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Exhibit 10.16    
    

 
 

CHANGE IN CONTROL SEVERANCE AGREEMENT    
    

        THIS AGREEMENT, effective as of                        , 2005, is
made by and between CF Industries Holdings, Inc., a Delaware corporation (the "Company"), and
David J. Pruett (the "Executive"). 

        WHEREAS,
the Company considers it essential to the best interests of its stockholders to foster the continued employment of key management personnel; and 

        WHEREAS,
the Board recognizes that the possibility of a Change in Control exists and that such possibility, and the uncertainty and questions which it may raise among management, may
result in the departure or distraction of management personnel to the detriment of the Company and its stockholders; and 

        WHEREAS,
the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company's management,
including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a Change in Control; 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Company and the Executive hereby agree as follows: 

        1.    Defined Terms.    The definitions of capitalized terms used in this Agreement are provided in the last Section
hereof. 

        2.    Term of Agreement.    This Agreement shall not become effective, and the Term of this Agreement shall not
commence, unless and until the Company's initial public offering of its common stock has closed and public trading in its common stock has commenced on the New York Stock Exchange or NASDAQ. Once in
effect,
the Term shall continue in effect through December 31, 2007; provided, however, that commencing
on January 1, 2007 and each January 1 thereafter, the Term shall automatically be extended for one additional year unless, not later than September 30 of the preceding year, the
Company or the Executive shall have given notice not to extend the Term; and further provided, however,
that if a Change in Control shall have occurred during the Term, the Term shall expire no earlier than twenty-four (24) months beyond the month in which such Change in Control
occurred. 

        3.    Company's Covenants Summarized.    In order to induce the Executive to remain in the employ of the Company and
in consideration of the Executive's covenants set forth in Section 4 hereof, the Company agrees, under the conditions described herein, to pay the Executive the Severance Payments and the other
payments and benefits described herein. Except as provided in Section 9.1 hereof, no Severance Payments shall be payable under this Agreement unless there shall have been (or, under the terms
of the second sentence of Section 6.1 hereof, there shall be deemed to have been) a termination of the Executive's employment with the Company following a Change in Control and during the Term.
This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Executive and the Company, the Executive shall not
have any right to be retained in the employ of the Company. 

        4.    The Executive's Covenants.    The Executive agrees that, subject to the terms and conditions of this Agreement,
in the event of a Potential Change in Control during the Term, the Executive will remain in the employ of the Company until the earliest of (i) a date which is six (6) months from the
date of such Potential Change in Control, (ii) the date of a Change in Control, (iii) the date of termination by the Executive of the Executive's employment for Good Reason or by reason
of death, Disability or Retirement, or (iv) the termination by the Company of the Executive's employment for any reason. 

        5.    Compensation Other Than Severance Payments.    

        5.1   Following
a Change in Control and during the Term, during any period that the Executive fails to perform the Executive's full-time duties with the Company as
a result of incapacity due to physical or mental illness, the Company shall pay the Executive's full salary to the Executive at the rate in effect at the commencement of any such period, together with
all compensation and benefits payable to the Executive under the terms of any compensation or benefit plan, program or arrangement maintained by the Company during such period (other than any
disability plan), until the Executive's employment is terminated by the Company for Disability. 

 

        5.2   If
the Executive's employment shall be terminated for any reason following a Change in Control and during the Term, the Company shall pay the Executive's full salary to
the Executive through the Date of Termination at the rate in effect immediately prior to the Date of Termination or, if higher, the rate in effect immediately prior to the first occurrence of an event
or circumstance constituting Good Reason, together with all compensation and benefits payable to the Executive through the Date of Termination under the terms of the Company's compensation and benefit
plans, programs or arrangements as in effect immediately prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or
circumstance constituting Good Reason. 

        5.3   If
the Executive's employment shall be terminated for any reason following a Change in Control and during the Term, the Company shall pay to the Executive the
Executive's normal post-termination compensation and benefits as such payments become due. Such post-termination compensation and benefits shall be determined under, and paid
in accordance with, the Company's retirement, insurance and other compensation or benefit plans, programs and arrangements as in effect immediately prior to the Date of Termination or, if more
favorable to the Executive, as in effect immediately prior to the occurrence of the first event or circumstance constituting Good Reason. 

        6.    Severance Payments.    

        6.1   If
the Executive's employment is terminated following a Change in Control and during the Term, other than (A) by the Company for Cause, (B) by reason of
death or Disability, or (C) by the Executive without Good Reason, then the Company shall pay the Executive the amounts, and provide the Executive the benefits, described in this
Section 6.1 ("Severance Payments") and Section 6.2, in addition to any payments and benefits to which the Executive is entitled under Section 5 hereof. For purposes of this
Agreement, the Executive's employment shall be deemed to have been terminated following a Change in Control by the Company without Cause or by the Executive with Good Reason, if (i) the
Executive's employment is terminated by the Company without Cause prior to a Change in Control (whether or not a Change in Control ever occurs) and such termination was at the request or direction of
a Person who has entered into an agreement with the Company the consummation of which would constitute a Change in Control, (ii) the Executive terminates his employment for Good Reason prior to
a Change in Control (whether or not a Change in Control ever occurs) and the circumstance or event which constitutes Good Reason occurs at the request or direction of such Person, or (iii) the
Executive's employment is terminated by the Company without Cause or by the Executive for Good Reason and such termination or the circumstance or event which constitutes Good Reason is otherwise in
connection with or in anticipation of a Change in Control (whether or not a Change in Control ever occurs). For purposes of any determination regarding the applicability of the immediately preceding
sentence, any position taken by the Executive shall be presumed to be correct unless the Company establishes to the Board by clear and convincing evidence that such position is not correct. 

        (A)  In
lieu of any further salary payments to the Executive for periods subsequent to the Date of Termination and in lieu of any severance benefit otherwise payable to the
Executive, the Company shall pay to the Executive a lump sum severance payment, in cash, equal to two times the sum of (i) the Executive's base salary as in effect immediately prior to the Date
of Termination or, if higher, in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason, and (ii) the Executive's target annual bonus pursuant to
any annual bonus or incentive plan maintained by the Company in respect of the fiscal year in which the Date of Termination occurs or, if higher, the fiscal year in which the first event or
circumstance constituting Good Reason occurs. 

        (B)  For
the twenty-four (24) month period immediately following the Date of Termination, the Company shall arrange to provide the Executive and his
dependents life, disability, accident and health insurance benefits substantially similar to those provided to the Executive and his dependents immediately prior to the Date of Termination or, if more
favorable to the Executive, those provided to the Executive and his dependents immediately prior to the first occurrence of an event or circumstance constituting Good Reason, at no greater after tax
cost to the Executive than the after tax cost to the Executive immediately prior to such date or occurrence; provided,  however, that, unless the Executive
consents to a different method, such health insurance benefits shall be provided through a third-party insurer.
Benefits otherwise receivable by the Executive pursuant to this Section 6.1(B) shall be reduced to the extent benefits of the same type are received by or made available to the Executive during
the twenty-four (24) month period following the Executive's termination of employment (and any such 

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benefits
received by or made available to the Executive shall be reported to the Company by the Executive); provided,  however, that the Company shall reimburse the
Executive for the excess, if any, of the after tax cost of such benefits to the Executive over such cost
immediately prior to the Date of Termination or, if more favorable to the Executive, the first occurrence of an event or circumstance constituting Good Reason. 

        (C)  In
addition to the benefits to which the Executive is entitled under each DC Pension Plan, the Company shall pay the Executive a lump sum amount, in cash, equal to the
sum of (1) the amount that would have been contributed or allocated to each DC Pension Plan by the Company on the Executive's behalf (without regard to whether such amount would be vested)
during the two years immediately following the Date of Termination, determined (x) as if the Executive made the maximum permissible contributions thereto during such period, (y) as if
the Executive earned compensation during such period at a rate equal to the Executive's compensation (as defined in the DC Pension Plans) during the twelve (12) months immediately preceding the
Date of Termination or, if higher, during the twelve months immediately prior to the first occurrence of an event or circumstance constituting Good Reason, and (z) without regard to any
amendment to the DC Pension Plans made subsequent to a Change in Control and on or prior to the Date of Termination, which amendment adversely affects in any manner the computation of benefits
thereunder and (2) all other amounts credited to the Executive's account under each DC Pension Plan to the extent such amounts were unvested on the Date of Termination. 

        (D)  If
the Executive would have become entitled to benefits under the Company's post-retirement health care or life insurance plans, as in effect immediately
prior to the Date of Termination or, if more favorable to the Executive, as in effect immediately prior to the first occurrence of an event or circumstance constituting Good Reason, had the
Executive's employment terminated at any time during the period of twenty-four (24) months after the Date of Termination, the Company shall provide such post-retirement
health care or life insurance benefits to the Executive and the Executive's dependents commencing on the later of (i) the date on which such coverage would have first become available and
(ii) the date on which benefits described in subsection (B) of this Section 6.1 terminate. 

        (E)  The
Company shall provide the Executive with outplacement services suitable to the Executive's position for a period of two years or, if earlier, until the first
acceptance by the Executive of an offer of employment. 

        (F)  Notwithstanding
any provision of any annual or long-term incentive plan to the contrary, the Company shall pay to the Executive a lump sum amount, in cash,
equal to the sum of (i) any unpaid incentive compensation which has been allocated or awarded to the Executive for a completed fiscal year or other measuring period preceding the Date of
Termination under any such plan and which, as of the Date of
Termination, is contingent only upon the continued employment of the Executive to a subsequent date, and (ii) a pro rata portion to the Date of Termination of the aggregate value of all
contingent incentive compensation awards to the Executive for all then uncompleted periods under any such plan, calculated as to each such award by multiplying the award that the Executive would have
earned on the last day of the performance award period, assuming the achievement, at the target level (or, if greater, based on actual results to Date of Termination), of the individual and corporate
performance goals established with respect to such award, by the fraction obtained by dividing the number of full months and any fractional portion of a month during such performance award period
through the Date of Termination by the total number of months contained in such performance award period. 

