN GP, INC.

  
	
   

  	
   

  	
  ITS:
  GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall W. Selgrad

  
	
   

  	
   

  	
  Name:
  Randall W. Selgrad

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  
				

 

 

	
   

  	
  Secured
  Guarantors

  
	
   

  	
   

  	
   

  
	
   

  	
  TERRA
  NITROGEN COMPANY, L.P.

  
	
   

  	
   

  	
  BY:
  TERRA NITROGEN GP, INC.

  
	
   

  	
   

  	
  ITS:
  GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall W. Selgrad

  
	
   

  	
   

  	
  Name:
  Randall W. Selgrad

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  
				

 

 

	
   

  	
  TERRA
  NITROGEN GP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall W. Selgrad

  
	
   

  	
   

  	
  Name:
  Randall W. Selgrad

  
	
   

  	
   

  	
  Title:
  Vice President and Treasurer

  

 

[SIGNATURE
PAGE TO WAIVER]

 

 

	
   

  	
  Administrative
  Agent

  
	
   

  	
   

  
	
   

  	
  CITICORP
  USA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Miles D. McManus

  
	
   

  	
   

  	
  Name:
  Miles D. McManus

  
	
   

  	
   

  	
  Title:
  Vice President and Director

  

 

[SIGNATURE
PAGE TO WAIVER]

 

 

	
   

  	
  Lenders

  
	
   

  	
   

  
	
   

  	
  CITIBANK,
  N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Miles D. McManus

  
	
   

  	
   

  	
  Name:
  Miles D. McManus

  
	
   

  	
   

  	
  Title:
  Vice President and Director

  

 

[SIGNATURE PAGE TO WAIVER]

 

 

	
   

  	
  WELL
  FARGO CAPITAL FINANCE, LLC, FORMERLY KNOWN AS WELLS FARGO FOOTHILL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Eunnie Kim

  
	
   

  	
   

  	
  Name:
  Eunnie Kim

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[SIGNATURE
PAGE TO WAIVER]

 

 

	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Maura Fitzgerald

  
	
   

  	
   

  	
  Name:
  Maura Fitzgerald

  
	
   

  	
   

  	
  Title:
  Duly Authorized Signatory

  

 

[SIGNATURE
PAGE TO WAIVER]

 

 

	
   

  	
  PNC BANK, NA, SUCCESSOR TO NATIONAL CITY BUSINESS
  CREDIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Roger F. Reeder

  
	
   

  	
   

  	
  Name:
  Roger F. Reeder

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[SIGNATURE
PAGE TO WAIVER]

 

 

	
   

  	
  STATE OF CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT
  SYSTEM

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mike Claybar

  
	
   

  	
   

  	
  Name:
  Mike Claybar

  
	
   

  	
   

  	
  Title:
  Portfolio Manager

  

 

[SIGNATURE
PAGE TO WAIVER]

 

 

CONSENT OF GUARANTORS

 

Dated as of June 30, 2010

 

Each
of the undersigned companies, as a Guarantor under the Guaranty dated December 21,
2004 (the “Guaranty”) in favor of the Secured
Parties under the Credit Agreement referred to in the foregoing Waiver, hereby
consents to such Waiver and hereby confirms and agrees that notwithstanding the
effectiveness of such Waiver, the Guaranty is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects,
except that, on and after the effectiveness of such Waiver, each reference in
the Guaranty to the “Credit Agreement”,
“thereunder”, “thereof”
or words of like import shall mean and be a reference to the Credit Agreement,
as amended by such Waiver.

 

[Signature
pages follow]

 

 

IN
WITNESS WHEREOF, the parties hereto have consented to this Waiver, as of the
date first written above.

 

 

	
   

  	
  TERRA
  CAPITAL, INC.

  
	
   

  	
  TERRA MISSISSIPPI HOLDINGS CORPORATION (F/K/A
  MISSISSIPPI CHEMICAL CORPORATION)

  
	
   

  	
  TERRA
  INDUSTRIES INC.

  
	
   

  	
  TERRA
  CAPITAL HOLDINGS, INC.

  
	
   

  	
  TERRA
  NITROGEN CORPORATION

  
	
   

  	
  TERRA
  INTERNATIONAL, INC.

  
	
   

  	
  TERRA
  INTERNATIONAL (OKLAHOMA) INC.

  
	
   

  	
  PORT
  NEAL CORPORATION

  
	
   

  	
  TERRA
  METHANOL CORPORATION

  
	
   

  	
  BMC
  HOLDINGS INC.

  
	
   

  	
  BEAUMONT
  HOLDINGS CORPORATION

  
	
   

  	
  TERRA
  REAL ESTATE CORPORATION

  
	
   

  	
  TERRA MISSISSIPPI NITROGEN, INC. (F/K/A
  MISSISSIPPI NITROGEN, INC.)

  
	
   

  	
  TERRA HOUSTON AMMONIA, INC. (F/K/A
  MISSISSIPPI CHEMICAL MANAGEMENT COMPANY)

  
	
   

  	
  TERRA
  (U.K.) HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall W. Selgrad

  
	
   

  	
   

  	
  Name: Randall W. Selgrad

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BEAUMONT
  AMMONIA INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall W. Selgrad

  
	
   

  	
   

  	
  Name: Randall W. Selgrad

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

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