Document:

exv4w7

 

Exhibit 4.7

AMENDMENT NO. 6 TO THE AMENDED AND RESTATED CREDIT AGREEMENT

     Amendment No. 6 (this “Amendment”), dated as of August 28, 2007, among Terra
Capital, Inc., a Delaware corporation (“Terra Capital”), Terra Mississippi Holdings Corp.
(f/k/a Mississippi Chemical Corporation), a Mississippi corporation (“TMH”), and Terra
Nitrogen (U.K.) Limited, a company incorporated in England and Wales (“Terra
UK”) (Terra Capital, TMH and Terra UK each a “Borrower” and, collectively, the
“Borrowers”), Terra Industries Inc., a Maryland corporation (“Terra Industries”),
Terra Capital Holdings, Inc., a Delaware corporation (“Terra Capital Holdings”), the
Lenders party hereto and Citicorp USA, Inc., as administrative agent and collateral agent
for the Lenders and the Issuers (in such capacities, the “Administrative Agent”), amends certain
provisions of the Amended and Restated Credit Agreement, dated as of December 21, 2004 (as
amended, supplemented or otherwise modified from time to time, including previous amendments
hereto, the “Credit Agreement”), among the Borrowers, Terra Industries, Terra Capital
Holdings, the financial institutions from time to time party thereto as lenders (the “Lenders”),
the financial institutions from time to time party thereto as issuing banks (the “Issuers”) and
Citicorp USA, Inc., as administrative agent and collateral agent for the Lenders and the
Issuers (in such capacities, the “Administrative Agent”).

W I T N E S S E T H:

     WHEREAS, the Borrowers, Terra Industries and Terra Capital Holdings have requested, and the
Requisite Lenders and the Administrative Agent have agreed to, certain amendments to the Credit
Agreement as more specifically set forth below.

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

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

     2. Amendments. Upon the occurrence of the Sixth Amendment Effective Date (as defined
in Section 4), the Credit Agreement is hereby amended as follows:

     (a) The definition of “Cash Equivalents” in Section 1.1 of the Credit Agreement is hereby
amended by replacing the word “and” appearing immediately before clause (g) with a semi-colon and
inserting immediately after the semi-colon at the end of clause (g) the following new clause:

     and (h) investments in institutional money market funds registered under the
Investment Company Act of 1940, subject to the written consent of the Administrative
Agent.

     (b) Section 8.3(k) of the Credit Agreement is hereby amended by deleting the existing clause
(iv) in its entirety and inserting the following in lieu thereof:

     (iv) by Terra Canada in Terra UK in the form of an Equity Issuance in
connection with Terra Canada’s assumption of, or Terra UK’s repayment of, all of
Terra UK’s liabilities under the Terra UK Fixed Asset Secured Debt;

     (c) Clause (h) of Section 8.4 inserted in Amendment No. 5 is hereby renumbered as clause (i).

 

 

     (d) Section 8.4 of the Credit Agreement is hereby amended by (A) deleting the word “and”
appearing at the end of clause (h), (B) deleting the “period” appearing at the end of clause (i)
and inserting “; and” in lieu thereof, and (C) inserting a new clause (j) immediately after clause
(i) to read as follows:

     (j) Investments permitted under Section 8.3(k)(iv).

     (e) Section 8.5(e) of the Credit Agreement is hereby amended by:

     (i) deleting and replacing clause (i) thereof with the following:

     (i) the aggregate amount of such Stock Purchases together with the
aggregate amount of Common Unit Purchases and the Senior Note Purchases, (A)
made during any Repurchase Period does not exceed the Maximum Repurchase
Amount applicable to such period or (B) made during any calendar year does
not exceed $100,000,000; provided, however, that for so long as the Senior
Unsecured Note (2007) Indenture remains in full force and effect, the
foregoing limitations in clauses (A) and (B) above shall not apply to the
extent that such Stock Purchases may at the applicable time be made as a
“Restricted Payment” as defined in, and solely in accordance with the
provisions of Sections 4.10(a), 4.10(b)(7) or 4.10(b)(8) of, the Senior
Unsecured Note (2007) Indenture (without giving effect to any amendment or
modification thereof).

     and

     (ii) deleting and replacing clause (vi) thereof with the following:

     (vi) Terra Capital shall deliver to the Administrative Agent, together
with the quarterly financial information delivered pursuant to Section
6.1(b), a certificate executed by an officer of Terra Capital identifying
the Stock Purchases made during the most recently ended Fiscal Quarter and
certifying that the foregoing conditions were in each case met with respect
thereto.

