Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.1

Joint Venture Contribution Agreement

GrowHow UK Limited

and

Terra International (Canada), Inc.

and

Kemira GrowHow Oyj

and

Terra Industries Inc.

for the contribution of certain companies to
GrowHow UK Limited

14 September 2007

 

 

 

CONTENTS

	 	 	 	 	 
	CLAUSE	 	PAGE	 
	 
	1.    INTERPRETATION
	 	 	1	 
	2.    SALE AND PURCHASE
	 	 	7	 
	3.    COMPLETION
	 	 	8	 
	4.    KEMIRA WARRANTIES, COVENANT AND UNDERTAKINGS
	 	 	10	 
	5.    TERRA WARRANTIES, COVENANT AND UNDERTAKINGS
	 	 	10	 
	6.    JVCO WARRANTIES AND UNDERTAKINGS
	 	 	11	 
	7.    ENVIRONMENTAL INDEMNITIES
	 	 	12	 
	8.    FACILITY RATIONALISATION
	 	 	12	 
	9.    SCRUBBING SYSTEM
	 	 	17	 
	10.  CONFIDENTIAL INFORMATION
	 	 	18	 
	11.  KEMIRA POST-COMPLETION UNDERTAKINGS
	 	 	19	 
	12.  TERRA POST-COMPLETION UNDERTAKINGS
	 	 	20	 
	13.  ANNOUNCEMENTS
	 	 	21	 
	14.  PARENT COMPANY GUARANTEE
	 	 	22	 
	15.  ASSIGNMENT
	 	 	22	 
	16.  COSTS
	 	 	22	 
	17.  EFFECT OF COMPLETION
	 	 	23	 
	18.  FURTHER ASSURANCES
	 	 	23	 
	19.  ENTIRE AGREEMENT
	 	 	23	 
	20.  VARIATIONS
	 	 	23	 
	21.  WAIVER
	 	 	24	 
	22.  INVALIDITY
	 	 	24	 
	23.  NOTICES
	 	 	24	 
	24.  COUNTERPARTS
	 	 	25	 
	25.  ARBITRATION, GOVERNING LAW AND JURISDICTION
	 	 	25	 
	26.  THIRD PARTY RIGHTS
	 	 	26	 
	 
	 	 	 	 
	SCHEDULE 1
	 	 	27	 
	Kemira Completion Obligations
	 	 	27	 
	SCHEDULE 2
	 	 	29	 
	Terra Completion Obligations
	 	 	29	 
	SCHEDULE 3
	 	 	31	 
	JVCo Completion Obligations
	 	 	31	 
	SCHEDULE 4
	 	 	32	 
	Particulars relating to the Kemira Companies
	 	 	32	 
	SCHEDULE 5
	 	 	34	 
	Particulars relating to the Terra Company
	 	 	34	 
	SCHEDULE 6
	 	 	35	 
	The Kemira Warranties
	 	 	35	 
	SCHEDULE 7
	 	 	54	 
	The Terra Warranties
	 	 	54	 
	SCHEDULE 8
	 	 	73	 
	Kemira’s Limitations on Liability
	 	 	73	 
	SCHEDULE 9
	 	 	76	 
	Terra’s Limitations on Liability
	 	 	76	 
	SCHEDULE 10
	 	 	79	 
	Part I — The Kemira Properties
	 	 	79	 
	Part II — The Kemira Occupational Leases
	 	 	81	 
	SCHEDULE 11
	 	 	83	 
	Part I — The Terra Properties
	 	 	83	 
	Part II — The Terra Occupational Leases
	 	 	86	 
	SCHEDULE 12
	 	 	87	 
	Balancing Consideration
	 	 	87	 
	SCHEDULE 13
	 	 	95	 

 

 

 

	 	 	 	 	 
	CLAUSE	 	PAGE	 
	 
	Environmental Contamination Indemnities
	 	 	95	 
	SCHEDULE 14
	 	 	103	 
	Kemira Working Capital and Debt
	 	 	103	 
	SCHEDULE 15
	 	 	109	 
	Terra Working Capital and Debt
	 	 	109	 
	SCHEDULE 16
	 	 	115	 
	Documents in Agreed Terms
	 	 	115	 
	SCHEDULE 17
	 	 	116	 
	Kemira Tax Deed
	 	 	116	 
	SCHEDULE 18
	 	 	123	 
	Terra Tax Deed
	 	 	123	 

 

 

 

THIS
AGREEMENT is made as a deed on 14 September 2007

BETWEEN:

	(1)	 	GROWHOW UK LIMITED, a private company incorporated in England (No. 6311363), whose registered
office is at One Silk Street, London EC2Y 8HQ (“JVCo"); and

	(2)	 	TERRA INTERNATIONAL (CANADA), INC., a corporation incorporated in Ontario, Canada, whose
registered office is at PO Box 1900, 161 Bickford Line, Courtright, Ontario NON 1HO, Canada
(“Terra"); and

	(3)	 	KEMIRA GROWHOW OYJ, a company incorporated in Finland, whose registered office is at
Mechelininkatu 1a, PO Box 900, FIN-00181, Helsinki, Finland (“Kemira"); and

	(4)	 	TERRA INDUSTRIES INC., a corporation incorporated in Maryland, USA, whose registered office
is at 600 Fourth Street, PO Box 6000, Sioux City, Iowa, SII01 (the “Guarantor").

THE PARTIES AGREE AS FOLLOWS:

	1.	 	INTERPRETATION

	1.1	 	In this agreement the following words and expressions and abbreviations have the following
meanings, unless the context otherwise requires:

	 	 	“Actual Tax Liability” has the meaning given to it in the Kemira Tax Deed and the Terra Tax
Deed;

	 
	 	 	“Articles” means the articles of association of JVCo as at the date hereof;

	 
	 	 	“A Shares” means A ordinary shares of 10 pence each in the capital of JVCo with the rights
and subject to the restrictions set out in the Articles;

	 
	 	 	“Associated Company” has the meaning given to it in the Shareholders’ Agreement;

	 
	 	 	“B Shares” means B ordinary shares of 10 pence each in the capital of JVCo with the rights
and subject to the restrictions set out in the Articles;

	 
	 	 	“Branded Materials” means materials that bear any branding including signage, advertising,
promotional and sales materials, product literature, software, stationery, including
correspondence and other materials printed from templates, business cards and websites;

	 
	 	 	“Budget” means the budget of JVCo in the agreed terms;

	 
	 	 	“Business Day” means a day (excluding Saturdays and Sundays) on which banks generally are
open in London for the transaction of normal banking business;

	 
	 	 	“Business Plan” means the business plan of JVCo in the agreed terms;

	 
	 	 	“Commercially Reasonable Expenses” means those costs and expenses which a reasonable person
engaged in the same type of undertaking acting in a commercially prudent manner, without
the benefit of indemnification and taking into account the need to minimise his expenditure
but also considering the results of a cost benefit analysis, would expend to mitigate or
discharge any liability under Environmental Law;

	 
	 	 	“Completion” means the completion of the sale and purchase of the Kemira Shares and the
Terra Shares in accordance with clause 3;

 

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	 	 	“Confidential Information” means all information relating to any Group Company’s business,
financial or other affairs (including future plans and targets of any Group Company) which
is not in the public domain;

	 
	 	 	“connected person” means a person who is connected with another for the purpose of
section 839 of the TA;

	 
	 	 	“Data Room Documents” means the documents and data relating to the Group and made available
in the data room as listed in the agreed form index;

	 
	 	 	“Disclosed” means information fairly disclosed in the Kemira Disclosure Letter or the Terra
Disclosure Letter (as the case may be) or the Data Room Documents;

	 
	 	 	“Encumbrance” means any mortgage, charge (fixed or floating), pledge, lien, hypothecation,
trust, right of set off or other third party right or interest (legal or equitable)
including any right of pre-emption, assignment by way of security, reservation of title or
any other security interest of any kind however created or arising or any other agreement
or arrangement (including a sale and repurchase arrangement) having similar effect;

	 
	 	 	“Environmental Warranties” means the Terra Environmental Warranties and the Kemira
Environmental Warranties;

	 
	 	 	“Group” means JVCo, the Kemira Companies and the Terra Company, and “Group Company” means
any one of them;

	 
	 	 	“GrowHow Trade Mark Licence Agreement” means the trade mark licence agreement regarding use
of the “GrowHow” name between Kemira, JVCo, the Kemira Companies and the Terra Company in
the agreed terms;

	 
	 	 	“HMRC” means Her Majesty’s Revenue and Customs and, where relevant, any predecessor body
which carried out part of its functions;

	 
	 	 	“Intellectual Property” means all rights in or in relation to any and all patents, utility
models, trade and service marks, rights in designs, get-up, trade, business or domain
names, copyrights, topography rights (whether registered or not and any applications to
register or rights to apply for registration of any of the foregoing), rights in
inventions, Knowhow, trade secrets and other confidential information, rights in databases
and all other intellectual property rights of a similar or corresponding character which
may now or in the future subsist in any part of the world and any rights to receive any
remuneration in respect of such rights;

	 
	 	 	“JVCo Accounts Date” means 30 September 2007;

	 
	 	 	“Kemira Accounts Date” means 31 December 2006;

	 
	 	 	“Kemira Branding” means any trade mark, service mark, trade name, domain name or logo owned
by Kemira Oyj which consists of or incorporates “Kemira”;

	 
	 	 	“Kemira Companies” means the companies details of which are set out in schedule 4 and
“Kemira Company” shall mean any one of them;

	 
	 	 	“Kemira Companies Leakage” means any of the following which occur on or after the date of
Completion, but on or before the JVCo Accounts Date:

	 	(a)	 	any dividend, or distribution declared, paid or made by any Kemira Company
(other than to another Kemira Company);

 

2

 

	 	(b)	 	any payments made (including management fees), or agreed to be made, by any
Kemira Company, to (or assets transferred or surrendered to or liabilities assumed,
indemnified, or incurred for the benefit of) JVCo or any of its connected persons
(including, without limitation, any payment or accrual of interest);

	 	(c)	 	any payments made or agreed to be made by any Kemira Company other than to
another Kemira Company in respect of any share capital or other securities of any
Kemira Company being issued, redeemed, purchased or repaid, or any other return of
capital;

	 	(d)	 	any payments made or agreed to be made by any Kemira Company (other than to
another Kemira Company) to JVCo or any of its connected persons in respect of any loan
capital of any Kemira Company;

	 	(e)	 	the waiver by any Kemira Company of any amount owed to that Kemira Company by
Kemira or any of its connected persons;

	 	(f)	 	any payment by any Kemira Company of any fees or expenses in connection with
the preparation for, negotiation or consummation of the sale and purchase of the
Kemira Shares pursuant to, or the entry into of, this agreement; and

	 	(g)	 	the agreement or undertaking by any Kemira Company to do any of the matters
set out in (a) to (f) above.

	 	 	“Kemira Consideration” has the meaning given in clause 2.1(d);

	 
	 	 	“Kemira Disclosure Letter” means a letter of today’s date together with the attachments
thereto addressed by Kemira to JVCo disclosing exceptions to the Kemira Warranties;

	 
	 	 	“Kemira Environmental Indemnity” means the indemnities given by Kemira under clause 7 and
schedule 13;

	 
	 	 	“Kemira Group” means Kemira, its holding companies and the subsidiary undertakings and
associated companies from time to time of such holding companies (but excluding the Kemira
Companies), all of them and each of them as the context admits;

	 
	 	 	“Kemira Incident” means the boiler c-steam incident, further details of which are set out
in the Kemira Disclosure Letter;

	 
	 	 	“Kemira Intellectual Property” means any Intellectual Property owned by any member of the
Kemira Group;

	 
	 	 	“Kemira IT Separation Agreement” means the agreement between Kemira and Kemira GrowHow UK
Limited relating to the provision of IT services post-Completion in the agreed terms;

	 
	 	 	“Kemira Parental Services Agreement” means the agreement between Kemira and JVCo relating
to the provision of services post-Completion in the agreed terms;

	 
	 	 	“Kemira Permit” means a permit, licence, consent, approval, certificate, qualification,
specification, registration and other authorisation or exemption and a filing of a
notification report or assessment necessary in any jurisdiction for the proper and
efficient operation of each Kemira Company’s business, its ownership, possession,
occupation or use of an asset or the execution and performance of this agreement;

	 
	 	 	“Kemira Properties” means the properties described in part I of schedule 10 or any part or
parts thereof and “Kemira Property” shall mean any one of them;

 

3

 

	 	 	“Kemira Shares” means all of the issued shares in the capital of Kemira GrowHow Holdings
Limited;

	 
	 	 	“Kemira Tax Deed” means the covenants set out in Schedule 17;

	 
	 	 	“Kemira Warranties” means the warranties set out in schedule 6;

	 
	 	 	“Knowhow” means confidential or proprietary industrial, technical or commercial information
and techniques in any form (including paper, electronically stored data, magnetic media,
files and microfilm) including, without limitation, drawings, data relating to inventions,
formulae, test results, reports, research reports, project reports and testing procedures,
shop practices, instruction and training manuals, market forecasts, specifications,
quotations, lists and particulars of customers and suppliers, marketing methods and
procedures, and advertising copy;

	 
	 	 	“LCIA” means the London Court of International Arbitration;

	 
	 	 	“Press Announcement” means the press announcement in the agreed terms to be released by the
parties on or about the date of Completion;

	 
	 	 	“Related Person(s)” means in relation to any party its holding companies and the subsidiary
undertakings and associated companies from time to time of such holding companies, all of
them and each of them as the context admits;

	 
	 	 	“Shareholders’ Agreement” means the shareholders’ agreement in the agreed terms to be
entered into at Completion between Kemira, Terra and JVCo;

	 
	 	 	“TA” means the Income and Corporation Taxes Act 1988;

	 
	 	 	“Tax” or “Taxation” means any tax, and any duty, contribution, impost, withholding, levy or
charge in the nature of tax, whether domestic or foreign, and any fine, penalty, surcharge
or interest connected therewith and includes corporation tax, income tax (including income
tax required to be deducted or withheld from or accounted for in respect of any payment),
national insurance and social security contributions, capital gains tax, inheritance tax,
value added tax, customs excise and import duties, stamp duty, stamp duty reserve tax,
stamp duty land tax, insurance premium tax, air passenger duty, land fill tax, petroleum
revenue tax, advance petroleum revenue tax, gas levy, climate change levy and any other
payment whatsoever which any person is or may be or become bound to make to any person and
which is or purports to be in the nature of taxation;

	 
	 	 	“Taxation Authority” means any local, municipal, governmental, state, federal or fiscal,
revenue, customs or excise authority, body, agency or official anywhere in the world having
or purporting to have power or authority in relation to Tax including HMRC;

	 
	 	 	“Taxation Statutes” means all statutes, statutory instruments, orders, enactments, laws,
by-laws, directives and regulations, whether domestic or foreign decrees, providing for or
imposing any Tax;

	 
	 	 	“Terra Accounts Date” means 31 December 2006;

	 
	 	 	“Terra Company” means Terra Nitrogen (UK) Limited details of which are set out in schedule
5;

	 
	 	 	“Terra Company Leakage” means any of the following which occur on or after the date of
Completion, but on or before the JVCo Accounts Date:

	 	 	(a)	 	any dividend, or distribution declared, paid or made by the Terra Company;

 

4

 

	 	 	(b)	 	any payments made (including management fees), or agreed to be made, by the
Terra Company, to (or assets transferred or surrendered to or liabilities assumed,
indemnified, or incurred for the benefit of) JVCo or any of its connected persons
(including, without limitation, any payment or accrual of interest);

	 	 	(c)	 	any payments made or agreed to be made by the Terra Company in respect of any
share capital or other securities of the Terra Company being issued, redeemed,
purchased or repaid, or any other return of capital;

	 	 	(d)	 	any payments made or agreed to be made by the Terra Company to JVCo or any of
its connected persons in respect of any loan capital of the Terra Company;

	 	 	(e)	 	the waiver by the Terra Company of any amount owed to the Terra Company by
Terra or any of its connected persons;

	 	 	(f)	 	any payment by the Terra Company of any fees or expenses in connection with
the preparation for, negotiation or consummation of the sale and purchase of the Terra
Shares pursuant to, or the entry into of, this agreement; and

	 	 	(g)	 	the agreement or undertaking by the Terra Company to do any of the matters
set out in (a) to (f) above.

	 	 	“Terra Consideration” has the meaning given in clause 2.2(d);

	 
	 	 	“Terra Disclosure Letter” means a letter of today’s date together with the attachments
thereto addressed by Terra to JVCo disclosing exceptions to the Terra Warranties;

	 
	 	 	“Terra Environmental Indemnity” means the indemnities given by Terra under clause 7 and
schedule 13;

	 
	 	 	“Terra Group” means Terra, its holding companies and other subsidiary undertakings and
associated companies from time to time of such holding companies (but excluding the Terra
Company), all of them and each of them as the context admits;

	 
	 	 	“Terra Incident” means the Billingham accident, further details of which are set out in the
Terra Disclosure Letter;

	 
	 	 	“Terra Intellectual Property” means any Intellectual Property owned by any member of the
Terra Group, including the “Terra” name;

	 
	 	 	“Terra Parental Services Agreement” means the agreement between Terra and JVCo relating to
the provision of insurance services post-Completion in the agreed terms;

	 
	 	 	“Terra Permit” means a permit, licence, consent, approval, certificate, qualification,
specification, registration and other authorisation or exemption and a filing of a
notification report or assessment necessary in any jurisdiction for the proper and
efficient operation of the Terra Company’s business, its ownership, possession, occupation
or use of an asset or the execution and performance of this agreement;

	 
	 	 	“Terra Properties” means the properties described in part I of schedule 11 or any part or
parts thereof and “Terra Property” shall mean any one of them;

	 
	 	 	“Terra Shares” means all of the issued shares in the capital of the Terra Company;

	 
	 	 	“Terra Tax
Deed” means the covenants set out in Schedule 18;

	 
	 	 	“Terra Trade Mark Licence Agreement” means the trade mark licence agreement between Terra,
JVCo, the Kemira Companies and the Terra Company in the agreed terms;

 

5

 

	 	 	“Terra Warranties” means the warranties set out in schedule 7; and

	 
	 	 	“Transaction Documents” has the meaning given in clause 19.

	 
	1.2	 	In this agreement, unless otherwise specified, reference to:

	 	 	(a)	 	a “subsidiary undertaking” is to be construed in accordance with section 258
of the Companies Act 1985 and a “subsidiary” or “holding company” is to be construed
in accordance with section 736 of that Act;

	 	 	(b)	 	a document in the “agreed terms” is a reference to that document in the form
approved and for the purposes of identification signed by or on behalf of each party,
such documents being listed in Schedule 16;

	 	 	(c)	 	“FA” followed by a stated year means the Finance Act of that year;

	 
	 	 	(d)	 	“includes” and “including” shall mean including without limitation;

	 
	 	 	(e)	 	a “party” means a party to this agreement and includes its permitted
assignees (if any) and/or the successors in title to that part of its undertaking
which includes this agreement;

	 
	 	 	(f)	 	a “person” includes any person, individual, company, firm, corporation,
government, state or agency of a state or any undertaking (whether or not having
separate legal personality and irrespective of the jurisdiction in or under the law of
which it was incorporated or exists);

	 
	 	 	(g)	 	a “statute” or “statutory instrument” or “accounting standard” or any of
their provisions is to be construed as a reference to that statute or statutory
instrument or accounting standard or such provision as the same may have been amended
or re-enacted before the date of this agreement;

	 
	 	 	(h)	 	“clauses", “paragraphs” or “schedules” are to clauses and paragraphs of and
schedules to this agreement;

	 
	 	 	(i)	 	“writing” includes any methods of representing words in a legible form (other
than writing on an electronic or visual display screen) or other writing in
non-transitory form;

	 
	 	 	(j)	 	words denoting the singular shall include the plural and vice versa and words
denoting any gender shall include all genders;

	 
	 	 	(k)	 	any statute, statutory instrument, regulation, by-law or other requirement of
English law and any English legal term for any action, remedy, method of judicial
proceeding, legal document, legal status, procedure, court, official or any legal
concept or doctrine or other expression shall in respect of any jurisdiction other
than England be deemed to include that which most nearly approximates in that
jurisdiction to the English term; and

	 
	 	 	(l)	 	the time of day is reference to time in London, England.

	1.3	 	The schedules form part of the operative provisions of this agreement and references to this
agreement shall, unless the context otherwise requires, include references to the schedules.

	1.4	 	The index to and the headings and the descriptive notes in brackets relating to provisions of
Taxation Statutes in this agreement are for information only and are to be ignored in
construing the same.

 

6

 

	1.5	 	Any question of whether a person is connected with another shall be determined in accordance
with section 839 of the TA (except that in construing section 839 “control” has the meaning
given by section 840 or section 416 of the TA so that there is control whenever section 840 or
416 requires), which shall apply in relation to this agreement as it applies in relation to
the TA.

	1.6	 	All sums payable by Kemira pursuant to this agreement shall be paid free and clear of all
deductions or withholdings (including Tax) unless the deduction or withholding is required by
law, in which event, or in the event that JVCo or Terra shall incur any liability for Tax
chargeable or assessable in respect of any payment from Kemira pursuant to this agreement,
Kemira shall pay such additional amounts as shall be required to ensure that the net amount
received and retained by JVCo or Terra (as applicable) (after Tax) will equal the full amount
which would have been received and retained by it had no such deduction or withholding been
made and/or no such liability to Tax been incurred.

	1.7	 	All sums payable by Terra pursuant to this agreement shall be paid free and clear of all
deductions or withholdings (including Tax) unless the deduction or withholding is required by
law, in which event, or in the event that JVCo or Kemira shall incur any liability for Tax
chargeable or assessable in respect of any payment from Terra pursuant to this agreement,
Terra shall pay such additional amounts as shall be required to ensure that the net amount
received and retained by JVCo or Kemira (as applicable) (after Tax) will equal the full amount
which would have been received and retained by it had no such deduction or withholding been
made and/or no such liability to Tax been incurred.

	1.8	 	All sums payable by JVCo pursuant to this agreement shall be paid free and clear of all
deductions or withholdings (including Tax) unless the deduction or withholding is required by
law, in which event, or in the event that Kemira or Terra shall incur any liability for Tax
chargeable or assessable in respect of any payment from JVCo pursuant to this agreement, JVCo
shall pay such additional amounts as shall be required to ensure that the net amount received
and retained by Kemira or Terra (as applicable) (after Tax) will equal the full amount which
would have been received and retained by it had no such deduction or withholding been made
and/or no such liability to Tax been incurred.

	1.9	 	If, following a payment of an additional amount under clause 1.6, 1.7 or 1.8 above, the
recipient subsequently obtains a saving, reduction, credit or payment in respect of the
deduction or withholding giving rise to such an additional amount, the recipient shall pay to
the payer under clause 1.6, 1.7 or 1.8 (as applicable) a sum equal to the amount of such
saving, reduction, credit or payment (in each case to the extent of the additional amount),
such payment to be made within seven days of the receipt of the saving, reduction, credit or
payment, as the case may be.

	2.	 	SALE AND PURCHASE

	2.1	 	Kemira Shares

	 	 	(a)	 	Upon the terms and subject to the conditions of this agreement, Kemira as
legal and beneficial owner and with full title guarantee shall sell and JVCo shall
purchase the Kemira Shares with effect from Completion free from any Encumbrance
together with all accrued benefits and rights attached thereto, including the right to
receive and retain all distributions declared or paid on or after the Kemira Accounts
Date.

	 	 	(b)	 	Kemira waives or agrees to procure the waiver of any rights or restrictions
conferred upon it or any other person which may exist in relation to the Kemira Shares
under the articles of association of Kemira GrowHow Holdings Limited or otherwise.

 

7

 

	 	(c)	 	JVCo shall not be obliged to complete the purchase of any of the Kemira
Shares, Terra shall not be obliged to complete the sale of any of the Terra Shares and
JVCo shall not be obliged to complete the acquisition of any of the Terra Shares
unless Kemira completes the sale of all of the Kemira Shares simultaneously.

	 	(d)	 	The consideration for such sale and purchase shall be:

	 	(i)	 	the issue of 10 B Shares by JVCo to Kemira on Completion;

	 	(ii)	 	less the amount of any payment by Kemira to JVCo pursuant to
paragraph 4 of schedule 14;

	 	(iii)	 	plus the amount of any payment by JVCo to Kemira pursuant to
paragraph 4 of schedule 14

	 	 	 	(the “Kemira Consideration").

	2.2	Terra Shares

	 	(a)	 	Upon the terms and subject to the conditions of this agreement, Terra as
legal and beneficial owner and with full title guarantee shall sell and JVCo shall
purchase the Terra Shares with effect from Completion free from any Encumbrance
together with all accrued benefits and rights attached thereto, including the right to
receive and retain all distributions declared or paid on or after the Terra Accounts
Date.

	 	(b)	 	Terra waives or agrees to procure the waiver of any rights or restrictions
conferred upon it or any other person which may exist in relation to the Terra Shares
under the articles of association of the Terra Company or otherwise.

	 	(c)	 	JVCo shall not be obliged to complete the purchase of any of the Terra
Shares, Kemira shall not be obliged to complete the sale of any of the Kemira Shares
and JVCo shall not be obliged to complete the acquisition of any of the Kemira Shares
unless Terra completes the sale of all of the Terra Shares simultaneously.

	 	(d)	 	The consideration for such sale and purchase shall be:

	 	(i)	 	the issue of 10 A Shares by JVCo to Terra on Completion;

	 
	 	(ii)	 	plus the payment by JVCo to Terra of such balancing
consideration as is determined in accordance with the provisions of schedule
12;

	 
	 	(iii)	 	less the amount of any payment by Terra to JVCo pursuant to
paragraph 4 of schedule 15;

	 
	 	(iv)	 	plus the amount of any payment by JVCo to Terra pursuant to
paragraph 4 of schedule 15

	 	 	 	(the “Terra Consideration").

	3.	COMPLETION

	3.1	Completion shall take place at the offices of Ashurst, Broadwalk House, 5 Appold Street,
London EC2A 2HA or at such other place as the parties shall agree immediately after the
execution of this agreement.

	3.2	On Completion, Kemira shall comply with its obligations set out in schedule 1 and in this
clause 3.

 

8

 

	3.3	 	On Completion, Terra shall comply with its obligations set out in schedule 2 and in this
clause 3.

	3.4	 	On Completion, Kemira and Terra shall procure that JVCo shall comply with its obligations set
out in schedule 3.

	3.5	 	On Completion:

	 
	 	 	Kemira and Terra shall procure the passing of board resolutions of JVCo in the agreed
terms, inter alia:

	 	 	(a)	 	sanctioning the allotment and issue of 10 B Shares to Kemira and 10 A Shares
to Terra;

	 	 	(b)	 	appointing Frank Meyer, Richard Sanders Jr., Douglas Stone, Heikki Sirvio,
Kaj Friman and Timo Lainto as directors of JVCo (if they are not at Completion already
directors of JVCo);

	 	 	(c)	 	appointing Carol Devlin as secretary of JVCo;

	 	 	(d)	 	appointing Heikki Sirvio as chairman and Frank Meyer as vice-chairman of JVCo
(if they are not at Completion already so appointed);

	 	 	(e)	 	resolving that the register of members of JVCo shall be written up to reflect
the share issues referred to in clauses 2.1(d)(i) and 2.2(d)(i) 3.5(a) and that share
certificates in respect thereof be issued accordingly;

	 	 	(f)	 	appointing Deloitte & Touche LLP as the auditors of JVCo (if they are not at
Completion already auditors of JVCo); and

	 	 	(g)	 	adopting the Business Plan and Budget.

	3.6	 	If in any respect the obligations of Kemira or Terra or JVCo are not complied with on
Completion, the party not in default may:

	 	 	(a)	 	defer Completion to a date not more than 28 days after Completion should have
taken place but for the said default (and so that the provisions of this clause 3,
apart from this clause 3.6, shall apply to Completion as so deferred); or

	 	 	(b)	 	proceed to Completion so far as practicable (without prejudice to its rights
hereunder); or

	 	 	(c)	 	terminate this agreement without prejudice to the rights and liabilities
which accrued prior to termination, which shall continue to subsist, including those
under clauses 23 and 25,

	 	 	by means of a notice in writing served on the others.

	3.7	 	Kemira acknowledges that, immediately following Completion until such time as the transfers
of the Kemira Shares and any shares in any Kemira Company not registered in the name of
another Kemira Company have been registered in the register of members of the relevant Kemira
Companies, Kemira will hold those shares registered in its name on trust for and as nominee
for JVCo and undertakes to hold all dividends and distributions and exercise all voting rights
available in respect of those shares in accordance with the directions of JVCo and if Kemira
is in breach of the undertakings contained in this clause 3.7 Kemira irrevocably authorises
JVCo to appoint some person or persons to execute all instruments or proxies (including
consents to short notice) or other documents which JVCo may reasonably require and which may
be necessary to enable JVCo to attend and
vote at general meetings of each of the Kemira Companies and to do any thing or things
necessary to give effect to the rights contained in this clause 3.7.

 

9

 

	3.8	 	Terra acknowledges that, immediately following Completion until such time as the transfer(s)
of the Terra Shares have been registered in the register of members of the Terra Company,
Terra will hold those Terra Shares registered in its name on trust for and as nominee for JVCo
and undertakes to hold all dividends and distributions and exercise all voting rights
available in respect of those Terra Shares in accordance with the directions of JVCo and if
Terra is in breach of the undertakings contained in this clause 3.8 Terra irrevocably
authorises JVCo to appoint some person or persons to execute all instruments or proxies
(including consents to short notice) or other documents which JVCo may reasonably require and
which may be necessary to enable JVCo to attend and vote at general meetings of the Terra
Company and to do any thing or things necessary to give effect to the rights contained in this
clause 3.8.

	4.	 	KEMIRA WARRANTIES, COVENANT AND UNDERTAKINGS

	4.1	 	Kemira warrants to JVCo in the terms of the Kemira Warranties and Kemira acknowledges and
confirms that JVCo is relying upon such warranties in entering into this agreement.

	4.2	 	Kemira covenants with JVCo in the terms of the Kemira Tax Deed.

	4.3	 	Any information supplied by or on behalf of any Kemira Company to or on behalf of Kemira in
connection with the Kemira Warranties, the Kemira Disclosure Letter or otherwise in relation
to the business and affairs of any Kemira Company shall not constitute a representation or
warranty or guarantee as to the accuracy thereof by any Kemira Company and Kemira undertakes
to JVCo and each Kemira Company (and their respective directors, officers, employees, agents
and advisers) that it will not bring any and all claims which it might otherwise have against
any Kemira Company or any of their respective directors, officers, employees, agents or
advisers in respect thereof.

	4.4	 	Any claim under the Kemira Warranties and/or the Kemira Tax Deed is subject to the terms and
provisions of this clause 4 and schedule 8.

	4.5	 	The only warranties given by Kemira in respect of or relating to:

	 	 	(a)	 	pensions are contained in paragraph 19 of schedule 6;

	 
	 	 	(b)	 	tax are contained in paragraph 20 of schedule 6; and

	 
	 	 	(c)	 	environmental and worker health and safety matters are contained in paragraph
21 of schedule 6 (“Kemira Environmental Warranties"),

	 	 	and no claim or proceeding which could be brought within any of the paragraphs specified in
this clause 4.5 shall be brought except under one of those paragraphs and no liability
which arises under one of those paragraphs shall also arise under any other such paragraph
or under any other Kemira Warranty.

	4.6	 	Any payment due under this agreement from Kemira to JVCo shall for all purposes be deemed to
be and shall take effect as a reduction in the Kemira Consideration.

	4.7	 	Each of the Kemira Warranties shall be construed as a separate warranty and (unless expressly
provided to the contrary) shall not be limited by the terms of any of the other Kemira
Warranties or by any other term of this agreement.