        6.2    (A)    Whether or not the Executive becomes entitled to the Severance Payments, if any of the payments or
benefits received or to be received by the Executive (including any payment or benefits received in connection with a Change in Control or the Executive's termination of employment, whether pursuant
to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, excluding the Gross-Up Payment, being hereinafter referred to as the "Total
Payments") will be subject to the Excise Tax, the Company shall pay to the Executive an additional amount (the "Gross-Up Payment") such that the net amount retained by the Executive, after
deduction of any Excise Tax on the Total Payments and any federal, state and local income and employment taxes and Excise Tax upon the Gross-Up Payment, and after taking into account the
phase out of itemized deductions and personal exemptions attributable to the Gross-Up Payment, shall be equal to the Total Payments. 

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        (B)  For
purposes of determining whether any of the Total Payments will be subject to the Excise Tax and the amount of such Excise Tax, (i) all of the Total Payments
shall be treated as "parachute payments" (within the meaning of section 280G(b)(2) of the Code) unless, in the opinion of tax counsel ("Tax Counsel") reasonably acceptable to the Executive and
selected by the accounting firm which was, immediately prior to the Change in Control, the Company's independent auditor (the "Auditor"), such payments or benefits (in whole or in part) do not
constitute parachute payments, including by reason of section 280G(b)(4)(A) of the Code, (ii) all "excess parachute payments" within the meaning of section 280G(b)(l) of the Code
shall be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute payments (in whole or in part) represent reasonable compensation for services actually
rendered (within the meaning of section 280G(b)(4)(B) of the Code) in excess of the Base Amount allocable to such reasonable compensation, or are otherwise not subject to the Excise Tax, and
(iii) the value of any noncash benefits or any deferred payment or benefit shall be determined by the Auditor in accordance with the principles of sections 280G(d)(3) and (4) of the
Code. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income tax at the highest marginal rate of federal income taxation in the
calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive's residence
on the Date of Termination (or if there is no Date of Termination, then the date on which the Gross-Up Payment is calculated for purposes of this Section 6.2), net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

        (C)  In
the event that the Excise Tax is finally determined to be less than the amount taken into account hereunder in calculating the Gross-Up Payment, the
Executive shall repay to the Company, within five (5) business days following the time that the amount of such reduction in the Excise Tax is finally determined, the portion of the
Gross-Up Payment attributable to such reduction (plus that portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income and employment
taxes imposed on the Gross-Up Payment being repaid by the
Executive), to the extent that such repayment results in a reduction in the Excise Tax and a dollar-for-dollar reduction in the Executive's taxable income and wages for
purposes of federal, state and local income and employment taxes, plus interest on the amount of such repayment at 120% of the rate provided in section 1274(b)(2)(B) of the Code. In the event
that the Excise Tax is determined to exceed the amount taken into account hereunder in calculating the Gross-Up Payment (including by reason of any payment the existence or amount of which
cannot be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up Payment in respect of such excess (plus any interest, penalties or
additions payable by the Executive with respect to such excess) within five (5) business days following the time that the amount of such excess is finally determined. The Executive and the
Company shall each reasonably cooperate with the other in connection with any administrative or judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to the
Total Payments. 

        6.3   The
payments provided in subsections (A),(C) and (F) of Section 6.1 hereof and in Section 6.2 hereof shall be made not later than the fifth day
following the Date of Termination (or if there is no Date of Termination, then the date on which the Gross-Up Payment is calculated for purposes of Section 6.2 hereof);  provided, however, that if the amounts of such payments cannot be finally determined on or before such
day, the Company shall pay to the Executive on such day an estimate, as determined in good faith by the Executive or, in the case of payments under Section 6.2 hereof, in accordance with
Section 6.2 hereof, of the minimum amount of such payments to which the Executive is clearly entitled and shall pay the remainder of such payments (together with interest on the unpaid
remainder (or on all such payments to the extent the Company fails to make such payments when due) at 120% of the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount
thereof can be determined but in no event later than the thirtieth (30th) day after the Date of Termination. In the event that the amount of the estimated payments exceeds the amount subsequently
determined to have been due, such excess shall constitute a loan by the Company to the Executive, payable on the fifth (5th) business day after demand by the Company (together with interest at 120% of
the rate provided in section 1274(b)(2)(B) of the Code). At the time that payments are made under this Agreement, the Company shall provide the Executive with a written statement setting forth
the manner in which such payments were calculated and the basis for such calculations including, without limitation, any opinions or other advice the Company has received from Tax Counsel, the Auditor
or other 

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advisors
or consultants (and any such opinions or advice which are in writing shall be attached to the statement). 

        6.4   The
Company also shall pay to the Executive all legal fees and expenses incurred by the Executive in disputing in good faith any issue hereunder relating to the
termination of the Executive's employment, in seeking in good faith to obtain or enforce any benefit or right provided by this Agreement or in connection with any tax audit or proceeding to the extent
attributable to the application of section 4999 of the Code to any payment or benefit provided hereunder. Such payments shall be made within five (5) business days after delivery of the
Executive's written requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require. 

        6.5   The
Executive agrees that prior to and following the Date of Termination, he shall retain in confidence any confidential information known to him concerning the Company
and its Affiliates and their respective businesses for as long as such information is not publicly disclosed. 

        6.6   Notwithstanding
anything to the contrary, all compensation and benefits payable to Executive pursuant to this Section 6 (other than Sections 6.2 and 6.4)
are conditioned on receipt by the Company of an executed release of claims by Executive in the form attached hereto as Exhibit A and the expiration of any revocation period in such release. 

        7.    Termination Procedures and Compensation During Dispute.    

        7.1    Notice of Termination.    After a Change in Control and during the Term, any purported termination of the
Executive's employment (other than by reason of death) shall be communicated by written Notice of Termination from one party hereto to the other party hereto in accordance with Section 10
hereof. For purposes of this Agreement, a "Notice of Termination" shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated. Further, a Notice of Termination for Cause is
required to include a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board which was called
and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive, together with the Executive's counsel, to be heard before the
Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct set forth in clause (i) or (ii) of the definition of Cause herein, and specifying the
particulars thereof in detail. 

        7.2    Date of Termination.    "Date of Termination," with respect to any purported termination of the Executive's
employment after a Change in Control and during the Term, shall mean (i) if the Executive's employment is terminated for Disability, thirty (30) days after Notice of Termination is given
(provided that the Executive shall not have returned to the full-time performance of the Executive's duties during such thirty (30) day period), and (ii) if the Executive's
employment is terminated for any other reason, the date specified in the Notice of Termination (which, in the case of a termination by the Company, shall not be less than thirty (30) days
(except in the case of a termination for Cause) and, in the case of a termination by the Executive, shall not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given). 

        7.3    Dispute Concerning Termination.    If within fifteen (15) days after any Notice of Termination is given,
or, if later, prior to the Date of Termination (as determined without regard to this Section 7.3), the party receiving such Notice of Termination notifies the other party that a dispute exists
concerning the termination, the Date of Termination shall be extended until the earlier of (i) the date on which the Term ends or (ii) the date on which the dispute is finally resolved,
either by mutual written agreement of the parties or by a final judgment, order or decree of an arbitrator or a court of competent jurisdiction (which is not appealable or with respect to which the
time for appeal therefrom has expired and no appeal has been perfected); provided, however, that the
Date of Termination shall be extended by a notice of dispute given by the Executive only if such notice is given in good faith and the Executive pursues the resolution of such dispute with reasonable
diligence. 

        7.4    Compensation During Dispute.    If a purported termination occurs following a Change in Control and during the
Term and the Date of Termination is extended in accordance with Section 7.3 hereof, the Company shall continue to pay the Executive the full compensation in effect when the notice giving rise
to the dispute was given (including, but not limited to, salary) and continue the Executive as a participant in all 

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compensation,
benefit and insurance plans in which the Executive was participating when the notice giving rise to the dispute was given, until the Date of Termination, as determined in accordance with
Section 7.3 hereof. Amounts paid under this Section 7.4 are in addition to all other amounts due under this Agreement (other than those due under Section 5.2 hereof) and shall not
be offset against or reduce any other amounts due under this Agreement. 

        8.    No Mitigation.    The Company agrees that, if the Executive's employment with the Company terminates during the
Term, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company pursuant to Section 6 hereof or
Section 7.4 hereof. Further, except as specifically provided in Section 6.1(B) hereof, no payment or benefit provided for in this Agreement shall be reduced by any compensation earned by
the Executive as the result of employment by another employer, by retirement benefits, by offset against any amount claimed to be owed by the Executive to the Company, or otherwise. 

        9.    Successors; Binding Agreement.    

        9.1   In
addition to any obligations imposed by law upon any successor to the Company, the Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle the Executive to compensation from the Company in the same amount and on the same terms as the Executive would be entitled to hereunder if the
Executive were to terminate the Executive's employment for Good Reason after a Change in Control, except that, for purposes of implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Date of Termination. 

        9.2   This
Agreement shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive shall die while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death
of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the executors, personal
representatives or administrators of the Executive's estate. 

        10.    Notices.    For the purpose of this Agreement, notices and all other communications provided for in the
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed, if to the
Executive, to the address inserted below the Executive's signature on the final page hereof and, if to the Company, to the address set forth below, or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt: 

	To the Company:	 	 
	

CF Industries, Inc.