     (f) Section 1.1 (Defined Terms) of the Credit Agreement is hereby amended by inserting
the following definition in alphabetical order:

     “Amendment No. 5” means Amendment No. 5, dated as of July 11, 2007, by and
between the Borrowers, certain subsidiaries of Terra Industries, the Administrative
Agent and the Lenders signatory thereto.

     3. Waiver. The Requisite Lenders hereby waive, upon the occurrence of the Sixth
Amendment Effective Date, any Default or Event of Default that may have occurred prior to such
date as a result of any breach of the certification requirements of Section 8.5(e)(vi) of the
Credit Agreement.

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

2

 

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

               (i) this Amendment, executed by the Borrowers, Terra Industries, Terra Capital Holdings, the
Administrative Agent and the Requisite Lenders; and

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

          (b) Representations and Warranties. Each of the representations and warranties made
by the Borrowers or the Guarantors in or pursuant to the Credit Agreement, as amended hereby, and
the other Loan Documents to which any of the Borrowers or the Guarantors is a party or by which the
Borrowers or the Guarantors are bound, shall be true and correct in all material respects on and as
of the Sixth Amendment Effective Date (other than representations and warranties in any such Loan
Document which expressly speak as of a specific date, which shall have been true and correct in all
material respects as of such specific date).

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

          (d) Fees and Expenses Paid. The Borrowers shall have paid to the Administrative Agent
in accordance with Section 11.3 of the Credit Agreement, all outstanding costs and expenses of the
Administrative Agent, including the reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent incurred prior to or otherwise in connection with this Amendment to the extent
invoiced to the Borrowers.

     5. Representations and Warranties. On and as of the date hereof, and as of the Sixth
Amendment Effective Date, after giving effect to this Amendment, each Borrower, Terra Industries
and Terra Capital Holdings hereby represents and warrants to the Lenders as follows:

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

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

     6. Continuing Effect; No other Amendments. Except as expressly amended hereby or
waiver herein, all of the terms and provisions of the Credit Agreement and the other Loan
Documents are, and shall remain, in full force and effect. The amendments and consents contained
herein shall not constitute an amendment or a waiver of any other provision of the Credit
Agreement or the other Loan Documents or for any purpose except as expressly set forth herein.

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

3

 

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

     9. Governing Law; Counterparts; Miscellaneous.

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

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

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

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

[signature pages follow]

4

 

     IN WITNESS WHEREOF, the undersigned parties have executed this Amendment No. 6 to the Amended
and Restated Credit Agreement to be effective for all purposes as of the Sixth Amendment Effective
Date.

	 	 	 	 	 
	 	 	Borrowers
	 
	 	 	 	 
	 	 	Terra Capital, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell

	 

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	 	 	Terra Mississippi Holdings Corp.
	 	 	(f/k/a Mississippi Chemical Corporation)
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	Terra Nitrogen (U.K.) Limited
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell
	 

	 	 	 	Title: Vice Presdient
	 
	 	 	 	 
	 	 	Guarantors
	 
	 	 	 	 
	 	 	Terra Industries Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	Name:
	 	Daniel D. Greenwell
	 

	 	Title:
	 	Sr. Vice President and CFO
	 
	 	 	 	 
	 	 	Terra Capital Holdings Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell

	 

	 	 	 	Title: Vice President and Treasurer

 

 

	 	 	 	 	 
	 	Administrative Agent

Citicorp USA, Inc.

 	 
	 	By:  	/s/  Marcus Wunderlich
 	 
	 	 	Name:  	Marcus Wunderlich 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Lenders

Citicorp USA, Inc.

 	 
	 	By:  	/s/  Marcus Wunderlich
 	 
	 	 	Name:  	Marcus Wunderlich 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Wells Fargo Foothill, LLC

 	 
	 	By:  	                  /s/  Mark Bradford
 	 
	 	 	Name:  	Mark Bradford 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	LaSalle Bank National Association 

 	 
	 	By:  	/s/  Julie S. Harris
 	 
	 	 	Name:  	Julie S. Harris 	 
	 	 	Title:  	1st Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Congress Financial Corp. 