	5.	 	TERRA WARRANTIES, COVENANT AND UNDERTAKINGS

	5.1	 	Terra warrants to JVCo in the terms of the Terra Warranties and Terra acknowledges and
confirms that JVCo is relying upon such warranties in entering into this agreement.

 

10

 

	5.2	 	Terra covenants with JVCo in the terms of the Terra Tax Deed.

	5.3	 	Any information supplied by or on behalf of the Terra Company to or on behalf of Terra in
connection with the Terra Warranties, the Terra Disclosure Letter or otherwise in relation to
the business and affairs of the Terra Company shall not constitute a representation or
warranty or guarantee as to the accuracy thereof by the Terra Company and Terra undertakes to
JVCo and the Terra Company (and its directors, officers, employees, agents and advisers) that
it will not bring any and all claims which it might otherwise have against the Terra Company
or any of its directors, officers, employees, agents or advisers in respect thereof.

	5.4	 	Any claim under the Terra Warranties and/or the Terra Tax Deed is subject to the terms and
provisions of this clause 5 and schedule 9.

	5.5	 	The only warranties given by Terra in respect of or relating to:

	 	 	(a)	 	pensions are contained in paragraph 19 of schedule 7;

	 
	 	 	(b)	 	tax are contained in paragraph 20 of schedule 7; and

	 
	 	 	(c)	 	environmental and worker health and safety matters are contained in paragraph
21 of schedule 7 (“Terra Environmental Warranties"),

	 	 	and no claim or proceeding which could be brought within any of the paragraphs specified in
this clause 5.5 shall be brought except under one of those paragraphs and no liability
which arises under one of those paragraphs shall also arise under any other such paragraph
or under any other Terra Warranty.

	5.6	 	Any payment due under this agreement from Terra to JVCo shall for all purposes be deemed to
be and shall take effect as a reduction in the Terra Consideration.

	5.7	 	Each of the Terra Warranties shall be construed as a separate warranty and (unless expressly
provided to the contrary) shall not be limited by the terms of any of the other Terra
Warranties or by any other term of this agreement.

	6.	 	JVCO WARRANTIES AND UNDERTAKINGS

	6.1	 	JVCo warrants to Kemira that the execution and delivery of this agreement and the completion
of the transactions contemplated hereby have, where required, been duly and validly authorised
and no other proceedings or action on the part of JVCo are necessary to authorise this
agreement or to complete the transactions contemplated hereby.

	6.2	 	JVCo warrants to Terra that the execution and delivery of this agreement and the completion
of the transactions contemplated hereby have, where required, been duly and validly authorised
and no other proceedings or action on the part of JVCo are necessary to authorise this
agreement or to complete the transactions contemplated hereby.

	6.3	 	Subject to clause 6.4, JVCo undertakes to each of Terra and Kemira to procure that, during
the period between the date of Completion and the JVCo Accounts Date:

	 	 	(a)	 	no Group Company shall operate its business or activities otherwise than in
their usual course in all material respects as carried out prior to Completion;

	 	 	(b)	 	no transaction is undertaken between JVCo and any Group Company or between
the Terra Company and any Kemira Company; and

	 	 	(c)	 	save with the prior written consent of Terra and Kemira, no Group Company
shall make any payment for any of the matters listed in the definition of “Kemira
Companies Leakage” or “Terra Company Leakage",

 

11

 

	 	 	and, in the event that any of the matters listed above occurs, JVCo undertakes to pay
Terra, in the case of any Terra Company Leakage, or Kemira, in the case of any Kemira
Companies Leakage, an amount equal to the difference between the value of the relevant
Group Company on the JVCo Accounts Date and the value that such Group Company would have
been on the JVCo Accounts Date had such matter not occurred.

	6.4	 	Nothing in clause 6.3 shall operate so as to prevent or restrict or require the consent of
Terra and Kemira for:

	 	 	(a)	 	the performance by any Group Company of any of its obligations pursuant to a
contract or arrangement entered into before the date of this agreement;

	 	 	(b)	 	any action reasonably undertaken by any Group Company in an emergency or
disaster situation with the bona fide intention of mitigating any adverse effect
thereof;

	 	 	(c)	 	any act, matter or transaction contemplated by any of the Transaction
Documents;

	 	 	(d)	 	any act, matter or transaction undertaken at the written request of Terra and
Kemira;

	 	 	(e)	 	any payments to Terra or Kemira or any of their respective connected persons
for goods or services in the usual course of business and on an arms’ length basis of
a kind supplied by any of them to persons (other than their connected persons) in the
usual course of their business; or

	 	 	(f)	 	the commencement of employee consultations in connection with possible future
redundancies of employees of the Terra Company.

	7.	 	ENVIRONMENTAL INDEMNITIES

	 	 	The provisions of schedule 13 shall apply, save that the provisions of schedule 13 shall
not apply and the provisions of clause 8 shall instead apply to the first Relevant Property
following Completion to be the subject of a resolution by the board of JVCo to cease
operations at and dispose of production facilities at such Relevant Property.

	8.	 	FACILITY RATIONALISATION

	8.1	 	If following Completion the board of JVCo resolves in accordance with the terms of the
Shareholders’ Agreement to cease operations at and dispose of a production facility (at
Billingham or Severnside as detailed in schedule 11 or at Ince as detailed in schedule 10)
(each a “Relevant Disposal” or a “Relevant Property", respectively) the provisions of this
clause 8 shall apply to the first such Relevant Property in respect of which such a resolution
is passed. The party that sold to JVCo the entity with title to the Relevant Property pursuant
to this agreement is referred to in this clause 8 as the “Contributing Party".

	8.2	 	JVCo shall, in respect only of the first Relevant Property following Completion to be the
subject of a resolution by the board of JVCo under clause 8.1, give written notice on each
anniversary of such resolution (each a “Facility Rationalisation Costs Notice") to the
relevant Contributing Party of all Costs incurred during the immediately preceding 12 month
period. In addition, JVCo shall also serve a Facility Rationalisation Costs Notice on the
Contributing Party on the date of completion of that Relevant Disposal covering the period
from the date of the previous Facility Rationalisation Costs Notice until the date of such
Facility Rationalisation Costs Notice. No Facility Rationalisation Costs Notice shall be
served after the date of completion of the Relevant Disposal. The Contributing Party shall,
subject to clause 8.6, pay to JVCo the amount stated in any Facility Rationalisation Costs
Notice validly served in accordance with this clause 8.2 and such payment shall be made within
30 days of service of the corresponding Facility Rationalisation Costs Notice. The
aggregate amount of Costs paid by the Contributing Party pursuant to this
clause 8.2 is referred to in this clause 8 as the “Aggregate Facility
Rationalisation Costs".

 

12

 

	8.3	 	(a)	 	At any time following the later of (i) a
resolution of the board of JVCo under clause
8.1 and (ii) the cessation of operations at
the Relevant Property in question, the
relevant Contributing Party may elect to
acquire that Relevant Property from the
relevant member of the Group for the sum of
£1 and an amount equal to any Costs incurred
by the Group in relation to the Relevant
Property prior to such time (net of any
Aggregate Facility Rationalisation Costs
paid by the Contributing Party to JVCo
pursuant to clause 8.2) and upon the making
of such an election JVCo shall be bound to
procure the transfer of title to and all
rights in the Relevant Property owned or
enjoyed by any member of the Group to the
Contributing Party, and the Contributing
Party shall be bound to acquire title to and
all rights in the Relevant Property and
assume all liabilities in relation to the
Relevant Property, for such consideration.

	 	 	(b)	 	At any time following the fifth anniversary of a resolution by the board of
JVCo under clause 8.1, the party (other than JVCo) that is not the Contributing Party
in respect of the Relevant Property may elect that the Contributing Party shall
acquire that Relevant Property from the relevant member of the Group for the sum of £1
and an amount equal to any Costs incurred by the Group in relation to the Relevant
Property prior to such time (net of any Aggregate Facility Rationalisation Costs paid
by the Contributing Party to JVCo pursuant to clause 8.2) and upon the making of such
an election JVCo shall be bound to procure the transfer of title to and all rights in
the Relevant Property owned or enjoyed by any member of the Group to the Contributing
Party, and the Contributing Party shall be bound to acquire title to and all rights in
the Relevant Property and assume all liabilities in relation to the Relevant Property,
for such consideration.

	 	 	(c)	 	If the acquisition of a Relevant Property pursuant to clause 8.3(a) or 8.3(b)
results in any Actual Tax Liability, which for the purpose of this clause 8.3 includes
an Actual Tax Liability of JVCo, the relevant Contributing Party covenants to pay to
JVCo an amount equal to that Actual Tax Liability on the later of (i) seven days after
the demand therefor by JVCo and (ii) three days before the last day on which a payment
of that Tax may be made by JVCo without incurring any liability to interest and/or
penalties.

	 	 	(d)	 	If the acquisition of a Relevant Property pursuant to clause 8.3(a) or 8.3(b)
results in any allowance, credit, exemption, deduction or relief from, against or in
respect of any Tax which has been used by JVCo or the Group to reduce an Actual Tax
Liability of JVCo or the Group which would otherwise have become due and payable or
JVCo or the Group receives a right to repayment of Tax which would not otherwise have
arisen (a “Relief"), JVCo covenants to pay to the relevant Contributing Party an
amount equal to such Relief within five days of the date on which (i) the Actual Tax
Liability would otherwise have been due and payable or (ii) the right to repayment of
Tax is received.

	 	 	(e)	 	The provisions of clause 7 of the Kemira Tax Deed or the Terra Tax Deed, as
applicable, shall apply to any claims pursuant to clauses 8.3(c) and (d) above.

	8.4	 	If no election is made in respect of a Relevant Property under clause 8.3 and the Costs
incurred by the Group in connection with the related Relevant Disposal exceed the disposal
proceeds (before Tax) resulting from that Relevant Disposal, the Contributing Party shall,
subject to clause 8.6, pay to JVCo the amount (if any) by which such excess exceeds £1
million. Such payment shall be made within 14 days of completion of the Relevant Disposal. Any
payment made by the Contributing Party to JVCo pursuant to this clause 8.4 shall be paid net
of the amount of any Aggregate Facility Rationalisation Costs paid by the Contributing Party
to JVCo pursuant to clause 8.2. For the purposes of this
clause 8.4, if completion of a Relevant Disposal does not occur prior to midday on the
tenth anniversary of Completion, the disposal proceeds shall be deemed to be zero.

 

13

 

	8.5	 	If no election is made in respect of a Relevant Property under clause 8.3 and the disposal
proceeds (after Tax) resulting from the related Relevant Disposal exceed the Costs incurred by
the Group in relation to that Relevant Disposal, JVCo shall, subject to clause 8.6, pay to the
Contributing Party the amount (if any) by which such excess exceeds £1 million. Such payment
shall be made within 14 days of completion of the Relevant Disposal. Any payment made by JVCo
to the Contributing Party pursuant to this clause 8.5 shall also include the repayment to the
Contributing Party of an amount equal to any Aggregate Facility Rationalisation Costs paid by
it to JVCo pursuant to clause 8.2. For the purposes of this clause 8.5, if completion of a
Relevant Disposal does not occur prior to midday on the tenth anniversary of Completion, the
disposal proceeds shall be deemed to be zero.

	8.6	 	Neither JVCo nor any Contributing Party shall be liable for any claim under this clause 8
unless written notice of such claim is served on it not later than 5.00 p.m. on the tenth
anniversary of Completion, save in respect of the indemnity under clause 8.11 to which no time
limit shall apply.

	8.7	 	The Contributing Party shall be entitled to direct the closure and sale process relating to
any Relevant Disposal, including as to the extent to which and the manner in which any related
Costs are incurred but not, for the avoidance of doubt, including any matters relating to the
cessation of employment of any employees employed at the Relevant Property, provided, however,
that the Contributing Party shall not be entitled to direct any action to be taken or not
taken:

	 	 	(a)	 	which conflicts in any way with any requirements of law or of any regulatory
authority; or

	 	 	(b)	 	which causes, or would in the opinion of JVCo (acting reasonably) be likely
to cause, unreasonable, avoidable disruption or interruption to the operations of any
member of the Group or to the operational efficiency of its business which may result
from such action or which poses a material risk to worker or public health and safety.

	8.8	 	For the purposes of this clause 8:

	 	 	(a)	 	“Costs” shall mean all costs reasonably incurred by the Group in relation to
a Relevant Disposal including all related Environmental Closure Costs but excluding
any related employment redundancy costs or related pension costs in each case that are
incurred by JVCo and any amount paid pursuant to clause 8.3(c);

	 	 	(b)	 	“Environmental Closure Costs” means Commercially Reasonable Expenses
(including legal fees, technical consultants’, engineers’ and experts’ fees, and costs
arising from JVCo’s dealings with any regulatory authorities) incurred during or in
preparation for closure or as part of any post-closure process in relation to any
inspection, investigation, sampling and monitoring works at the site of any Relevant
Property and the carrying out of any works (including, without limitation, the removal
of plant or equipment infrastructure or other structures and all remediation, removal,
encapsulation and reinstatement works, measures and actions) in order to remove,
remediate, clean-up, ameliorate, abate or restrict the effects of or contain
contamination or pollution at or emanating from the site of any Relevant Property in
order that such site complies, on the basis of continuing industrial use, with the
minimum requirements of Environmental Laws and/or any enforceable requirements under
Environmental Laws of any competent authority including for the surrender of any
applicable Environmental Consent and as applicable at the time of the Relevant
Disposal but excludes:

 

14

 

	 	 	(i)	 	any costs to the extent that such costs relate to contamination
or pollution introduced in the course of JVCo’s operating activities after
Completion and/or measures required to address any such contamination or
pollution, which costs shall be for the sole account of JVCo; and

	 	 	(ii)	 	any costs relating to the demolition or removal of buildings,
removal of pipework or other structures or infrastructures including buried
structures or infrastructure and/or removal of asbestos in each case to the
extent that such can be safely left in situ or otherwise dealt with in a
cost-effective manner in circumstances where their removal is not required to
comply with Environmental Law;

	 	 	(c)	 	“Environmental Losses” means all claims, damages, costs, expenses (including
reasonable professional fees incurred), losses, liabilities or penalties suffered or
incurred by JVCo or by the relevant Kemira Company or Terra Company (as the case may
be) after Completion to the extent arising from a breach of or liability under
Environmental Law in respect of (a) Hazardous Substances in, on, at or under the
Relevant Property or any part(s) thereof on or before Completion, (b) Hazardous
Substances first in, on, at or under the Relevant Property or any part(s) thereof
after Completion, where the damage or risk in respect of which a breach or liability
arises is attributable to activities forming part of the closure process or (c) the
migration of any such Hazardous Substances from the Relevant Property or any part(s)
thereof (including carrying out or paying for any Relevant Property Remediation Works
to the extent the same are Commercially Reasonable Expenses), but excluding:
Environmental Closure Costs; any claims, costs, damages, expenses, losses, liabilities
or penalties in respect of loss of anticipated profits; loss of revenue; loss of use;
cost of capital; or any other loss in respect of business interruption; and

	 	 	(d)	 	“Relevant Property Remediation Works” means all those investigations, works,
measures and other actions which are the minimum required under Environmental Laws to
discharge or mitigate any liability under Environmental Laws (including all such
remediation, removal, encapsulation and reinstatement works, measures and actions but
excluding any Environmental Closure Costs) in relation to Hazardous Substances in, on,
at or under the Relevant Property or any part(s) thereof on or before Completion or
the migration or release of such from the Relevant Property or any part(s) thereof.

	8.9	 	In the event there shall occur any dispute between the parties to this agreement in relation
to the quantification of Costs for the purposes of this clause 8 which cannot be resolved
between the parties, the dispute shall be referred to an independent firm of chartered
accountants (the “Expert") appointed by agreement by JVCo and the relevant Contributing Party
or, in default of agreement on such appointment, on the application of either of them by the
President for the time being of the Institute of Chartered Accountants in England and Wales,
or his duly appointed deputy. In making such determination the Expert shall act as an expert
and not as an arbitrator and his decision shall (in the absence of manifest error (and the
Expert shall give reasons for his determination)) be final and binding on such parties. Each
such party shall bear the costs and expenses of all counsel and other advisers, witnesses and
employees retained by it and the costs and expenses of the Expert shall be borne by such
parties in the proportions he may direct or, in the absence of direction, equally. Subject to
any rule of law or of any regulatory authority to the contrary, JVCo and the relevant
Contributing Party shall, to the extent they are able to do so, afford as soon as reasonably
practicable upon request to the other and their respective agents and to the Expert all
facilities and access to any premises, personal papers, books, accounts, records, returns and
other documents as may be required by the Expert to make his determination. In the event of
any dispute as to the need for, nature or extent of any Environmental Closure Costs or
Environmental Losses, the parties shall apply the provisions of paragraph 11 of schedule 13
mutatis
mutandis to such dispute save that references to Indemnifying Party shall be construed as references to the relevant
Contributing Party.

 

15

 

	8.10	 	JVCo on behalf of itself and each Group Company undertakes to Kemira and to Terra that it will not:

	 	 	(a)	 	dispose of any Relevant Property without complying with the foregoing
provisions of this clause 8;

	 	 	(b)	 	incur any Environmental Closure Costs or any Relevant Property Remediation
Works at a Relevant Property otherwise than at the direction of the relevant
Contributing Party under clause 8.7 or with the consent of the relevant Contributing
Party (such consent not to be unreasonably withheld or delayed) or in an emergency or
where required by a regulatory authority acting within its powers under Environmental
Law;

	 	 	(c)	 	except in an emergency, approach or initiate communications with any
regulatory authority in relation to the closure of such Relevant Property without the
consent of the relevant Contributing Party, such consent not to be unreasonably
withheld or delayed; or

	 	 	(d)	 	except to the extent required by Environmental Law or any Environmental
Consent or any competent authority or in response to an emergency, take any action or
omit to take any action without the consent of the relevant Contributing Party (such
consent not to be unreasonably withheld or delayed) which it is known by JVCo or the
relevant Group Company at the time of the act or omission will increase, or would be
reasonably likely to increase, the liability of any Contributing Party under the
foregoing provisions of this clause 8.

	8.11	 	The Contributing Party shall indemnify and keep indemnified JVCo (for itself and on behalf of
the applicable Terra Companies or Kemira Companies) in respect of all Environmental Losses
incurred in relation to the Relevant Property, provided always that JVCo shall not be entitled
to claim under this indemnity unless JVCo or the applicable Terra Company or Kemira Company
has received a Claim in respect of the matter giving rise to such Environmental Losses.

	8.12	 	JVCo shall provide written notice to the Contributing Party of any matter of which it or any
Terra Company or Kemira Company becomes aware which gives rise to or is reasonably likely to
give rise to a claim under clause 8.11 above and shall notify the Contributing Party
immediately upon receipt of a Claim in relation to any such matter, provided that failure to
give or delay in giving notice under this clause 8 shall not invalidate JVCo’s right to claim
in respect of such matter under this indemnity, except and only to the extent that such
failure or delay increases the penalties, losses, costs, claims, expenses, liabilities and
damages which it seeks to recover under clause 8.11.

	8.13	 	The Contributing Party shall have no liability under the indemnity at clause 8.11 to the
extent that any claim by JVCo would not have arisen but for, results from or is increased by:

	 	 	(a)	 	any act or omission by JVCo or any Terra Company or Kemira Company after
Completion except for (i) those acts or omissions that are in the normal lawful course
of the Activities as at the date of this agreement and (ii) those acts or omissions
that are undertaken in the course of the cessation of operations and/or closure of the
Relevant Property pursuant to this clause 8;

	 	 	(b)	 	information voluntarily given by JVCo or any Terra Company or Kemira Company
or by Terra or Kemira to a regulatory body, governmental agency or third party other
than where:

 

16

 

	 	 	(i)	 	the disclosure is required to be given in order to comply with
law or in connection with any Environmental Consent or otherwise in response to
a request by a regulatory authority acting within its powers under
Environmental Law;

	 	 	(ii)	 	the disclosure is reasonably necessary in an emergency to avoid
or mitigate Environmental Losses;

	 	 	(iii)	 	the disclosure is reasonably necessary in the course of the
cessation of operations and/or closure of the Relevant Property pursuant to
this clause 8; or

	 	 	(iv)	 	the Indemnifying Party gives prior consent to such disclosure
(such consent not to be unreasonably withheld or delayed);

	 	 	(c)	 	any acts or omissions by JVCo or any Group Company at the Relevant Property
(including the carrying out of investigative, sampling or monitoring works) which
result in disturbance of or interference with any Hazardous Substance (other than
where such acts or omissions form a necessary part of or precursor to the Activities
or to Ordinary Course Construction or are reasonably necessary in the course of the
cessation of operations and/or closure of the Relevant Property and/or an emergency
(to avoid or mitigate Environmental Losses) or are required by a competent authority
or under Environmental Law or Environmental Consents); or

	 	 	(d)	 	any laws (other than the implementation into UK law of the EU environmental
liability directive) whose purpose is the protection of or prevention of harm to the
Environment and which come into force after Completion.

	8.14	 	The relevant Indemnifying Party shall have no liability under the indemnity at clause 8.11 in
respect of any Environmental Loss to the extent that such loss has been properly budgeted for
in the Business Plan or forms part of Environmental Closure Costs or is an Aggregate Facility
Rationalisation Cost.

	8.15	 	Any payment made by JVCo or a Contributing Party pursuant to this clause 8 shall for all
purposes be deemed to be and shall take effect as a reduction or increase in the Kemira
Consideration or the Terra Consideration as the case may be.

	9.	 	SCRUBBING SYSTEM

	9.1	 	Following Completion, in the event that JVCo resolves in accordance with the terms of the
Shareholders’ Agreement that improvements or modifications to the scrubbing system at the NPK
plant at the Kemira Property are required to be made by law, Kemira shall be entitled (subject
to any requirement of law and to minimising, to the extent reasonably practicable, any
disruption or interruption to the operations of any member of JVCo or to the operational
efficiency of its business) to direct the extent to which and the manner in which any
expenditure is incurred by JVCo for such purposes.

	9.2	 	If the expenditure actually incurred by the Group for the purposes described in clause 9.1
exceeds £2 million, Kemira shall, subject to clause 9.5, pay on demand to JVCo the amount (if
any) by which such excess exceeds £1 million.

	9.3	 	If the expenditure actually incurred by the Group for the purposes described in clause 9.1 is
less than £2 million, JVCo shall, subject to clause 9.5, pay on demand to Kemira as additional
consideration for the Kemira Shares the amount (if any) by which the shortfall exceeds £1
million.

	9.4	 	For the purposes of clauses 9.2 and 9.3, “expenditure” incurred by JVCo shall be limited to
the costs it has incurred in purchasing and installing any scrubbing equipment for and/or
otherwise modifying or improving the scrubbing system at the NPK plant at the Kemira
Property to the extent required by law.

 

17

 

	9.5	 	Neither Kemira nor JVCo shall be liable for any claim under this clause 9 unless written
notice of such claim is served on them not later than 5.00 p.m. on the fifth anniversary of
Completion.

	9.6	 	In the event there shall occur any dispute between Kemira and JVCo in relation to the
quantification of expenditure actually incurred by JVCo for the purposes of this clause 9
which cannot be resolved between them, the dispute shall be referred to an independent firm of
chartered accountants (the “Expert") appointed by agreement by them or, in default of
agreement on such appointment, on the application of either of them by the President for the
time being of the Institute of Chartered Accountants in England and Wales, or his duly
appointed deputy. In making such determination the Expert shall act as an expert and not as an
arbitrator and his decision shall (in the absence of manifest error (and the Expert shall give
reasons for his determination)) be final and binding on such parties. Each such party shall
bear the costs and expenses of all counsel and other advisers, witnesses and employees
retained by it and the costs and expenses of the Expert shall be borne by such parties in the
proportions he may direct or, in the absence of direction, equally. Subject to any rule of law
to the contrary, JVCo and Kemira shall, to the extent they are able to do so, afford as soon
as reasonably practicable upon request to the other and their respective agents and to the
Expert all facilities and access to any premises, personal papers, books, accounts, records,
returns and other documents as may be required by the Expert to make his determination.

	9.7	 	Any payment made by JVCo or Kemira pursuant to this clause 9 shall for all purposes be deemed
to be and shall take effect as a reduction or increase in the Kemira Consideration as the case
may be.

	10.	 	CONFIDENTIAL INFORMATION

	10.1	 	Kemira shall:

	 	 	(a)	 	not, and shall procure that no other member of the Kemira Group or any
director, officer or employee or adviser or agent of the Kemira Group shall, use or
disclose to any person Confidential Information; and

	 	 	(b)	 	use all reasonable endeavours to prevent the use or disclosure of
Confidential Information by any person other than members of the Group.

	10.2	 	Clause 10.1 does not apply to:

	 	 	(a)	 	disclosure of Confidential Information to or at the written request of JVCo;

	 
	 	 	(b)	 	disclosure of Confidential Information required to be disclosed by the
Helsinki Stock Exchange or by law or regulation;

	 
	 	 	(c)	 	disclosure of Confidential Information to any Taxation Authority;

	 
	 	 	(d)	 	disclosure of Confidential Information to professional advisers for the
purpose of advising Kemira;

	 
	 	 	(e)	 	Confidential Information which is in the public domain other than by Kemira’s
breach of clause 10.1; or

	 
	 	 	(f)	 	disclosure of the provisions of schedule 13 to a competent authority as
provided in paragraph 12 of schedule 13.

 

18

 

	10.3	 	Terra shall:

	 	 	(a)	 	not, and shall procure that no other member of the Terra Group or any
director, officer or employee or adviser or agent of the Terra Group shall, use or
disclose to any person Confidential Information; and

	 	 	(b)	 	use all reasonable endeavours to prevent the use or disclosure of
Confidential Information by any person other than members of the Group.

	10.4	 	Clause 10.3 does not apply to:

	 	 	(a)	 	disclosure of Confidential Information to or at the written request of JVCo;

	 	 	(b)	 	disclosure of Confidential Information required to be disclosed by the New
York Stock Exchange or by law or regulation;

	 	 	(c)	 	disclosure of Confidential Information to any Taxation Authority;

	 	 	(d)	 	disclosure of Confidential Information to professional advisers for the
purpose of advising Terra;

	 	 	(e)	 	Confidential Information which is in the public domain other than by Terra’s
breach of clause 10.3; or

	 	 	(f)	 	disclosure of the provisions of schedule 13 to a competent authority as
provided in paragraph 12 of schedule 13.

	11.	 	KEMIRA POST-COMPLETION UNDERTAKINGS

	11.1	 	Following Completion, Kemira undertakes to JVCo to use all reasonable endeavours to ensure
that each Kemira Company is released from any guarantee, indemnity, bond, letter of comfort or
Encumbrance or other similar obligation given or incurred by it prior to Completion which
relates in whole or in part to debts or other liabilities or obligations, whether actual or
contingent, of any member of the Kemira Group and prior to such release Kemira undertakes to
JVCo (on behalf of itself and as trustee on behalf of each Kemira Company) to keep each Kemira
Company fully indemnified against any failure to make any such repayment or any liability
arising under any such guarantee, indemnity, bond, letter of comfort or Encumbrance.

	11.2	 	Following Completion, JVCo undertakes:

	 	 	(a)	 	to Kemira to use all reasonable endeavours to ensure that each member of the
Kemira Group is released from any guarantee, indemnity, bond, letter of comfort or
Encumbrance or other similar obligation given or incurred by it which relates in whole
or in part to debts or other liabilities or obligations, whether actual or contingent,
of any Kemira Company and prior to such release JVCo undertakes to Kemira (on behalf
of itself and as trustee on behalf of each member of the Kemira Group) to keep each
member of the Kemira Group fully indemnified against any failure to make any such
repayment or any liability arising under any such guarantee, indemnity, bond, letter
of comfort or Encumbrance;

	 	 	(b)	 	subject to clause 11.2(c) and save to the extent that such Kemira
Intellectual Property is licensed to the Group pursuant to the terms of the GrowHow
Trade Mark Licence Agreement, to procure that none of the Kemira Companies shall use
in any way whatsoever any Kemira Intellectual Property or Kemira Branding provided
that JVCo shall have six months from Completion to procure that all such Kemira
Intellectual Property and Kemira Branding is removed from any Branded Materials of the
Kemira Companies and all other assets owned or used by the Kemira Companies; and

 

19

 

	 	 	(c)	 	save to the extent that such Intellectual Property is licensed pursuant to
the terms of the GrowHow Trade Mark Licence Agreement, to procure that each Group
Company shall change its company name within 30 days of Completion so as not to use
any Kemira Branding or any name forming part of the Kemira Intellectual Property, or
anything confusingly similar thereto, and provide, upon request by Kemira, documentary
evidence of such change.

	11.3	 	Kemira shall indemnify JVCo (for itself and on behalf of each of the Kemira Companies) in
respect of any liabilities, costs and expenses actually incurred by JVCo or any of the Kemira
Companies relating to any claims made in respect of the Kemira Incident.

	11.4	 	If, following Completion, any of the Kemira Companies receives a payment from its insurers
relating to the Kemira Incident (“Kemira Incident Payment"), JVCo undertakes to pay, within 90
days of receipt by such Kemira Company, an amount equal to the Kemira Incident Payment
actually received and retained after Tax by the Kemira Companies, to Kemira, and such payment
by JVCo to Kemira shall be deemed to augment the Kemira Consideration and JVCo further
undertakes to pay stamp duty at the applicable rate upon such augmented Kemira Consideration.

	11.5	 	Kemira shall indemnify and keep indemnified JVCo in respect of any liability to employer’s
national insurance contributions arising in connection with the exercise, vesting, surrender,
assignment or otherwise of any option or award over shares in Kemira and all penalties, costs,
claims, expenses or liabilities suffered by JVCo and/or any Group Company in connection with
any such option or award.

	11.6	 	Kemira shall indemnify and keep indemnified JVCo and the Group against all liabilities of
Kemira Growhow N.I. Limited and GrowHow N.I. Limited and any losses, damages, costs, claims,
penalties or actions suffered by or brought against JVCo or any Group Company as a result of
or connected with:

	 	 	(a)	 	Kemira GrowHow N.I. Limited or GrowHow N.I. Limited being direct or indirect
subsidiaries of any Group Company; and

	 	 	(b)	 	any corporate act or omission whatsoever by Kemira GrowHow N.I. Limited or
GrowHow N.I. Limited whether before or after Completion.

	12.	 	TERRA POST-COMPLETION UNDERTAKINGS

	12.1	 	Following Completion, Terra undertakes to JVCo to use all reasonable endeavours to ensure
that the Terra Company is released from any guarantee, indemnity, bond, letter of comfort or
Encumbrance or other similar obligation given or incurred by it prior to Completion which
relates in whole or in part to debts or other liabilities or obligations, whether actual or
contingent, of any member of the Terra Group and prior to such release Terra undertakes to
JVCo (on behalf of itself and as trustee on behalf of the Terra Company) to keep the Terra
Company fully indemnified against any failure to make any such repayment or any liability
arising under any such guarantee, indemnity, bond, letter of comfort or Encumbrance.