One Salem Lake Drive

Long Grove, Illinois 60046	
 	

 
	

Attention: William G. Eppel	

 	

 

        11.    Miscellaneous.    No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by the Executive and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any
breach by the other party hereto of, or of any lack of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement supersedes any other agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof which have been made by either party; provided, however, that this
Agreement shall supersede any agreement setting forth the terms and conditions of the Executive's employment with the Company only in the event that the Executive's employment with the Company is
terminated on or following a Change in Control, by the Company other than for Cause or by the Executive for Good Reason. The validity, interpretation, 

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construction
and performance of this Agreement shall be governed by the laws of the State of Illinois. All references to sections of the Exchange Act or the Code shall be deemed also to refer to any
successor provisions to such sections. Any payments provided for hereunder shall be paid net of any applicable withholding required under federal, state or local law and any additional withholding to
which the Executive has agreed. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the expiration of the
Term (including, without limitation, those under Sections 6 and 7 hereof) shall survive such expiration. 

        12.    Validity.    The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

        13.    Counterparts.    This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument. 

        14.    Settlement of Disputes; Arbitration.    

        14.1 All
claims by the Executive for benefits under this Agreement shall be directed to and determined by the Board and shall be in writing. Any denial by the Board of a
claim for benefits under this Agreement shall be delivered to the Executive in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied
upon. The Board shall afford a reasonable opportunity to the Executive for a review of the decision denying a claim and shall further allow the Executive to appeal to the Board a decision of the Board
within sixty (60) days after notification by the Board that the Executive's claim has been denied. Notwithstanding the above, in the event of any dispute, any decision by the Board hereunder
shall be subject to a de novo review by the arbitrator. 

        14.2 Any
further dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Chicago, Illinois in accordance
with the rules of the American Arbitration Association then in effect; provided, however, that the
evidentiary standards set forth in this Agreement shall apply. Judgment may be entered on the arbitrator's award in any court having jurisdiction. Notwithstanding any provision of this Agreement to
the contrary, the Executive shall be entitled to seek specific performance of the Executive's right to be paid until the Date of Termination during the pendency of any dispute or controversy arising
under or in connection with this Agreement. 

        15.    Definitions.    For purposes of this Agreement, the following terms shall have the meanings indicated below: 

        (A)  "Affiliate"
shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act. 

        (B)  "Auditor"
shall have the meaning set forth in Section 6.2 hereof. 

        (C)  "Base
Amount" shall have the meaning set forth in section 280G(b)(3) of the Code. 

        (D)  "Beneficial
Owner" shall have the meaning set forth in Rule 13d-3 under the Exchange Act. 

        (E)  "Board"
shall mean the Board of Directors of the Company. 

        (F)  "Cause"
for termination by the Company of the Executive's employment shall mean (i) the willful and continued failure by the Executive to substantially perform
the Executive's duties with the Company (other than any such failure resulting from the Executive's incapacity due to physical or mental illness or any such actual or anticipated failure after the
issuance of a Notice of Termination for Good Reason by the Executive pursuant to Section 7.1 hereof) that has not been cured within 30 days after a written demand for substantial
performance is delivered to the Executive by the Board, which demand specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive's
duties, or (ii) the willful engaging by the Executive in conduct which is demonstrably and materially injurious to the Company or its subsidiaries, monetarily or otherwise. For purposes of
clauses (i) and (ii) of this definition, (x) no act, or failure to act, on the Executive's part shall be deemed "willful" unless done, or omitted to be done, by the Executive not
in good faith and without reasonable belief that the Executive's act, or failure to act, was in or not opposed to the best interest of the Company and (y) in the event of a dispute concerning
the application of this provision, no claim by the Company that Cause exists shall be given effect unless the Company establishes to the Board by clear and convincing evidence that Cause exists. 

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        (G)  "Change
in Control" shall mean the first to occur of: 

        (I)   any
Person is or becomes the Beneficial Owner, directly or indirectly, of securities of CF Industries Holdings, Inc. (not including in the securities beneficially
owned by such Person any securities acquired directly from CF Industries Holdings, Inc. or any of its subsidiaries) representing 25% or more of the combined voting power of CF Industries
Holdings, Inc.'s then outstanding securities; or 

        (II)  the
following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, on the date of the
initial public offering, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including
but not limited to a consent solicitation, relating to the election of directors of CF Industries Holdings, Inc.) whose appointment or election by the Board or nomination for election by CF
Industries Holdings, Inc.'s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were
directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 

        (III) there
is consummated a merger or consolidation of CF Industries Holdings, Inc. or any direct or indirect subsidiary of CF Industries Holdings, Inc. with
any other corporation, other than a merger or consolidation immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the Board of
the entity surviving such merger or consolidation or, if CF Industries Holdings, Inc. or the entity surviving such merger is then a subsidiary, the ultimate parent thereof; or 

        (IV) the
stockholders of CF Industries Holdings, Inc. approve a plan of complete liquidation or dissolution of CF Industries Holdings, Inc. or there is
consummated an agreement for the sale or disposition by CF Industries Holdings, Inc. of all or substantially all of CF Industries Holdings, Inc.'s assets, other than (a) a sale or
disposition by CF Industries Holdings, Inc. of all or substantially all of CF Industries Holdings, Inc.'s assets to an entity, at least 60% of the combined voting power of the voting
securities of which are owned by stockholders of CF Industries Holdings, Inc. following the completion of such transaction in substantially the same proportions as their ownership of CF
Industries Holdings, Inc. immediately prior to such sale or (b) other than a sale or disposition by CF Industries Holdings, Inc. of all or substantially all of CF Industries
Holdings, Inc.'s assets immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the entity to
which such assets are sold or disposed or, if such entity is a subsidiary, the ultimate parent thereof. 

Notwithstanding
the foregoing, a "Change in Control" shall not be deemed to have occurred (1) by virtue of the consummation of any transaction or series of integrated transactions immediately
following which the record holders of the common stock of CF Industries Holdings, Inc. immediately prior to such transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the assets of CF Industries Holdings, Inc. immediately following such transaction or series of transactions or
(2) as a result of the initial public offering of the Company's common stock or any transactions or any events contemplated by such offering. 

        (H)  "Code"
shall mean the Internal Revenue Code of 1986, as amended from time to time. 

        (I)   "Company"
shall mean CF Industries Holdings, Inc., as applicable, and except in determining under Section 15(G) hereof whether or not any Change in Control
of the Company has occurred, shall include any successor to its business and/or assets which assumes and agrees to perform this Agreement by operation of law, or otherwise. 

        (J)   "DC
Pension Plan" shall mean any tax-qualified, supplemental or excess defined contribution plan maintained by the Company and any other defined contribution
plan or agreement entered into between the Executive and the Company which is designed to provide the executive with supplemental retirement benefits. 

        (K)  "Date
of Termination" shall have the meaning set forth in Section 7.2 hereof. 

8

 

        (L)  "Disability"
shall be deemed the reason for the termination by the Company of the Executive's employment, if, as a result of the Executive's incapacity due to physical
or mental illness, the Executive shall have been absent from the full-time performance of the Executive's duties with the Company for a period of six (6) consecutive months, the
Company shall have given the Executive a Notice of Termination for Disability, and, within thirty (30) days after such Notice of Termination is given, the Executive shall not have returned to
the full-time performance of the Executive's duties. 

        (M) "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended from time to time. 

        (N)  "Excise
Tax" shall mean any excise tax imposed under section 4999 of the Code. 

        (O)  "Executive"
shall mean the individual named in the first paragraph of this Agreement. 

        (P)   "Good
Reason" for termination by the Executive of the Executive's employment shall mean the occurrence (without the Executive's express written consent which
specifically references this Agreement) after any Change in Control, or prior to a Change in Control under the circumstances described in clauses (ii) and (iii) of the second sentence of
Section 6.1 hereof (treating all references in paragraphs (I) through (VII) below to a "Change in Control" as references to a "Potential Change in Control"), of any one of the following
acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in paragraph (I), (V), (VI) or (VII) below, such act or failure to act is
corrected prior to the Date of Termination specified in the Notice of Termination given in respect thereof: 

        (I)   the
assignment to the Executive of any duties inconsistent with the Executive's status as an executive officer of the Company or a substantial adverse alteration in the
nature or status of the Executive's responsibilities from those in effect immediately prior to the Change in Control including, without limitation, if the Executive was, immediately prior to the
Change in Control, an executive officer of a public company, the Executive ceasing to be an executive officer of a public company; 

        (II)  a
reduction by the Company in the Executive's annual base salary as in effect on the date hereof or as the same may be increased from time to time except for
across-the-board salary reductions similarly affecting all executives of the Company and all executives of any Person in control of the Company; 

        (III) the
relocation of the Executive's principal place of employment to a location more than 35 miles from the Executive's principal place of employment immediately prior
to the Change in Control or the Company's requiring the Executive to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the
Company's business to an extent substantially consistent with the Executive's present business travel obligations; 

        (IV) the
failure by the Company to pay to the Executive any portion of the Executive's current compensation or to pay to the Executive any portion of an installment of
deferred compensation under any deferred compensation program of the Company, within seven (7) days after the date demand for payment is made provided such compensation is due; 

        (V)  the
failure by the Company to continue in effect any compensation plan in which the Executive participates immediately prior to the Change in Control which is material
to the Executive's total compensation unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to
continue the Executive's participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount or timing of payment of benefits
provided and the level of the Executive's participation relative to other participants, as existed immediately prior to the Change in Control; 

        (VI) the
failure by the Company to continue to provide the Executive with benefits substantially similar to those enjoyed by the Executive under any of the Company's
pension, savings, life insurance, medical, health and accident, or disability plans in which the Executive was participating immediately prior to the Change in Control (except for across the board
changes similarly affecting all executives of the Company and all executives of any Person in control of the Company), the taking of any other action by the Company which would directly or indirectly
materially reduce any 

9

 

of
such benefits or deprive the Executive of any material fringe benefit enjoyed by the Executive at the time of the Change in Control, or the failure by the Company to provide the Executive with the
number of paid vacation days to which the Executive is entitled with the Company in accordance with the vacation policy applicable to the Executive in effect at the time of the Change in Control; or 

        (VII) any
purported termination of the Executive's employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 7.1
hereof; for purposes of this Agreement, no such purported termination shall be effective. The Executive's right to terminate the Executive's employment for Good Reason shall not be affected by the
Executive's incapacity due to physical or mental illness. 