 	 
	 	By:  	/s/  Thomas A. Martin
 	 
	 	 	Name:  	Thomas A. Martin 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	General Electric Capital Corporation

 	 
	 	By:  	/s/  Alison P. Trapp
 	 
	 	 	Name:  	Alison P. Trapp 	 
	 	 	Title:  	Duly Authorized Signatory 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	National City Business Credit, Inc.

 	 
	 	By:  	/s/  Thomas J. Evans
 	 
	 	 	Name:  	Thomas J. Evans 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

CONSENT OF GUARANTORS

Dated as of August 28, 2007

     Each of the undersigned companies, as a Guarantor under the Amended and Restated Guaranty
dated October 10, 2001 (the “Guaranty”), in favor of the Secured Parties under the Credit Agreement
referred to in the foregoing Amendment, hereby consents to such Amendment and hereby confirms and
agrees that notwithstanding the effectiveness of such Amendment, the Guaranty is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in all respects,
except that, on and after the effectiveness of such Amendment, each reference in the Guaranty to
the “Credit Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a
reference to the Credit Agreement, as amended by such Amendment.

[Signature pages follow]

 

 

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

	 	 	 
	 

	 	TERRA
CAPITAL, INC.
	 

	 	TERRA
MISSISSIPPI HOLDINGS CORP. (F/K/A
	 

	 	     MISSISSIPPI CHEMICAL CORPORATION)
	 

	 	TERRA
INDUSTRIES INC.
	 

	 	TERRA
CAPITAL HOLDINGS, INC.
	 

	 	TERRA NITROGEN CORPORATION
	 

	 	TERRA
INTERNATIONAL, INC.
	 

	 	TERRA
INTERNATIONAL (OKLAHOMA) INC.
	 

	 	PORT NEAL CORPORATION
	 

	 	TERRA METHANOL CORPORATION
	 

	 	BMC
HOLDINGS INC.
	 

	 	BEAUMONT HOLDINGS CORPORATION
	 

	 	TERRA REAL ESTATE CORPORATION
	 

	 	BEAUMONT AMMONIA INC.
	 

	 	TERRA
INTERNATIONAL (CANADA) INC.
	 

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

	 	     MISSISSIPPI NITROGEN, INC.)
	 

	 	TERRA
HOUSTON AMMONIA, INC. (F/K/A
	 

	 	     MISSISSIPPI CHEMICAL MANAGEMENT COMPANY)
	 

	 	TERRA
NITROGEN GP HOLDINGS INC.

	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell
	 

	 	 	 	Title: Vice President and Chief Accounting
Officer
	 
	 	 	 	 
	 

	 	TERRA
	 	NITROGEN (U.K.) LIMITED
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 

	 	TERRA
	 	(U.K.) HOLDINGS INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel D. Greenwell
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel D. Greenwell
	 

	 	 	 	Title: Vice President

[CONSENT TO AMENDMENT
NO. 6 TO THE AMENDED AND RESTATED CREDIT AGREEMENT]exv10w1w31

 

Exhibit 10.1.31

Tier One Agreement

     AMENDMENT NUMBER ONE (the “Amendment”), dated as of [•],
between Terra Industries Inc., a Maryland corporation (the
“Company”), and [NAME] (the “Executive”), to the
Employment Severance Agreement (the “Employment Severance
Agreement”), dated as of October 5, 2006, between the Company and the
Executive.

          WHEREAS the Company and the Executive wish to amend the Employment Severance Agreement in
order to address the requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”).

          NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, and intending to be legally bound hereby, the parties hereto agree as follows:

SECTION 1. Amendment to Section 4(b)(iii). Section 4(b)(iii) shall be deemed to
have been deleted and the following clause shall be deemed to have been inserted in its
place:

          “(iii) For purposes of this Agreement, “Good Reason” means (A) during the period prior
to a Change in Control and during the period following the second anniversary thereof (each such
period, a “Non-CIC Period”), the occurrence of any of the events or circumstances set forth
in clauses (1) and (2) below and (B) during the two-year period following a Change in Control (the
“CIC Period”), the occurrence of any of the events or circumstances set forth in clauses
(1) through (8) below, in each such case during the Term, without the Executive’s express prior
written consent and other than as a result of the Executive’s Permanent Disability:

          (1) the failure of the Company to pay the Executive any compensation when due (other than an
inadvertent failure that is remedied within ten business days after receipt of notice thereof given
by the Executive);