	12.2	 	Following Completion, JVCo undertakes:

	 	 	(a)	 	to Terra to use all reasonable endeavours to ensure that each member of the
Terra Group is released from any guarantee, indemnity, bond, letter of comfort or
Encumbrance or other similar obligation given or incurred by it which relates in whole
or in part to debts or other liabilities or obligations, whether actual or contingent,
of the Terra Company and prior to such release JVCo undertakes to Terra (on behalf of
itself and as trustee on behalf of each member of the Terra Group) to keep each member
of the Terra Group fully indemnified against any
failure to make any such repayment or any liability arising under any such
guarantee, indemnity, bond, letter of comfort or Encumbrance; and

 

20

 

	 	 	(b)	 	subject to clause 12.2(c) and save to the extent that such Terra Intellectual
Property is licensed to the Group pursuant to the terms of the Terra Trade Mark
Licence Agreement, to procure that the Terra Company shall not use in any way
whatsoever any Terra Intellectual Property provided that JVCo shall have six months
from Completion to procure that all such Terra Intellectual Property is removed from
any Branded Materials of the Terra Company and all other assets owned or used by the
Terra Company; and

	 	 	(c)	 	save to the extent that such Intellectual Property is licensed pursuant to
the terms of the Terra Trade Mark Licence Agreement, to procure that each Group
Company, shall change its company name within 30 days of Completion so as not to use
the “Terra” name or any other name forming part of the Terra Intellectual Property, or
anything confusingly similar thereto, and provide, upon request by Terra, documentary
evidence of such change.

	12.3	 	Terra shall indemnify JVCo (for itself and on behalf of the Terra Company) in respect of any
liabilities, costs and expenses actually incurred by JVCo or the Terra Company relating to any
claims made in respect of the Terra Incident.

	12.4	 	If, following Completion, the Terra Company receives a payment from its insurers relating to
the Terra Incident (“Terra Incident Payment"), JVCo undertakes to pay, within 90 days of
receipt by the Terra Company, an amount equal to the Terra Incident Payment actually received
and retained after Tax by the Terra Company, to Terra, and such payment by JVCo to Terra shall
be deemed to augment the Terra Consideration and JVCo further undertakes to pay stamp duty at
the applicable rate upon such augmented Terra Consideration.

	12.5	 	Terra and the Guarantor shall jointly and severally indemnify and keep indemnified JVCo in
respect of any liability to employer’s national insurance contributions arising in connection
with the exercise, vesting, surrender, assignment or otherwise of any option or award over
 shares in the Guarantor and all penalties, costs, claims, expenses or liabilities suffered by
JVCo and/or any Group Company in connection with any such option or award.

	13.	 	ANNOUNCEMENTS

	13.1	 	Save as expressly agreed between the parties, no party shall disclose the making of this
agreement, its terms or the making of any other agreement referred to in this agreement and
each party shall procure that each of its Related Persons and its professional advisers shall
not make any such disclosure without the prior consent of the other party unless disclosure
is:

	 	 	(a)	 	to its professional advisers; or

	 	 	(b)	 	required by law or the rules of any regulatory body and disclosure shall then
only be made by that party:

	 	 	(i)	 	after it has taken all such steps as may be reasonable in the
circumstances to agree the contents of such announcement with the other party
before making such announcement and provided that any such announcement shall
be made only after notice to the other party; and

	 	 	(ii)	 	to the person or persons and in the manner required by law or
any regulatory body or as otherwise agreed between the parties,

 

21

 

	 	 	provided that this clause 13.1 does not apply to announcements, communications or circulars
made or sent by JVCo after Completion to customers, clients or suppliers of any Group
Company to the extent that it informs them of JVCo’s acquisition of the Kemira Companies
and the Terra Company or to any announcements containing only information which has become
generally available or save as provided in paragraph 12 of Schedule 13.

	13.2	 	Notwithstanding the provisions of clause 13.1, the parties agree that the Press Announcement
in the agreed terms shall be released as soon as practicable following Completion.

	13.3	 	The restrictions contained in clause 13.1 shall apply without limit of time and whether or
not this agreement is terminated.

	14.	 	PARENT COMPANY GUARANTEE

	14.1	 	In consideration of the entry by Kemira and JVCo into this agreement, the Guarantor
unconditionally and irrevocably guarantees to Kemira and JVCo the due and punctual performance
and observance by Terra of all its obligations, commitments and undertakings under or pursuant
to this agreement (the “Guaranteed Obligations") and agrees to indemnify Kemira and JVCo
against all losses, liabilities, costs (including without limitation legal costs), charges,
expenses, actions, proceedings, claims and demands which Kemira or JVCo may suffer through or
arising from any breach by Terra of its obligations under this agreement.

	14.2	 	The liability of the Guarantor under this clause 14 shall not exceed the liability of Terra
and shall not be released or diminished by any variation of the terms of the Guaranteed
Obligations, or any forbearance, neglect or delay in seeking performance of the Guaranteed
Obligations or any granting of time for such performance or any other fact or circumstance
other than a specific written waiver.

	14.3	 	If and whenever Terra defaults for any reason in the performance of any of the Guaranteed
Obligations, the Guarantor shall forthwith upon demand unconditionally perform (or procure
performance of) and satisfy (or procure the satisfaction of) the Guaranteed Obligations in
relation to which such default has been made in accordance with this agreement so that Kemira
and/or JVCo (as the case may be) receives the same benefits as it would have received if the
Guaranteed Obligation had been duly performed and satisfied by Terra.

	14.4	 	This guarantee is a continuing guarantee and remains in force until all the Guaranteed
Obligations have been performed or satisfied and is in addition to, without prejudice to and
not in substitution for any rights or security which Kemira and/or JVCo (as the case may be)
may now or in the future have or hold for the performance and observance of the Guaranteed
Obligations.

	14.5	 	Any amounts payable under this guarantee shall be paid in full on demand without any
deduction or withholding whatsoever (whether in respect of set-off, counterclaim, duties,
charges, taxes or otherwise).

	15.	 	ASSIGNMENT

	 
	 	 	This agreement is personal to the parties and no party without the prior written consent of
the others shall assign, transfer, charge or declare a trust of the benefit of all or any
of any other party’s obligations or any benefit arising under this agreement.

	16.	 	COSTS

	 
	 	 	Unless expressly otherwise provided in this agreement, each of the parties shall bear its
own legal, accountancy and other costs, charges and expenses connected with the sale and
purchase of the Kemira Companies and the Terra Company.

 

22

 

	17.	 	EFFECT OF COMPLETION

	17.1	 	The terms of this agreement (insofar as not performed at Completion and subject as
specifically otherwise provided in this agreement) shall continue in force after and
notwithstanding Completion.

	17.2	 	The remedies of JVCo in respect of any breach of any of the Kemira Warranties or the Terra
Warranties shall continue to subsist notwithstanding Completion.

	18.	 	FURTHER ASSURANCES

	18.1	 	Following Completion, Kemira shall from time to time forthwith upon request from JVCo at
Kemira’s expense do or procure the doing of all acts and/or execute or procure the execution
of all such documents, in a form reasonably satisfactory to JVCo, required for the purpose of
vesting in JVCo the full legal and beneficial title to the Kemira Shares or otherwise giving
JVCo the full benefit of this agreement.

	18.2	 	Following Completion, Terra shall from time to time forthwith upon request from JVCo at
Terra’s expense do or procure the doing of all acts and/or execute or procure the execution of
all such documents, in a form reasonably satisfactory to JVCo, required for the purpose of
vesting in JVCo the full legal and beneficial title to the Terra Shares or otherwise giving
JVCo the full benefit of this agreement.

	19.	 	ENTIRE AGREEMENT

	 
	 	 	Each party on behalf of itself and as agent for each of its Related Persons acknowledges
and agrees with the other party (each such party acting on behalf of itself and as agent
for each of its Related Persons) that:

	19.1	 	this agreement together with any other documents referred to in this agreement (together the
“Transaction Documents") constitute the entire and only agreement between the parties and
their respective Related Persons relating to the subject matter of the Transaction Documents;
and

	19.2	 	neither it nor any of its Related Persons has been induced to enter into any Transaction
Document in reliance upon, nor has any such party been given, any warranty, representation,
statement, assurance, covenant, agreement, undertaking, indemnity or commitment of any nature
whatsoever other than as are expressly set out in the Transaction Documents and, to the extent
that any of them has been, it (acting on behalf of itself and as agent on behalf of each of
its Related Persons) unconditionally and irrevocably waives any claims, rights or remedies
which any of them might otherwise have had in relation thereto,

	 
	 	 	provided that the provisions of this clause 19 shall not exclude any liability which any of
the parties or, where appropriate, their Related Persons would otherwise have to any other
party or, where appropriate, to any other party’s Related Persons or any right which any of
them may have in respect of any statements made fraudulently by any of them prior to the
execution of this agreement or any rights which any of them may have in respect of
fraudulent concealment by any of them.

	20.	 	VARIATIONS

	 
	 	 	This agreement may be varied only by a document signed by or for and on behalf of each of
Kemira, Terra and JVCo.

 

23

 

	21.	 	WAIVER

	21.1	 	A waiver of any term, provision or condition of, or consent granted under, this agreement
shall be effective only if given in writing and signed by the waiving or consenting party and
then only in the instance and for the purpose for which it is given.

	21.2	 	No failure or delay on the part of any party in exercising any right, power or privilege
under this agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or privilege preclude any other or further exercise thereof
or the exercise of any other right, power or privilege.

	21.3	 	No breach of any provision of this agreement shall be waived or discharged except with the
express written consent of Kemira, Terra and JVCo.

	21.4	 	The rights and remedies herein provided are cumulative with and not exclusive of any rights
or remedies provided by law (save to the extent expressly otherwise provided in this
agreement).

	22.	 	INVALIDITY

	22.1	 	If any provision of this agreement shall be held to be invalid, illegal or unenforceable, in
whole or in part, the provision shall apply with whatever deletion or modification is
necessary so that the provision is valid, legal or enforceable and gives effect to the
commercial intention of the parties.

	22.2	 	To the extent it is not possible to delete or modify the provision, in whole or in part,
under clause 22.1, then such provision or part of it shall, to the extent that it is invalid,
illegal or unenforceable, be deemed not to form part of this agreement and the validity,
legality or enforceability of the remainder of this agreement shall, subject to any deletion
or modification made under clause 22.1, not be affected.

	23.	 	NOTICES

	23.1	 	Any notice, demand or other communication given or made under or in connection with the
matters contemplated by this agreement shall be in writing and shall be delivered personally
or sent by fax or prepaid first class post (air mail if posted to or from a place outside the
United Kingdom):

	 	 	 
	in the case of Kemira to:
	 	 
	Mechelininkatu 1a, PO Box 900,
	 	 
	FIN-00181, Helsinki, Finland
	 	 
	Fax:

	 	+35 8 1021 5111
	Attention:

	 	The General Counsel
	 
	 	 
	in the case of Terra and/or the Guarantor to:
	 	 
	600 Fourth Street, PO Box 6000,
	 	 
	Sioux City, Iowa 51101, USA
	 	 
	Fax:

	 	+1 712 294 1247
	Attention:

	 	The General Counsel
	 
	 	 
	in the case of JVCo to:
	 	 
	Ince, Chester CH2 4LB, UK
	 	 
	Fax:

	 	+44 (0)151 357 2144
	Attention:

	 	The Company Secretary

	 	 	and shall be deemed to have been duly given or made as follows:

	 	 	(a)	 	if personally delivered, upon delivery at the address of the relevant party;

 

24

 

	 	 	(b)	 	if sent by first class post, two Business Days after the date of posting;

	 
	 	 	(c)	 	if sent by air mail, five Business Days after the date of posting; and

	 
	 	 	(d)	 	if sent by fax, when despatched,

	 	 	provided that if, in accordance with the above provisions, any such notice, demand or other
communication would otherwise be deemed to be given or made after 5.00 p.m. on a Business
Day, such notice, demand or other communication shall be deemed to be given or made at 9.00
a.m. on the next Business Day.

	23.2	 	A party may notify the other party to this agreement of a change to its name, relevant
addressee, address or fax number for the purposes of clause 23.1, provided that such
notification shall only be effective on:

	 	 	(a)	 	the date specified in the notification as the date on which the change is to
take place; or

	 	 	(b)	 	if no date is specified or the date specified is less than five Business Days
after the date on which notice is given, the date falling five Business Days after
notice of any such change has been given.

	24.	 	COUNTERPARTS

	 
	 	 	This agreement may be executed in any number of counterparts which together shall
constitute one agreement. Any party may enter into this agreement by executing a
counterpart and this agreement shall not take effect until it has been executed by all
parties.

	25.	 	ARBITRATION, GOVERNING LAW AND JURISDICTION

	25.1	 	Any dispute arising out of or connected with this agreement (including a dispute as to the
validity, existence, formation or termination of this agreement and/or this clause 25.1) which
is not subject to expert determination pursuant to clause 8.9 or 9.6 or Schedule 13 of this agreement shall be resolved by arbitration in London conducted in
English before three arbitrators pursuant to the rules of the LCIA, which rules are deemed
incorporated by reference into this clause 25, save that, unless the parties agree otherwise,
the third arbitrator who shall act as chairman of the tribunal shall be nominated by the two
arbitrators nominated by or on behalf of the parties. If he is not so nominated within 30 days
of the date of nomination of the later of the two party-nominated arbitrators to be nominated,
he shall be chosen by the LCIA.

	25.2	 	This agreement (and any dispute, controversy, proceedings or claim of whatever nature arising
out of or in any way relating to this agreement or its formation) and the documents entered
into pursuant to it shall be governed by and construed in accordance with English law.

	25.3	 	Each of the parties to this agreement irrevocably submits to the non-exclusive jurisdiction
of the Courts of England to support and assist the arbitration process pursuant to clause
25.1, including if necessary the grant of interlocutory relief pending the outcome of that
process.

	25.4	 	Each party irrevocably agrees that any arbitration award made pursuant to this agreement
shall be final and binding upon the parties.

 

25

 

	25.5	 	Kemira covenants that it has irrevocably appointed Linklaters LLP of One Silk Street, London
EC2Y 8HQ (marked for the attention of Sarah Wiggins/Iain Wagstaff) as its agent to accept
service of process in England in any legal or arbitration proceedings arising out of or in
connection with this agreement, service upon whom shall be deemed completed whether or not
forwarded to or received by Kemira. Kemira agrees to inform Terra and JVCo in writing of any
change of address of such process agent within 28 days of such change. If such process agent
ceases to be able to act as such or to have an address in England, Kemira irrevocably agrees
to appoint a new process agent in England acceptable to Terra and JVCo, such acceptance not to
be unreasonably withheld or delayed, and to deliver to Terra and JVCo within 14 days a copy of
a written acceptance of appointment by the new process agent.

	25.6	 	Terra and the Guarantor covenant that they have irrevocably appointed The Endeavour
Partnership LLP of Westminster, St. Mark’s Court, Teesdale Business Park, Teesside TS17 6QP
(marked for the attention of Head of Litigation and marked Ref: 003053.0001) as their agent to
accept service of process in England in any legal or arbitration proceedings arising out of or
in connection with this agreement, service upon whom shall be deemed completed whether or not
forwarded to or received by Terra or the Guarantor, as applicable. Terra and the Guarantor
agree to inform Kemira and JVCo in writing of any change of address of such process agent
within 28 days of such change. If such process agent ceases to be able to act as such or to
have an address in England, Terra and the Guarantor irrevocably agree to appoint a new process
agent in England acceptable to Kemira and JVCo, such acceptance not to be unreasonably
withheld or delayed, and to deliver to Kemira and JVCo within 14 days a copy of a written
acceptance of appointment by the new process agent.

	25.7	 	Nothing in this agreement shall affect the right to serve process in any other manner
permitted by law or the right to bring proceedings in any other jurisdiction for the purposes
of the enforcement or execution of any arbitration award made pursuant to this agreement or
any court order associated with any arbitration brought pursuant to this agreement.

	25.8	 	The parties hereby agree to deliver a copy of any documents served under this clause 25 to
the other party at the address specified in clause 23 or as otherwise notified in accordance
therewith, provided that failure to do so shall not permit the intended recipient to allege
that service of process has thus been defective so long as the remaining provisions of this
clause 25 have been observed.

	26.	 	THIRD PARTY RIGHTS

	26.1	 	Any person (other than the parties to this agreement) who is given any rights or benefits
under clauses 4.3, 5.3, 11 and 12 (a “Third Party") shall be entitled to enforce those rights
or benefits against the parties in accordance with the Contracts (Rights of Third Parties) Act
1999.

	26.2	 	Save as provided in clause 26.1 above, the operation of the Contracts (Rights of Third
Parties) Act 1999 is hereby excluded.

	26.3	 	The parties may amend, vary or terminate this agreement in such a way as may affect any
rights or benefits of any Third Party which are directly enforceable against the parties under
the Contracts (Rights of Third Parties) Act 1999 without the consent of such Third Party.

	26.4	 	Any Third Party entitled pursuant to the Contracts (Rights of Third Parties) Act 1999 to
enforce any rights or benefits conferred on it by this agreement may not veto any
amendment, variation or termination of this agreement which is proposed by the parties and
which may affect the rights or benefits of the Third Party.

IN WITNESS whereof this agreement has been executed and delivered as a deed on the date first above
written.

 

26

 

SCHEDULE 1

Kemira Completion Obligations

	1.	 	On Completion, Kemira shall deliver to or, if JVCo shall so agree, make available to JVCo
(and in the case of paragraph 1.7, also Terra):

	1.1	 	stock transfer forms relating to all the Kemira Shares (and any shares in any of the Kemira
Companies not registered in the name of another Kemira Company) duly executed in favour of
JVCo (or as it may direct);

	1.2	 	share certificates relating to the Kemira Shares (and any shares in any of the Kemira
Companies not registered in the name of another Kemira Company) or indemnities for
lost/destroyed certificates in a form reasonably satisfactory to JVCo;

	1.3	 	any waivers or consents by members of each Kemira Company or other persons which JVCo has
reasonably specified prior to Completion so as to enable JVCo or its nominees to be registered
as the holders of the Kemira Shares (and any shares in any of the Kemira Companies not
registered in the name of another Kemira Company);

	1.4	 	resignations in the agreed terms duly executed as a deed by Timo Lainto, Heikki Liukas,
Heikki Sirvio and Antti Orkola as directors of each Kemira Company containing a confirmation
that they have no claims (whether statutory, contractual or otherwise) against that company
for compensation for loss of office or for unpaid remuneration or otherwise;

	1.5	 	the written resignations of the auditors of each Kemira Company containing an acknowledgement
that they have no claim against that company for compensation for loss of office, professional
fees or otherwise and a statement under section 394(1) of the Companies Act 1985;

	1.6	 	the common seals, certificates of incorporation and statutory books, share certificate books
and cheque books of each Kemira Company;

	1.7	 	the Shareholders’ Agreement, duly executed by Kemira;

	 
	1.8	 	the Kemira Parental Services Agreement, duly executed by Kemira;

	 
	1.9	 	the GrowHow Trade Mark Licence Agreement, duly executed by Kemira;

	 
	1.10	 	the Kemira Disclosure Letter;

	 
	1.11	 	a signed copy of the Kemira IT Separation Agreement;

	1.12	 	to the extent not already in the possession of any Kemira Company, all leases, title deeds
and other documents relating to the Kemira Properties (except to the extent that the same are
in the possession of mortgagees pursuant to mortgages disclosed in Schedule 10);

	1.13	 	to the extent not in the possession of any Kemira Company, all books of account or references
as to customers and/or suppliers and other records and all insurance policies in any way
relating to or concerning the businesses of any Kemira Company;

	1.14	 	to the extent not in the possession of any Kemira Company, all licences, consents, permits
and authorisations obtained by or issued to any Kemira Company or any other person in
connection with the business carried on by any of them;

	1.15	 	a release in the agreed terms duly executed as a deed, in a form satisfactory to JVCo,
releasing each Kemira Company and its respective officers and employees from any
liability whatsoever (actual or contingent) which may be owing to the Kemira Group by any
Kemira Company except those arising in the ordinary course of trade; and

 

27

 

	1.16	 	a copy of the minutes of a duly held meeting of the directors of Kemira (or a duly
constituted committee thereof) authorising the execution by Kemira of this agreement and each
other document to be executed by it hereunder and, where such execution is authorised by a
committee of the board of directors of Kemira, a copy of the minutes of a duly held meeting of
the directors constituting such committee or the relevant extract thereof, in each case
certified to be true by a director or the secretary of the relevant party.

	2.	 	On Completion, Kemira shall procure the passing of board resolutions of each Kemira Company:

	2.1	 	sanctioning for registration (subject where necessary to due stamping) the transfers in
respect of the Kemira Shares (and any shares in any of the Kemira Companies not registered in
the name of another Kemira Company);

	2.2	 	authorising the delivery to JVCo (or as it may direct) of share certificates in respect of
the Kemira Shares (and any shares in any of the Kemira Companies not registered in the name of
another Kemira Company);

	2.3	 	to the extent not already appointed, appointing Paul Thompson, Carol Devlin, David Stacey and
Simon Walkington to be the directors of each Kemira Company (save in respect of Kemira GrowHow
Ireland Limited where the directors of such company following Completion shall be David Stacey
and Michael Buchan); and

	2.4	 	revoking all mandates to bankers and giving authority in favour of the directors appointed
under paragraph 2.3 above or such other persons as JVCo may nominate to operate the bank
accounts thereof.

 

28

 

SCHEDULE 2

Terra Completion Obligations

	1.	 	On Completion, Terra shall deliver to or, if JVCo shall so agree, make available to JVCo (and
in the case of paragraph 1.7, also Kemira):

	1.1	 	stock transfer forms relating to all the Terra Shares duly executed in favour of JVCo (or as
it may direct);

	1.2	 	share certificates relating to the Terra Shares (or indemnities for lost/destroyed
certificates in a form reasonably satisfactory to JVCo);

	1.3	 	any waivers or consents by member(s) of the Terra Company or other persons which JVCo has
reasonably specified prior to Completion so as to enable JVCo or its nominees to be registered
as the holders of the Terra Shares;

	1.4	 	resignations in the agreed terms duly executed as deeds by Michael Bennett, Frank Meyer and
Richard Sanders as directors and John Huey as secretary of the Terra Company containing a
confirmation that they have no claims (whether statutory, contractual or otherwise) against
the Terra Company for compensation for loss of office or for unpaid remuneration or otherwise;

	1.5	 	the common seals, certificates of incorporation and statutory books, share certificate books
and cheque books of the Terra Company;

	1.6	 	the Shareholders’ Agreement, duly executed by Terra;

	 
	1.7	 	the Terra Parental Services Agreement, duly executed by Terra;

	 
	1.8	 	the Terra Trade Mark Licence Agreement, duly executed by Terra;

	 
	1.9	 	the Terra Disclosure Letter;

	1.10	 	to the extent not already in the possession of the Terra Company, all leases, title deeds and
other documents relating to the Terra Properties (except to the extent that the same are in
the possession of mortgagees pursuant to mortgages disclosed in schedule 11);

	1.11	 	to the extent not in the possession of the Terra Company, all books of account or references
as to customers and/or suppliers and other records and all insurance policies in any way
relating to or concerning the business of the Terra Company;

	1.12	 	to the extent not in the possession of the Terra Company, all licences, consents, permits and
authorisations obtained by or issued to the Terra Company or any other person in connection
with the business carried on by it;

	1.13	 	a release in the agreed terms duly executed as a deed, in a form satisfactory to JVCo,
releasing the Terra Company and its respective officers and employees from any liability
whatsoever (actual or contingent) which may be owing to any member of Terra’s Group by the
Terra Company except those arising in the ordinary course of trade;

	1.14	 	a copy of the minutes of a duly held meeting of the directors of Terra (or a duly constituted
committee thereof) authorising the execution by Terra of this agreement and each other
document to be executed by it hereunder and, where such execution is authorised by a committee
of the board of directors of Terra, a copy of the minutes of a duly held meeting of the
directors constituting such committee or the relevant extract thereof, in each case certified
to be true by a director or the secretary of the relevant party; and

 

29

 

	1.15	 	evidence, in a form satisfactory to Kemira, of the discharge of all charges over the Terra
Company and its assets and undertaking shown on such company’s register of charges or in the
charges register of the registered titles to the Terra Properties.

	2.	 	On Completion, Terra shall procure the passing of board resolutions of the Terra Company:

	2.1	 	sanctioning for registration (subject where necessary to due stamping) the transfer(s) in
respect of the Terra Shares;

	2.2	 	authorising the delivery to JVCo (or as it may direct) of share certificate(s) in respect of
the Terra Shares;

	2.3	 	appointing David Stacey and Simon Walkington to be the directors and Carol Devlin to be the
secretary of the Terra Company; and

	2.4	 	revoking all mandates to bankers and giving authority in favour of the directors appointed
under paragraph 2.3 above or such other persons as JVCo may nominate to operate the bank
accounts thereof.

 

30

 

SCHEDULE 3

JVCo Completion Obligations

On Completion, JVCo shall:

	1.	 	deliver to Kemira and Terra the Shareholders’ Agreement, duly executed by JVCo;

	 
	2.	 	deliver to Kemira the GrowHow Trade Mark Licence Agreement, duly executed by JVCo;

	 
	3.	 	deliver to Kemira the Kemira Parental Services Agreement, duly executed by JVCo;

	 
	4.	 	deliver to Terra the Terra Trade Mark Licence Agreement, duly executed by JVCo;

	 
	5.	 	deliver to Terra the Terra Parental Services Agreement, duly executed by JVCo; and

	 
	6.	 	deliver to Kemira and Terra copies of the board resolutions of JVCo in the agreed terms
resolving, inter alia, to effect the matters set out in clause 3.5 of this agreement.

 

31

 

SCHEDULE 4

Particulars relating to the Kemira Companies

Kemira GrowHow Holdings Limited (No. 2270682)

	 	 	 
	Authorised share capital:

	 	£110,000,000
	 
	 	 
	Issued share capital:

	 	£50,500,000 comprising 50,500,000 ordinary shares of £1 each
	 
	 	 
	Directors:

	 	Timo Lainto,
	 

	 	Heikki Liukas
	 

	 	Heikki Sirvio
	 

	 	Antti Orkola
	 

	 	David Stacey
	 
	 	 
	Secretary:

	 	Simon Walkington
	 
	 	 
	Auditors:

	 	KPMG LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Registered Office:

	 	Ince, Cheshire CH2 4LB
	 
	 	 

Kemira GrowHow UK Limited (No. 482033)

	 	 	 
	Authorised share capital:

	 	£30,000,000
	 
	 	 
	Issued share capital:

	 	£17,000,000 comprising 17,000,000 ordinary shares of £1 each
	 
	 	 
	Directors:

	 	David Stacey
	 

	 	Timo Lainto
	 

	 	Heikki Liukas
	 

	 	Heikki Sirvio
	 

	 	Antti Orkola
	 
	 	 
	Secretary:

	 	Simon Walkington
	 
	 	 
	Auditors:

	 	KPMG LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Registered Office:

	 	Ince, Cheshire CH2 4LB

 

32

 

Kemira GrowHow Ireland Limited

	 	 	 
	Authorised share capital:

	 	EUR 1,269,738
	 
	 	 
	Issued share capital:

	 	EUR 126,973.80 comprising 100,000 ordinary shares of EUR 1.269738 each
	 
	 	 
	Directors:

	 	David Stacey
	 

	 	Michael Weir Buchan
	 
	 	 
	Secretary:

	 	Simon Walkington
	 
	 	 
	Auditors:

	 	KPMG LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Registered Office:

	 	25-28 North Wall Quay
	 

	 	IFSC
	 

	 	Dublin 1
	 

	 	Ireland

 

33

 

SCHEDULE 5

Particulars relating to the Terra Company

Terra Nitrogen (UK) Limited (No. 03455690)

	 	 	 
	Authorised share capital:

	 	£26,000,000
	 
	 	 
	Issued share capital:

	 	£25,548,116 comprising 25,548,116 ordinary shares of £1 each
	 
	 	 
	Directors:

	 	Michael Bennett
	 

	 	Carol Devlin
	 

	 	Paul Thompson
	 

	 	Frank Meyer
	 

	 	Richard Sanders
	 
	 	 
	Secretary:

	 	John W Huey
	 
	 	 
	Auditors:

	 	Deloitte & Touche LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Registered Office:

	 	Florence House, Radcliffe Terrace, Thornaby, Stockton-on-Tees, Cleveland TS17 6BS

 

34

 

SCHEDULE 6

The Kemira Warranties

For the purpose of this schedule 6, “Company” means all of the Kemira Companies and each of them as
the context admits.

Any warranty in this schedule 6 expressed to be given “to the best of Kemira’s knowledge and
belief” or “so far as Kemira is aware” or otherwise qualified by reference to the knowledge of
Kemira shall not be qualified in the manner stated unless Kemira establishes that it has made all
reasonable enquiries of the following individuals to establish the truth and accuracy of that
warranty: David Stacey, Simon Walkington, Roger Dyson, Brian Thomas, Deborah Pritchard-Jones, Bill
Hulley, Kaj Friman, Heikki Liukas, Timo Lainto, Brian Audley, Annica Söderström and Taisto
Koivumaki.

In this schedule 6 the following words have the following meanings, unless the context otherwise
requires:

“Activities” means any activity, operation or process carried out by any Company at any property
whether or not currently owned, occupied or used by that Company;

“distribution” means a distribution as defined by sections 209 to 211 (inclusive) of the TA and
section 418 of the TA;

“Environment” means any and all living organisms (including man), ecosystems, property and the
media of air (including air in buildings, natural or man-made structures, below or above ground)
water, (including as defined in section 104(1) of the Water Resources Act 1991 and within drains
and sewers) and land (including under any water as described above and whether above or below
surface);

“Environmental Consent” means any consent, approval, permit, allowance, licence, order, filing,
authorisation, exemption, registration, permission, reporting or notice requirement and any related
agreement required under any Environmental Laws for the operation by any Company of the Activities;

“Environmental Laws” means all international, EU, national, federal, state or local statutes,
by-laws, orders, regulations or other law or subordinate legislation or common law, all orders,
ordinances, decrees or regulatory codes of practice, circulars, guidance notes, agreements with
regulators or industry bodies, and equivalent controls concerning the protection of human health
(including worker health and safety) or which have as a purpose or effect the protection or
prevention of harm to the Environment or the provision of remedies in relation to the same which
are binding upon any Company in relation to the Kemira Properties or the Activities in the relevant
jurisdiction in which that Company has been or is operating (including by the export of its
products, or its waste thereto) on or before Completion but excluding planning law;

“Former Kemira Properties” means any property formerly owned, occupied or used by any Company;

“Hazardous Substance” means any natural or artificial substance (whether solid, liquid, gas, noise,
ion, vapour, electromagnetic or radiation, and whether alone or in combination with any other
substance) which is capable of causing harm to or having a deleterious effect on the Environment,
or of being a nuisance;

“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;

“Kemira Accounts” means the audited financial statements of each Company, comprising the balance
sheet, profit and loss account or, where relevant, the income statement or other equivalent
financial statement required to be prepared by UK GAAP and cash flow statements of
each such company, together in each case with the notes thereon, directors’ report and auditors’
report, as at and for the financial period ended on the Kemira Accounts Date;

 

35

 

“Kemira Intra-Group Payables” means any indebtedness for borrowed monies outstanding from any
Kemira Company to any member of the Kemira Group as at the commencement of business as at the date
of Completion, other than monies owed (whether or not due and payable) for the supply and/or
purchase of goods and services in the ordinary course of business;

“Land Transaction” has the meaning given to it in section 43 of the FA 2003;

“Substantial Customer” means a customer accounting for more than five per cent. of any Company’s
sales in the financial year ended on the Kemira Accounts Date;

“Substantial Supplier” means a supplier accounting for more than five per cent. of any Company’s
purchases in the financial year ended on the Kemira Accounts Date;

“Systems” means all plant, equipment, systems, devices and components which contain or are
controlled or monitored by computer systems, microprocessors or software;

“TCGA” means the Taxation of Chargeable Gains Act 1992;

“Transfer Regulations” means the UK Transfer of Undertakings (Protection of Employment) Regulations
2006 or any other local enactment of the European Acquired Rights Directive (77/187/EEC, as amended
by Directive 98/50 EC and consolidated in 2001 (23/EC);

“TULR(C)A” means the Trade Union and Labour Relations (Consolidation) Act 1992;

“UK GAAP” means generally accepted accounting principles applied in the United Kingdom;

“VATA” means the Value Added Tax Act 1994 and “VAT legislation” means VATA and all regulations and
orders made thereunder; and

“Workers” means the employees, directors, officers and workers of each Company.