        The
Executive's continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder. 

        For
purposes of any determination regarding the existence of Good Reason, any claim by the Executive that Good Reason exists shall be presumed to be correct unless the Company
establishes to the Board by clear and convincing evidence that Good Reason does not exist. 

        (Q)  "Gross-Up
Payment" shall have the meaning set forth in Section 6.2 hereof. 

        (R)  "Notice
of Termination" shall have the meaning set forth in Section 7.1 hereof. 

        (S)   "Person"
shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term
shall not include (i) CF Industries Holdings, Inc. or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of CF
Industries, Inc. or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company. 

        (T)  "Potential
Change in Control" shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred: 

        (I)   the
Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control; 

        (II)  the
Company or any Person publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control; 

        (III) any
Person becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 15% or more of either the then outstanding shares of common
stock of the Company or the combined voting power of the Company's then outstanding securities (not including in the securities beneficially owned by such Person any securities acquired directly from
the Company or its affiliates); or 

        (IV) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. 

        (U)  "Retirement"
shall be deemed the reason for the termination by the Executive of the Executive's employment if such employment is terminated in accordance with the
Company's retirement policy, including early retirement, generally applicable to its salaried employees. 

        (V)  "Severance
Payments" shall have the meaning set forth in Section 6.1 hereof. 

        (W) "Tax
Counsel" shall have the meaning set forth in Section 6.2 hereof. 

        (X)  "Term"
shall mean the period of time described in Section 2 hereof (including any extension, continuation or termination described therein). 

        (Y)  "Total
Payments" shall mean those payments so described in Section 6.2 hereof. 

10

 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 

	 	 	CF INDUSTRIES HOLDINGS, INC.
	

 	
 	

By:	

    
 Name:

Title:
	

 	
 	

    
 David J. Pruett

11

 
 
 

EXHIBIT A    
    
    RELEASE    
    

        (a)   David
J. Pruett ("Executive") for and in consideration of benefits provided pursuant to the Change in Control Severance
Agreement with CF Industries Holdings, Inc. (collectively, referred to herein as the "Company") entered into August , 2005 (the
"Severance Agreement"), on behalf of Executive and Executive's heirs, executors, administrators, successors and assigns, voluntarily, knowingly and
willingly releases and discharges the Company and its parents, subsidiaries and affiliates (collectively, the "Company Group"), together with their
respective present and former partners, officers, directors, employees and agents, and each of their predecessors, heirs, executors, administrators, successors and assigns, and any and all employee
pension or welfare benefit plans of the Company, including current and former trustees and administrators of these plans (collectively, the "Company
Releasees") from any and all charges, complaints, claims, promises, agreements, controversies, causes of action, demands, damages and liabilities
("Claims") of any nature whatsoever, known or unknown, suspected or unsuspected, which against the Company Releasees, jointly or severally, Executive or
Executive's heirs, executors, administrators, successors or assigns ever had or now have by reason of any matter, cause or thing whatsoever arising from the beginning of time to the time Executive
executes this release (the "Release"). This Release includes, without limitation, any Claims arising out of or relating in any way to Executive's
employment or director relationship with the Company, or the termination thereof, any Claims arising under any statute or regulation, including but not limited to the Age Discrimination in Employment
Act of 1967, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, or the Employee Retirement
Income Security Act of 1974, each as amended, or any other federal, state or local law, regulation, ordinance or common law, or under any policy, agreement, understanding or promise, written or oral,
formal or informal, between any Company Releasee and Executive. Executive shall not be entitled to any recovery, in any action or proceeding that may be commenced on Executive's behalf in any way
arising out of or relating to the matters released under this Release. Notwithstanding the foregoing, nothing herein shall release any Company Releasee from any Claim based on (i) Executive's
rights under the Severance Agreement or any other agreement with the Company (including, but not limited to, any stock option agreements), (ii) any right or claim that arises after the date
Executive executes this Release, (iii) Executive's eligibility for indemnification in accordance with applicable laws or the certificate of incorporation or by-laws of the Company
(or any affiliate or subsidiary) or any applicable insurance policy, with respect to any liability Executive incurs or incurred as a director, officer or employee of the Company or any affiliate or
subsidiary (including as a trustee, director or officer of any employee benefit plan) or (iv) any rights Executive may have to vested benefits under any employee benefit plan or program. 

        (b)   Executive
has been advised to consult with an attorney of Executive's choice prior to signing this Release, has done so and enters into this Release freely and
voluntarily. 

        [(c) Executive acknowledges that the Company has enclosed with this Release information concerning (i) the
ages and job titles of all employees who are eligible to receive severance pay and (ii) the ages of all employees in the same job classification or organizational unit who are not eligible to
receive severance pay.](1) 

	(1)
	Note: this paragraph is to be included only for applicable group terminations or exit incentive programs. 

        (d)   Executive
has had at least [twenty-one (21)]
[forty-five (45)](2) calendar days to consider the terms of this Release. Once Executive has
signed this Release, Executive has seven (7) additional days to revoke Executive's consent and may do so by writing to the Company as provided in Section 10 of the Severance Agreement.
Executive's Release shall not be effective, and no payments or benefits shall be due under Section 6 of the Severance Agreement, until the eighth day after Executive has executed this Release
and returned it to the Company, assuming that Executive has not revoked Executive's consent to this Release during such time (the "Revocation Date"). 

	(2)
	Note: use longer period for applicable group terminations or exit incentive programs. 

        (e)   In
the event that any one or more of the provisions of this Release shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remainder thereof shall not in any way be affected or impaired thereby. 

        (f)    This
Release shall be governed by the law of the State of Illinois without reference to its choice of law rules. 

12

 

	

CF INDUSTRIES HOLDINGS, INC.	
 	

 	

 
	

By:	

    
	
 	

 	

 
	Name:	 	 	 	 
	Title:	 	 	 	 
	

Signed as of this      day of            	
 	

 	

 
	

    
 David J. Pruett	
 	

 	

 
	

Signed as of this      day of            	
 	

 	

 

13

QuickLinks

Exhibit 10.16

CHANGE IN CONTROL SEVERANCE AGREEMENT

EXHIBIT A RELEASEQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.17    
    

 
 

NET OPERATING LOSS AGREEMENT    
    
    dated as of    
    
    July [ ], 2005    
    
    by and among    
    
    CF INDUSTRIES HOLDINGS, INC.    
    
    CF INDUSTRIES, INC.
  
    
    and    
    
    EXISTING STOCKHOLDERS OF CF INDUSTRIES, INC.    
    

 
 

Table of Contents    
    

	 
	 	Page
	 	 

	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	1
	 	
 Section 1.1	
 	

Definitions	
 	

1
	 	Section 1.2	 	Notices	 	3
	 	Section 1.3	 	Effect of Headings	 	4
	 	Section 1.4	 	Successors and Assigns	 	4
	 	Section 1.5	 	Benefits of Agreement	 	4
	 	Section 1.6	 	Governing Law	 	4
	 	Section 1.7	 	Legal Holidays	 	4
	 	Section 1.8	 	Severability Clause	 	4
	 	Section 1.9	 	Counterparts	 	4
	 	Section 1.10	 	Effectiveness	 	5
	 	Section 1.11	 	Entire Agreement	 	5
	
ARTICLE II NOL RIGHTS	
 	

5
	 	
 Section 2.1	
 	

Payment Procedures	
 	

5
	 	Section 2.2	 	Payments to Members	 	6
	 	Section 2.3	 	Member-Sourced NOL	 	6
	 	Section 2.4	 	Repayment of Amounts	 	7
	
ARTICLE III MEMBERS	
 	

7
	 	
 Section 3.1	
 	

Certain Duties and Responsibilities	
 	

7
	 	Section 3.2	 	Certain Rights of the Responsible Member; Actions of the Responsible Member	 	8
	 	Section 3.3	 	Reimbursement and Indemnification of the Responsible Member	 	9
	 	Section 3.4	 	Resignation and Removal; Appointment of Successor	 	9
	 	Section 3.5	 	Acceptance of Appointment by Successor	 	9
	 	Section 3.6	 	Final Resolution	 	9
	 	Section 3.7	 	Opt Out	 	9
	
ARTICLE IV COVENANTS	
 	

10
	 	
 Section 4.1	
 	

Prosecution of Litigation by the Company; Settlement; Periodic Reports; Expenses	
 	

10
	 	Section 4.2	 	Payment of NOL Payment Amount and Operations of the Company	 	11
	 	Section 4.3	 	Federal Income Tax Treatment	 	11
	
ARTICLE V AMENDMENTS	
 	

11
	 	
 Section 5.1	
 	

Amendments	
 	

11
	 	Section 5.2	 	Execution of Amendments	 	11
	 	Section 5.3	 	Effect of Amendments	 	11

 
 

NET OPERATING LOSS AGREEMENT    
    

        This NET OPERATING LOSS AGREEMENT, dated as of [    ], 2005 (this "Agreement"),
is entered into by and among CF Industries Holdings, Inc., a Delaware corporation (the "Parent"), CF Industries, Inc., a Delaware
corporation (the "Company") and the existing stockholders of the Company before the IPO (as defined below) (each a "Member", collectively
"Members"). 