          (2) delivery by the Company or any Subsidiary of a notice to the Executive of the intent to
terminate the Executive’s employment for any reason, other than for Cause or Permanent Disability,
in each case in accordance with this Agreement, regardless of whether such termination is intended
to become effective during or after the Term;

          (3) a reduction of the Executive’s Base Salary by 10% or more from the level in effect
immediately prior to the Change in Control;

          (4) the change of the Executive’s principal place of employment to a location more than 50
miles from Executive’s principal place of employment immediately prior to the change;

 

2

          (5) an reduction in the Executive’s Target Bonus by 10% or more from the level in effect
immediately prior to the Change in Control;

          (6) any material diminution in the Executive’s titles, duties, responsibilities or status
from the positions, duties, responsibilities or status existing immediately prior to the Change in
Control;

          (7) the removal of the Executive from, or any failure to re-elect the Executive to, any of
the offices the Executive held immediately prior to the Change in Control; or

          (8) any material reduction in Executive’s retirement, insurance or fringe benefits from the
levels in effect immediately prior to the Change in Control.

A termination of employment by the Executive for Good Reason for purposes of this Agreement shall
be effectuated by giving the Company written notice (“Notice of Termination for Good
Reason”), not later than 90 days following the occurrence of the circumstance that constitutes
Good Reason, setting forth in reasonable detail the specific conduct of the Company that
constitutes Good Reason and the specific provision(s) of this Agreement on which the Executive
relied. The Company shall be entitled, during the 30-day period following receipt of a Notice of
Termination for Good Reason, to cure the circumstances that gave rise to Good Reason, provided that
the Company shall be entitled to waive its right to cure or reduce the cure period by delivery of
written notice to that effect to the Executive (such 30-day or shorter period, the “Cure
Period”). If, during the Cure Period, such circumstance is remedied, the Executive will not
be permitted to terminate employment for Good Reason as a result of such circumstance. If, at the
end of the Cure Period, the circumstance that constitutes Good Reason has not been remedied, the
Executive will be entitled to terminate employment for Good Reason during the 30-day period that
follows the end of the Cure Period. If the Executive does not terminate employment during such
30-day period, the Executive will not be permitted to terminate employment for Good Reason as a
result of such event. If the Company disputes the existence of Good Reason, the Company shall have
the burden of proof to establish that Good Reason does not exist or that the circumstances that
gave rise to Good Reason have been cured.”

          SECTION 2. Amendment to Section 4(c)(ii). The following sentence shall be deemed to
have been added to the end of Section 4(c)(ii):

          “Notwithstanding the foregoing, the lump-sum payment described in this Section 4(c)(ii) shall
be paid, if at all, not later than the 74th day following the Termination Date.”

          SECTION 3. Amendment to Section 4(d)(ii). The following sentence shall be deemed to
have been added to the end of Section 4(d)(ii):

 

3

          “Notwithstanding the foregoing, the lump-sum payment described in this Section 4(d)(ii) shall
be paid, if at all, not later than the 74th day following the Termination Date.”

          SECTION 4. Amendment to Section 4(e)(ii). Section 4(e)(ii) shall be deemed to have
been deleted and the following paragraph shall be deemed to have been inserted in its place:

          “(ii) Commencing on the Termination Date and ending on the second anniversary thereof or, if
earlier, the date on which the Executive becomes employed by a new employer, the Company shall, at
its expense (subject to the Executive’s payment of the normal premium, if any, then in effect at
the time of payment for employees generally), provide the Executive with medical and dental
benefits at the level provided to the Company’s active employees during such period;
provided, however, that if the Executive becomes employed by a new employer that
maintains a major medical plan that either (A) does not cover the Executive with respect to a
preexisting condition which was covered under the Company’s major medical plan, or (B) does not
cover the Executive for a designated waiting period, the Executive’s coverage under the Company’s
major medical plan shall continue (but shall be limited in the event of noncoverage due to a
preexisting condition, to the preexisting condition itself) until the earlier of the end of the
applicable period of noncoverage under the new employer’s plan or the second anniversary of the
Termination Date. Notwithstanding the foregoing, in the event that the Release Effective Date does
not occur on or prior to the 74th day following the Termination Date, the Executive shall forfeit
all future rights to receive medical and dental benefits at the level provided to the Company’s
active employees and shall be required to reimburse the Company for the portion of the premiums (or
premium equivalents) paid on the Executive’s behalf by the Company following the Termination Date.
Except as specifically permitted by Section 409A of the Code and the regulations thereunder as in
effect from time to time (collectively, hereinafter, “Section 409A”), the medical and
dental benefits provided to the Executive during any calendar year will not affect the medical and
dental benefits to be provided to the Executive in any other calendar year. Nothing contained
herein shall adversely affect the Executive’s rights under COBRA.”