	1.	 	KEMIRA’S CAPACITY

	 
	 	 	Kemira is entering into this agreement and any agreement to be entered into pursuant to
this agreement on its own behalf and not on behalf of any other persons and has full power
and capacity to enter into and perform and has obtained all corporate authorisations and
all other applicable governmental, statutory, regulatory or other consents, approvals,
licences, waivers or exemptions required to empower it to enter into and to perform its
obligations under this agreement and each document to be executed by it at or before
Completion.

	 
	2.	 	KEMIRA AND THE KEMIRA COMPANIES

	 
	2.1	 	Kemira

	 
	 	 	Kemira is a public limited company duly organised and validly existing under Finnish law
and has been in continuous existence since incorporation.

	 
	2.2	 	Kemira Companies in the UK

	 
	 	 	Each of Kemira GrowHow Holdings Limited and Kemira GrowHow UK Limited are limited companies
duly organised and validly existing under English law and have been in continuous existence
since incorporation.

 

36

 

	2.3	 	Kemira GrowHow Ireland Limited

	 
	 	 	Kemira GrowHow Ireland Limited is a limited company duly organised and validly existing
under Irish law and has been in continuous existence since incorporation.

	 
	2.4	 	The Kemira Shares

	(a)	 	Kemira is the only legal and beneficial owner of the Kemira Shares.

	 	 	(b)	 	No Company has allotted any shares other than the issued shares set out in
schedule 4 and such shares are fully paid or credited as fully paid.

	 	 	(c)	 	There is no Encumbrance in relation to any of the issued or unissued shares
in the capital of any Company. No person has claimed to be entitled to an Encumbrance
in relation to any such shares and no Company is under any obligation (whether actual
or contingent) to sell, charge or otherwise dispose of any of its shares or any
interest therein to any person.

	 	 	(d)	 	Other than this agreement, there is no agreement, arrangement or obligation
requiring the creation, allotment, issue, sale, transfer, redemption or repayment of,
or the grant to a person of the right (conditional or not) to require the allotment,
issue, sale, transfer, redemption or repayment of, a share in the capital of any
Company (including an option or right of pre-emption or conversion).

	2.5	 	No Subsidiaries

	 	 	(a)	 	No Company has any subsidiary undertakings other than (where applicable)
another Company.

	 	 	(b)	 	No Company owns any shares or stock in the capital of nor does it have any
beneficial or other interest in any company or business organisation of whatever
nature other than (where applicable) another Company nor does any Company control or
take part in the management of any other company or business organisation.

	 	 	(c)	 	No Company has any branch, division, agency, place of business, operation or
substantial assets outside the United Kingdom and Republic of Ireland.

	3.	 	KEMIRA ACCOUNTS

	 
	3.1	 	General

	 	 	(a)	 	The Kemira Accounts show a true and fair view, in accordance with UK GAAP, of
the:

	 	 	(i)	 	assets, liabilities, financial position and state of affairs at
the Kemira Accounts Date; and

	 	 	(ii)	 	the profits and losses for the financial year ended on the
Kemira Accounts Date

	 	 	 	 	of each Company.

	 	 	(b)	 	The Kemira Accounts have been prepared and audited in accordance with the
standards, principles and practices specified on the face of the Kemira Accounts
applied on a consistent basis and subject thereto in accordance with the law and UK
GAAP, consistently applied.

 

37

 

	 	 	(c)	 	The Kemira Accounts have been prepared on a basis consistent with the basis
upon which all audited accounts of each Company have been prepared in respect of the
three years before the Kemira Accounts Date.

	3.2	 	Accounting and Other Records

	 	 	(a)	 	The books of account and all other records of each Company are up-to-date, in
its possession and in all material respects in accordance with the law.

	 	 	(b)	 	All material deeds and documents belonging to each Company or which ought to
be in the possession of that Company are in the possession of that Company.

	3.3	 	Accounting Reference Date

	 
	 	 	The accounting reference date of each Company under section 224 of the Companies Act 1985
(or, where applicable, under equivalent legislation of any non-English jurisdiction) is,
and during the last two years has always been, 31 December.

	3.4	 	Management Accounts

	 
	 	 	The management accounts of each Company in the agreed terms have been prepared by that
Company on a consistent basis with historic management accounts of that Company and with
due care and attention and show with reasonable accuracy the state of affairs and profit or
loss of that Company as at and for the period in respect of which they have been prepared
and the balance sheets of that Company on the last day of each month from January 2007 to
August 2007 inclusive but it is hereby acknowledged that they are not prepared on a
statutory basis.

	4.	 	CHANGES SINCE THE KEMIRA ACCOUNTS DATE

	 
	4.1	 	General

	 
	 	 	Since the Kemira Accounts Date each Company has carried on its business in the ordinary and
usual course and so as to maintain the business as a going concern.

	 
	4.2	 	Specific

	 
	 	 	Since the Kemira Accounts Date:

	 	 	(a)	 	each Company has not, other than in the ordinary course of trading:

	 	 	(i)	 	disposed of, or agreed to dispose of, an asset with a value in
excess of £100,000; or

	 	 	(ii)	 	assumed or incurred, or agreed to assume or incur, a liability,
obligation or expense (actual or contingent) in excess of £100,000;

	 	 	(b)	 	each Company has not made, or agreed to make, capital expenditure exceeding
in total £1,000,000 or incurred, or agreed to incur, a commitment or connected
commitments involving capital expenditure exceeding in total £2,000,000;

	 	 	(c)	 	no Substantial Supplier or Substantial Customer has ceased or substantially
reduced its trade with any Company or has altered the terms of trade to that Company’s
disadvantage;

	 	 	(d)	 	each Company has not declared, paid or made a dividend or other distribution
(including a distribution within the meaning of the TA) except to the extent provided
in the Kemira Accounts;

 

38

 

	 	 	(e)	 	no resolution of the shareholders of any Company has been passed (except for
those representing the ordinary business of an annual general meeting);

	 	 	(f)	 	each Company has not repaid, purchased or redeemed share or loan capital, or
made (whether or not subject to conditions) an agreement or arrangement or undertaken
an obligation to do any of those things;

	 	 	(g)	 	each Company has not repaid any sum in the nature of borrowings in advance of
any due date or made any loan or incurred any indebtedness (including in each case
inter group); and

	 	 	(h)	 	each Company has not paid nor is under any obligation to pay any service,
management or similar charges or any interest or amount in the nature of interest to
any other person or incurred any liability to make such a payment or made any payment
to any member of the Kemira Group or any of their connected persons whatsoever.

	5.	 	ASSETS

	 
	5.1	 	Title and Condition

	 	 	(a)	 	Other than retention of title provisions contained in trading contracts
entered into in the ordinary course of business, there are no Encumbrances, nor has
any Company agreed to create any such Encumbrances, over any part of its undertaking
or assets and each asset used by each Company (tangible or intangible) is:

	 	 	(i)	 	legally and beneficially owned by that Company; and

	 
	 	 	(ii)	 	where capable of possession, in the possession of that Company.

	 	 	(b)	 	Each Company owns or is legally entitled to use each asset (tangible or
intangible) necessary for the operation of its business as currently conducted and
without limitation no rights (other than rights as shareholders in that Company)
relating to the business of that Company are owned or otherwise enjoyed by or on
behalf of any member of the Kemira Group.

	 
	 	 	(c)	 	All plant, machinery, vehicles and equipment owned or used by each Company:

	 	 	(i)	 	is in reasonable condition with respect to the age and
depreciated value of each item and has been properly serviced and maintained;
and

	 
	 	 	(ii)	 	is fit for the purpose for which it was designed or acquired.

	 	 	(d)	 	Kemira has not received notice that any material item of plant or machinery
owned or used by any Company is no longer maintainable or that spare parts for the
same are no longer available.

	 	 	(e)	 	Details of costs budgeted for maintenance of plant, machinery, vehicles or
equipment owned or used by each Company for the period of one year following
Completion are included in the Business Plan.

	5.2	 	Hire Purchase and Leased Assets

	 
	 	 	Copies of any material bill of sale or any hiring or leasing agreement, hire purchase
agreement, credit or conditional sale agreement, agreement for payment on deferred terms or
any other similar agreement to which any Company is a party has been Disclosed.

 

39

 

	5.3	 	Stock

	 	 	(a)	 	So far as Kemira is aware, each Company has not supplied, or agreed to
supply, goods which have been, or will be, defective or which fail, or will fail, to
comply with their terms of sale.

	 	 	(b)	 	So far as Kemira is aware, no goods in a state ready for supply by any
Company are, or will be, defective or will fail to comply with terms of sale similar
to terms of sale on which similar goods have previously been sold by any Company.

	 	 	(c)	 	Kemira has not offered special price reductions, discounts or allowances on
sales of trading stock which were not available prior to 31 December 2006.

	 	 	(d)	 	The amount of stock held by each Company at Completion is not abnormally low
or high taking into account the historic trading patterns of its business.

	6.	 	INTELLECTUAL PROPERTY

	 
	6.1	 	General

	 
	 	 	Save for Intellectual Property licensed to any Company, each Company is the sole and
absolute legal and beneficial owner of all material Intellectual Property used in
connection with its business and where appropriate such Intellectual Property is registered
in or applied for in the name of that Company.

	 
	6.2	 	Licences

	 
	 	 	The terms of all licences or rights which have been granted by each Company, or which any
Company intends to enter into, relating to any material Intellectual Property owned or used
by any Company have been Disclosed.

	 
	6.3	 	Infringement

	 	 	(a)	 	The use by each Company of any Intellectual Property used in the business of
that Company does not infringe the Intellectual Property of any other person.

	 	 	(b)	 	No proceedings claims or complaints have been brought or threatened in
writing by any third party or competent authority in relation to the Intellectual
Property owned by any Company in the five year period preceding the date of this
agreement, nor, so far as Kemira is aware, have any such been brought or threatened in
writing by any third party or competent authority in relation to any Intellectual
Property licensed to any Company by a member of the Kemira Group in the five year
period preceding the date of this agreement.

	7.	 	EFFECT OF SALE

	 	 	Neither the execution nor performance of this agreement or any document to be executed at
or before Completion will so far as Kemira is aware:

	 	 	(a)	 	conflict with or result in a material breach of an agreement, arrangement or
obligation to which any Company is party; or

	 	 	(b)	 	result in any Substantial Customer ceasing to deal with any Company; or

	 
	 	 	(c)	 	result in any Substantial Supplier ceasing to supply any Company; or

	 	 	(d)	 	result in any officer or senior employee leaving any Company; or

 

40

 

	 	 	(e)	 	make any Company liable to transfer or purchase any assets, including shares
held by it in other bodies corporate under their articles of association or any
agreement or arrangement.

	8.	 	CONSTITUTION

	 
	8.1	 	Intra Vires

	 
	 	 	Each Company has the power to carry on its business as now conducted and the business of
each Company has at all times been carried on intra vires.

	 
	8.2	 	Memorandum and Articles

	 
	 	 	The memorandum and articles of association of each Company in the form annexed to the
Kemira Disclosure Letter is true and complete and has embodied therein or annexed thereto
copies of all resolutions and agreements as are referred to in section 380 of the Companies
Act 1985 (or where applicable, under equivalent legislation of any non-English
jurisdiction), and all amendments thereto (if any) were duly and properly made.

	 
	8.3	 	Register of Members

	 
	 	 	The register of members of each Company has been properly kept and contains true and
complete records of the members from time to time of that Company and each Company has not
received any notice or allegation that any of the records of such members is incorrect or
incomplete or should be rectified.

	 
	8.4	 	Powers of Attorney

	 
	 	 	Each Company has not executed any power of attorney or conferred on any person other than
its directors, officers and employees any authority to enter into any transaction on behalf
of or to bind that Company in any way and which power of attorney remains in force.

	 
	8.5	 	Statutory Books and Filings

	 	 	(a)	 	The statutory books of each Company are up-to-date, in its possession and are
true and complete in all material respects.

	 	 	(b)	 	All resolutions, annual returns and other documents required to be delivered
to the Registrar of Companies (or where applicable any other relevant company registry
or other corporate authority in any non-English jurisdiction) have been properly
prepared and filed and are true and complete in all material respects.

	9.	 	INSURANCE

	 
	9.1	 	Policies

	 
	 	 	A list of each current insurance and indemnity policy in respect of which each Company has
an interest (together the “Policies") has been Disclosed. So far as Kemira is aware, each
of the Policies is valid and enforceable and is not void or voidable.

	 
	9.2	 	Claims

	 
	 	 	No claim is outstanding under any of the Policies and, so far as Kemira is aware, no matter
exists which will give rise to a claim under any of the Policies.

 

41

 

	10.	 	CONTRACTUAL MATTERS

	 
	10.1	 	Validity of Agreements

	 	 	(a)	 	Kemira has no knowledge of the invalidity or unenforceability of, or a ground
for termination, avoidance or repudiation of, any material agreement to which any
Company is a party. No party with whom any Company has entered into an agreement,
arrangement or obligation which is material to any Company has given notice of its
intention to terminate, or has sought to repudiate or disclaim, the agreement,
arrangement or obligation.

	 	 	(b)	 	So far as Kemira is aware, no party with whom any Company has entered into an
agreement or arrangement which is material to any Company is in material breach of the
agreement or arrangement. So far as Kemira is aware, no matter exists which is
expected to give rise to such breach.

	 	 	(c)	 	So far as Kemira aware, each Company is not in breach of any agreement or
arrangement which is material to any Company. So far as Kemira is aware, no matter
exists which is expected to give rise to such breach.

	10.2	 	Supply Contracts

	 
	 	 	Details of all agreements or arrangements for the supply of stock, raw materials, products
or goods to or by any Company which involve or are likely to involve the supply of goods
the aggregate sale value of which will represent in excess of 10 per cent. of the turnover
for the financial year of that Company ended on the Kemira Accounts Date have been
Disclosed.

	 
	10.3	 	Customer Contracts

	 	 	(a)	 	There are no agreements or arrangements in place with customers of any
Company under which any retrospective adjustment to sales value of the products sold
by that Company to its customers may be made.

	 	 	(b)	 	All agreements or arrangements relating to overrider or other discounts to
which any Company is entitled to or which any customer of any Company is entitled in
respect of goods supplied by that Company in connection with its business have been
Disclosed.

	 	 	(c)	 	All overrider or other discount arrangements disclosed pursuant to paragraph
10.3(b) above operate with reference to sales made per year from 1 July to 30 June.

	 	 	(d)	 	There are no agreements or arrangements where the price charged to a customer
of any Company depends on the price charged by that Company for any other product or
the volume of any other product supplied by that Company to such customer.

	10.4	 	Material Agreements

	 	 	(a)	 	No Company is party to or is liable under any material contract, transaction,
arrangement or liability which:

	 	 	(i)	 	was entered into otherwise than on arm’s length commercial
terms;

	 	 	(ii)	 	is of an unusual or abnormal nature, or outside the ordinary
and proper course of business; or

 

42

 

	 	(iii)	 	is of a long-term nature (that is, unlikely to have been fully
performed, in accordance with its terms, more than six months after the date on
which it was entered into or undertaken); or

	 	(iv)	 	is incapable of termination in accordance with its terms, by
such Company, on 60 days’ notice or less; or

	 	(v)	 	involves an aggregate outstanding expenditure or other
liability by such Company of more than £500,000.

	 	(b)	 	Each Company is not a party to and is not liable under:

	 	(i)	 	an agreement, arrangement or obligation by which that Company
is a member of a joint venture, consortium, partnership or association (other
than a bona fide trade association), shareholder or similar arrangement or
agreement or any agreement which purports to regulate control or otherwise
affects the voting or disposition of its shares; or

	 	(ii)	 	a distributorship, promotional, representation, franchising,
agency, marketing or management agreement or arrangement.

	10.5	 	Parental Services

	 
	 	 	Full and accurate details of all services provided and supplies made to each Company by any
member of the Kemira Group (including the cost thereof), and vice versa, have been
Disclosed.

	 
	10.6	 	Contracts with Connected Persons

	 
	 	 	There is, and during the three years ending on the date of this agreement there has been,
no agreement or arrangement (legally enforceable or not) to which each Company is or was a
party and in which any member of the Kemira Group, a director or former director of any
member of the Kemira Group or a person connected with any of them is or was interested in
any way. Each Company does not owe any obligation or sum to, nor does it and neither will
it immediately after Completion have any contractual or other arrangements of any sort
with, Kemira or any of its connected persons.

	 
	11.	 	INFORMATION TECHNOLOGY

	 
	 	 	Details of the Systems used or planned to be used in connection with the business of each
Company have been Disclosed.

	 
	11.1	 	No Systems Failures

	 
	 	 	In the 12 months prior to the date hereof each Company has not suffered and so far as
Kemira is aware no other person has suffered any failures or bugs in or breakdowns of any
System used in connection with the business of that Company which have caused any
substantial disruption or interruption in or to its use.

	 
	11.2	 	Ownership of Systems

	 
	 	 	All material Systems, excluding software, used in the business of each Company are either
owned by or are available under contract to the relevant Company and are under the control
of that Company.

 

43

 

	12.	 	LIABILITIES

	 
	12.1	 	Debts owed by any Company

	 
	 	 	Each Company does not have any outstanding borrowing or indebtedness in the nature of
borrowing other than:

	 	 	(a)	 	finance lease obligations, full and accurate details of which have been
Disclosed; and

	 	 	(b)	 	moneys borrowed from third parties, full and accurate details of which have
been Disclosed.

	12.2	 	Facilities

	 
	 	 	Full and accurate details of all overdrafts, loans or other financial facilities
outstanding or available to each Company have been Disclosed.

	 
	12.3	 	Guarantees and Indemnities

	 	 	(a)	 	Each Company is not a party to and is not liable (including contingently)
under a guarantee, indemnity or other agreement to secure or incur a financial or
other obligation with respect to another person’s obligation.

	 	 	(b)	 	No part of the loan capital, borrowing or indebtedness in the nature of
borrowing of any Company is dependent on the guarantee or indemnity of, or security
provided by, another person.

	12.4	 	Events of Default

	 	 	No event has occurred or is subsisting or been alleged in writing or so far as Kemira is
aware is likely to arise which:

	 	 	(a)	 	constitutes an event of default, or otherwise gives rise to an obligation to
repay, or to create an Encumbrance under an agreement relating to borrowing or
indebtedness in the nature of borrowing;

	 	 	(b)	 	will lead to an Encumbrance constituted or created in connection with
borrowing or indebtedness in the nature of borrowing, a guarantee, an indemnity,
suretyship or other obligation of any Company becoming enforceable; or

	 	 	(c)	 	with the giving of notice and/or lapse of time constitutes or results in a
default or the acceleration of any obligation under any agreement or arrangement to
which any Company is a party or by which it or any of its properties, revenues or
assets is bound.

	12.5	 	There are no outstanding Kemira Intra-Group Payables.

	 
	13.	 	KEMIRA PERMITS

	 
	13.1	 	Compliance with Kemira Permits

	 
	 	 	Each Company has obtained and complied in all material respects with the terms and
conditions of each Kemira Permit.

 

44

 

	13.2	 	Status of Permits

	 
	 	 	There are no pending or threatened proceedings which might in any way affect the Kemira
Permits and Kemira is not aware of any other reason why any of them should be suspended,
threatened or revoked or be invalid.

	 
	14.	 	INSOLVENCY

	 
	14.1	 	Winding up

	 
	 	 	No order has been made, petition presented or resolution passed for the winding up of, or
for the appointment of a provisional liquidator to, any Company or Kemira.

	 
	14.2	 	Administration

	 
	 	 	Neither any Company nor Kemira has been or are in administration (as defined in schedule B1
of the Insolvency Act 1986, or where applicable under equivalent legislation of any
relevant non-English jurisdiction) and no step (including but without limitation the
service of any notice or the filing of any document(s)) has been taken under schedule B1 of
the Insolvency Act 1986 (or where applicable under equivalent legislation of any relevant
non-English jurisdiction) by any person to place any Company or Kemira in administration.

	 
	14.3	 	Receivership

	 
	 	 	No receiver, receiver and manager or administrative receiver has been appointed of the
whole or part of either any Company’s or Kemira’s business or assets.

	 
	14.4	 	Compromises with Creditors

	 	 	(a)	 	No voluntary arrangement under section 1 of the Insolvency Act 1986 or where
applicable under equivalent legislation of any relevant non-English jurisdiction has
been proposed or approved in respect of any Company or Kemira.

	 	 	(b)	 	No compromise or arrangement under section 425 of the Companies Act 1985 (or
where applicable under equivalent legislation of any relevant non-English
jurisdiction) has been proposed, agreed to or sanctioned in respect of any Company or
Kemira.

	 	 	(c)	 	Neither any Company nor Kemira has entered into any compromise or arrangement
with its respective creditors or any class of its respective creditors generally.

	14.5	 	Insolvency

	 
	 	 	Neither any Company nor Kemira is unable to pay its debts within the meaning of section 123
of the Insolvency Act 1986 (or where applicable under equivalent legislation of any
relevant non-English jurisdiction) (but for the purposes of section 123 of the Insolvency
Act 1986 ignoring the reference to “if it is proved to the satisfaction of the court that”
in sections 123(1)(e) and 123(2)).

	 
	15.	 	LITIGATION AND COMPLIANCE WITH LAW

	 
	15.1	 	Litigation and Complaints

	 	 	(a)	 	Neither any Company nor, so far as Kemira is aware, a person for whose acts
or defaults any Company may be vicariously liable is involved, or has during the two
years ending on the date of this agreement been involved, in a civil, criminal,
arbitration, administrative or other proceeding in any jurisdiction or has entered
into any settlement of a claim within such period. So far as Kemira is aware, no
civil, criminal, arbitration, administrative or other proceeding in any jurisdiction
is pending or threatened by or against any Company or a person for whose acts or
defaults any Company may be vicariously liable.

 

45

 

	 	 	(b)	 	So far as Kemira is aware, there is no outstanding judgment, order, decree,
arbitral award or decision of a court, tribunal, arbitrator or governmental agency in
any jurisdiction against any Company.

	 	 	(c)	 	Full and accurate details of all customer claims (including crop indemnity
claims) or complaints made against each Company within the last three years are set
out in the Kemira Disclosure Letter.

	15.2	 	Compliance with Law

	 
	 	 	Each Company has conducted its business affairs and dealt with its assets in all material
respects in accordance with all applicable legal and administrative requirements.

	 
	15.3	 	Investigations

	 
	 	 	So far as Kemira is aware, in the five years preceding the date hereof, each Company is not
and has not been subject to any investigation, enquiry or disciplinary proceeding (whether
judicial, quasi-judicial or otherwise) in any jurisdiction and none is pending or
threatened, and neither has it received any request for information from, any court or
governmental authority (including any national competition authority and the Commission of
the European Communities and the EFTA Surveillance Authority) under any anti-trust or
similar legislation in any jurisdiction. So far as Kemira is aware no matter exists which
might give rise to such an investigation, enquiry, proceeding or request for information.

	 
	15.4	 	Unlawful Payments

	 
	 	 	Neither any Company nor so far as Kemira is aware a person for whose acts or defaults any
Company may be vicariously liable has:

	 	 	(a)	 	induced a person to enter into an agreement or arrangement with any Company
by means of an unlawful or immoral payment, contribution, gift or other inducement;

	 	 	(b)	 	offered or made an unlawful or immoral payment, contribution, gift or other
inducement to a government official or employee; or

	 
	 	 	(c)	 	directly or indirectly made an unlawful contribution to a political activity.

	 	 	All references to the Company in this paragraph 15 should be deemed to include such
Company’s officers, agents and employees.

	 
	16.	 	BROKERAGE OR COMMISSIONS

	 
	 	 	No person is entitled to receive from any Company a finder’s fee, brokerage or commission
in connection with this agreement or anything in it and each Company is not liable to pay
to any of its directors, employees, agents and advisers any sum whatsoever in connection
with the sale of the Kemira Shares.

	 
	17.	 	DIRECTORS, WORKERS AND EMPLOYEES

	 
	17.1	 	The total number of full and part time Workers as at the Kemira Accounts Date are
specifically Disclosed and there have been no material changes since the Kemira Accounts Date.

 

46

 

	17.2	 	True and complete particulars of the terms and conditions (including remuneration and other
benefits) of all Workers of the Company earning in excess of £75,000 have been Disclosed.

	17.3	 	The Kemira Disclosure Letter contains copies of all the standard terms and conditions, staff
handbooks and policies (including details of any redundancy scheme or formula whether
contractual or disciplinary) which apply to Workers and identifies which terms and conditions
apply to each Worker.

	17.4	 	There are no terms and conditions in any contract with any Worker pursuant to which such
person will be entitled to receive any payment or benefit or such person’s rights will change
as a direct consequence of the transaction contemplated by this agreement and no such person
will be entitled to treat this transaction as a breach of their contract.

	17.5	 	The terms of employment or engagement of all Workers of each Company are such that their
employment or engagement may be terminated by not more than three months’ notice given at any
time.

	17.6	 	Since the Kemira Accounts Date each Company has not made, announced or proposed any changes
to the emoluments or benefits of or any bonus to any Worker, save in the ordinary course of
business, and each Company is under no express obligation to make any such changes with or
without retrospective operation.

	17.7	 	There are no amounts owing or agreed to be loaned or advanced by any Company to any Worker
(other than amounts representing remuneration accrued due for the current pay period, accrued
holiday pay for the current holiday year or for reimbursement of expenses).

	17.8	 	No Worker earning in excess of £75,000 base salary per annum has given or received notice to
terminate his employment or engagement and there are no outstanding offers of employment to
any such Worker.

	17.9	 	Details of all recognised trade unions and copies of and full details of all rights and
liabilities relating or pursuant to any collective agreements (whether with a trade union,
staff association or any other body representing workers and whether legally binding or not)
concerning any Company have been Disclosed.

	17.10	 	No industrial action involving Workers, official or unofficial, has occurred, is now
occurring or has been threatened in the 12 months preceding the date hereof and as far as
Kemira is aware no event has occurred which could or might give rise to any such action and no
industrial relations or employment matter has been referred either by any Company or its
Workers or by any trade union staff association or any other body representing workers to ACAS
for advice, conciliation or arbitration.

	17.11	 	No past or present Worker (or any worker of a predecessor in business) has instigated any
claim or right of action in excess of £50,000 against any Company, including (but not limited
to) any claim:

	 	 	(b)	 	in respect of any accident or injury which to Kemira’s knowledge is not fully
covered by insurance; or

	 
	 	 	(c)	 	for breach of any contract of services or for services; or

	 	 	(d)	 	by way of damages or compensation for loss of office or arising out of or
connected with the termination of his office or employment
and so far as Kemira is aware no event or inaction has occurred which could or might give
rise to any such claim.

 

47

 

	17.12	 	Each Company has not within the two years preceding the date hereof entered into any
agreement which involved or may involve that Company (and no event has occurred which may
involve that Company in the future) acquiring or disposing of any undertaking or part of one
such that the Transfer Regulations applied or may apply thereto.

	18.	 	PROPERTIES

	 
	18.1	 	All Property

	 
	 	 	The Kemira Properties comprise all the freehold and leasehold land owned, used or occupied
by the Company and are free from any financial mortgage, charge or encumbrance.

	 
	18.2	 	No Other Liabilities

	 
	 	 	The Company has no actual or contingent obligations or liabilities (in any capacity
including as principal contracting party or guarantor) in relation to any lease, licence or
other interest in, or agreement relating to, land apart from the Kemira Properties.

	 
	18.3	 	No Default

	 
	 	 	The Company has duly performed, observed and complied with all material covenants,
restrictions, exceptions, reservations, conditions, agreements, statutory and common law
requirements, by-laws, orders, building regulations and other stipulations and regulations
affecting the Kemira Properties and the uses of the Kemira Properties and no notice of any
alleged breach of any such matters as aforesaid has been served on the Company.

	 
	18.4	 	Adequacy of Existing Beneficial Rights

	 
	 	 	Each of the Kemira Properties has the benefit of all rights necessary for the continued
present use and enjoyment of the Kemira Properties.

	 
	18.5	 	Other Matters Adversely Affecting the Properties

	 
	 	 	There are no agreements, covenants, restrictions, exceptions, reservations, conditions,
rights, privileges or stipulations affecting the Kemira Properties which materially inhibit
the use of the Kemira Properties for the present use.

	 
	18.6	 	Third Party Occupation

	 	 	(a)	 	All leases, tenancies, licences or agreements to which the Kemira Properties
are subject are correctly summarised in Part II of Schedule 10 and subject thereto the
Company is in exclusive occupation of each and every part of the Kemira Properties.

	 	 	(b)	 	Each lessee, tenant, licensee or occupier of any such lease, underlease,
tenancy, licence or agreement has in all material respects observed and performed all
covenants, obligations, conditions and restrictions therein.

	18.7	 	Planning

	 
	 	 	As far as Kemira is aware, the existing use of each of the Kemira Properties is a lawful
permitted use under current Town and Country Planning legislation and all development
carried out has been and is lawful and all necessary consents and permissions have been
obtained for such development, and there are no outstanding statutory or informal notices
relating to the Kemira Properties or any business carried on thereat or the use thereof.

 

48

 

	18.8	 	Replies to Enquiries

	 
	 	 	All disclosures and replies to enquiries and requisitions relating to the Kemira Properties
made or given by or on behalf of Kemira or the Company to Terra or to its solicitors
(Ashurst) are complete and correct in all material respects.

	 
	19.	 	PENSIONS

	 
	19.1	 	Save in respect of the Kemira GrowHow UK Limited Pension Fund, the Kemira Limited Pension
Scheme and the Kemira GrowHow UK Limited Stakeholder Pension Plan (the “Disclosed Schemes"),
each Company has no obligation, nor has it done anything to create any reasonable expectation
of an obligation, to provide (or contribute towards any scheme which provides) pension or
death benefits, whether voluntary, ex-gratia or otherwise, in respect of any employee or
former employee.

	 
	19.2	 	So far as Kemira is aware, neither it nor any Company has at any time participated in or
contributed towards any former scheme or arrangement (the “Former Scheme") which has as its
purpose or one of its purposes the provision of pension or death benefits (whether voluntary,
ex-gratia or otherwise) other than schemes which have been fully wound up.

	 
	19.3	 	All material details of the Disclosed Schemes (and any Former Scheme) have been supplied to
Terra and all the information and documents which have been given or made available to Terra
or its advisers relating to the Disclosed Schemes (or any Former Scheme) are true, complete,
accurate and not misleading.

	 
	19.4	 	The Disclosed Schemes (and any Former Scheme) have at all times been operated in all material
respects in accordance with the provisions of its governing documentation, all applicable EU
and domestic legislation, and the general requirements of law and regulatory practice
(including without limitation those of HMRC).

	 
	19.5	 	Each Company has fulfilled all its obligations in respect of pension and death benefits in
relation to the Disclosed Schemes (and any Former Scheme), including without limitation
providing equal access to membership in respect of any current and former employees, and all
contributions which have fallen due for payment in respect of the Disclosed Schemes (or any
Former Scheme) have been paid within any applicable prescribed period.

	 
	19.6	 	No claim or litigation is outstanding, pending or, so far as Kemira is aware, threatened
against any Company in connection with the Disclosed Schemes or otherwise in connection with
the provision of pension or death benefits to any current or former employee (including
without limitation any investigation by the Pensions Ombudsman or any complaint brought under
any internal dispute resolution procedure).

	 
	19.7	 	All death benefits which may be payable are fully insured under a life assurance policy with
an appropriately authorised insurance company and, so far as Kemira is aware, there is no
ground on which liability under such policy may be avoided.