RECITALS:  

        WHEREAS, the Company and the Parent have entered into an agreement and plan of merger dated as of July 21, 2005, pursuant to which a wholly-owned
subsidiary of Parent will be merged with and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent (the "Merger"); 

        WHEREAS,
in connection with the Merger, Parent will undertake an initial public offering (the "IPO") of Parent's common stock, pursuant to
which Parent will become a public company; and 

        WHEREAS,
the parties hereto intend that, following the Merger, the Members may be entitled to receive certain contingent payments from Parent in the amount and manner hereinafter
described. 

        NOW,
THEREFORE, for and in consideration of the premises and the consummation of the transactions referred to above, it is mutually covenanted and agreed as follows: 

ARTICLE I  

 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION  

        Section 1.1    Definitions.    

        (a)   For
all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 

          (i)  the
terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 

         (ii)  all
accounting terms used herein and not expressly defined shall have the meanings assigned to such terms in accordance with generally accepted accounting principles,
and the term "generally accepted accounting principles" means such accounting principles as are generally accepted in the United States at the time of any computation; 

        (iii)  the
words "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other
subdivision; and 

        (iv)  unless
the context otherwise requires, words describing the singular number shall include the plural and vice versa, words denoting any gender shall include all genders
and words denoting natural Persons shall include corporations, partnerships and other Persons and vice versa. 

        (b)   Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to them in the Merger Agreement. The following additional terms shall have the
meanings ascribed to them as follows: 

        "Affiliate" of a Person means a Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, the first mentioned Person. 

        "Board of Directors" means the board of directors of the Parent or the Company, as applicable. 

        "Business Day" means any day other than a Saturday, Sunday or a day on which banking institutions in Chicago, Illinois are authorized or
obligated by law or executive order to remain closed. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Consolidated Group" means any group of corporations that includes the Company (or any successor to the Company) and files any United
States federal, state or local income tax return on a combined, consolidated, unitary or affiliated basis. 

        "Determination" means (i) with respect to the utilization of a Member-Sourced NOL for United States federal income tax purposes,
"Determination" shall mean (A) a decision by the tax court or a judgment, decree, or other order by any court of competent jurisdiction, which
has become final; (B) a closing agreement made under Section 7121 of the Code; (C) a final disposition by the Secretary of a claim for refund or (D) other decisions as
described under Section 1313 of the Code and the regulations thereunder, 

 

and
(ii) with respect to the utilization of a Member-Sourced NOL for purposes of any state or local income tax, the receipt of an Opinion of Counsel that such Member-Sourced NOL can be utilized
to offset taxable income in such state or local jurisdiction. 

        "Excess Payment" has the meaning specified in Section 2.4 

        "Expenses" means the sum of all direct expenses incurred after the Merger by any of the Members, the Parent, the Company, the Company
Subsidiaries or any of their respective Affiliates in order to carry the Member-Sourced NOLs forward to tax years (or portions thereof) beginning after the Merger, including any fees, expenses or
costs incurred after the Merger (including, without limitation, the cost of the time of employees of the Parent, the Company, any Company Subsidiary or any of their Affiliates) in connection with
(i) pursuing the Ruling or any other Litigation or any Determination, (ii) any tax audit or refund claim to the extent related to the utilization of Member-Sourced NOLs or
(iii) defending any audit, litigation or other proceeding with respect to the amount and/or existence of the Member-Sourced NOLs. 

        "Firm Expenses" has the meaning specified in Section 2.1(d) of this Agreement. 

        "IPO" has the meaning set forth in the recitals to this Agreement. 

        "Last NOL Payment Date" shall mean the date determined by the Parent as the date on which the last NOL Payment Amount is to be made under
this Agreement (or the date on which it is determined by a Majority that no payment of NOL Payment Amount shall be made pursuant to this Agreement). 

        "Litigation" means pursuing the Ruling or any litigation that the Parent, the Company or the Company Subsidiaries or any of their
Affiliates may file or assert and any similar future lawsuits, claims or appeals brought by the Parent, the Company, the Company Subsidiaries or their Affiliates related to the ability of the Company
to utilize Member-Sourced NOL carryforwards to offset any taxable income of the Company or any Consolidated Group in any tax year (or portion thereof) beginning after the Merger. 

        "Majority" means the Members who held a majority of the shares of preferred stock of the Company outstanding immediately prior to the
Merger; provided, however, that in the event that one or more
Members has Opted Out of this Agreement in accordance with Section 3.7 as of the time of the determination of a Majority, only the shares of preferred stock owned immediately before the Merger
by Members that have not Opted Out of this Agreement shall be considered to have been outstanding at such time. 

        "Member-Sourced NOLs" means the net operating losses (within the meaning of section 172 of the Code or any similar provision of
applicable state or local income tax law) generated by the Company from business with its members prior to the Merger during the taxable years when the Company was taxed as a cooperative under
subchapter T of the Code and the regulations thereunder. 

        "NOL Payment Amount" means, for any NOL Payment Date, the sum of the excess, if any, of (i) the aggregate amount of United States
federal, state and local net income tax liability of the Company or any Consolidated Group for any tax year (or portion thereof) beginning after the Merger, calculated without taking into account the
utilization of any Member-Sourced NOLs carried forward from tax years ending on or before the date of the Merger (the "Without Calculation"), over
(ii) the aggregate amount of United States federal, state and local net income tax liability of the Company or any Consolidated Group for such tax year (or portion thereof) beginning after the
Merger, calculated on the basis of utilizing any Member-Sourced NOLs that are available under applicable law (including, without limitation, the limitations imposed by Sections 382 and 384 of the
Code) (the "With Calculation"); provided however, that any tax attributes of the Company or any Consolidated Group other than Member-Sourced NOLs
("Other Attributes") that are treated as utilized to reduce actual current tax liability under the Without Calculation in any tax year shall be deemed
to be unavailable to the Company or Consolidated Group in making the Without Calculation in any future year, regardless of whether such Other Attributes were actually utilized by the Company or
Consolidated Group to reduce tax liability in the prior year. "NOL Payment Amount" shall also include any interest actually received by the Company or a
Consolidated Group with respect to taxes offset by Member-Sourced NOLs. 

        "NOL Payment Date" means any date that any NOL Payment Amount is paid by the Parent to the Members. 

2

 

        "Officer's Certificate" means a certificate signed by the President, Chief Financial Officer or General Counsel, in each case of the
Parent or the Company, in his or her capacity as such an officer, and delivered to the Members. 

        "Opinion of Counsel" means a written opinion of nationally recognized counsel, which shall be selected by a Majority, and which opinion
and counsel shall be reasonably acceptable to the Company. 

        "Opt-Out" has the meaning specified in Section 3.7(a). 

        "Opt-Out Notice" has the meaning specified in Section 3.7(a). 

        "Person" means any individual, corporation, partnership, joint venture, limited liability company, business trust, association,
joint-stock company, trust, estate, unincorporated organization or government or any agency or political subdivision thereof. 

        "Resolution" has the meaning specified in Section 2.1(d) of this Agreement. 

        "Ruling" means a private letter ruling issued by the United States Internal Revenue Service (the
"IRS") to the effect that the Member-Sourced NOLs of the Company can be used to offset the income of the Company (or any Consolidated Group) for federal
income tax purposes after the Merger during tax years when the Company is not taxed as a cooperative under subchapter T of the Code. 

        "Settlement Decision" means any decision to grant consent to the settlement of any aspect or portion of the Litigation or otherwise to
dismiss with prejudice any claim of the Parent, the Company or a Company Subsidiary in a Litigation (and any other determination specified in Section 3.1(d) relating to such a decision). 

        "Strategic Decision" means, with respect to the Litigation, any decision that involves the appeal of any aspect of the case (whether after
a verdict or on a interlocutory basis), the addition of any claim or party, changing legal counsel or the basis for payment of attorney's fees, any admission of liability with respect to any claim
against the Company in the Litigation, or any other proposed decision or determination that in the opinion of outside counsel representing the Parent, the Company and the Company Subsidiaries in the
Litigation would represent a material change or development in strategy with respect to the Litigation and result in a substantial likelihood that the recovery or receipt by the Company and Company
Subsidiaries of any amount of Litigation Proceeds (whether pursuant to a court order at trial or upon appeal or pursuant to the terms of any settlement agreement) will be delayed;  provided, however, a
Strategic Decision shall not include any action that constitutes (in whole or in part) a Settlement Decision. 

        "Subsidiary" when used with respect to any Person means any corporation or other organization, whether incorporated or unincorporated, of
which such Person directly or indirectly owns or controls at least a majority of the securities or other interests having by their terms ordinary voting power to elect a majority of the board of
directors or others performing similar functions with respect to such corporation or other organization, or any organization of which such Person is a general partner. 

        Section 1.2    Notices.    Any request, demand, authorization, direction, notice, consent, or other document
provided or permitted by this Agreement to be made upon, given or furnished to, or filed with: 

        (a)   The
Company shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage prepaid or sent by a
nationally recognized overnight courier to the Company addressed to the attention of the General Counsel or Chief Financial Officer at One Salem Lake Drive, Long Grove, IL 60047, fax:
(847) 438-0211, phone: (847) 438-9500 or at any other address previously furnished in writing to the other parties hereto, with a copy to Brian Duwe, Esq.,
Skadden, Arps, Slate, Meagher & Flom LLP, 333 W. Wacker Drive, Suite 2100, Chicago, IL 60606. 