          SECTION 5. Amendment to Section 5. The following new Section 5(e) shall be deemed to
have been added to the end of Section 5:

          “(e) Any 280G Gross-Up Payment that the Executive becomes entitled to pursuant to this Section
5 will be paid to the Executive (or to the applicable taxing authority on the Executive’s behalf)
not later than the last day of the calendar year after the calendar year in which the applicable
Excise Tax is paid.”

          SECTION 6. Amendment to Section 13. Section 13 shall be deemed to have been deleted
and the following clause shall be deemed to have been inserted in its place:

 

4

          “SECTION 13. Section 409A of the Code. (a) It is intended that the provisions of
this Agreement comply with Section 409A, and all provisions of this Agreement shall be construed
and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under
Section 409A.

          (b) Neither the Executive nor any of the Executive’s creditors or beneficiaries shall have the
right to subject any deferred compensation (within the meaning of Section 409A) payable under this
Agreement or under any other plan, policy, arrangement or agreement of or with the Company or any
of its Affiliates (this Agreement and such other plans, policies, arrangements and agreements, the
“Company Plans”) to any anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment. Except as permitted under Section 409A, any deferred
compensation (within the meaning of Section 409A) payable to the Executive or for the Executive’s
benefit under any Company Plan may not be reduced by, or offset against, any amount owing by the
Executive to the Company or any of its Affiliates.

          (c) If, at the time of the Executive’s separation from service (within the meaning of Section
409A), (i) the Executive shall be a specified employee (within the meaning of Section 409A and
using the identification methodology selected by the Company from time to time) and (ii) the
Company shall make a good faith determination that an amount payable under a Company Plan
constitutes deferred compensation (within the meaning of Section 409A) the payment of which is
required to be delayed pursuant to the six-month delay rule set forth in Section 409A in order to
avoid taxes or penalties under Section 409A, then the Company (or its Affiliate, as applicable)
shall not pay such amount on the otherwise scheduled payment date but shall instead accumulate such
amount and pay it, without interest, on the first business day after such six-month period.

          (d) Notwithstanding any provision of this Agreement or any Company Plan to the contrary, in
light of the uncertainty with respect to the proper application of Section 409A, the Company
reserves the right to make amendments to any Company Plan as the Company deems necessary or
desirable to avoid the imposition of taxes or penalties under Section 409A. In any case, except as
provided in Section 5, the Executive shall be solely responsible and liable for the satisfaction of
all taxes and penalties that may be imposed on the Executive or for the Executive’s account in
connection with any Company Plan (including any taxes and penalties under Section 409A), and
neither the Company nor any of its Affiliates shall have any obligation to indemnify or otherwise
hold the Executive harmless from any or all of such taxes or penalties.”

          SECTION 7. Governing Law; Construction. This Amendment shall be deemed to be made in
the State of Iowa, and the validity, interpretation, construction and performance of this Amendment
in all respects shall be governed by the laws of the State of Iowa without regard to its principles
of conflicts of law. No provision of this Amendment or any related document shall be construed
against or interpreted to the disadvantage of any party hereto by any court or other governmental
or judicial authority by reason of such party’s having or being deemed to have structured or
drafted such provision.

 

5

          SECTION 8. Effect of Amendment. Except as expressly set forth herein, this Amendment
shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect
the rights and remedies of the parties to the Employment Severance Agreement, and shall not alter,
modify, amend or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Employment Severance Agreement, all of which shall continue in full
force and effect. This Amendment shall apply and be effective only with respect to the provisions
of the Employment Severance Agreement specifically referred to herein. After the date hereof, any
reference to the Employment Severance Agreement shall mean the Employment Severance Agreement as
modified hereby.

          SECTION 9. Counterparts. This Amendment may be executed in one or more counterparts
(including via facsimile), each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party.

          IN WITNESS WHEREOF, this Amendment has been executed by the parties as of the date first
written above.

	 	 	 	 	 	 	 
	 	 	TERRA INDUSTRIES INC.,
	 
	 	 	 	 	 	 
	 

	 	by	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE,
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	[NAME]

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