	 
	19.8	 	Neither Kemira nor any Company has been a party to any act or deliberate failure to act
occurring on or after 27 April 2004 of which the main purpose or one of the main purposes was:

	 	 	(a)	 	to prevent the recovery of the whole or any part of a debt which was, or
might become due, from an employer in relation to a pension scheme under section 75 of
the Pensions Act 1995; or

	 	 	(b)	 	otherwise than in good faith, to prevent such a debt becoming due, to
compromise or otherwise settle such a debt, or to reduce the amount of such a debt
which would otherwise become due.

 

49

 

	19.9	 	Neither Kemira nor any Company is or has at any point within the 12 months prior to
Completion been “connected” with or an “associate” of any employer which participates in a
defined benefit pension scheme (other than the Disclosed Schemes) and which is either a
“service company” or “insufficiently resourced”. For these purposes, “connected” and
“associate” have the meanings given to them in sections 435 and 249 of the Insolvency Act 1986
respectively and “service company” and “insufficiently resourced” have the meanings given to
them in section 44 of the Pensions Act 2004 and regulations made under that section.

	19.10	 	Each Company has complied with its notification obligations under section 69 or section 70
of the Pensions Act 2004 and regulations made under that section. Kemira is not aware of any
current circumstances which may give rise to an obligation to make such a report to the
Regulator under sections 69 or 70 of the Pensions Act 2004.

	20.	 	TAXATION

	 
	20.1	 	Returns

	 
	 	 	The Kemira Companies have complied in full with all their duties under all taxation
statutes and have kept all records, made all returns and supplied all information and given
all notices to HMRC or other Taxation Authority as reasonably requested or required by law
within any requisite period and so far as Kemira is aware all such returns and information
and notices and any statements or disclosures made to any Taxation Authority are correct
and accurate in all material respects and are not the subject of any dispute and there are
no facts or circumstances likely to give rise to or be the subject of any such dispute.

	20.2	 	Clearances

	 
	 	 	No action has been taken by any Kemira Company in respect of which any consent or clearance
from HMRC or other Taxation Authority was required save in circumstances where such consent
or clearance was validly obtained, and where any conditions attaching thereto were and
will, immediately following Completion, continue to be met.

	 
	20.3	 	Payment of Tax

	 
	 	 	Each Kemira Company has duly and punctually paid all Tax to the extent that the same ought
to have been paid and is not liable nor has it within three years prior to the date hereof
been liable to pay any penalty or interest in connection therewith.

	 
	20.4	 	Tax arising under this Agreement

	 
	 	 	So far as Kemira is aware, no Kemira Company will become liable to any Tax (and in
particular to any Tax pursuant to the PAYE provisions or any national insurance
contributions) in consequence of the entering into or completion of this agreement or
anything done pursuant to its terms.

	 
	20.5	 	Withholdings

	 
	 	 	Each Kemira Company has duly complied within the relevant time period with its obligations
to deduct, withhold or retain amounts of or on account of Tax from any payments made by it
and to account for such amounts to the relevant Taxation Authority and has complied with
all its reporting obligations to the relevant Taxation Authority in connection with any
such payments made.

 

50

 

	20.6	 	Pay As You Earn

	 
	 	 	Each Kemira Company has properly operated the PAYE system deducting Tax as required by law
from all payments to or treated as made to or benefits provided for employees, ex-
employees or independent contractors of such Kemira Company (including any such payments
within sections 7, 44, 45, 46 and 47 of the ITEPA 2003) and duly accounted to HMRC for Tax
so deducted, and has complied with all its reporting obligations to HMRC in connection with
any such payments made or benefits provided.

	20.7	 	Provision for Tax in the Kemira Accounts

	 
	 	 	The Kemira Accounts make full provision or reserve in respect of any period ended on or
before the Kemira Accounts Date for all Tax assessed or liable to be assessed on the
Company or for which it is accountable at the Kemira Accounts Date whether or not the
Company has or may have any right of reimbursement against any other person and full
provision has been made and shown in the Kemira Accounts for deferred taxation in
accordance with generally accepted accounting principles including, where relevant, UK
GAAP.

	 
	20.8	 	Post-Accounts Date Events

	 
	 	 	Since the Kemira Accounts Date:

	 	 	(a)	 	no Kemira Company has been involved in any transaction (other than the
transfer of shares in Kemira GrowHow Limited by Kemira GrowHow UK Limited pursuant to
the share purchase agreement dated 29 June 2007) which has given, may give or would,
but for the availability of any relief, give rise to any Tax other than in respect of
actual income earned by such Kemira Company in the course of its trade or business;

	 	 	(b)	 	no accounting period (as defined in section 12 of the TA) of a Kemira Company
has ended as referred to in section 12(3) of the TA; and

	 	 	(c)	 	no Kemira Company has ceased to be a member of a group (as defined in section
170 of the TCGA).

	20.9	 	Distributions

	 
	 	 	No Kemira Company has made (or will be deemed to have made) any distribution within the
meaning of sections 209 and 210 (bonus issue following repayment of capital) of the TA
since 5 April 1965 except dividends properly authorised and shown in the Kemira Accounts
nor is any Kemira Company bound to make any such distribution.

	 
	20.10	 	Company Residence

	 
	 	 	The Kemira Companies have always been resident in the territory in which they were
incorporated and have never been resident in any other territory or treated as so resident
for the purposes of any double Tax agreement nor does any Kemira Company have a permanent
establishment or other taxable presence in any jurisdiction other than that in which it was
incorporated.

	 
	20.11	 	Controlled Foreign Companies

	 
	 	 	There are no circumstances under which any Kemira Company may be held liable to tax in the
UK on the income, profits or gains of any foreign company.

	 
	20.12	 	Close Company

	 
	 	 	No Kemira Company is nor has any ever been a close company as defined by section 414 of the TA.

 

51

 

	20.13	 	Value Added Tax

	 	 	(a)	 	Each Kemira Company is a registered taxable person for VAT legislation and
has not at any time been treated as a member of a group of companies for such purpose
and has not made any application to be so treated and no circumstances exist whereby a
Kemira Company would or might become liable for value added tax as an agent or
otherwise by virtue of section 47 of the VATA.

	 	 	(b)	 	Each Kemira Company has complied in all material respects with the
requirements and provisions of VAT legislation and has made and maintained accurate
and up-to-date records, invoices, accounts and other documents required by or
necessary for the purposes of the VAT legislation and each Kemira Company has at all
times paid and made all payments and returns required thereunder within the relevant
time period.

	20.14	 	Stamp Duty and Stamp Duty Land Tax

	 	 	(a)	 	All documents in the enforcement of which a Kemira Company is or may be
interested have been duly stamped and since the Kemira Accounts Date no Kemira Company
has been a party to any transaction whereby such Kemira Company was or is or could
become liable to stamp duty reserve tax.

	 	 	(b)	 	In relation to the Kemira Properties, no Kemira Company is and none has been
party to any Land Transaction in respect of which any Kemira Company has since the
Kemira Accounts Date been liable or could at any time after the date of this agreement
become liable to pay any stamp duty land tax under any provisions of any Act.

	 	 	(c)	 	No stamp duty land tax shall arise under paragraph 11 of Schedule 17A to the
FA 2003 (cases where assignment of lease treated as grant of lease) on the assignment
of any lease in which any Kemira Company has an interest.

	 	 	(d)	 	The Kemira Companies have in their possession and Kemira has fully disclosed
to JVCo copies of all stamp duty land tax returns and/or self certificates (as defined
in section 79(3)(b) of the FA 2003) filed by any Kemira Company in relation to land in
which or in part of which such Kemira Company has an interest.

	21.	 	ENVIRONMENTAL MATTERS

	 
	21.1	 	Consents

	 
	 	 	Each Company has obtained and complied in all material respects at all times in the last
three years with the terms and conditions of all Environmental Consents. All current
Environmental Consents remain in full force and effect. In the last three years, no Company
has received any written notice of and so far as Kemira is aware there are no existing
circumstances including planned changes to operations (other than changes agreed pursuant
to the Business Plan) likely to lead to the revocation, termination, material modification
or suspension of, or that may prejudice or require material expenditure for the renewal,
extension, grant or transfer of or compliance with, any current Environmental Consents
within the period of 18 months from the date hereof.

	 
	21.2	 	Liability

	 
	 	 	Each Company, including in respect of the Kemira Properties, complies and has at all times
in the last three years complied with all Environmental Laws in all material respects and
so far as Kemira is aware there are no existing facts or circumstances which would prevent
compliance with any Environmental Laws in any material respect within 18 months of the date
hereof.

 

52

 

	21.3	 	Notices and Complaints

	 
	 	 	In the last three years, no Company has received any written notice of enforcement,
prohibition, improvement, remediation or other notice of equivalent nature, or any
judgment, order, decree, award, demand or decision in respect of damage, harm or risk to or
pollution of the Environment or the use, presence, migration, leakage, emission, spillage,
release, discharge, entry, deposit, transport or disposal of any Hazardous Substance
arising from the activities of the Company or relating to any Kemira Property from any
court, tribunal, arbitrator or governmental or regulatory authority which is material
and/or which remains outstanding, nor has it received any other written complaints or other
written indications of any possible claims or legal actions (whether civil, criminal or
administrative) against such Company in respect of such matters in such period which are
material and/or remain outstanding in respect thereof from any person including any
neighbour, governmental or regulatory authority, current or former employee or third party
and, so far as Kemira is aware, there are no circumstances that are reasonably likely to
lead to legal action in respect of such matters in the next 18 months.

	 
	21.4	 	Contaminated Land

	 
	 	 	So far as Kemira is aware, there has not been and there is not present in the soil,
groundwater and surface water, on, at or under the Kemira Properties and there is and has
been no release, migration, leakage, spillage, discharge, entry, deposit or emission onto
or from the Kemira Properties of any Hazardous Substance which has led to, or if such
matter were known by a regulatory authority or third party at Completion would be
reasonably likely to result in, a material liability under Environmental Laws for any
Company or an obligation to undertake material remediation works at the Kemira Properties.

	 
	21.5	 	Documentation

	 
	 	 	Copies of all material environmental and health and safety reports, assessments and
investigations in respect of employees, the Kemira Properties, Former Kemira Properties or
Activities prepared in the last three years and in the possession of and/or commissioned by
Kemira or the Company have been disclosed to Terra.

	 
	21.6	 	Former Properties

	 
	 	 	Kemira is not aware of any release, migration, leakage, spillage, discharge, entry, deposit
or emission onto or from the Former Kemira Properties of any Hazardous Substance during the
period in which the Former Kemira Properties were in the ownership or under the occupation
or control of any Company which has led to, or if such matter were known by a regulatory
authority or third party at Completion would be reasonably likely to result in, a material
liability under Environmental Laws for any Company.

	 
	21.7	 	Contractual Liabilities

	 
	 	 	So far as Kemira is aware, no Company has given an environmental indemnity or environmental
covenant to pay in respect of soil, groundwater or surface water contamination (whether at
or emanating from the Kemira Properties, the Former Kemira Properties or any other
properties) which remains capable of being claimed against at the date hereof
(“Pre-Completion Kemira Environmental Indemnity"). For the avoidance of doubt, general
covenants and indemnities which do not refer specifically to contamination including for
example general repairing obligations in leases or licences shall not be within the
definition of Pre-Completion Kemira Environmental Indemnity.

 

53

 

SCHEDULE 7

The Terra Warranties

For the purpose of this schedule 7, “Company” means the Terra Company.

Any warranty in this schedule 7 expressed to be given “to the best of Terra’s knowledge and belief”
or “so far as Terra is aware” or otherwise qualified by reference to the knowledge of Terra shall
not be qualified in the manner stated unless Terra establishes that it has made all reasonable
enquiries of the following individuals to establish the truth and accuracy of that warranty: Carol
Devlin, Peter Houghton, Jim Robertson, Dominic Vincent, Richard Tweddle, Peter Rees, Frank
Heathman, Quentin Clark, Nicola George, Jacqui Reed, Stuart Beer, Ashraf Malik, Paul Thompson and
Frank Meyer.

In this schedule 7 the following words have the following meanings, unless the context otherwise
requires:

“Activities” means any activity, operation or process carried out by the Company at any property
whether or not currently owned, occupied or used by the Company;

“distribution” means a distribution as defined by sections 209 to 211 (inclusive) of the TA and
section 418 of the TA;

“Environment” means any and all living organisms (including man), ecosystems, property and the
media of air (including air in buildings, natural or man-made structures, below or above ground),
water (including as defined in section 104(1) of the Water Resources Act 1991 and within drains and
sewers) and land (including under any water as described above and whether above or below surface);

“Environmental Consent” means any consent, approval, permit, allowance, licence, order, filing,
authorisation, exemption, registration, permission, reporting or notice requirement and any related
agreement required under any Environmental Laws for the operation by any company of the Activities;

“Environmental Laws” means all international, EU, national, federal, state or local statutes,
by-laws, orders, regulations or other law or subordinate legislation or common law, all orders,
ordinances, decrees or regulatory codes of practice, circulars, guidance notes, agreements with
regulators or industry bodies, and equivalent controls concerning the protection of human health
(including worker health and safety) or which have as a purpose or effect the protection or
prevention of harm to the Environment or the provision of remedies in relation to the same which
are binding upon the Company in relation to the Terra Properties or the Activities in the relevant
jurisdiction in which the Company has been or is operating (including by the export of its
products, or its waste thereto) on or before Completion but excluding planning law;

“Former Terra Properties” means any property formerly owned, occupied or used by the Company;

“Hazardous Substance” means any natural or artificial substance (whether solid, liquid, gas, noise,
ion, vapour, electromagnetic or radiation, and whether alone or in combination with any other
substance) which is capable of causing harm to or have a deleterious effect on the Environment or
of being a nuisance;

“IHTA” means the Inheritance Tax Act 1984;

“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;

“Land Transaction” has the meaning given to it in section 43 of the FA 2003;

 

54

 

“Substantial Customer” means a customer accounting for more than five per cent. of the Company’s
sales in the financial year ended on the Terra Accounts Date;

“Substantial Supplier” means a supplier accounting for more than five per cent. of the Company’s
purchases in the financial year ended on the Terra Accounts Date;

“Systems” means all plant, equipment, systems, devices and components which contain or are
controlled or monitored by computer systems, microprocessors or software;

“TCGA” means the Taxation of Chargeable Gains Act 1992;

“Terra Accounts” means the audited financial statements of the Company, comprising the balance
sheet, profit and loss account or, where relevant, the income statement or the equivalent financial
statement required to be prepared by UK GAAP, and cash flow statements of the Company, together in
each case with the notes thereon, directors’ report and auditors’ report, as at and for the
financial period ended on the Terra Accounts Date;

“Terra Intra-Group Payables” means any indebtedness for borrowed monies outstanding from the Terra
Company to any member of the Terra Group as at the commencement of business as at the date of
Completion, other than monies owed (whether or not due and payable) for the supply and/or purchase
of goods and services in the ordinary course of business

“Transfer Regulations” means the UK Transfer of Undertakings (Protection of Employment) Regulations
2006 or any other local enactment of the European Acquired Rights Directive (77/187/EEC, as amended
by Directive 98/50 EC and consolidated in 2001 (23/EC);

“TULR(C)A” means the Trade Union and Labour Relations (Consolidation) Act 1992;

“UK GAAP” means generally accepted accounting principles applied in the United Kingdom;

“VATA” means the Value Added Tax Act 1994 and “VAT legislation” means VATA and all regulations and
orders made thereunder; and

“Workers” means the employees, directors, officers and workers of the Company.

	1.	 	TERRA’S CAPACITY

	 
	 	 	Terra is entering into this agreement and any agreement to be entered into pursuant to this
agreement on its own behalf and not on behalf of any other persons and has full power and
capacity to enter into and perform and has obtained all corporate authorisations and all
other applicable governmental, statutory, regulatory or other consents, approvals,
licences, waivers or exemptions required to empower it to enter into and to perform its
obligations under this agreement and each document to be executed by it at or before
Completion.

	 
	2.	 	TERRA AND THE TERRA COMPANY

	 
	2.1	 	Terra

	 
	 	 	Terra is a limited company duly organised and validly existing under the laws of the
Province of Ontario, Canada and has been in continuous existence since incorporation.

	 
	2.2	 	The Company

	 
	 	 	The Company is a limited company duly organised and validly existing under English law and
has been in continuous existence since incorporation.

 

55

 

	2.3	 	The Terra Shares

	 	 	(a)	 	Terra is the only legal and beneficial owner of the Terra Shares.

	 	 	(b)	 	The Company has not allotted any shares other than the issued shares set out
in schedule 5 and such shares are fully paid or credited as fully paid.

	 	 	(c)	 	There is no Encumbrance in relation to any of the issued or unissued shares
in the capital of the Company. No person has claimed to be entitled to an Encumbrance
in relation to any of the Terra Shares and the Company is not under any obligation
(whether actual or contingent) to sell, charge or otherwise dispose of any of its
 shares or any interest therein to any person.

	 	 	(d)	 	Other than this agreement, there is no agreement, arrangement or obligation
requiring the creation, allotment, issue, sale, transfer, redemption or repayment of,
or the grant to a person of the right (conditional or not) to require the allotment,
issue, sale, transfer, redemption or repayment of, a share in the capital of the
Company (including an option or right of pre-emption or conversion).

	2.4	 	No Subsidiaries

	 	 	(a)	 	The Company has no subsidiary undertakings.

	 	 	(b)	 	The Company owns no shares or stock in the capital of, nor does it have any
beneficial or other interest in, any company or business organisation of whatever
nature nor does the Company control or take part in the management of any other
company or business organisation.

	 	 	(c)	 	The Company has no branch, division, agency, place of business, operation or
substantial assets outside the United Kingdom and Republic of Ireland.

	3.	 	TERRA ACCOUNTS

	 
	3.1	 	General

	 	 	(a)	 	The Terra Accounts show a true and fair view, in accordance with UK GAAP, of
the:

	 	 	(i)	 	assets, liabilities, financial position and state of affairs at
the Terra Accounts Date; and

	 	 	(ii)	 	the profits and losses for the financial year ended on the
Terra Accounts Date

	 	 	 	 	of the Company.

	 	 	(b)	 	The Terra Accounts have been prepared and audited in accordance with the
standards, principles and practices specified on the face of the Terra Accounts
applied on a consistent basis and subject thereto in accordance with UK GAAP
consistently applied.

	 	 	(c)	 	The Terra Accounts have been prepared on a basis consistent with the basis
upon which all audited accounts of the Company have been prepared in respect of the
three years before the Terra Accounts Date.

	3.2	 	Accounting and Other Records

	 	 	(a)	 	The books of account and all other records of the Company are up-to-date, in
its possession and in all material respects in accordance with the law.

 

56

 

	 	 	(b)	 	All material deeds and documents belonging to the Company or which ought to
be in the possession of the Company are in the possession of the Company.

	3.3	 	Accounting Reference Date

	 
	 	 	The accounting reference date of the Company under section 224 of the Companies Act 1985
is, and during the last two years has always been, 31 December.

	 
	3.4	 	Management Accounts

	 
	 	 	The management accounts of the Company in the agreed terms have been prepared by the
Company on a consistent basis with historic management accounts of the Company and with due
care and attention and show with reasonable accuracy the state of affairs and profit or
loss of the Company as at and for the period in respect of which they have been prepared
and the balance sheets of that Company on the last day of each month from January 2007 to
August 2007 inclusive but it is hereby acknowledged that they are not prepared on a
statutory basis.

	 
	4.	 	CHANGES SINCE THE TERRA ACCOUNTS DATE

	 
	4.1	 	General

	 
	 	 	Since the Terra Accounts Date, the Company has carried on its business in the ordinary and
usual course and so as to maintain the business as a going concern.

	 
	4.2	 	Specific

	 
	 	 	Since the Terra Accounts Date:

	 	 	(a)	 	the Company has not, other than in the ordinary course of trading:

	 	(i)	 	disposed of, or agreed to dispose of, an asset with a value in
excess of £100,000; or

	 	(ii)	 	assumed or incurred, or agreed to assume or incur, a liability,
obligation or expense (actual or contingent) in excess of £100,000;

	 	 	(b)	 	the Company has not made, or agreed to make, capital expenditure exceeding in
total £1,000,000 or incurred, or agreed to incur, a commitment or connected
commitments involving capital expenditure exceeding in total £2,000,000;

	 	 	(c)	 	no Substantial Supplier or Substantial Customer has ceased or substantially
reduced its trade with the Company or has altered the terms of trade to the Company’s
disadvantage;

	 	 	(d)	 	the Company has not declared, paid or made a dividend or other distribution
(including a distribution within the meaning of the TA) except to the extent provided
in the Terra Accounts;

	 	 	(e)	 	no resolution of the shareholders of the Company has been passed (except for
those representing the ordinary business of an annual general meeting);

	 	 	(f)	 	the Company has not repaid, purchased or redeemed share or loan capital, or
made (whether or not subject to conditions) an agreement or arrangement or undertaken
an obligation to do any of those things;

	 	 	(g)	 	the Company has not repaid any sum in the nature of borrowings in advance of
any due date or made any loan or incurred any indebtedness (including in each case
inter group); and

 

57

 

	 	 	(h)	 	the Company has not paid nor is under any obligation to pay any service,
management or similar charges or any interest or amount in the nature of interest to
any other person or incurred any liability to make such a payment or made any payment
to any member of the Terra Group or any of their connected persons whatsoever.

	5.	 	ASSETS

	 
	5.1	 	Title and Condition

	 	 	(a)	 	Other than retention of title provisions contained in trading contracts
entered into in the ordinary course of business, there are no Encumbrances, nor has
the Company agreed to create any such Encumbrances, over any part of its undertaking
or assets and each asset used by the Company (tangible or intangible) is:

	 	 	(i)	 	legally and beneficially owned by the Company; and

	 
	 	 	(ii)	 	where capable of possession, in the possession of the Company.

	 	 	(b)	 	The Company owns or is legally entitled to use each asset (tangible or
intangible) necessary for the operation of its business as currently conducted and
without limitation no rights (other than rights as shareholders in the Company)
relating to the business of the Company are owned or otherwise enjoyed by or on behalf
of any member of the Terra Group.

	 
	 	 	(c)	 	All plant, machinery, vehicles and equipment owned or used by the Company:

	 	 	(i)	 	is in reasonable condition with respect to the age and
depreciated value of each item and has been properly serviced and maintained;
and

	 
	 	 	(ii)	 	is fit for the purpose for which it was designed or acquired.

	 	 	(d)	 	Terra has not received notice that any item of plant or machinery owned or
used by the Company is no longer maintainable or that spare parts for the same are no
longer available.

	 	 	(e)	 	Details of costs budgeted for maintenance of plant, machinery, vehicles or
equipment owned or used by the Company for the period of one year following Completion
are included in the Business Plan.

	5.2	 	Hire Purchase and Leased Assets

	 
	 	 	Copies of any material bill of sale or any hiring or leasing agreement, hire purchase
agreement, credit or conditional sale agreement, agreement for payment on deferred terms or
any other similar agreement to which the Company is a party have been Disclosed.

	 
	5.3	 	Stock

	 	 	(a)	 	So far as Terra is aware, the Company has not supplied, or agreed to supply,
goods which have been, or will be, defective or which fail, or will fail, to comply
with their terms of sale.

	 	 	(b)	 	So far as Terra is aware, no goods in a state ready for supply by the Company
are, or will be, defective or will fail to comply with terms of sale similar to terms
of sale on which similar goods have previously been sold by the Company.

 

58

 

	 	 	(c)	 	The Company has not offered special price reductions, discounts or allowances
on sales of trading stock which were not available prior to 31 December 2006.

	 	 	(d)	 	The amount of stock held by the Company at Completion is not abnormally low
or high taking into account the historic trading patterns of its business.

	6.	 	INTELLECTUAL PROPERTY

	 
	6.1	 	General

	 
	 	 	Save for Intellectual Property licensed to the Company, the Company is the sole and
absolute legal and beneficial owner of all material Intellectual Property used in
connection with its business and, where appropriate, such Intellectual Property is
registered in or applied for in the name of the Company.

	 
	6.2	 	Licences

	 
	 	 	The terms of all licences or rights which have been granted by the Company, or which the
Company intends to enter into, relating to any material Intellectual Property owned or used
by the Company have been Disclosed.

	 
	6.3	 	Infringement

	 	 	(a)	 	The use by the Company of any Intellectual Property used in the business of
the Company does not infringe the Intellectual Property of any other person.

	 	 	(b)	 	No infringement proceedings claims or complaints have been brought or
threatened in writing by any third party or competent authority in relation to the
Intellectual Property owned by the Company in the five year period preceding the date
of this agreement, nor, so far as Terra is aware, have any such been brought or
threatened in writing by any third party or competent authority in relation to any
Intellectual Property licensed to the Company by a member of the Terra Group in the
five year period preceding the date of this agreement.

	7.	 	EFFECT OF SALE

	 
	 	 	Neither the execution nor performance of this agreement or any document to be executed at
or before Completion will so far as Terra is aware:

	 	 	(a)	 	conflict with or result in a material breach of an agreement, arrangement or
obligation to which the Company is party; or

	 
	 	 	(b)	 	result in any Substantial Customer ceasing to deal with the Company; or

	 
	 	 	(c)	 	result in any Substantial Supplier ceasing to supply the Company; or

	 
	 	 	(d)	 	result in any officer or senior employee leaving the Company; or

	 
	 	 	(e)	 	make the Company liable to transfer or purchase any assets, including shares
held by it in other bodies corporate under their articles of association or any
agreement or arrangement.

	8.	 	CONSTITUTION

	 
	8.1	 	Intra Vires

	 
	 	 	The Company has the power to carry on its business as now conducted and the business of the Company has at all times been
carried on intra vires.

 

59

 

	8.2	 	Memorandum and Articles

	 
	 	 	The memorandum and articles of association of the Company in the form annexed to the Terra
Disclosure Letter is true and complete and has embodied therein or annexed thereto copies
of all resolutions and agreements as are referred to in section 380 of the Companies Act
1985, and all amendments thereto (if any) were duly and properly made.

	 
	8.3	 	Register of Members

	 
	 	 	The register of members of the Company has been properly kept and contains true and
complete records of the members from time to time of the Company and the Company has not
received any notice or allegation that any of the records of such members is incorrect or
incomplete or should be rectified.

	 
	8.4	 	Powers of Attorney

	 
	 	 	The Company has not executed any power of attorney or conferred on any person other than
its directors, officers and employees any authority to enter into any transaction on behalf
of or to bind the Company in any way and which power of attorney remains in force.

	 
	8.5	 	Statutory Books and Filings

	 	(a)	 	The statutory books of the Company are up-to-date, in its possession and are
true and complete in all material respects.

	 
	 	(b)	 	All resolutions, annual returns and other documents required to be delivered
to the Registrar of Companies have been properly prepared and filed and are true and
complete in all material respects.

	9.	 	INSURANCE

	 
	9.1	 	Policies

	 
	 	 	A list of each current insurance and indemnity policy in respect of which the Company has
an interest (together the “Policies") has been Disclosed. So far as Terra is aware, each of
the Policies is valid and enforceable and is not void or voidable.

	 
	9.2	 	Claims

	 
	 	 	No claim is outstanding under any of the Policies and, so far as Terra is aware, no matter
exists which will give rise to a claim under any of the Policies.

	 
	10.	 	CONTRACTUAL MATTERS

	 
	10.1	 	Validity of Agreements

	 	(a)	 	Terra has no knowledge of the invalidity or unenforceability of, or a ground
for termination, avoidance or repudiation of, any material agreement to which the
Company is a party. No party with whom the Company has entered into an agreement,
arrangement or obligation which is material to the Company has given notice of its
intention to terminate, or has sought to repudiate or disclaim, the agreement,
arrangement or obligation.

	 
	 	(b)	 	So far as Terra is aware, no party with whom the Company has entered into an
agreement or arrangement which is material to the Company is in material breach of the
agreement or arrangement. So far as Terra is aware, no matter exists which is expected
to give rise to such breach.

 

60

 

	 	 (c)	 	So far as Terra is aware, the Company is not in breach of any agreement or
arrangement which is material to the Company. So far as Terra is aware, no matter
exists which is expected to give rise to such breach.

	10.2	 	Supply Contracts

	 
	 	 	Details of all agreements or arrangements for the supply of stock, raw materials, products
or goods to or by the Company which involve or are likely to involve the supply of goods
the aggregate sale value of which will represent in excess of 10 per cent. of the turnover
for the financial year of the Company ended on the Terra Accounts Date have been Disclosed.

	 
	10.3	 	Customer Contracts

	 	 (a)	 	There are no agreements or arrangements in place with customers of the
Company under which any retrospective adjustment to sales value of the products sold
by the Company to its customers may be made.

	 
	 	 (b)	 	All agreements or arrangements relating to overrider or other discounts to
which the Company is entitled to or which any customer of the Company is entitled in
respect of goods supplied by the Company in connection with its business have been
Disclosed.

	 
	 	 (c)	 	All overrider or other discount arrangements disclosed pursuant to paragraph
10.3(b) above operate with reference to sales made per year from 1 July to 30 June.

	 
	 	 (d)	 	There are no agreements or arrangements where the price charged to a customer
of the Company depends on the price charged by the Company for any other product or
the volume of any other product supplied by the Company to such customer.

	10.4	 	Material Agreements

	 	 (a)	 	The Company is not party to or is liable under any material contract,
transaction, arrangement or liability which:

	 	(i)	 	was entered into otherwise than on arm’s length commercial
terms; or

	 
	 	(ii)	 	is of an unusual or abnormal nature, or outside the ordinary
and proper course of business; or

	 
	 	(iii)	 	is of a long-term nature (that is, unlikely to have been fully
performed, in accordance with its terms, more than six months after the date on
which it was entered into or undertaken); or

	 
	 	(iv)	 	is incapable of termination in accordance with its terms, by
the Company, on 60 days’ notice or less; or

	 
	 	(v)	 	involves an aggregate outstanding expenditure or other
liability by the Company of more than £500,000.

	 	 (b)	 	The Company is not a party to and is not liable under:

	 	(i)	 	an agreement, arrangement or obligation by which the Company is
a member of a joint venture, consortium, partnership or association (other than
a bona fide trade association), shareholder or similar arrangement or agreement
or any agreement which purports to regulate control or otherwise affects the
voting or disposition of its shares; or

 

61

 

	 	(ii)	 	a distributorship, promotional, representation, franchising,
agency, marketing or management agreement or arrangement.

	10.5	 	Parental Services

	 
	 	 	Full and accurate details of all services provided and supplies made to the Company by any
member of the Terra Group (including the cost thereof), and vice versa, have been
Disclosed.

	 
	10.6	 	Contracts with Connected Persons

	 
	 	 	There is, and during the three years ending on the date of this agreement there has been,
no agreement or arrangement (legally enforceable or not) to which the Company is or was a
party and in which any member of the Terra Group, a director or former director of any
member of the Terra Group or a person connected with any of them is or was interested in
any way. The Company does not owe any obligation or sum to, nor does it and neither will it
immediately after Completion have any contractual or other arrangements of any sort with,
Terra or any of its connected persons.

	 
	11.	 	INFORMATION TECHNOLOGY

	 
	 	 	Full details of the Systems used or planned to be used in connection with the business of
the Company have been Disclosed.

	 
	11.1	 	No Systems Failures

	 
	 	 	In the 12 months prior to the date hereof the Company has not suffered and so far as Terra
is aware no other person has suffered any failures or bugs in or breakdowns of any System
used in connection with the business of the Company which have caused any substantial
disruption or interruption in or to its use.

	 
	11.2	 	Ownership of Systems

	 
	 	 	All material Systems, excluding software, used in the business of the Company are either
owned by or are available under contract to the relevant Company and are under the control
of the Company.