        (b)   CHS Inc.
shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage prepaid or sent by a
nationally recognized overnight courier to it addressed to 5500 Cenex Drive, Inver Grove Heights, Minnesota 55077-1733 or any other address previously furnished in writing to the parties
hereto. 

        (c)   La
Coop fédérée shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed
first-class postage prepaid or sent by a nationally recognized overnight courier to it addressed to 9001 Boulevard de l'Acadie, Bureau 200, Montreal, Quebec, H4N 3H7 CANADA or any other address
previously furnished in writing to the parties hereto. 

3

 

        (d)   GROWMARK, Inc.
shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage prepaid or sent by
a nationally recognized overnight courier to it addressed to 1701 Towanda Avenue, Bloomington, Illinois 61701-9972 or any other address previously furnished in writing to the parties
hereto. 

        (e)   Intermountain
Farmers Association shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage
prepaid or sent by a nationally recognized overnight courier to it addressed to 1147 West 2100 South, Salt Lake City, Utah 84119-0168 or any other address previously furnished in writing
to the parties hereto. 

        (f)    Land
O'Lakes, Inc. shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage prepaid or
sent by a nationally recognized overnight courier to it addressed to 4001 Lexington Avenue North, Arden Hills, Minnesota 55126-2998 or any other address previously furnished in writing to
the parties hereto. 

        (g)   MFA
Incorporated shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage prepaid or sent by a
nationally recognized overnight courier to it addressed to 201 Ray Young Drive, Columbia, Missouri 65201-3599 or any other address previously furnished in writing to the parties hereto. 

        (h)   Southern
States Cooperative, Incorporated shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class
postage prepaid or sent by a nationally recognized overnight courier to it addressed to 6606 West Broad Street, Richmond, Virginia 23230-1717 or any other address previously furnished in
writing to the parties hereto. 

        (i)    Tennessee
Farmers Cooperative shall be sufficient for every purpose hereunder if in writing and delivered personally, telecopied or mailed first-class postage prepaid or
sent by a nationally recognized overnight courier to it addressed to 200 Waldron Road, LaVergne, Tennessee 37086-1983 or any other address previously furnished in writing to the parties
hereto. 

        Section 1.3    Effect of Headings.    The Article and Section headings herein are for convenience only and
shall not affect the construction hereof. 

        Section 1.4    Successors and Assigns.    All covenants and agreements in this Agreement by the Company shall
bind its successors and assigns, whether so expressed or not. 

        Section 1.5    Benefits of Agreement.    Subject to Section 5.6, nothing in this Agreement, express or
implied, shall give to any Person (other than the parties hereto) any benefit or any legal or equitable right, remedy or claim under this Agreement or under any covenant or provision herein contained,
all such covenants and provisions being for the sole benefit of the parties hereto. 

        Section 1.6    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws
of the state of Delaware applicable to contracts executed and performed wholly within such state without giving effect to the choice of law principles of such state. 

        Section 1.7    Legal Holidays.    In the event that an NOL Payment Date shall not be a Business Day, then
(notwithstanding any provision of this Agreement to the contrary) any payment required to be made in respect of the use of Member-Sourced NOLs pursuant to this Agreement on such date need not be made
on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the applicable NOL Payment Date. 

        Section 1.8    Severability Clause.    In case any one or more of the provisions contained in this Agreement
shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this
Agreement shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. Upon such determination that any term or other provision is invalid, illegal or
unenforceable, the court or other tribunal making such determination is authorized and instructed to modify this Agreement so as to effect the original intent of the parties as closely as possible so
that the transactions and agreements contemplated herein are consummated as originally contemplated to the fullest extent possible. 

        Section 1.9    Counterparts.    This Agreement may be signed in any number of counterparts, each of which shall
be deemed to constitute but one and the same instrument. 

4

 

        Section 1.10    Effectiveness.    This Agreement shall be effective from and after the consummation of the
Merger. This Agreement shall be deemed terminated and of no force or effect, and the parties hereto shall have no liability hereunder, if the IPO is terminated prior to the Effective Time. 

        Section 1.11    Entire Agreement.    This Agreement, the Merger Agreement and the agreements referenced herein
and therein represent the entire understanding of the parties hereto with reference to the matters contemplated hereby and such documents supersede any and all prior oral or written agreements
regarding such matters. 

ARTICLE II  

 NOL RIGHTS  

        Section 2.1    Payment Procedures.    

        (a)   As
promptly as practicable but in no event later than 45 days after the Company or any Consolidated Group or any of their Affiliates realize any actual cash tax
saving as a result of the utilization of any Member-Sourced NOL carryforward in any tax year (or portion thereof) beginning after the Merger, the Parent shall deliver to the Members a certificate (the
"NOL Certificate") setting forth, in each case, in reasonable detail (i) the amount of any Member-Sourced NOL carried forward by the Company and
used by the Company or any Consolidated Group, if any, (ii) a detailed description of tax savings enjoyed by the Company or a Consolidated Group, if any, as a result of utilization of
Member-Sourced NOL, (iii) an itemized list of the Expenses incurred to date, (iv) an itemized list of the Expenses as of the NOL Payment Date (and not previously included in the
computation of the NOL Payment Amount) that the Company has incurred (whether directly or reimbursed), (v) the calculation of the NOL Payment Amount, if any, through the date of the NOL
Certificate, (vi) any assumptions (as appropriate or requested) underlying the determination of any item used in making the necessary calculations for such calculations, and (vii) any
financial or other documentation (if requested) reasonably necessary to sufficiently support such calculations. For purposes of this Agreement, neither the Company nor any Consolidated Group shall be
considered to have realized any actual cash tax savings from the utilization of a Member-Sourced NOL prior to (A) the earlier of (i) the receipt of the Ruling or (ii) a
Determination that such Member-Sourced NOLs can be utilized to offset taxable income of the Company or a Consolidated Group in any tax year (or portion thereof) beginning after the Merger, and
(B) with respect to any tax year for which a federal or state income tax return of the Company or Consolidated Group is due after the receipt of such Ruling or Determination, the earlier of
(i) the due date (taking into account applicable extensions) for such return or (ii) the date such return is actually filed. 

        (b)   Within
30 days of delivery of the NOL Certificate, each Member shall give written notice to the Company specifying whether such member agrees or objects (a
"Notice of Agreement" and a "Notice of Objection", respectively) to the NOL Certificate and the
computation of the NOL Payment Amount. 

        (c)   If
each Member delivers a Notice of Agreement and any NOL Payment Amount is payable, the Company shall pay such amounts to the Members in accordance with
Section 2.2(a). 

        (d)   As
promptly as practicable following delivery of a Notice of Objection, the applicable Member shall deliver to the Parent and each other Member a certificate (an
"Objection Certificate") setting forth in reasonable detail each of the objections to the calculations, valuations, methodologies, lists, computations,
assumptions and other information (collectively, the "Valuations") that the Member has to the applicable NOL Certificate. If a Majority does not agree
with the Objection Certificate (or any objections within such Objection Certificate), then the NOL Payment Amount shall be as set forth in the NOL Certificate and the Parent shall pay such amounts in
accordance with Section 2.2(a). If within ten days of the delivery of the Objection Certificate, a Majority agrees, in whole or in part, with the Objection Certificate, the Parent and the
Members shall attempt in good faith to resolve all disagreements regarding the Valuations. If, after 20 days, Parent and the Members are unable to resolve any such disagreement, Parent and the
Members shall subject the remaining areas of disagreement regarding the NOL Certificate that are in dispute to Ernst & Young or any other mutually agreed upon independent public accounting firm
of national standing that shall have expertise in the valuation of assets and properties (the "Firm"). The Firm shall be instructed to determine whether
the Valuations set forth in the NOL Certificate that are in dispute are correct in all material respects. If the Firm 

5

 

determines
that such Valuations are correct, the NOL Payment Amount shall be as set forth in the NOL Certificate, and each Member shall be deemed to have delivered a Notice of Agreement with respect
to such NOL Certificate and the Company shall pay such amounts in accordance with Section 2.2(a). If the Firm determines that any of the Valuations set forth in the NOL Certificate are
incorrect in any respect (whether or not material), the Firm's resulting calculation of the NOL Payment Amount shall be binding on all parties hereto (the
"Resolution") and the Parent, upon notice of such Resolution, shall pay such amounts in accordance with Section 2.2(a). All costs and expenses
billed by the Firm in connection with the performance of its duties described herein ("Firm Expenses") shall be paid by the Members that agreed with the
Objection Certificate giving rise to such costs, in proportion to such Members' respective ownership of shares of preferred stock of the Company immediately prior to the Merger: 

        (e)   If
a Member does not deliver a Notice of Agreement or a Notice of Objection to an NOL Certificate within the 30-day period described above, the Member shall
be deemed to have delivered a Notice of Agreement with respect to such NOL Certificate. 

        (f)    Notwithstanding
the foregoing, the provisions of this Section 2.1 (other than Section 2.1(f) and the definition of NOL Certificate) shall not apply to any
NOL Certificate received as a result of a Settlement Decision. 

        Section 2.2    Payments to Members.    

        (a)   If
any NOL Payment Amount is determined to be payable in accordance with Section 2.1 or Section 3.1(e), the Parent shall pay such amount to the Members in
proportion to the number of shares of preferred stock of the Company owned by such Members immediately prior to the Merger (as set forth on Schedule A hereto, as may be amended pursuant to
Section 3.7 from time to time) within five (5) Business Days after such determination is final, accompanied by an Officer's Certificate stating that the amount paid is the NOL Payment
Amount as determined in accordance with Section 2.1 or Section 3.1(e), as the case may be. 