	 
	12.	 	LIABILITIES

	 
	12.1	 	Debts owed by the Company

	 
	 	 	The Company does not have any outstanding borrowing or indebtedness in the nature of
borrowing other than:

	 	 (a)	 	finance lease obligations, full and accurate details of which have been
Disclosed; and

	 
	 	 (b)	 	moneys borrowed from third parties, full and accurate details of which have
been Disclosed.

	12.2	 	Facilities

	 
	 	 	Full and accurate details of all overdrafts, loans or other financial facilities
outstanding or available to the Company have been Disclosed.

 

62

 

	12.3	 	Guarantees and Indemnities

	 	 	(a)	 	The Company is not a party to and is not liable (including contingently)
under a guarantee, indemnity or other agreement to secure or incur a financial or
other obligation with respect to another person’s obligation.

	 
	 	 	(b)	 	No part of the loan capital, borrowing or indebtedness in the nature of
borrowing of the Company is dependent on the guarantee or indemnity of, or security
provided by, another person.

	12.4	 	Events of Default

	 
	 	 	No event has occurred or is subsisting or been alleged in writing or so far as Terra is
aware is likely to arise which:

	 	 	(a)	 	constitutes an event of default, or otherwise gives rise to an obligation to
repay, or to create an Encumbrance under an agreement relating to borrowing or
indebtedness in the nature of borrowing;

	 
	 	 	(b)	 	will lead to an Encumbrance constituted or created in connection with
borrowing or indebtedness in the nature of borrowing, a guarantee, an indemnity,
suretyship or other obligation of the Company becoming enforceable; or

	 
	 	 	(c)	 	with the giving of notice and/or lapse of time constitutes or results in a
default or the acceleration of any obligation under any agreement or arrangement to
which the Company is a party or by which it or any of its properties, revenues or
assets is bound.

	12.5	 	There are no outstanding Terra Intra-Group Payables.

	 
	13.	 	TERRA PERMITS

	 
	13.1	 	Compliance with Terra Permits

	 
	 	 	The Company has obtained and complied in all material respects with the terms and
conditions of each Terra Permit.

	 
	13.2	 	Status of Permits

	 
	 	 	There are no pending or threatened proceedings which might in any way affect the Terra
Permits and Terra is not aware of any other reason why any of them should be suspended,
threatened or revoked or be invalid.

	 
	14.	 	INSOLVENCY

	 
	14.1	 	Winding up

	 
	 	 	No order has been made, petition presented or resolution passed for the winding up of, or
for the appointment of a provisional liquidator to, the Company or Terra.

	 
	14.2	 	Administration

	 
	 	 	Neither the Company nor Terra has been or are in administration (as defined in schedule B1
of the Insolvency Act 1986 (or where applicable under equivalent legislation of any
relevant non-English jurisdiction)) and no step (including but without limitation the
service of any notice or the filing of any document(s)) has been taken under schedule B1 of
the Insolvency Act 1986 (or where applicable under equivalent legislation of any relevant
non-English jurisdiction) by any person to place the Company or Terra in administration.

 

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	14.3	 	Receivership

	 
	 	 	No receiver, receiver and manager or administrative receiver has been appointed of the
whole or part of either the Company’s or Terra ‘s business or assets.

	 
	14.4	 	Compromises with Creditors

	 	 (a)	 	No voluntary arrangement under section 1 of the Insolvency Act 1986 (or where
applicable under equivalent legislation of any relevant non-English jurisdiction) has
been proposed or approved in respect of the Company or Terra.

	 
	 	 (b)	 	No compromise or arrangement under section 425 of the Companies Act 1985 (or
where applicable under equivalent legislation of any relevant non-English
jurisdiction) has been proposed, agreed to or sanctioned in respect of the Company or
Terra.

	 
	 	 (c)	 	Neither Terra nor the Company has entered into any compromise or arrangement
with its respective creditors or any class of its respective creditors generally.

	14.5	 	Insolvency

	 
	 	 	Neither the Company nor Terra is unable to pay its debts within the meaning of section 123
of the Insolvency Act 1986 (or under equivalent legislation of any relevant non-English
jurisdiction) (but for the purposes of section 123 of the Insolvency Act 1986 ignoring the
reference to “if it is proved to the satisfaction of the court that” in sections 123(1)(e)
and 123(2)).

	 
	15.	 	LITIGATION AND COMPLIANCE WITH LAW

	 
	15.1	 	Litigation and Complaints

	 	 (a)	 	Neither the Company nor so far as Terra is aware a person for whose acts or
defaults the Company may be vicariously liable is involved, or has during the two
years ending on the date of this agreement been involved, in a civil, criminal,
arbitration, administrative or other proceeding in any jurisdiction, or has entered
into any settlement of any claim within such period. So far as Terra is aware, no
civil, criminal, arbitration, administrative or other proceeding in any jurisdiction
is pending or threatened by or against the Company or a person for whose acts or
defaults the Company may be vicariously liable.

	 
	 	 (b)	 	So far as Terra is aware, there is no outstanding judgment, order, decree,
arbitral award or decision of a court, tribunal, arbitrator or governmental agency in
any jurisdiction against the Company.

	 
	 	 (c)	 	Full and accurate details of all customer claims (including crop indemnity
claims) or complaints made against the Company within the last three years are set out
in the Terra Disclosure Letter.

	15.2	 	Compliance with Law

	 
	 	 	The Company has conducted its business affairs and dealt with its assets in all material
respects in accordance with all applicable legal and administrative requirements.

	 
	15.3	 	Investigations

	 
	 	 	So far as Terra is aware, in the five years preceding the date hereof, the Company is not
and has not been subject to any investigation, enquiry or disciplinary proceeding (whether
judicial, quasi-judicial or otherwise) in any jurisdiction and none is pending or
threatened, and neither has it received any request for information from, any court or
governmental
authority (including any national competition authority and the Commission of the European
Communities and the EFTA Surveillance Authority) under any anti-trust or similar
legislation in any jurisdiction. So far as Terra is aware no matter exists which might give
rise to such an investigation, enquiry, proceeding or request for information.

 

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	15.4	 	Unlawful Payments

	 
	 	 	Neither the Company nor so far as Terra is aware a person for whose acts or defaults the
Company may be vicariously liable has:

	 	 (a)	 	induced a person to enter into an agreement or arrangement with the Company
by means of an unlawful or immoral payment, contribution, gift or other inducement;

	 
	 	 (b)	 	offered or made an unlawful or immoral payment, contribution, gift or other
inducement to a government official or employee; or

	 
	 	 (c)	 	directly or indirectly made an unlawful contribution to a political activity.

	 	 	All references to the Company in this paragraph 15 should be deemed to include the
Company’s officers, agents and employees.

	 
	16.	 	BROKERAGE OR COMMISSIONS

	 
	 	 	No person is entitled to receive from the Company a finder’s fee, brokerage or commission
in connection with this agreement or anything in it and the Company is not liable to pay to
any of its directors, employees, agents and advisers any sum whatsoever in connection with
the sale of the Company.

	 
	17.	 	DIRECTORS, WORKERS AND EMPLOYEES

	 
	17.1	 	The total number of all full and part time Workers as at the Terra Accounts Date are
specifically Disclosed and there have been no material changes since the Terra Accounts Date.

	 
	17.2	 	True and complete particulars of the terms and conditions (including remuneration and other
benefits) of all Workers of the Company earning in excess of £75,000 per annum have been
Disclosed.

	 
	17.3	 	The Terra Disclosure Letter contains copies of all the standard terms and conditions, staff
handbooks and policies (including details of any redundancy scheme or formula whether
contractual or disciplinary) which apply to Workers and identifies which terms and conditions
apply to each Worker.

	 
	17.4	 	There are no terms and conditions in any contract with any Worker pursuant to which such
person will be entitled to receive any payment or benefit or such person’s rights will change
as a direct consequence of the transaction contemplated by this agreement, and no such person
will be entitled to treat this transaction as a breach of their contract.

	 
	17.5	 	The terms of employment or engagement of all Workers of the Company are such that their
employment or engagement may be terminated by not more than three months’ notice given at any
time.

	 
	17.6	 	Since the Terra Accounts Date the Company has not made, announced or proposed any changes to
the emoluments or benefits of or any bonus to any Worker, save in the ordinary course of
business, and the Company is under no express obligation to make any such changes with or
without retrospective operation.

	 
	17.7	 	There are no amounts owing or agreed to be loaned or advanced by the Company to any Worker
(other than amounts representing remuneration accrued due for the current pay
period, accrued holiday pay for the current holiday year or for reimbursement of expenses).

 

65

 

	17.8	 	No Worker earning in excess of £75,000 base salary per annum has given or received notice to
terminate his employment or engagement and there are no outstanding offers of employment to
any such Worker.

	 
	17.9	 	Details of all recognised trade unions and copies of and full details of all rights and
liabilities relating or pursuant to any collective agreements (whether with a trade union,
staff association or any other body representing workers and whether legally binding or not)
concerning the Company have been Disclosed.

	 
	17.10	 	No industrial action involving Workers, official or unofficial, has occurred or is now
occurring or has been threatened in the 12 months preceding the date hereof and, as far as
Terra is aware, no event has occurred which could or might give rise to any such action and no
industrial relations or employment matter has been referred either by the Company or its
Workers or by any trade union staff association or any other body representing workers to ACAS
for advice, conciliation or arbitration.

	 
	17.11	 	No past or present Worker (or any worker of a predecessor in business) has instigated any
claim or right of action in excess of £50,000 against the Company, including (but not limited
to) any claim:

	 	 (a)	 	in respect of any accident or injury which to Terra’s knowledge is not fully
covered by insurance; or

	 
	 	 (b)	 	for breach of any contract of services or for services; or

	 
	 	 (c)	 	by way of damages or compensation for loss of office or arising out of or
connected with the termination of his office or employment

	 	 	and so far as Terra is aware no event or inaction has occurred which could or might give
rise to any such claim.

	 
	17.12	 	The Company has not within the two years preceding the date hereof entered into any
agreement which involved or may involve the Company (and no event has occurred which may
involve that Company in the future) acquiring or disposing of any undertaking or part of one
such that the Transfer Regulations applied or may apply thereto.

	 
	18.	 	PROPERTIES

	 
	18.1	 	All Property

	 
	 	 	The Terra Properties comprise all the freehold and leasehold land owned, used or occupied
by the Company and are free from any financial mortgage, charge or encumbrance.

	 
	18.2	 	No Other Liabilities

	 
	 	 	The Company has no actual or contingent obligations or liabilities (in any capacity
including as principal contracting party or guarantor) in relation to any lease, licence or
other interest in, or agreement relating to, land apart from the Terra Properties.

	 
	18.3	 	No Default

	 
	 	 	The Company has duly performed, observed and complied with all material covenants,
restrictions, exceptions, reservations, conditions, agreements, statutory and common law
requirements, by-laws, orders, building regulations and other stipulations and regulations
affecting the Terra Properties and the uses of the Terra Properties and no notice of any
alleged breach of any such matters as aforesaid has been served on the Company.

 

66

 

	18.4	 	Adequacy of Existing Beneficial Rights

	 
	 	 	Each of the Terra Properties has the benefit of all rights necessary for the continued
present use and enjoyment of the Terra Properties.

	 
	18.5	 	Other Matters Adversely Affecting the Properties

	 
	 	 	There are no agreements, covenants, restrictions, exceptions, reservations, conditions,
rights, privileges or stipulations affecting the Terra Properties which materially inhibit
the use of the Terra Properties for the present use.

	 
	18.6	 	Third Party Occupation

	 	(a)	 	All leases, tenancies, licences or agreements to which the Terra Properties
are subject are correctly summarised in Part II of Schedule 11 and subject thereto the
Company is in exclusive occupation of each and every part of the Terra Properties.

	 
	 	(b)	 	Each lessee, tenant, licensee or occupier of any such lease, underlease,
tenancy, licence or agreement has in all material respects observed and performed all
covenants, obligations, conditions and restrictions therein.

	18.7	 	Planning

	 
	 	 	As far as Terra is aware, the existing use of each of the Terra Properties is a lawful
permitted use under current Town and Country Planning legislation and all development
carried out has been and is lawful and all necessary consents and permissions have been
obtained for such development, and there are no outstanding statutory or informal notices
relating to the Terra Properties or any business carried on thereat or the use thereof.

	 
	18.8	 	Replies to Enquiries

	 
	 	 	All disclosures and replies to enquiries and requisitions relating to the Terra Properties
made or given by or on behalf of Terra or the Company to Kemira or to its solicitors
(Linklaters LLP) are complete and correct in all material respects.

	 
	19.	 	PENSIONS

	 
	19.1	 	Save in respect of the Terra Nitrogen (UK) Pension Scheme, the stakeholder scheme with
Norwich Union and the Fatality Scheme (the “Disclosed Schemes"), the Company has no
obligation, nor has it done anything to create any reasonable expectation of an obligation, to
provide (or contribute towards any scheme which provides) pension or death benefits, whether
voluntary, ex-gratia or otherwise, in respect of any employee or former employee.

	 
	19.2	 	So far as Terra is aware, neither it nor the Company has at any time participated in or
contributed towards any former scheme or arrangement (the “Former Scheme") which has as its
purpose or one of its purposes the provision of pension or death benefits (whether voluntary,
ex-gratia or otherwise) other than schemes which have been fully wound up.

	 
	19.3	 	All material details of the Disclosed Schemes (and any Former Scheme) have been supplied to
Kemira and all the information and documents which have been given or made available to Kemira
or its advisers relating to the Disclosed Schemes (or any Former Scheme) are true, complete,
accurate and not misleading.

	 
	19.4	 	The Disclosed Schemes (and any Former Scheme) have at all times been operated in all material
respects in accordance with the provisions of its governing documentation, all applicable EU
and domestic legislation, and the general requirements of law and regulatory practice
(including without limitation those of HMRC).

 

67

 

	19.5	 	The Company has fulfilled all its obligations in respect of pension and death benefits in
relation to the Disclosed Schemes (and any Former Scheme), including without limitation
providing equal access to membership in respect of any current and former employees, and all
contributions which have fallen due for payment in respect of the Disclosed Schemes (or any
Former Scheme) have been paid within any applicable prescribed period.

	 
	19.6	 	No claim or litigation is outstanding, pending or, so far as Terra is aware, threatened
against the Company in connection with the Disclosed Schemes or otherwise in connection with
the provision of pension or death benefits to any current or former employee (including
without limitation any investigation by the Pensions Ombudsman or any complaint brought under
any internal dispute resolution procedure).

	 
	19.7	 	All death benefits which may be payable are fully insured under a life assurance policy with
an appropriately authorised insurance company and, so far as Terra is aware, there is no
ground on which liability under such policy may be avoided.

	 
	19.8	 	Neither Terra nor the Company has been a party to any act or deliberate failure to act
occurring on or after 27 April 2004 of which the main purpose or one of the main purposes was:

	 	(a)	 	to prevent the recovery of the whole or any part of a debt which was, or
might become due, from an employer in relation to a pension scheme under section 75 of
the Pensions Act 1995; or

	 
	 	(b)	 	otherwise than in good faith, to prevent such a debt becoming due, to
compromise or otherwise settle such a debt, or to reduce the amount of such a debt
which would otherwise become due.

	19.9	 	Neither Terra nor the Company is or has at any point within the 12 months prior to Completion
been “connected” with or an “associate” of any employer which participates in a defined
benefit pension scheme (other than the Disclosed Schemes) and which is either a “service
company” or “insufficiently resourced”. For these purposes, “connected” and “associate” have
the meanings given to them in sections 435 and 249 of the Insolvency Act 1986 respectively and
“service company” and “insufficiently resourced” have the meanings given to them in section 44
of the Pensions Act 2004 and regulations made under that section.

	19.10	 	The Company has complied with its notification obligations under section 69 or section 70 of
the Pensions Act 2004 and regulations made under that section. Terra is not aware of any
current circumstances which may give rise to an obligation to make such a report to the
Regulator under section 69 or 70 of the Pensions Act 2004.

	 
	20.	 	TAXATION

	 
	20.1	 	Returns

	 
	 	 	The Terra Company has complied in full with all its duties under all taxation statutes and
has kept all records, made all returns and supplied all information and given all notices
to HMRC or other Taxation Authority as reasonably requested or required by law within any
requisite period and so far as Terra is aware all such returns and information and notices
and any statements or disclosures made to any Taxation Authority are correct and accurate
in all material respects and are not the subject of any dispute and there are no facts or
circumstances likely to give rise to or be the subject of any such dispute.

	 
	20.2	 	Clearances

	 
	 	 	No action has been taken by the Terra Company in respect of which any consent or clearance
from HMRC or other Taxation Authority was required save in circumstances
where such consent or clearance was validly obtained, and where any conditions attaching
thereto were and will, immediately following Completion, continue to be met.

 

68

 

	20.3	 	Payment of Tax

	 
	 	 	The Terra Company has duly and punctually paid all Tax to the extent that the same ought to
have been paid and is not liable nor has it within three years prior to the date hereof
been liable to pay any penalty or interest in connection therewith.

	 
	20.4	 	Tax arising under this Agreement

	 
	 	 	So far as Terra is aware, the Terra Company will not become liable to any Tax (and in
particular to any Tax pursuant to the PAYE provisions or any national insurance
contributions) in consequence of the entering into or completion of this agreement or
anything done pursuant to its terms.

	 
	20.5	 	Withholdings

	 
	 	 	The Terra Company has duly complied within the relevant time period with its obligations to
deduct, withhold or retain amounts of or on account of Tax from any payments made by it and
to account for such amounts to the relevant Taxation Authority and has complied with all
its reporting obligations to the relevant Taxation Authority in connection with any such
payments made.

	 
	20.6	 	Pay As You Earn

	 
	 	 	The Terra Company has properly operated the PAYE system deducting Tax as required by law
from all payments to or treated as made to or benefits provided for employees, ex-employees
or independent contractors of the Terra Company (including any such payments within
sections 7, 44, 45, 46 and 47 of the ITEPA 2003) and duly accounted to HMRC for Tax so
deducted, and has complied with all its reporting obligations to HMRC in connection with
any such payments made or benefits provided.

	 
	20.7	 	Provision for Tax in the Terra Accounts

	 
	 	 	The Terra Accounts make full provision or reserve in respect of any period ended on or
before the Terra Accounts Date for all Tax assessed or liable to be assessed on the Terra
Company or for which it is accountable at the Terra Accounts Date whether or not the Terra
Company has or may have any right of reimbursement against any other person and full
provision has been made and shown in the Terra Accounts for deferred taxation in accordance
with generally accepted accounting principles including, where relevant, UK GAAP.

	 
	20.8	 	Post-Accounts Date Events

	 
	 	 	Since the Terra Accounts Date:

	 	 	(a)	 	the Terra Company has not been involved in any transaction which has given,
may give or would, but for the availability of any relief, give rise to any Tax other
than in respect of actual income earned by the Terra Company in the course of its
trade or business;

	 
	 	 	(b)	 	no accounting period (as defined in section 12 of the TA) of the Terra
Company has ended as referred to in section 12(3) of the TA; and

	 
	 	 	(c)	 	the Terra Company has not ceased to be a member of a group (as defined in
section 170 of the TCGA).

 

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	20.9	 	Distributions

	 
	 	 	The Terra Company has not made (and will not be deemed to have made) any distribution
within the meaning of sections 209 and 210 (bonus issue following repayment of capital) of
the TA since 5 April 1965 except dividends properly authorised and shown in the Terra
Accounts nor is the Terra Company bound to make any such distribution.

	 
	20.10	 	Company Residence

	 
	 	 	The Terra Company has always been resident in the territory in which it was incorporated
and has never been resident in any other territory or treated as so resident for the
purposes of any double Tax agreement nor does the Terra Company have a permanent
establishment or other taxable presence in any jurisdiction other than that in which it was
incorporated.

	 
	20.11	 	Controlled Foreign Companies

	 
	 	 	There are no circumstances under which the Terra Company may be held liable to tax in the
UK on the income, profits or gains of any foreign company.

	 
	20.12	 	Close Company

	 	 	The Terra Company is not nor has it ever been a close company as defined by section 414 of the TA.

	 
	20.13	 	Value Added Tax

	 	 	(a)	 	The Terra Company is a registered taxable person for VAT legislation and has
not at any time been treated as a member of a group of companies for such purpose and
has not made any application to be so treated and no circumstances exist whereby the
Terra Company would or might become liable for value added tax as an agent or
otherwise by virtue of section 47 of the VATA.

	 
	 	 	(b)	 	The Terra Company has complied in all material respects with the requirements
and provisions of VAT legislation and has made and maintained accurate and up-to-date
records, invoices, accounts and other documents required by or necessary for the
purposes of the VAT legislation and the Terra Company has at all times paid and made
all payments and returns required thereunder within the relevant time period.

	20.14	 	Stamp Duty and Stamp Duty Land Tax

	 	 	(a)	 	All documents in the enforcement of which the Terra Company is or may be
interested have been duly stamped and since the Terra Accounts Date the Terra Company
has not been a party to any transaction whereby the Terra Company was or is or could
become liable to stamp duty reserve tax.

	 
	 	 	(b)	 	In relation to the Terra Properties the Terra Company is not and has not been
party to any Land Transaction in respect of which the Terra Company has since the
Terra Accounts Date been liable or could at any time after the date of this agreement
become liable to pay any stamp duty land tax under any provisions of any Act.

	 
	 	 	(c)	 	No stamp duty land tax shall arise under paragraph 11 of Schedule 17A to the
FA 2003 (cases where assignment of lease treated as grant of lease) on the assignment
of any lease in which the Terra Company has an interest.

	 
	 	 	(d)	 	The Terra Company has in its possession and Terra has fully disclosed to JVCo
copies of all stamp duty land tax returns and/or self certificates (as defined in
section 79(3)(b) of the FA 2003) filed by the Terra Company in relation to land in
which or in part of which the Terra Company has an interest.

 

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	21.	 	ENVIRONMENTAL MATTERS

	 
	21.1	 	Consents

	 
	 	 	The Company has obtained and complied in all material respects at all times in the last
three years with the terms and conditions of all Environmental Consents. All current
Environmental Consents remain in full force and effect. In the last three years the Company
has not received any written notice of and so far as Terra is aware there are no existing
circumstances including planned changes to operations (other than changes agreed pursuant
to the Business Plan) likely to lead to the revocation, termination, material modification
or suspension of, or that may prejudice or require material expenditure for the renewal,
extension, grant or transfer of or compliance with, any current Environmental Consents
within the period of 18 months from the date hereof.

	 
	21.2	 	Liability

	 
	 	 	The Company, including in respect of the Terra Properties, complies and has at all times in
the last three years complied with all Environmental Laws in all material respects and so
far as Terra is aware there are no existing facts or circumstances which would prevent
compliance with any Environmental Laws in any material respect within 18 months of the date
hereof.

	 
	21.3	 	Notices and Complaints

	 
	 	 	In the last three years, the Company has not received any written notice of enforcement,
prohibition, improvement, remediation or other notice of equivalent nature, or any
judgment, order, decree, award, demand or decision in respect of damage, harm or risk to or
pollution of the Environment or the use, presence, migration leakage, emission, spillage,
release, discharge, entry, deposit, transport or disposal of any Hazardous Substance
arising from the activities of the Company or relating to any Terra Property from any
court, tribunal, arbitrator or governmental or regulatory authority which is material
and/or which remains outstanding nor has it received any other written complaints or other
written indications of any possible claims or legal actions (whether civil, criminal or
administrative) against the Company in respect of such matters in such period which are
material and/or remain outstanding in respect thereof from any person including any
neighbour, governmental or regulatory authority, current or former employee or third party
and so far as Terra is aware, there are no circumstances that are reasonably likely to lead
to legal action in respect of such matters in the next 18 months.

	 
	21.4	 	Contaminated Land

	 
	 	 	So far as Terra is aware, there has not been and there is not present in the soil,
groundwater or surface water, on, at or under the Terra Properties and there is and has
been no release, migration, leakage, spillage, discharge, entry, deposit or emission onto
or from the Terra Properties of any Hazardous Substance which has led to, or if such matter
were known by a regulatory authority or third party at Completion would be reasonably
likely to result in, a material liability under Environmental Laws for the Company or an
obligation to undertake material remediation works at the Terra Properties.

	 
	21.5	 	Documentation

	 
	 	 	Copies of all material environmental and health and safety reports, assessments and
investigations in respect of employees, the Terra Properties, Former Terra Properties or
Activities prepared in the last three years and in the possession of and/or commissioned by
Terra or the Company have been disclosed to Kemira.

 

71

 

	21.6	 	Former Properties

	 
	 	 	Terra is not aware of any release, migration, leakage, spillage, discharge, entry, deposit
or emission onto or from the Former Terra Properties of any Hazardous Substance during the
period in which the Former Terra Properties were in the ownership or under the occupation
or control of the Company which has led to, or if such matter were known by a regulatory
authority or third party at Completion would be reasonably likely to result in, a material
liability under Environmental Laws for the Company.

	 
	21.7	 	Contractual liabilities

	 
	 	 	So far as Terra is aware, the Company has not given an environmental indemnity or
environmental covenant to pay in respect of soil, groundwater or surface water
contamination (whether at or emanating from the Terra Properties, the Former Terra
Properties or any other properties) which remains capable of being claimed against at the
date hereof (“Pre-Completion Terra Environmental Indemnity"). For the avoidance of doubt,
general covenants and indemnities which do not refer specifically to contamination, for
example general repairing obligations in leases or licences, shall not be within the
definition of Pre-Completion Terra Environmental Indemnity.

 

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SCHEDULE 8

Kemira’s Limitations on Liability

	1.	 	TIME LIMIT FOR CLAIMS

	 
	1.1	 	Save in the case of any liability based upon fraud by Kemira and including without limitation
fraudulent concealment by Kemira, Kemira shall not be liable in respect of a claim under the
Kemira Warranties unless written notice of such claim is served upon Kemira:

	 	(a)	 	in the case of a claim under the Kemira Warranties (other than the Warranties
relating to Tax and the Kemira Environmental Warranties), by not later than 5.00 p.m.
on the second anniversary of Completion;

	 
	 	(b)	 	in the case of a claim under the Kemira Environmental Warranties, by not
later than 5.00 p.m. on the third anniversary of Completion; and

	 
	 	(c)	 	in the case of a claim under the Kemira Warranties relating to Tax or under
the Kemira Tax Deed, by not later than 5.00 p.m. on the day one month after the
seventh anniversary of Completion,

and the liability of Kemira shall further determine (if such claim has not previously been
satisfied, settled or withdrawn):

	 	(i)	 	where the claim is based upon what at the time of service of
the notice is a contingent liability; or

	 
	 	(ii)	 	JVCo is taking or has taken action at the request of Kemira
pursuant to paragraph 5 of this schedule 8 in connection with such claim,

if legal proceedings in respect of such claim have not been commenced within 12 months of
such claim ceasing to be contingent or JVCo ceasing to take such action (as the case may
be) or with regard to any other claim if legal proceedings in respect of such a claim have
not been commenced within 12 months of the service of such notice.

	2.	 	MONETARY LIMIT ON CLAIMS

	 
	2.1	 	Save in the case of fraud or fraudulent concealment by Kemira, Kemira shall be under no
liability in respect of any claim under the Kemira Warranties:

	 	(a)	 	where the liability of Kemira in respect of that claim would (but for this
paragraph) have been less than £100,000 (provided that two or more smaller claims
arising out of the same facts or circumstances shall be treated as one claim for the
purposes of this paragraph 2.1(a)); or

	 
	 	(b)	 	unless and until and only to the extent that the liability in respect of that
claim (not being a claim for which liability is excluded under paragraph 2.1(a) above)
when aggregated with the liability of Kemira in respect of all other such claims and
all other claims for which Kemira is liable under schedule 13 of this agreement shall
exceed £1 million, in which case Kemira shall be liable for the full amount and not
just the excess.

	2.2	 	Save in the case of fraud or fraudulent concealment by Kemira, the aggregate liability of
Kemira in respect of all claims under the Kemira Warranties and the Kemira Tax Deed shall not
in any circumstances exceed £20 million. (For the avoidance of doubt, the financial limit on
Kemira’s maximum aggregate liability of £20 million in respect of the Kemira Warranties and
the Kemira Tax Deed is a separate limitation from the maximum
aggregate liability of £20 million of Kemira under the Environmental Indemnity set out in
paragraph 3.2 of schedule 13 of this agreement.)

 

73

 

	 
	3.	 	DISCLOSURE

	 
	 	 	Kemira shall not be liable in respect of a claim under the Kemira Warranties to the extent
that the same or circumstances giving rise thereto are fairly disclosed in the Kemira
Disclosure Letter. No letter, document or other communication shall be deemed to be
disclosed except and to the extent that the same is referred to in, and a copy attached to
or deemed to be attached to, the Kemira Disclosure Letter. Nothing in the Kemira Disclosure
Letter shall constitute a representation or warranty as to the accuracy of the information
forming part of the Kemira Disclosure Letter.

	 
	4.	 	NO LIABILITY FOR CERTAIN EVENTS

	 
	4.1	 	Kemira shall not be liable in respect of a claim under the Kemira Warranties to the extent
that:

	 	(a)	 	the claim or the events giving rise to the claim would not have arisen but
for an act, omission or transaction carried out by or at the request of or with the
informed consent of Terra or JVCo prior to Completion; or

	 
	 	(b)	 	the loss or damage giving rise to the claim is recovered by any member of the
Group under any policy of insurance (net of Tax and any costs of recovery); or

	 
	 	(c)	 	the claim is for Taxation which arises in respect of the ordinary course of
business of any Kemira Company after the Kemira Accounts Date; or

	 
	 	(d)	 	the claim relates to a claim or liability for Taxation and would not have
arisen but for any winding-up or cessation after Completion of any business or trade
carried on by the Group except to the extent that such winding-up or cessation is
occasioned by the facts or circumstances giving rise to one or more claims under the
Kemira Warranties.

	5.	 	THIRD PARTIES

	 
	5.1	 	This paragraph 5 shall apply in circumstances where:

	 	(a)	 	any claim is made against any member of the Group which should reasonably be
expected to give rise to a claim by JVCo against Kemira under the Kemira Warranties;
or

	 
	 	(b)	 	any member of the Group should reasonably be expected to be able to make
recovery from some other person of any sum in respect of any facts or circumstances by
reference to which JVCo has or should be reasonably expected to have a claim against
Kemira under the Kemira Warranties; or

	 
	 	(c)	 	Kemira has paid to JVCo an amount in respect of a claim under the Kemira
Warranties and subsequent to the making of such payment JVCo recovers from some other
person a sum which is referable to that payment.

	 
	 	 	 	For the avoidance of doubt any claim under the Kemira Warranties relating to Tax shall be
governed by paragraph 4 of the Kemira Tax Deed.

 

74

 

	5.2	 	JVCo shall:

	 	(a)	 	in the case of paragraphs 5.1(a) and 5.1(b) prior to taking any action (other
than the giving of notice pursuant to paragraph 1 of this schedule 8) against Kemira
under the Kemira Warranties (and subject to JVCo being indemnified to its
reasonable satisfaction against all costs and expenses which may be incurred by
reason of such action) take all such action as Kemira may reasonably request in
writing including the institution of proceedings and the instruction of professional
advisers approved in writing by Kemira to act on behalf of JVCo to avoid, dispute,
resist, compromise, defend or appeal against any such claim against JVCo as is
referred to in paragraph 5.1(a) or to make such recovery by JVCo as is referred to
in paragraph 5.1(b), as the case may be;

	 
	 	(b)	 	subject to JVCo being indemnified to its reasonable satisfaction against all
costs and expenses which may be incurred by reason of such action, not settle or
compromise any liability or claim to which such action is referable without the prior
written consent of Kemira which consent shall not be unreasonably withheld or delayed;
and

	 
	 	(c)	 	in the case of paragraph 5.1(c) only, repay to Kemira an amount equal to the
amount recovered upon receipt or, if lower, the amount paid by Kemira to JVCo less, in
either case, any amount payable by JVCo in respect of Tax on the amount recovered.

	6.	 	MITIGATION

	 
	 	 	JVCo will take or procure the taking of all such reasonable steps as are required by law in
order to mitigate any claim under the Kemira Warranties, subject to JVCo being indemnified
to its reasonable satisfaction against all reasonable costs and expenses incurred in
connection therewith.

	 
	7.	 	CURING PERIOD

	 
	 	 	No liability will arise and no claim may be made under any of the Kemira Warranties to the
extent that the matter giving rise to such claim is remediable unless within the period of
30 days following JVCo becoming aware of such matter JVCo shall have given written notice
thereof to Kemira and such matter shall not have been remedied to the reasonable
satisfaction of JVCo within the period of 30 days following the date of service of such
notice.

	 
	8.	 	NO DOUBLE COUNTING

	 
	 	 	JVCo shall not be entitled, pursuant to any provision of a Transaction Document, to claim
or recover the amount of any loss, damage, liability, cost or expenses which it has
incurred or suffered, or any amount to which it would otherwise be entitled under any such
provision, to the extent that it has recovered such amount pursuant to another provision in
the Transaction Documents.

	 
	9.	 	INSURANCE

	 
	 	 	In the event that Kemira at any time after the date hereof shall wish to take out insurance
against its liability hereunder, JVCo will undertake all reasonable endeavours to provide
such information as the prospective insurer may require before effecting such insurance.

 

75

 

SCHEDULE 9

Terra’s Limitations on Liability

	1.	 	TIME LIMIT FOR CLAIMS

	 
	1.1	 	Save in the case of any liability based upon fraud by Terra and including without limitation
fraudulent concealment by Terra, Terra shall not be liable in respect of a claim under the
Terra Warranties unless written notice of such claim is served upon Terra:

	 	(a)	 	in the case of a claim under the Terra Warranties (other than the Warranties
relating to Tax and the Terra Environmental Warranties), by not later than 5.00 p.m.
on the second anniversary of Completion;

	 
	 	(b)	 	in the case of a claim under the Terra Environmental Warranties, by not later
than 5.00 p.m. on the third anniversary of Completion; and

	 
	 	(c)	 	in the case of a claim under the Terra Warranties relating to Tax or under
the Terra Tax Deed, by not later than 5.00 p.m. on the day one month after the seventh
anniversary of Completion,

and the liability of Terra shall further determine (if such claim has not previously been
satisfied, settled or withdrawn):

	 	(i)	 	where the claim is based upon what at the time of service of
the notice is a contingent liability; or

	 
	 	(ii)	 	JVCo is taking or has taken action at the request of Terra
pursuant to paragraph 5 of this schedule 9 in connection with such claim,

if legal proceedings in respect of such claim have not been commenced within 12 months of
such claim ceasing to be contingent or JVCo ceasing to take such action (as the case may
be) or with regard to any other claim if legal proceedings in respect of such a claim have
not been commenced within 12 months of the service of such notice.

	2.	 	MONETARY LIMIT ON CLAIMS

	 
	2.1	 	Save in the case of fraud or fraudulent concealment by Terra, Terra shall be under no
liability in respect of any claim under the Terra Warranties:

	 	(a)	 	where the liability of Terra in respect of that claim would (but for this
paragraph) have been less than £100,000 (provided that two or more smaller claims
arising out of the same facts or circumstances shall be treated as one claim for the
purposes of this paragraph 2.1(a)); or

	 
	 	(b)	 	unless and until and only to the extent that the liability in respect of that
claim (not being a claim for which liability is excluded under paragraph 2.1(a) above)
when aggregated with the liability of Terra in respect of all other such claims and
all other claims for which Terra is liable under schedule 13 of this agreement shall
exceed £1 million, in which case Terra shall be liable for the full amount and not
just the excess.

	2.2	 	Save in the case of fraud or fraudulent concealment by Terra, the aggregate liability of
Terra in respect of all claims under the Terra Warranties and the Terra Tax Deed shall not in
any circumstances exceed £20 million. (For the avoidance of doubt, the financial limit on
Terra’s maximum aggregate liability of £20 million in respect of the Terra Warranties and the
Terra Tax Deed is a separate limitation from the maximum aggregate liability of £20 million of
Terra under the Environmental Indemnity set out in paragraph 3.2 of schedule 13 of this
agreement.)

 

76

 

	3.	 	DISCLOSURE

	 
	 	 	Terra shall not be liable in respect of a claim under the Terra Warranties to the extent
that the same or circumstances giving rise thereto are fairly disclosed in the Terra
Disclosure Letter. No letter, document or other communication shall be deemed to be
disclosed except and to the extent that the same is referred to in, and a copy attached to
or deemed to be attached to, the Terra Disclosure Letter. Nothing in the Terra Disclosure
Letter shall constitute a representation or warranty as to the accuracy of the information
forming part of the Terra Disclosure Letter.

	 
	4.	 	NO LIABILITY FOR CERTAIN EVENTS

	 
	4.1	 	Terra shall not be liable in respect of a claim under the Terra Warranties to the extent
that:

	 	(a)	 	the claim or the events giving rise to the claim would not have arisen but
for an act, omission or transaction carried out by or at the request of or with the
informed consent of Kemira or JVCo prior to Completion; or

	 
	 	(b)	 	the loss or damage giving rise to the claim is recovered by any member of the
Group under any policy of insurance (net of Tax and any costs of recovery); or

	 
	 	(c)	 	the claim is for Taxation which arises in respect of the ordinary course of
business of the Terra Company after the Terra Accounts Date; or

	 
	 	(d)	 	the claim relates to a claim or liability for taxation and would not have
arisen but for any winding-up or cessation after Completion of any business or trade
carried on by the Group except to the extent that such winding-up or cessation is
occasioned by the facts or circumstances giving rise to one or more claims under the
Terra Warranties.

	5.	 	THIRD PARTIES

	 
	5.1	 	This paragraph 5 shall apply in circumstances where:

	 	(a)	 	any claim is made against any member of the Group which should reasonably be
expected to give rise to a claim by JVCo against Terra under the Terra Warranties; or

	 
	 	(b)	 	any member of the Group should reasonably be expected to be able to make
recovery from some other person of any sum in respect of any facts or circumstances by
reference to which JVCo has or should be reasonably expected to have a claim against
Terra under the Terra Warranties; or

	 
	 	(c)	 	Terra has paid to JVCo an amount in respect of a claim under the Terra
Warranties and subsequent to the making of such payment JVCo recovers from some other
person a sum which is referable to that payment.

	 
	 	For the avoidance of doubt any claim under the Terra Warranties relating to Tax shall be
governed by paragraph 4 of the Terra Tax Deed.

	5.2	 	JVCo shall:

	 	(a)	 	in the case of paragraphs 5.1(a) and 5.1(b) prior to taking any action (other
than the giving of notice pursuant to paragraph 1 of this schedule 9) against Terra
under the Terra Warranties (and subject to JVCo being indemnified to its reasonable
satisfaction against all costs and expenses which may be incurred by reason of such
action) take all such action as Terra may reasonably request in writing including the
institution of proceedings and the instruction of professional advisers
approved in writing by Terra to act on behalf of JVCo to avoid, dispute, resist,
compromise, defend or appeal against any such claim against JVCo as is referred to
in paragraph 5.1(a) or to make such recovery by JVCo as is referred to in paragraph
5.1(b), as the case may be;

 

77

 

	 	(b)	 	subject to JVCo being indemnified to its reasonable satisfaction against all
costs and expenses which may be incurred by reason of such action, not settle or
compromise any liability or claim to which such action is referable without the prior
written consent of Terra which consent shall not be unreasonably withheld or delayed;
and

	 
	 	(c)	 	in the case of paragraph 5.1(c) only, repay to Terra an amount equal to the
amount recovered upon receipt or, if lower, the amount paid by Terra to JVCo less, in
either case, any amount payable by JVCo in respect of Tax on the amount recovered.

	6.	 	MITIGATION

	 
	 	 	JVCo will take or procure the taking of all such reasonable steps as are required by law in
order to mitigate any claim under the Terra Warranties, subject to JVCo being indemnified
to its reasonable satisfaction against all reasonable costs and expenses incurred in
connection therewith.

	 
	7.	 	CURING PERIOD

	 
	 	 	No liability will arise and no claim may be made under any of the Terra Warranties to the
extent that the matter giving rise to such claim is remediable unless within the period of
30 days following JVCo becoming aware of such matter JVCo shall have given written notice
thereof to Terra and such matter shall not have been remedied to the reasonable
satisfaction of JVCo within the period of 30 days following the date of service of such
notice.

	 
	8.	 	NO DOUBLE COUNTING

	 
	 	 	JVCo shall not be entitled, pursuant to any provision of a Transaction Document, to claim
or recover the amount of any loss, damage, liability, cost or expenses which it has
incurred or suffered, or any amount to which it would otherwise be entitled under any such
provision, to the extent that it has recovered such amount pursuant to another provision in
the Transaction Documents.

	 
	9.	 	INSURANCE

	 
	 	 	In the event that Terra at any time after the date hereof shall wish to take out insurance
against its liability hereunder, JVCo will undertake all reasonable endeavours to provide
such information as the prospective insurer may require before effecting such insurance.

 

78

 

SCHEDULE 10

Part I — The Kemira Properties

Sleaford Depot

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Warehouse off Grantham Road, Sleaford NG34 7NB as demised by
a lease dated 9 October 1972 and made between British
Railways Board (1) and Shellstar Limited (2) for a term of 42
years from 1 February 1969

Fertiliser Store

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	CH09099
	 
	 	 
	Description

	 	Land lying to the north of Hapsford Lane, Elton, Chester as
demised by a lease dated 4 June 2003 and made between
Powergen UK plc (1) and Kemira GrowHow UK Limited (2) for a
term of 25 years from 11 June 1999

Main Site Ince

	 	 	 
	Tenure

	 	Freehold
	 
	 	 
	Title Number

	 	CH142921
	 
	 	 
	Description

	 	Land on the north side of Marsh Lane, Ince

	 	 	 
	Tenure

	 	Freehold
	 
	 	 
	Title Number

	 	CH142922
	 
	 	 
	Description

	 	Land and buildings on the south side of Marsh Lane, Ince

Sandy Depot

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered

 

79

 

	 	 	 
	Description

	 	Land at Sandy in the County of Bedford (former Kemira
Fertilizers, New Road, Sandy) as demised by a lease dated 18
July 1972 made between British Railways Board (1) and
Shellstar Limited (2) for a term of 42 years from 29
September 1968

Plymouth

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	DN225882
	 
	 	 
	Description

	 	1 Russell Court, St Andrew Street, Plymouth, Devon as demised
by a lease dated 3 May 1985 and made between Ebor Phoenix
Assurance Company Limited (1) and Devon and Cornwall Police
Authority (2) for a term of 25 years from 25 March 1985

Horsham Depot

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Part of railway goods yard at Horsham in the County of Sussex
as demised by a lease dated 7 May 1974 and made between
British Railways Board (1) and Shellstar Limited (2) for a
term of 42 years from 16 March 1970

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Part of railway goods yard at Horsham in the County of West
Sussex as demised by a lease dated 2 July 1987 and made
between British Railways Board (1) and UKF Fertilisers
Limited (2) for a term commencing on 24 June 1987 and
expiring on 15 March 2012

Station Road, St Clears, Carmarthen

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Warehouse and forecourt area known as Unit 1 Tir Owen
Industrial Estate, St Clears, Carmarthenshire as demised by a
lease dated 21 November 2001 and made between R & H Trust Co
(Jersey) Limited (1) and Kemira Agro UK Limited (2) for a
term of 2 years from 21 November 2001

 

80

 

Ballygawley, County Tyrone

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Land at Ballygawley, County Tyrone as demised by a lease
dated 25 May 2006 and made between Cormac McDonnell and Anne
McDonnell (1) and Kemira GrowHow UK Limited (2) for a term of
5 years from 25 May 2006

Part II — The Kemira Occupational Leases

Main Site Ince

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Description

	 	A lease of part, as more particularly described in the lease,
dated 20 August 1997 and made between Kemira Agro UK Limited
(1) and Messer UK Limited (2) for a term of 10 years from 14
January 2000

	 
	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Description

	 	A lease of part, as more particularly described in the lease,
dated 27 April 2006 and made between Kemira GrowHow UK Limited
(1) and Air Liquide UK Limited (2) for a term of 10 years from
14 January 2000

Plymouth

	 	 	 
	Tenure

	 	Licence
	 
	 	 
	Description

	 	A car park sub-licence dated 7 March 2000 and made between
Kemira Agro UK Limited (1) M K Honey and C Price t/a Edward
Symmons & Partners (2)

	 
	 	 
	Tenure

	 	Leasehold

 

81

 

	 	 	 
	Description

	 	An underlease dated 7 March 2000 and made between Kemira Agro
UK Limited (1) M K Honey and C Price t/a Edward Symmons &
Partners (2) for a term commencing on 7 March 2000 and
expiring on 22 March 2010

Horsham Depot

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Description

	 	An underlease dated 21 December 1995 and made between Kemira
Ince Limited (1) and Jokyle Holdings Limited (2) for a term
commencing on 1 January 1996 and expiring on 12 March 2012

 

82

 

SCHEDULE 11

Part I — The Terra Properties

Billingham

	 	 	 
	Tenure

	 	Freehold
	 
	 	 
	Title Number

	 	CE144279
	 
	 	 
	Description

	 	Land and premises at Billingham, Teesside
	 
	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	CE153158
	 
	 	 
	Description

	 	Ammonia Storage Area at North Tees Works, North Tees,
Stockton-on-Tees as demised by a lease dated 31 December 1997
and made between ICI Chemicals & Polymers Limited (1) and
Terra Nitrogen (UK) Limited (2) for a term of 99 years as
varied by a Deed of Variation dated 18 October 1999

Severnside

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	GR199928
	 
	 	 
	Description

	 	Land at Central Avenue, Severnside Works, Severnside as
demised by a lease dated 31 December 1997 and made between
Imperial Chemical Industries plc (1) and Terra Nitrogen (UK)
Limited for a term of 999 years from 31 December 1997

	 	 	 
	Tenure

	 	Freehold
	 
	 	 
	Title Number

	 	GR199927
	 
	 	 
	Description

	 	Land and buildings on the south side of Central Avenue,
Severnside, Bristol

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	AV220592
	 
	 	 
	Description

	 	Land lying to the north of Ableton Lane, Severn Beach held
for the residue of a term of 5,000 years from 29 September
1826

 

83

 

	 	 	 
	Tenure

	 	Licence
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Lighting Tower, Severnside as licenced by a licence dated 31
December 1997 and made between Imperial Chemical Industries
plc (1) and Terra Nitrogen (UK) Limited from 31 December 1997
until determined by either party by 12 months’ written notice

	 
	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Telephone Exchange at Avlon Works, Severn Road, Hallen,
Severnside as demised by a lease dated 12 December 2000 and
made between Astrazeneca UK Limited (1) and Terra Nitrogen
(UK) Limited for a term of 10 years from 12 December 2000

Stanlow

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Land containing 2.01 acres or thereabouts at Oil Sites Road,
Stanlow, Cheshire as demised by a lease dated 4 January 1995
and made between The Manchester Ship Canal Company (1) and
ICI Chemicals & Polymers Limited (2) for a term of 21 years
from 25 December 1989

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Land of approximately 1.47 acres lying to the north of the
Hooton to Helsby railway line in Stanlow, Cheshire as demised
by a lease dated 10 November 1993 and made between The
Moorish Holdings Limited (1) and ICI Chemicals & Polymers
Limited (2) for a term of 21 years from 25 December 1989

	 	 	 
	Tenure

	 	Licence
	 
	 	 
	Title Number

	 	Unregistered

 

84

 

	 	 	 
	Description

	 	Licence for the Privilege of 2 x 6” water pipes and 1 x CO2
Pipe Between Bridges 14 and 18 at Stanlow & Thornton by an
agreement dated 11 August 2000 made between Railtrack PLC (1)
and Terra Nitrogen (UK) Limited (2) for a rolling term.

	 
	 	 
	Tenure

	 	Agreement
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	An agreement, dated 27 January 2000, relating to use of a CO2
Pipeline Section at Oil Sites Road Stanlow Cheshire made
between Shell UK Limited (1) and Terra Nitrogen (UK) Limited
(2) for a term of 12 years from 1 May 1998.

	 	 	 
	Tenure

	 	Demise of Rights
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Rights and liberties relating to part of a water main at Oil
Sites Road Stanlow by a demise dated 4 September 1998 and
made between The Manchester Ship Canal Company (1) Ellesmere
Port and Neston Borough Council (2) and Terra Nitrogen (UK)
Limited (3) for a term of 21 years from 25 December 1989

Florence House

	 	 	 
	Tenure

	 	Leasehold
	 
	 	 
	Title Number

	 	Unregistered
	 
	 	 
	Description

	 	Office building known as Florence House, Pearson Court as
demised by a lease dated 8 September 1998 and made between
Bowesfield Properties Limited (1) and Terra Nitrogen (UK)
Limited (2) for a term of 15 years commencing on and
including 7 September 1998 as varied by a Deed of Variation
dated 6 August 2004

 

85

 

Part II — The Terra Occupational Leases

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Current Rent in 2007
	 	 	Tenant	 	Term	 	Expiry	 	(excl VAT)
	 
	Billingham
	 	 	 	 	 	 	 	 	 	 
	 
	Firestation, G1 Store

	 	SempCorp
	 	3 years
	 	 	31.12.2005	 	 	Peppercorn
	 
	BCE Buildings

	 	Mammoet
	 	5 years
	 	 	05.02.2011	 	 	£30,000 p.a.
	 
	Dalkia Boilers

	 	Dalkia
	 	20 years
	 	 	14.05.2019	 	 	Peppercorn
	 
	Land adjacent to Ammonia Avenue

	 	Univar
	 	15 years
	 	 	02.12.2013	 	 	£5,770
	 
	Part of Newport Store

	 	
	 	
	 	 		 	 	
	 
	
(Extended to include Bay 3 in 2006)

	 	FSL
	 	20 years
	 	 	01.06.2020	 	 	£138,981 p.a.
	 
	Raw Materials B

	 	FSL
	 	20 years
	 	 	31.05.2020	 	 	£5,303
	 
	Land Adjoining the River Tees

	 	Sita Tees Valley Limited
	 	25 years
	 	 	27.07.2020	 	 	Unknown
	 
	Severnside
	 	 	 	 	 	 	 	 	 	 
	 
	Garage and Lorry Park

	 	Air Liquide
	 	7 years
	 	Not yet agreed
	 	Peppercorn
	 
	Avlon Storage Area

	 	Bunns
	 	20 years
	 	 	14.03.2003	 	 	£1.75 per sq ft
£1,000 p.a.
	 
	Potash Shed and Associated Land

	 	Omex Nitrogen Limited
	 	20 years
	 	 	2022	 	 	£1.75 per sq ft
£30,205
	 
	Stanlow
	 	 	 	 	 	 	 	 	 	 
	 
	Northern Underlease

	 	Air Products
	 	21 years
	 	 	25.12.2010	 	 	£4,832.35
	 
	Southern Underlease

	 	Air Products
	 	 	 	 	25.12.2010	 	 	£3,788.98

 

86

 

SCHEDULE 12

Balancing Consideration

	1.	 	DEFINITIONS

	 
	 	 	In this schedule 12, the following words and expressions shall have the following meanings,
unless the context otherwise requires:

	 
	 	 	“2008 Accounts” means the Accounts as at and for the financial period ending 31 December
2008;

	 
	 	 	“2009 Accounts” means the Accounts as at and for the financial period ending 31 December
2009;

	 
	 	 	“2010 Accounts” means the Accounts as at and for the financial period ending 31 December
2010;

	 
	 	 	“2008 EBITDA” means the EBITDA in respect of the financial period ending 31 December 2008
as determined in accordance with the provisions of paragraph 3;

	 
	 	 	“2009 EBITDA” means the EBITDA in respect of the financial period ending on 31 December
2009 as determined in accordance with the provisions of paragraph 4

	 
	 	 	“2010 EBITDA” means the EBITDA in respect of the financial period ending 31 December 2010
as determined in accordance with the provisions of paragraph 5;

	 
	 	 	“Accounts” means consolidated financial statements of the Group, comprising the
consolidated balance sheet and profit and loss account, together in each case with the
notes thereon as at and for the financial period specified, prepared in accordance with the
accounting policies and procedures set out in paragraph 7;

	 
	 	 	“Average EBITDA” means the average of the 2008 EBITDA, the 2009 EBITDA and the 2010 EBITDA;

	 
	 	 	“Costs” means all those one-time costs and amounts, not exceeding £25 million in aggregate,
necessarily incurred or paid by the Group between 1 January 2008 and 31 December 2010, in
relation to or in connection with realising the synergies and cost savings, identified in
the Business Plan and/or any revised Business Plan, arising from the creation of the Group;

	 
	 	 	“EBITDA” means the consolidated operating profits or losses on ordinary activities of the
Group for the financial period in question:

	 	(a)	 	before any deduction for interest on indebtedness of any member of the Group;

	 
	 	(b)	 	before any deduction for any Tax expense of any member of the Group;

	 
	 	(c)	 	before any deduction for depreciation of any member of the Group;

	 
	 	(d)	 	before any deduction for amortisation or impairment of any member of the
Group;

	 
	 	(e)	 	excluding any exceptional, extraordinary or other non-operating items; and

	 
	 	(f)	 	before any deduction for Costs,

	 	 	provided that if the Costs referred to in paragraph (f) are greater than £25 million in
aggregate then such Costs shall be deemed for the purposes of calculating the 2008 EBITDA,
the 2009 EBITDA and the 2010 EBITDA to equal £25 million in aggregate;

 

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	 	 	“Enterprise Value” means a sum determined on the basis of the following formula:

	 
	 	 	EV = (5.5 x A) – P

	 
	 	 	where:

	 
	 	 	“EV” is the Enterprise Value;

	 
	 	 	“A” means the Average EBITDA; and

	 
	 	 	“P” means the Pension Deficit;

	 
	 	 	provided that, if the result of the above calculation is such that the Enterprise Value
would be less than £100 million, the Enterprise Value shall be deemed to be £100 million,
and if the result of the above calculation is such that the Enterprise Value would be more
than £300 million, the Enterprise Value shall be deemed to be £300 million;

	 
	 	 	“Event of Default” has the meaning set out in clause 12.1 of the Shareholders’ Agreement;

	 
	 	 	“Excess Cash” means any amounts of cash which, in the discretion of JVCo’s board of
directors, JVCo will not need in order to operate in the ordinary course of the next 12
months from time to time and as from time to time approved by at least two A Directors and
two B Directors;

	 
	 	 	“Pension Deficit” means the aggregate amount of the net deficit under the Kemira Disclosed
Schemes and the Terra Disclosed Schemes calculated by the actuaries of those respective
schemes based on the agreed principles as at close of business on 30 September 2007 subject
to an aggregate cap of £60 million;

	 
	 	 	“Reporting Accountants” means Deloitte & Touche LLP or, if that firm is unable to or
unwilling to act in any matter referred to them under this agreement, a firm of chartered
accountants to be agreed by Terra and Kemira within seven days of a notice by one to the
other requiring such agreement, or failing such agreement, to be nominated on the
application of either of them by or on behalf of the President for the time being of the
Institute of Chartered Accountants of England and Wales;

	 
	 	 	“Termination Date” means the date of termination of the Shareholders’ Agreement in
accordance with its terms.

	 
	2.	 	PAYMENT OF BALANCING CONSIDERATION

	 
	2.1	 	Within five Business Days of agreement or determination of the 2010 EBITDA in accordance with
paragraph 5, JVCo shall pay to Terra a sum equal to 20 per cent. of the Enterprise Value less
the aggregate sum of any Excess Cash amounts previously paid to Terra under paragraph 2.2 (the
“Balancing Consideration"), together with interest thereon at the rate of two per cent. per
annum above the base rate of Barclays Bank plc from time to time for the period from 31
December 2010 until the date of payment (both dates inclusive). Provided that where the
Balancing Consideration would be less than £20 million pursuant to the calculation in
paragraph 1, then the Balancing Consideration shall be deemed to be £20 million and where the
Balancing Consideration would be greater than £60 million pursuant to the calculation in
paragraph 1 then the Balancing Consideration shall be deemed to be £60 million.

	 
	2.2	 	If JVCo shall determine, in accordance with clause 6 (Reserved Matters) of the Shareholders’
Agreement, that any Excess Cash is available for payment to Terra from time to time then JVCo
undertakes promptly to pay to Terra such Excess Cash during the period from Completion until
and including 31 December 2010, provided that the aggregate of all such payments under this
paragraph 2.2 shall not exceed £20 million.

 

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	2.3	 	Any payment due under paragraph 2.1 and/or paragraph 2.2 shall be made by way of telegraphic
transfer in immediately available funds to such bank account as is notified by Terra to JVCo
for such purpose.

	 
	3.	 	DETERMINATION OF 2008 EBITDA

	 
	3.1	 	For the purpose of determining the 2008 EBITDA, JVCo shall prepare and deliver draft 2008
Accounts and a draft statement of the 2008 EBITDA as derived from the 2008 Accounts (the
“Draft Financial Statements") to Terra as soon as reasonably practicable following 31 December
2008 and in any event not later than 45 Business Days from 31 December 2008.

	 
	3.2	 	Terra shall notify JVCo within 30 Business Days of receipt of the Draft Financial Statements
whether or not it accepts the Draft Financial Statements for the purposes of this schedule 12.

	 
	3.3	 	If Terra notifies JVCo in writing that it does not accept the Draft Financial Statements (a
“Terra Disagreement Notice"):

	 	(a)	 	Terra shall, at the same time, set out in a notice in writing the reasons in
reasonable detail for such non-acceptance and proposed adjustments which, in the
opinion of Terra, should be made to the Draft Financial Statements in order to comply
with the requirements of this schedule 12 and deliver a copy of such notice to JVCo;
and

	 
	 	(b)	 	Terra and JVCo shall use all reasonable endeavours to meet and discuss the
objections of Terra and shall attempt in good faith to reach agreement upon the
adjustments (if any) required to be made to the Draft Financial Statements.

	3.4	 	If JVCo and Terra reach agreement on the Draft Financial Statements (either as originally
submitted or after adjustments agreed between Terra and JVCo) or if Terra fails to notify JVCo
of the non-acceptance of the Draft Financial Statements within the 30 Business Day period
referred to in paragraph 3.2, then the Draft Financial Statements (incorporating any agreed
adjustments) shall become the Final Financial Statements and shall determine the 2008 EBITDA
for the purposes of this agreement.

	3.5	 	If Terra and JVCo do not reach agreement within 20 Business Days of Terra’s notice of
non-acceptance pursuant to paragraph 3.2, then the matters in dispute and in respect of which
details have been provided by Terra to JVCo at the time that it notified JVCo that it did not
accept the Draft Financial Statements in accordance with paragraph 3.3(a) above (and only
those) shall be referred, on the application of either party, for determination by the
Reporting Accountants.

	3.6	 	Within 21 days of appointing the Reporting Accountants, JVCo may by notice to Terra indicate
that, in light of the fact that Terra has not accepted the Draft Financial Statements in their
entirety, it wishes the Reporting Accountants to consider matters relating to the Draft
Financial Statements in addition to those specified in the Terra Disagreement Notice, such
notice stating in reasonable detail the reasons why and in what respects JVCo believes that
the Draft Financial Statements should be altered (the “JVCo’s Disagreement Notice").

	3.7	 	The Reporting Accountants shall be engaged jointly by Terra and JVCo on the terms set out in
this paragraph 3 and otherwise on such terms as shall be agreed; provided that neither Terra
nor JVCo shall unreasonably (having regard, inter alia, to the provisions of this paragraph 3)
refuse its agreement to terms proposed by the Reporting Accountants or by the other party. If
the terms of engagement of the Reporting Accountants have not been settled within 45 days of
their identity having been determined (or such longer period as Terra and JVCo may agree)
then, unless Terra or JVCo is unreasonably refusing
agreement to those terms, those accountants shall be deemed never to have become the
Reporting Accountants and new Reporting Accountants shall be selected in accordance with
the provisions of this agreement.

 

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	3.8  	 	Except to the extent that JVCo and Terra agree otherwise, the Reporting Accountants shall
determine their own procedure but:

	 	 	(a)	 	apart from procedural matters and as otherwise set out in this agreement the
Reporting Accountants shall determine only:

	 	 	(i)	 	whether any of the arguments for an alteration to the Draft
Financial Statements put forward in the Terra Disagreement Notice or JVCo’s
Disagreement Notice is correct in whole or in part; and

	 
	 	 	(ii)	 	if so, what alterations should be made to the Draft Financial
Statements in order to correct the relevant inaccuracy in it;

	 	 	(b)	 	shall apply the principles set out in paragraph 7 of this schedule;

	 
	 	 	(c)	 	shall make their determination pursuant to paragraph 3.8(a) above as soon as
is reasonably practicable;

	 
	 	 	(d)	 	the procedure of the Reporting Accountants shall:

	 	 	(i)	 	give JVCo and/or JVCo’s accountants and Terra and/or Terra’s
accountants a reasonable opportunity to make written and oral representations
to them on the matters in dispute to them;

	 
	 	 	(ii)	 	require that each of JVCo and Terra supply the other with a
copy of any written representations at the same time as they are made to the
Reporting Accountants;

	 
	 	 	(iii)	 	permit each party to be present while oral submissions are
being made by the other party; and

	 
	 	 	(iv)	 	for the avoidance of doubt, the Reporting Accountants shall not
be entitled to determine the scope of their own jurisdiction.

	3.9  	 	The determination of the Reporting Accountants pursuant to paragraph 3.8(a) shall:

	 	 	(a)	 	be made in writing and be made available for collection by JVCo and Terra at
the offices of the Reporting Accountants at such time as they shall determine;

	 
	 	 	(b)	 	state what adjustments (if any) are necessary to the Financial Statements in
respect of the matters in dispute in order to comply with the requirements of this
schedule 12; and

	 
	 	 	(c)	 	unless otherwise agreed by JVCo and Terra, include reasons for each relevant
determination.

	3.10	 	The Reporting Accountants shall act as experts (and not as arbitrators) and their
determination of any matter falling within their jurisdiction shall be final and binding on
the parties save in the absence of manifest error (when the relevant part of their
determination shall be void and the matter shall be remitted to the Reporting Accountants for
correction). In particular, without limitation, their determination shall be deemed to be
incorporated into the Draft Financial Statements.

	3.11	 	Each party shall bear the costs and expenses of all counsel and other advisers, witnesses and
employees retained by it and the costs and the expenses of the Reporting
Accountants shall be borne between Terra and JVCo in such proportions as the firm shall in
its discretion determine or, in the absence of any such determination, equally.

 

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	3.12	 	When Terra and JVCo reach (or pursuant to paragraph 3.4 are deemed to reach) agreement on the
Draft Financial Statements or when the Draft Financial Statements are finally determined at
any stage in accordance with the procedures set out in this paragraph 3, the Draft Financial
Statements as so agreed or determined shall determine the 2008 EBITDA for the purposes of this
agreement and shall be final and binding on JVCo and Terra.

	3.13	 	JVCo and Terra shall co-operate with the Reporting Accountants and comply with their
reasonable requests made in connection with the carrying out of their duties under this
agreement. In particular, without limitation, JVCo shall keep up-to-date and, subject to
reasonable notice, make available during normal office hours to the Reporting Accountants all
books and records relating to the Group as the Reporting Accountants may reasonably request
during the period from the appointment of the Reporting Accountants down to the making of the
relevant determination.