        (b)   In
the event that the Company or any Consolidated Group has utilized the Member-Sourced NOLs in more than one taxable year, then the NOL Payment Amount with respect to
any such resulting tax savings
shall be paid with respect to each such actual use and the procedures described in Section 2.1 and Section 3.1(e) shall apply to each such actual use of Member-Sourced NOLs. 

        (c)   The
determination by the Company of any NOL Payment Amount pursuant to the procedures set forth in Section 2.1, absent a mathematical error, shall be final and
binding on the Company and the Members. 

        (d)   Except
in the specific cases specified in this Agreement, no interest shall accrue on any amounts payable to the Members. 

        Section 2.3    Member-Sourced NOL.    Within 45 days after filing the federal and state income tax
return of the Company for the tax year ending on the Merger date (and any amended federal income tax return for such year), the Company shall deliver to each Member a notice of the amount of
Member-Sourced NOL carryforwards reported on such return. The Company's determination of such amount shall be final and binding upon the Parent, the Company and the Members in the absence of manifest
error and except to the extent that the amount of Member-Sourced NOL is adjusted through any amended return, tax audit, tax litigation or similar proceeding. 

6

   
        Section 2.4    Repayment of Amounts.    Notwithstanding any other provision of this Agreement, in the event
that, after any amount is paid to the Members in respect of tax savings as a result of the utilization of Member-Sourced NOL pursuant to this Agreement, the Company reasonably determines that any such
payment was erroneous or exceeded the amount of tax savings actually realized from the utilization of Member-Sourced NOL (such as, for example, as a result of an audit or other tax proceeding pursuant
to which it is determined that the Member-Sourced NOLs were smaller than believed or were subject to limitations on use that were not taken into account when such payments were made)
("Excess Payments"), each Member that received an Excess Payment shall repay to the Company the amount of such Excess Payment, together with interest on
such Excess Payment at the underpayment rate applicable to the Company under Section 6601 of the Code for the period during which the Member held such Excess Payment. Any such repayment shall
be made within 30 days after the Company delivers to the affected Members a notice setting forth in reasonable detail the calculation of the amount of the Excess Payment (and interest thereon).
Alternatively, in the Company's sole and absolute discretion, the Company shall have the right to offset any Excess Payments owed by a Member to the Company against any amounts owed by the Company,
the Parent or any of their Subsidiaries to such Member. The purpose of this Section 2.4 is to ensure that payments to the Members by the Company pursuant to this Agreement shall be made only in
respect of tax savings that are actually realized by the Company through utilizing Member-Sourced NOL after the Merger, and this Section 2.4 shall be interpreted consistent with such purpose. 

ARTICLE III  

 MEMBERS  

        Section 3.1    Certain Duties and Responsibilities.    

        (a)   The
Members undertake to perform such duties and only such duties as are specifically set forth in this Agreement. 

        (b)   The
Members shall bear, in proportion to the number of shares of preferred stock of the Company owned by such Members immediately prior to the Merger as set forth on
Schedule A (as may be amended from time to time pursuant to Section 3.7), all of the costs incurred after the Merger in connection with or associated with the Litigation, including, but
not limited to, the Expenses. To the extent possible, all Expenses shall be incurred and paid directly by the Members (or the Responsible Member on behalf of the
Members). To the extent that Expenses are incurred by the Parent, the Company or any of their respective Subsidiaries, (including, without limitation, Expenses constituting reimbursement for the time
of any employee of the Parent, the Company or any of their respective Subsidiaries) the Parent or the Company shall be reimbursed promptly for such Expenses by the Members. The Parent or the Company
shall bill each Member for its share of Expenses to be reimbursed by such Member pursuant to the previous sentence whenever the Parent or the Company determines that the aggregate amount of unbilled
unreimbursed Expenses due from all Members exceeds $50,000, but in no event less than annually (it being understood that a failure to timely bill a Member for any unreimbursed Expense shall not in any
way prejudice the Parent's or the Company's right to be reimbursed for such Expense). 

        (c)   The
Members shall have the sole power and duty to direct and supervise all matters involving the Litigation (including trial strategy and planning and settlement
strategy) on behalf of the Company and any Consolidated Group; provided that all decisions and determinations with respect to the Litigation (including,
without limitation, any Settlement Decision or Strategic Decision) shall be made in accordance with this Section 3.1(c). The Members shall elect by Majority vote a Member (the
"Responsible Member"), who shall have primary responsibility for the day-to-day direction and supervision of the Litigation and
may, without the approval of any of the Parent, the Company, the Company Subsidiaries, any of their respective Affiliates, or any of the other Members, make decisions and determinations in accordance
with Section 3.1(d) hereof with respect to the day-to-day conduct of the Litigation and such decisions shall be deemed to made on behalf of all of the Members.
Notwithstanding the foregoing, the approval of a Majority shall be required for any Strategic Decision or any Settlement Decision. 

        (d)   In
making any decision or determination with respect to the Litigation (including, without limitation, any Settlement Decision or Strategic Decision) the Responsible
Member shall act in good faith with a view to maximizing the present value of the Litigation to the Members. Without limiting the 

7

 

generality
of the foregoing, in connection with any Settlement Decision, the Responsible Member shall consider: 

          (i)  the
aggregate amount of Member-Sourced NOLs to be carried forward; 

         (ii)  the
benefit to the Company and any Consolidated Group of any actual tax savings as a result of such Member-Sourced NOLs carryforward; 

        (iii)  the
discounted present value of any prospective tax-savings. 

        The
discount rate applicable to the value of such prospective tax saving shall be determined by the applicable Majority and shall give due regard to the financial and other costs to the
Company and the Company Subsidiaries of other resolution of the Litigation. 

        (e)   In
connection with the approval of any Settlement Decision, the Parent and a Majority shall jointly determine the amount, or a methodology for determining the amount, of
any Member-Sourced NOLs resulting from the settlement and the resulting tax saving. As promptly as practicable (but in no event later than 30 days after the settlement), the Parent shall
deliver to the Members an NOL Certificate setting forth the matters described in Section 2.1(a) to date. Upon receipt of any actual tax savings resulting from the Member-Sourced NOL carryover,
the Parent shall compute the NOL Payment Amount in a manner consistent with the NOL Certificate and shall pay the NOL Payment Amount to the Members in accordance with Section 2.2(a)
(accompanied by the Officer Certificate's setting forth the NOL Payment Amount). The Parent's management will make a good faith effort to comply with the Responsible Member's request to allow
employees of the Parent to participate in the Litigation activities. 

        (f)    The
Responsible Member shall confer in person or by telephone as frequently as necessary to keep all Members informed about material developments in the Litigation, on
at least three days' prior notice. Such briefings by the Responsible Member shall include a description of the progress of the Litigation and summarize any material decisions or determinations that
were made without seeking the approval of the other Members. 

        (g)   The
Responsible Member shall establish procedures for making decisions in an expedited manner in the case of exigent or emergency circumstances arising in connection
with the Litigation. 

        (h)   The
Responsible Member shall be deemed to be the agent of the Parent and the Company for all purposes relating to evidentiary privileges, including attorney-client
privileges. 

        Section 3.2    Certain Rights of the Responsible Member; Actions of the Responsible Member.    The Responsible
Member undertakes to perform such duties and only such duties as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the
Responsible Member. In addition: 

        (a)   the
Responsible Member may rely upon and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

        (b)   whenever
the Responsible Member shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Responsible Member may, in the absence of bad faith or willful misconduct on its part, rely upon an Officer's Certificate; 

        (c)   the
Responsible Member may engage and consult with counsel of its selection and the written advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by them hereunder in good faith and in reliance thereon; 

        (d)   the
Responsible Member may engage and consult with accounting firms, tax experts, valuation firms and other experts and third parties that it, in its sole and absolute
discretion, deem appropriate or necessary to enable them to discharge their duties hereunder; and 

        (e)   the
Responsible Member may request employees of the Parent, the Company, the Company Subsidiaries, and their Affiliates to respond to discovery requests, attend and
prepare for depositions, prepare for and testify at trial, or take any other action that the Responsible Members believes is necessary or prudent in prosecuting the Litigation. 

8

 

Except
as otherwise expressly provided in this Agreement, all decisions of the Members shall be taken by Majority vote of the Members; provided,
however, that the right to engage parties (including employees of the Parent, the Company, the Company Subsidiaries, or their Affiliates) to perform services with respect to
the day-to-day conduct of the Litigation shall be made by the Responsible Member. 

        Section 3.3    Reimbursement and Indemnification of the Responsible Member.    

        (a)   The
Members agree: 

          (i)  except
as otherwise expressly provided herein, to pay to or on behalf of the Responsible Member, upon the request of the Responsible Member, all reasonable expenses and
disbursements incurred or to be incurred by the Responsible Member in connection with the discharge of their duties under this Agreement (including, without limitation, the reasonable compensation and
the expenses and disbursements of their counsel, tax experts, valuation firms and other experts and third parties as contemplated in Section 3.2); and 

         (ii)  to
indemnify the Responsible Member and hold him or her harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, reasonable expenses and reasonable disbursements of any kind or nature whatsoever (including, without limitation, the reasonable compensation and the expenses and disbursements of their
counsel, tax experts, valuation firms and other experts and third parties as contemplated in Section 3.2) that may be imposed on, asserted against or incurred by them under this Agreement, and
the Responsible Member shall be so indemnified under this Agreement for his own ordinary or gross negligence, but the Responsible Member does not have the right to be indemnified under this Agreement
for their own willful misconduct or bad faith. 

        (b)   All
reimbursements and indemnification payments made by the Members to the Responsible Member pursuant to this Section 3.3 shall be made by the Members in
proportion to the number of shares of preferred stock of the Company owned by such Members immediately prior to the Merger, as set forth on Schedule A (as may be amended from time to time
pursuant to Section 3.7). 

        Section 3.4    Resignation and Removal; Appointment of Successor.    

        (a)   The
Responsible Member may resign at any time by giving written notice thereof to the Parent and other Members. 

        (b)   A
Majority may remove the Responsible Member at any time by giving written notice thereof to the Parent and the Responsible Member. 

        (c)   If
the Responsible Member shall resign, be removed or become incapable of acting, his or her successor shall be appointed by a Majority of the remaining Members. 

        (d)   The
Parent shall give notice of each resignation and each removal of the Responsible Member and each appointment of a successor Responsible Member to the other Members.
Each notice shall include the name and address of the successor Responsible Member. If the Parent fails to send such notice within ten days after acceptance of appointment by a successor Responsible
Member, the successor Responsible Member shall cause the notice to be mailed at the expense of the Parent. 

        Section 3.5    Acceptance of Appointment by Successor.    Every successor Responsible Member appointed
hereunder shall execute, acknowledge and deliver to the Parent and to the retiring Responsible Member an instrument accepting such appointment and a counterpart of this Agreement, and thereupon such
successor Responsible Member, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Responsible Member. 

        Section 3.6    Final Resolution.    On the Last NOL Payment Date, this Agreement shall terminate;  provided, however,
 that the provisions of Section 3.3 shall survive the termination of the
Agreement. 

        Section 3.7    Opt Out    

        (a)   A
Member may opt out of the provisions of this Agreement (an "Opt Out") upon written notice to the Company and each of other Members (an "Opt Out Notice"). A Member's
Opt Out shall be effective on the date specified by the Member in the Opt Out Notice, which shall not be earlier than fifteen days after the delivery of the Opt Out Notice. Once given, an Opt Out
Notice may be revoked 

9

 

only
with the consent of the Company and all of the Members that have not Opted Out of this Agreement. 

        (b)   If
a Member Opts Out of this Agreement, from and after the effective date of such Member's Opt Out: (i) such Member shall not be responsible for any Expenses or
Firm Expenses incurred on or after the effective date of the Opt Out (but shall remain liable for its portion of any Expenses or Firm Expenses incurred prior to such effective date); (ii) such
Member shall not be entitled to receive any payments pursuant to this Agreement in respect of any tax savings realized by the Company or any Consolidated Group as a result of the utilization of any
Member-Sourced NOL in any taxable year that ends on or after the effective date of such Member's Opt Out Notice (and shall be entitled to receive any payments pursuant
to this Agreement in respect of any actual cash tax savings realized by the Company or any Consolidated Group as a result of the utilization of any Member-Sourced NOL in any taxable year that ends
prior to the effective date of such Member's Opt Out Notice); and (iii) Schedule A shall be amended, as of the effective date of each Opt Out Notice, to remove the Member that has Opted
Out, such that (A) any Expenses and Firm Expenses incurred on or after the effective date of such Opt Out Notice shall be borne by the Members that did not Opt Out in proportion to the number
of shares of preferred stock of the Company owned by such Members immediately prior to the Merger, treating any shares of preferred stock owned immediately before the Merger by a Member that has Opted
Out as not being outstanding immediately prior to the Merger for this purpose and (B) any payments pursuant to this Agreement in respect of any cash tax savings actually realized by the Company
or any Consolidated Group as a result of the utilization of any Member-Sourced NOL in any taxable year that ends on or after the effective date of each Opt Out Notice shall be paid to the Members that
did not Opt Out in proportion to the number of shares of preferred stock of the Company owned by such Members immediately prior to the Merger. Nothing in this Section 3.7 shall relieve any
Member that Opts Out of this Agreement of any of its obligations under Section 2.4 to repay to the Company any Excess Payments it may have received, without regard to whether the determination
that an Excess Payment was made to such Member occurs before or after such Member has Opted Out of this Agreement. 

        (c)   For
the avoidance of doubt, in the event that all of the Members Opt Out of this Agreement, from and after the effective date of the Opt Out Notice of the last Member to
Opt Out, (i) the Company shall control and make all decisions regarding the prosecution of the Litigation (including, without limitation, whether to abandon the Litigation) in its sole and
absolute discretion, (ii) the Company shall bear all Expenses incurred after the effective date of such last Opt Out if the Company chooses to pursue the Litigation, and (iii) the
Company shall be entitled to retain any tax savings realized by the Company or any Consolidated Group as a result of the utilization of any Member-Sourced NOL in any taxable period ending after the
effective date of the Opt Out Notice of the last Member to Opt Out. 

ARTICLE IV  

 COVENANTS  

        Section 4.1    Prosecution of Litigation by the Company; Settlement; Periodic Reports; Expenses.    

        (a)   In
each case as directed by the Members pursuant to Section 3.1(c) hereof, the Company shall cause to prosecute in good faith the Litigation and/or seek a
settlement of the Litigation. 

        (b)   None
of the Parent, the Company, any Company Subsidiary, or their Affiliates shall make any Settlement Decision without obtaining prior approval from the applicable
Majority as determined in accordance with the last sentence of Section 3.1(c). 

        (c)   Until
the Litigation has been settled or is final and not subject to further judicial review (by appeal or otherwise), each of the Parent, the Company, the Company
Subsidiaries, their Affiliates and the Members shall cooperate in order to ensure that (i) all of the Members receive, by the last Business Day of each fiscal quarter of the Company, a report
describing the status of the Litigation, which report shall describe, in summary fashion, the total Expenses incurred through the date of such report, the status of all pending IRS or court
proceedings related to the Litigation, and the status of any settlement negotiations among the Parent, the Company, the Company Subsidiaries and their Affiliates and the defendants with respect to the
Litigation and (ii) except as otherwise required by applicable law or court 

10

 

order,
all of the Members are granted access to any and all records, documents, personnel and any other sources of information that are in the possession, custody or control of the Parent, the Company
and their Affiliates as the Members shall determine are reasonably necessary or desirable in order to review Settlement Decisions and Strategic Decisions, if any. The Parent, the Company, the Company
Subsidiaries, and their Affiliates shall cooperate with the Members in providing the assistance of any of their officers and employees and, to the extent that the Parent or the Company, as the case
may be, believes in its reasonable determination that it is required to have its employees expend efforts in prosecuting the Litigation, the Parent or the Company shall be entitled to be reimbursed
for any reasonable amount of hours expended in such effort. 

        (d)   None
of the Parent, the Company, or the Company Subsidiaries shall initiate settlement negotiations or expand settlement negotiations with respect to any aspect or
portion of the Litigation without the prior permission of a Majority as set forth in the last sentence of Section 3.1(c) and the Parent and the Company agree that such powers shall vest with
the Members as provided in Section 3.1(c). No Member shall initiate settlement negotiations without first informing each other Member of such settlement negotiations and obtaining consent to
pursue such negotiations from a Majority of Members as determined in the last sentence of Section 3.1(c). If one or more Members are allowed to entertain or initiate settlement negotiations,
such Members shall keep each other Member reasonably informed regarding the status of such negotiations (including any expansion of such negotiations) and any Members shall, if such Members request,
be allowed to participate in the settlement negotiations. 

        Section 4.2    Payment of NOL Payment Amount and Operations of the Company.    The Parent or the Company shall
duly and promptly pay all amounts due in accordance with the terms of this Agreement; provided, however, that none of the Parent, the Company or any Company Subsidiary shall be obligated to arrange
its affairs in such a manner as to increase the likelihood that the Member-Sourced NOLs will be utilized by the Company or any Consolidated Group after the Merger (other than in pursuing the Ruling
and any other Litigation in good faith, as contemplated herein). 

        Section 4.3    Federal Income Tax Treatment.    The Parent or the Company shall not (and shall cause each of
their Affiliates not to) treat any NOL Payment Amount as payments of interest or compensation (except as required under Code section 483) and the Parent and the Company shall not (and shall not
allow any of their Affiliates to) take any position inconsistent with such treatment (unless required by a determination that is final after the Parent, the Company or their Affiliates have defended
such matter in good faith). 

ARTICLE V  

 AMENDMENTS  

        Section 5.1    Amendments.    

        (a)   This
Agreement may not be amended except by an instrument in writing signed by the Parent, the Company and the Majority. 

        Section 5.2    Execution of Amendments.    In executing any amendment permitted by this Article, the Members
shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement. The Members
may, but are not obligated to, enter into any such amendment that affects the Members' own rights, privileges, covenants or duties under this Agreement or otherwise. 

        Section 5.3    Effect of Amendments.    Upon the execution of any amendment under this Article, this Agreement
shall be modified in accordance therewith, such amendment shall form a part of this Agreement for all purposes and every Person hereto shall be bound thereby. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

11

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers to be effective as of the day and year first above written. 

	 	 	CF INDUSTRIES HOLDINGS, INC.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
CF INDUSTRIES, INC.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
MEMBERS
	

 	
 	

CHS, INC.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
LA COOP FÉDÉRÉE
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
GROWMARK, INC.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 

	

 	
 	
INTERMOUNTAIN FARMERS ASSOCIATION
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
LAND O'LAKES, INC.
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
MFA INCORPORATED
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
SOUTHERN STATES COOPERATIVE, INCORPORATED
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	
TENNESSEE FARMERS COOPERATIVE
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	Title:	 

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Exhibit 10.17

NET OPERATING LOSS AGREEMENT dated as of July [ ], 2005 by and among CF INDUSTRIES HOLDINGS, INC. CF INDUSTRIES, INC. and EXISTING STOCKHOLDERS OF CF INDUSTRIES, INC.

Table of Contents

NET OPERATING LOSS AGREEMENT

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