	3.14	 	Nothing in this schedule shall entitle a party or the Reporting Accountants access to any
information or document which is protected by legal professional privilege or litigation
privilege, provided that neither JVCo nor Terra shall be entitled to refuse to supply such
part or parts of documents as contain only the facts on which the relevant claim or argument
is based.

	3.15	 	Each of JVCo and Terra and the Reporting Accountants shall, and shall procure that its
accountants and other advisers shall, keep all information and documents provided to them
pursuant to this paragraph 3 confidential and shall not use the same for any purpose, except
for disclosure or use in connection with the preparation of the Draft Financial Statements,
the proceedings of the Reporting Accountants or another matter arising out of this agreement
or in defending any claim or argument or alleged claim or argument relating to this agreement
or its subject matter.

	4.	 	DETERMINATION OF 2009 EBITDA

	 
	 	 	For the purposes of determining the 2009 EBITDA, the provisions of paragraph 3 shall apply
mutatis mutandis save that references to 2008 therein shall be deemed to be references to
2009 and references to 2009 therein shall be deemed to be references to 2010.

	 
	5.	 	DETERMINATION OF 2010 EBITDA

	 
	 	 	For the purposes of determining the 2010 EBITDA, the provisions of paragraph 3 shall apply
mutatis mutandis save that references to 2008 therein shall be deemed to be references to
2010 and references to 2009 therein shall be deemed to be references to 2011.

	 
	6.	 	PROTECTION

	6.1	 	If the Shareholders’ Agreement terminates in accordance with the terms of such agreement
prior to the end of the Deferred Consideration Period then JVCo agrees that it:

	 	(a)	 	shall not dispose of any interest in the Shares or any of them or grant any
option over, or right to acquire, or mortgage, charge or otherwise encumber the Shares
or any of them or agree to do any of the foregoing; and

	 
	 	(b)	 	shall procure that there is no disposal of any interest in the share capital
of any Group Company, nor any granting of option over, or right to acquire, or
mortgage, charge or otherwise encumber the share capital of any Group Company nor
agreement to do any of the foregoing,
in each case without the prior consent of Terra (such consent not to be unreasonably
withheld or delayed).

 

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	6.2	 	JVCo agrees that it will not and it shall procure that none of the Group Companies will take
any action intended, or having the likely effect, to frustrate the payment of, or which is
primarily intended, or having the likely effect, to reduce the amount of, the Balancing
Consideration.

	 
	6.3	 	JVCo further agrees that:

	 	(a)	 	in the event that the Shareholders’ Agreement terminates, prior to 31
December 2010, due to an Event of Default on the part of Terra then for the period
from the Termination Date until 31 December 2010 the provisions of paragraph 6.4 shall
apply;

	 
	 	(b)	 	in the event that the Shareholders’ Agreement terminates, prior to 31
December 2010, due to an Event of Default on the part of Kemira then for the period
from the Termination Date until 31 December 2010 the provisions of paragraph 6.5 shall
apply; and

	 
	 	(c)	 	in the event that the Shareholders’ Agreement terminates, prior to 31
December 2010, for any reason then for the period from 31 December 2010 until the date
of payment, in full, of the Balancing Consideration the provisions of paragraph 6.5
shall apply.

	6.4	 	In the case and during the period set out in paragraph 6.3(a) above, JVCo agrees to procure
that, without the prior consent of Terra (such consent not to be unreasonably withheld or
delayed):

	 	(a)	 	the business of the Group is conducted in the ordinary course in accordance
with sound and good business practice;

	 
	 	(b)	 	the Group will not cease or suspend carrying on all or a significant part of
its business in whole or in part, or reduce the scale of all or a significant part of
its business operations (including by way of a disposal);

	 
	 	(c)	 	no Group Company will enter into a transaction on terms which artificially
increase the costs incurred by it or reduce the revenues received by it, or enter into
any transaction which is not on a commercial basis and on arm’s length terms;

	 
	 	(d)	 	no dividend shall be declared or paid and no other distribution shall be made
by JVCo on account of shares in its capital (including, without limitation, any
reduction of JVCo’s share capital or any redemption of shares in JVCo’s capital); and

	 
	 	(e)	 	no Group Company shall enter into any transaction or make any payment with
Kemira or any Associated Company, otherwise than on arm’s length commercial terms.

	6.5	 	In the cases and during the periods set out in paragraphs 6.3(a) and 6.3(c) above, JVCo
agrees to procure that, without the prior consent of Terra (such consent not to be
unreasonably withheld or delayed):

	 	(a)	 	the business of the Group is conducted in the ordinary course in accordance
with sound and good business practice;

	 
	 	(b)	 	the Group will not cease or suspend carrying on all or a significant part of
its business in whole or in part, or reduce the scale of all or a significant part of
its business operations (including by way of a disposal);

 

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	 	(c)	 	no Group Company will enter into a transaction on terms which artificially
increase the costs incurred by it or reduce the revenues received by it, or enter into
any transaction which is not on a commercial basis and on arm’s length terms;

	 
	 	(d)	 	no Group Company will interfere with or do anything the purpose of which is
to impair or adversely affect the relationship of the Group with its clients or to
transfer away from the Group any of its clients;

	 
	 	(e)	 	save as required for the continuing development of the business of the Group
and as agreed with Terra (such agreement not to be unreasonably withheld or delayed),
no Group Company will acquire any shares or other interest in any company,
partnership, business or other venture, or merge with any other person or enter into
any joint venture, partnership or association with any other person;

	 
	 	(f)	 	no dividend shall be declared or paid and no other distribution shall be made
by JVCo on account of shares in its capital (including, without limitation, any
reduction of JVCo’s share capital or any redemption of shares in JVCo’s capital);

	 
	 	(g)	 	no Group Company shall enter into any transaction with Kemira or any
Associated Company, otherwise than on arms’ length commercial terms;

	 
	 	(h)	 	no Group Company shall petition for the winding-up of any member of the Group
or permit or procure the passing of a resolution to wind up any member of the Group
voluntarily or directly or indirectly request permit or procure the appointment of any
receiver or administrative receiver over the whole or any part of the assets or
undertaking of any member of the Group, PROVIDED THAT nothing in the foregoing shall
preclude or restrict the directors of such Group Company from taking any of the
actions contemplated therein in order to prevent such directors permitting the Group
Company to trade wrongfully within the meaning of section 214 Insolvency Act 1986 (or
any statutory amendments thereto or re-enactment thereof) or any legislation having
similar effect any other jurisdiction affecting the directors of any Group Company
incorporated or trading in such jurisdiction;

	 
	 	(i)	 	no Group Company shall enter into any borrowings (or indebtedness in the
nature of borrowings) in an amount in excess of £50 million over and above those
existing at the Termination Date, nor shall any Group Company create any new or
additional charge or other security over any assets or property of any Group Company
except for the purpose of securing borrowings (or indebtedness in the nature of
borrowings) from bankers in the ordinary course of business of amounts not exceeding
in aggregate £50 million;

	 
	 	(j)	 	no guarantee or indemnity shall be given by any Group Company other than in
the ordinary course of business; and

	 
	 	(k)	 	no loan or advance shall be made by any Group Company to any person, firm,
body corporate or other business, other than to a Group Company or other than in the
normal course of business on an arms’ length basis.

	7.	 	ACCOUNTING POLICIES AND PROCEDURES FOR THE ACCOUNTS

	 
	7.1	 	The Accounts shall:

	 	(a)	 	be drawn up as at the close of business on 31 December 2008, 2009 or 2010 as
the case may be and regard shall only be had to information available to the parties
to this agreement at that time;

	 
	 	(b)	 	subject to paragraph 7.1(a), be prepared in accordance with the specific
accounting policies used by JVCo provided that JVCo will only use those accounting
policies
used by any of the Kemira Companies and the Terra Company at the time of Completion;
and

 

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	 	(c)	 	subject to paragraph 7.1(a) and paragraph 7.1(b) (which provisions shall
prevail over this paragraph 7.1(c)) be prepared in accordance with UK GAAP.

	7.2	 	When deriving the 2008 EBITDA, the 2009 EBITDA and the 2010 EBITDA from the 2008 Accounts,
the 2009 Accounts and the 2010 Accounts respectively, there shall be excluded from earnings
the gain or loss, if any, from accounting changes necessary to conform the accounting policies
of the Kemira Companies or the Terra Company with the accounting policies of JVCo.

	 
	8.	 	NO SET-OFF

	8.1	 	JVCo shall not exercise or assert, or purport to exercise or assert, any legal or equitable
right of set-off or deduction whether arising under contract, statute or otherwise in law or
equity against any amount which becomes due to Terra under paragraph 2.1 of this schedule 12
otherwise than as may be required by law.

 

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SCHEDULE 13

Environmental Contamination Indemnities

	1.	 	DEFINITIONS

	 
	 	 	In this schedule 13, the following words and expressions shall have the following meanings,
unless the context otherwise requires, and any other capitalised words or expressions in
this schedule that are not defined in clause 1.1 of this agreement, shall have the meanings
given to them in schedule 6 and schedule 7 of this agreement, as the context requires.

	 
	 	 	“Claim” means any written claim, demand, action, notice, proceeding, direction, injunction,
ruling, resolution, judgment or order which is enforceable against JVCo or any Kemira
Company or the Terra Company under Environmental Laws and brought or made by:

	 	(a)	 	regulatory body, governmental agency, court of law or tribunal of competent
jurisdiction; or

	 
	 	(b)	 	person or legal entity (including without limitation any local, state,
federal, provincial or national agency, department or government) other than any
Indemnified Party or JVCo;

“Kemira Environmental Losses” means all claims, damages, costs, expenses (including
reasonable professional fees incurred), losses, liabilities or penalties suffered or
incurred by any Kemira Company and/or JVCo (as the case may be) after Completion to the
extent arising from a breach of or liability under Environmental Law or any Pre-Completion
Kemira Environmental Indemnity in respect of either:

	 	(a)	 	Hazardous Substances in soil or groundwater or surface water at or under the
Kemira Properties or any part(s) thereof on or before Completion or the migration of
such from the Kemira Properties or any part(s) thereof (but not including any
Hazardous Substance within any building or structure on a Kemira Property); or

	 
	 	(b)	 	the release into soil or groundwater or surface water of any Hazardous
Substance on or before Completion caused or knowingly permitted by a Kemira Company or
in respect of which a Kemira Company may have any liability under either Environmental
Law or under any Pre-Completion Kemira Environmental Indemnity;

(including carrying out or paying for any Kemira Remediation Works to the extent the same
are Commercially Reasonable Expenses), BUT EXCLUDING any claims, costs, damages, expenses,
losses, liabilities or penalties in respect of loss of anticipated profits; loss of
revenue; loss of use; cost of capital; or any other loss in respect of business
interruption;

“Kemira Remediation Works” means all those investigations, works, measures and other
actions which are the minimum required under Environmental Laws or any Pre-Completion
Kemira Environmental Indemnity to discharge, or are the minimum reasonably required in
order to mitigate any liability under Environmental Laws or any Pre-Completion Kemira
Environmental Indemnity (including all such remediation, removal, encapsulation and
reinstatement works, measures and actions) in relation to:

	 	(a)	 	Hazardous Substances in soil, groundwater or surface water at or under the
Kemira Properties or any part(s) thereof or the migration of any such Hazardous
Substances from the Kemira Properties or any part(s) thereof, in either case on or
before Completion (but not including any Hazardous Substance within any building or
structure on a Kemira Property); or

 

95

 

	 	(b)	 	the release into soil or groundwater or surface water of any Hazardous
Substance on or before Completion caused or knowingly permitted by a Kemira Company or
in respect of which a Kemira Company may have any liability under either Environmental
Law or under any Pre-Completion Kemira Environmental Indemnity;

“Ordinary Course Construction” means such construction, repair and demolition works by the
Group to the Kemira Property or the Terra Properties as a reasonable and prudent operator,
acting in a commercially prudent manner without the benefit of indemnification and taking
into account the need to minimise disturbance of or interference with any Hazardous
Substance, would undertake to ensure the continued conduct of the Activities as at the date
of this agreement, excluding any such works that require planning or regulatory consent or
that pose a material risk of the creation of a pathway for Hazardous Substances that were
on or before Completion in, on, at or under the relevant Property or any part(s) thereof or
which Hazardous Substances migrate from the relevant Property or any part(s) thereof to
impact upon a receptor save where JVCo has obtained the written consent of the Indemnifying
Party in relation to such excluded works (such consent not to be unreasonably withheld);

“Terra Environmental Losses” means all damages, claims, costs, expenses (including
reasonable professional fees incurred), losses, liabilities or penalties suffered or
incurred by any Terra Company and/or JVCo (as the case may be) after Completion to the
extent arising from a breach of or liability under Environmental Law or any Pre-Completion
Terra Environmental Indemnity in respect of either:

	 	(a)	 	Hazardous Substances in soil or groundwater or surface water, at or under the
Terra Properties or any part(s) thereof on or before Completion or the migration of
any such Hazardous Substance from the Terra Properties or any part(s) thereof (but not
including any Hazardous Substance within any building or structure on a Terra
Property); or

	 
	 	(b)	 	the release into soil or groundwater or surface water of any Hazardous
Substance on or before Completion caused or knowingly permitted by a Terra Company or
in respect of which a Terra Company may have any liability either under Environmental
Law or under any Pre-Completion Terra Environmental Indemnity;

(including carrying out or paying for any Terra Remediation Works to the extent the same
are Commercially Reasonable Expenses), BUT EXCLUDING any claims, costs, damages, expenses,
losses, liabilities or penalties in respect of loss of anticipated profits; loss of
revenue, loss of use; cost of capital; loss or damage of property or equipment, or any
other loss in respect of business interruption;

“Terra Remediation Works” means all those investigations, works, measures and other actions
which are the minimum required under Environmental Laws or any Pre-Completion Terra
Environmental Indemnity to discharge, or are the minimum reasonably required in order to
mitigate any liability under Environmental Laws or any Pre-Completion Terra Environmental
Indemnity (including all such remediation, removal, encapsulation and reinstatement works,
measures and actions) in relation to:

	 	(a)	 	Hazardous Substances in soil, groundwater or surface water at or under the
Terra Properties or any part(s) thereof or the migration of such Hazardous Substances
from the Terra Properties or any part(s) thereof, in either case on or before
Completion (but not including any Hazardous Substance within any building or structure
on a Terra Property); or

	 
	 	(b)	 	the release into soil or groundwater or surface water of any Hazardous
Substance on or before Completion caused or knowingly permitted by the Terra Company
or in respect of which the Terra Company may have any liability under either
Environmental Law or under any Pre-Completion Terra Environmental Indemnity; and

 

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“Trigger Condition” has the meaning given in paragraph 5 of this schedule 13.

In this schedule, “Indemnifying Party” shall refer to Terra under paragraph 2.1 below and
Kemira under paragraph 2.2 below and “Indemnified Party” shall refer to JVCo and Kemira
under paragraph 2.1 below and JVCo and Terra under paragraph 2.2 below.

	2.	 	ENVIRONMENTAL CONTAMINATION INDEMNITY

	 
	 	 	Subject to paragraphs 3 to 12 of this schedule 13:

	2.1	 	Terra shall indemnify and keep indemnified JVCo (for itself and on behalf of any Kemira
Company) in respect of all Terra Environmental Losses; and

	2.2	 	Kemira shall indemnify and keep indemnified JVCo (for itself and on behalf of the Terra
Company) in respect of all Kemira Environmental Losses.

	 
	3.	 	FINANCIAL THRESHOLDS

	3.1	 	No Indemnified Party shall be entitled to claim under either indemnity at paragraph 2 of this
schedule 13:

	 	(a)	 	where the liability of the Indemnifying Party in respect of that claim would
(but for this paragraph) have been less than £100,000 (provided that two or more
smaller claims arising out of the same facts or circumstances shall be treated as one
claim for the purpose of this paragraph 3.1(a); or

	 
	 	(b)	 	unless and until and only to the extent that the liability in respect of such
claim (not being a claim for which liability is excluded under paragraph 3.1(a) above)
when aggregated with the liability of the relevant Indemnifying Party in respect of
all other such claims and all other claims for which it is liable under schedule 8 or
schedule 9 of this agreement (as applicable) shall exceed £1 million, in which case
the relevant Indemnifying Party shall be liable for the full amount and not just the
excess.

	3.2	 	The liability of each Indemnifying Party to the JVCo under the relevant indemnity at
paragraph 2 of this schedule 13 shall not in any event exceed £20 million in aggregate.

	 
	4.	 	INDEMNITY PERIOD

	 
	 	 	The JVCo shall not be entitled to claim under the relevant indemnity at paragraph 2 of this
schedule 13 unless a Trigger Condition has been satisfied and the JVCo has provided written
notice of the claim in accordance with paragraph 6 on or before the fifth anniversary of
Completion in respect of the matter giving rise to the relevant claim.

	 
	5.	 	TRIGGER CONDITIONS

	 
	 	 	The JVCo shall not be entitled to claim under the relevant indemnity at paragraph 2 of this
schedule 13 in respect of a relevant matter unless the JVCo or the applicable Terra Company
or Kemira Company has received a Claim in respect of that relevant matter in relation to:

	 	(a)	 	the presence on or before Completion of any Hazardous Substance in soil,
groundwater or surface water at or the migration of any such Hazardous Substance at or
from a Kemira Property or a Terra Property as applicable; or

 

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	 	(b)	 	a release into soil or groundwater or surface water of any Hazardous
Substance on or before Completion caused or knowingly permitted by a Kemira Company or
the Terra Company or in respect of which a Kemira Company or the Terra Company may
have any liability as applicable under Environmental Law or under any Pre-Completion
Kemira Environmental Indemnity or any Pre-Completion Terra Environmental Indemnity as
the case may be,

(the “Trigger Condition").

	6.	 	NOTICE OF CLAIMS

	 
	 	 	The JVCo shall provide written notice to the relevant Indemnifying Party of any matter of
which it or any Terra Company or Kemira Company becomes aware which gives rise to or is
reasonably likely to give rise to a claim under an indemnity set out at paragraph 2 above
and shall notify the relevant Indemnifying Party immediately upon a Trigger Condition
having been satisfied in relation to any such matter, provided that failure to give or
delay in giving notice under this paragraph 6 shall not invalidate the JVCo’s right to
claim in respect of such matter under this indemnity provided that written notice is
received within the period specified in paragraph 4, except and only to the extent that
such failure or delay increases the penalties, losses, costs, claims, expenses, liabilities
and damages which that party seeks to recover under the relevant indemnity.

	 
	7.	 	LIMITATIONS

	7.1	 	The relevant Indemnifying Party shall have no liability under the relevant indemnity at
paragraph 2 of this schedule to the extent that:

	 	(a)	 	any claim by JVCo would not have arisen but for, results from or is increased
by:

	 	(i)	 	any act or omission by the JVCo or any Terra Company or Kemira
Company after Completion except for those acts or omissions that are in the
normal lawful course of the Activities as at the date of this agreement;

	 
	 	(ii)	 	information voluntarily given by the JVCo or any Terra Company
or Kemira Company to a regulatory body, governmental agency or third party
other than where:

	 	(A)	 	the disclosure is required to be given in order
to comply with law or in connection with any Environmental Consent or
otherwise in response to a request by a regulator/authority acting
within its powers under Environmental Law;

	 
	 	(B)	 	the disclosure is reasonably necessary in an emergency; or

	 
	 	(C)	 	the Indemnifying Party gives prior consent to such disclosure (such
consent not to be unreasonably withheld or delayed);

	 	(iii)	 	any acts or omissions by the JVCo or any Group Company at the
Terra Properties or the Kemira Properties (including the carrying out of
investigative, sampling or monitoring works) which result in disturbance of or
interference with any Hazardous Substance (other than where such acts or
omissions form a necessary part of or precursor to the Activities or to
Ordinary Course Construction or are reasonably necessary in an emergency to
avoid or mitigate Kemira Environmental Losses or Terra Environmental Losses as
the case may be, or are required under Environmental Law or any Environmental
Consent) or the purpose or intention of which is the instigation of a Claim or
potential Claim;

 

98

 

	 	(iv)	 	any laws (other than the implementation into UK law of the EU
environmental liability directive) whose purpose is the protection of or
prevention of harm to the Environment and which come into force after
Completion; or

	 
	 	(v)	 	any construction, repair or demolition that is not Ordinary
Course Construction or any change of use of the Terra Properties or the Kemira
Properties after Completion.

	7.2	 	The relevant Indemnifying Party shall have no liability under the relevant indemnity at
paragraph 2 of this schedule 13 in respect of any Kemira Environmental Loss or Terra
Environmental Loss to the extent that such loss has been properly budgeted for in the Business
Plan.

	7.3	 	The relevant Indemnifying Party shall have no liability under the relevant indemnity at
paragraph 2 of this schedule 13 to the extent that the relevant losses relate to that Kemira
Property or Terra Property which the board of the JVCo first resolves to cease operations at
and dispose of pursuant to the process of clause 8.1 and in relation thereto the environmental
indemnity in clause 8.11 shall apply.

	 
	8.	 	THIRD PARTIES

	 
	8.1	 	This paragraph 8 shall apply in circumstances where:

	 	(a)	 	any Claim occurs which should reasonably be expected to give rise to a claim
by JVCo under the relevant indemnity at paragraph 2 above;

	 
	 	(b)	 	the Group should reasonably be expected to be able to make recovery from some
other person or under any insurance policy held by the Group any sum in respect of any
facts or circumstances by reference to which JVCo or the relevant Indemnified Party
has or should be reasonably expected to have a claim under the relevant indemnity at
paragraph 2 above; or

	 
	 	(c)	 	the relevant Indemnifying Party has paid JVCo an amount in respect of a claim
under the relevant indemnity at paragraph 2 above and subsequent to the making of such
payment JVCo or any member of the Group recovers from some other person or under any
insurance policy held by the Group a sum which is referable to that payment.

	8.2	 	JVCo shall:

	 	(a)	 	prior to making any claim under the relevant indemnity at paragraph 2 above
(and subject to JVCo being indemnified to its reasonable satisfaction against all
costs and expenses which may be incurred by reason of such action) take all such
action as the relevant Indemnifying Party may reasonably request in writing including
the institution of proceedings and the instruction of professional advisers approved
in writing by that Indemnifying Party to act on behalf of JVCo to avoid, dispute,
resist, compromise, defend or appeal any Claim or to make such recovery as is referred
to in paragraph 8.1(b) above as the case may be; and

	 
	 	(b)	 	subject to JVCo being indemnified to its reasonable satisfaction against all
damages, costs and expenses which may be incurred by reason of such action, not settle
or compromise any liability or claim to which such action is referable without the
prior written consent of the relevant Indemnifying Party which consent shall not be
unreasonably withheld or delayed; and

	 
	 	(c)	 	in the case of paragraph 8.1(c) only, repay the relevant Indemnifying Party
an amount equal to the amount recovered on receipt or, if lower, the amount paid by
that Indemnifying Party to JVCo less, in either case, any amount payable by JVCo in
respect of Tax on the amount recovered.

 

99

 

	9.	 	MITIGATION

	 
	 	 	JVCo (as the case may be) shall so far as is reasonable avoid, reduce and mitigate any
claim under the relevant indemnity at paragraph 2 of this schedule, provided that this
paragraph 9 is subject to all of the other provisions of this schedule. Any Terra
Environmental Losses or Kemira Environmental Losses incurred by the Group in complying with
this paragraph 9 shall be recoverable under this schedule but only to the extent that such
losses would have been recoverable if this schedule had not included this paragraph 9.

	 
	10.	 	CONDUCT OF CLAIMS

	10.1	 	Subject to the provisions of paragraphs 10.3, 10.4 and 10.5 of this schedule 13, JVCo shall
have conduct of any Claim that has been commenced against it and in respect of which it is
seeking to claim under the relevant indemnity at paragraph 2 of this schedule 13 (the
“Conducted Matter").

	10.2	 	In the conduct of any Claim, subject always to the overriding requirement to maintain
confidentiality and privilege:

	 	 	(a)	 	the Indemnifying Party shall be provided with a reasonable opportunity to
review and approve any material reports, documents, correspondence or information to
be prepared and provided by the JVCo to any third party, relating to or affecting the
Conducted Matter (such approval not to be unreasonably withheld or delayed);

	 
	 	 	(b)	 	the Indemnifying Party shall be provided with advance notice of all material
meetings and shall be allowed to attend as an observer only in any material site
visit, meeting, negotiation, discussion, correspondence, communications or other
actions involving JVCo and any third party relating to or affecting a Conducted Matter
and the Indemnifying Party shall be provided by the JVCo with regular updates on such
meetings, negotiations, discussions or conversations which it does not attend;

	 
	 	 	(c)	 	the Indemnifying Party shall be provided promptly with copies of any material
report, document or correspondence relating to or affecting a Conducted Matter which
is generated by or which comes into the possession of JVCo;

	 
	 	 	(d)	 	the Indemnifying Party shall be informed promptly of any material information
which comes to the knowledge of JVCo and relates to or affects a Conducted Matter;

	 
	 	 	(e)	 	no agreement, concession, settlement or admission of liability (including any
failure to appeal or decision not to do so) in any Conducted Matter shall be agreed,
made or offered without the prior consent in writing of the Indemnifying Party,
provided that such consent is not to be unreasonably withheld or delayed;

	 
	 	 	(f)	 	the Indemnifying Party shall be provided with advance notice of any proposal
by JVCo or any third party to carry out any works in relation to a Conducted Matter;

	 
	 	 	(g)	 	the Indemnifying Party (on giving reasonable notice) shall be allowed to
attend and inspect as an observer only the carrying out of any works arising out of a
Conducted Matter at any time whilst they are being carried out; and

	 
	 	 	(h)	 	any request of the Indemnifying Party in relation to a Conducted Matter which
is reasonable in the opinion of JVCo shall be complied with.

 

100

 

	10.3	 	If any Kemira Remediation Works are required as a result of a Claim, Kemira (as Indemnifying
Party) shall have the right at any time to assume conduct of all or any part of those Kemira
Remediation Works upon receipt by JVCo and/or Terra of written notice to such effect from
Kemira.

	10.4	 	If any Terra Remediation Works are required as a result of a Claim, Terra (as Indemnifying
Party) shall have the right at any time to assume conduct of all or any part of those Terra
Remediation Works upon receipt by JVCo and/or Kemira of written notice to such effect from
Terra.

	10.5	 	If either Kemira or Terra assume conduct pursuant to the provisions of paragraphs 10.3 or
10.4 of this schedule 13, the obligations and rights of JVCo under paragraph 10.2 above shall
apply to the party taking conduct pursuant to paragraphs 10.3 and 10.4 above as the case may
be mutatis mutandis and the obligations and rights of the Indemnifying Party under paragraph
10.2 above shall apply to the party who no longer has conduct pursuant to paragraphs 10.3 or
10.4 above mutatis mutandis.

	 
	11.	 	DISPUTE RESOLUTION

	11.1	 	Any party may notify the other parties in writing of any technical or factual dispute or
difference arising under this schedule (the “Dispute Notice") together with reasonable details
of such dispute whereupon the parties shall endeavour to resolve all matters in dispute
through negotiation in good faith as soon as practicable.

	11.2	 	In the event of their failing to resolve such matters through negotiation within 21 days of
service of the Dispute Notice, the parties may refer the dispute for determination to an
expert as agreed between the parties or, in default of such agreement, within 14 days of such
request by any party nominated at the request of any party by the President for the time being
of the Institute of Environmental Management and Assessment or if he is unable to make a
nomination within 28 days of the request made to him, by the President for the time being of
the Chartered Institute of Arbitrators (the “Expert").

	11.3	 	The Expert will on his appointment write to both parties confirming that both it and its firm
has:

	 	 	(a)	 	no conflict in accepting the appointment; and

	 
	 	 	(b)	 	no currently continuing commercial relationship with either party; and

	 
	 	 	(c)	 	agreed in accepting the appointment to act at all times with impartiality.

	11.4	 	In making such determination the Expert shall act as an expert and not as an arbitrator and
his decision shall (in the absence of manifest error (and the Expert shall give reasons for
his determination)) be final and binding on the parties.

	11.5	 	Each party shall bear the costs and expenses of all counsel and other advisers, witnesses and
employees retained by it and the costs and expenses of the Expert shall be borne by the
parties in the proportions he may direct or, in the absence of direction, equally. Where, in
the Expert’s opinion, one party has acted unreasonably in respect of the raising and/or the
conduct of the relevant dispute, he shall apportion proportionately his costs and all other
costs and expenses in relation to the determination to that party.

	11.6	 	Subject to any rule of law or of any regulatory body or any provision of any contract or
arrangement entered into prior to the date of this agreement to the contrary, the JVCo and the
Indemnifying Party shall afford as soon as reasonably practicable upon request to the other
and their respective agents and to the Expert all facilities and access to their respective
premises, personal papers, books, accounts, records, returns and other documents as may be in
their respective possession or under their respective control as may be required by the Expert
to make his determination.

 

101

 

	11.7	 	The Expert, and any company, firm, partnership or other organisation with which the Expert is
connected, shall not be eligible to be considered to undertake any works in connection with
the subject matter of the Dispute Notice or in respect of which the Expert has made a
determination, save where both parties expressly agree otherwise.

	 
	12.	 	ACKNOWLEDGEMENT AND INDEMNITY FROM JVCO

	12.1	 	Without prejudice to paragraph 2 of this schedule (subject to the limitations therein) and
save in respect of Kemira Environmental Losses or Terra Environmental Losses that are
reasonable thereunder and save in respect of the Kemira Property or Terra Property (as the
case may be) which is a Relevant Property and falls within clause 8 of this agreement, JVCo
shall indemnify and keep Terra and Kemira (as the case may be) indemnified in respect of all
and any actions, judgments, penalties, damages, losses, costs, claims, expenses, liabilities
and demands suffered or incurred by Terra and/or Kemira (as the case may be) wholly or partly
arising from or consequent upon any Hazardous Substances in, on, at or escaping from or
affecting soil, groundwater, surface water at or under any Terra Property and/or any Kemira
Property at any time including any claims from any third party (including former or current
employees of Terra and Kemira) in relation to exposure to such Hazardous Substances (but not
including any Hazardous Substance within any building or structure on such property) including
without limitation any liability arising out of or consequent upon any action required or
carried out in relation to such Hazardous Substances at any time by any regulatory authority.

	12.2	 	The provisions of paragraph 8 of this schedule shall apply in relation to the indemnity at
paragraph 12.1 above save that references in that paragraph 8 to:

	 	 	(a)	 	paragraph 2 shall refer to paragraph 12.1;

	 
	 	 	(b)	 	paragraph 8.1(b) shall refer to paragraph 12.2(b);

	 
	 	 	(c)	 	paragraph 8.1(c) shall refer to paragraph 12.2(c);

	 
	 	 	(d)	 	Indemnifying Party shall refer to JVCo;

	 
	 	 	(e)	 	JVCo shall refer to Terra and Kemira (as the case may be); and

	 
	 	 	(f)	 	Claim shall refer to the circumstances set out in paragraph 12.1 above.

	12.3	 	The parties agree that save in respect of the Kemira Property or Terra Property which falls
within clause 8 of this agreement the provisions of this schedule 13 are to be treated as an
agreement on liabilities both under Part IIA of the Environmental Protection Act 1990 and
generally for the purposes of ensuring (subject to paragraph 2) that Terra and Kemira shall
have no liability in respect of any Hazardous Substances in, on, at or escaping from or
affecting any Terra Property or any Kemira Property and JVCo shall provide a copy of this
schedule 13 on demand to any regulatory authority when requested so to do by Terra and Kemira
and shall not challenge the application of it as an agreement on liabilities.

	12.4	 	If a regulatory authority should disregard any of the provisions within this schedule 13, the
provisions of paragraphs 2 and 12.1 shall apply so as to restore the financial position of the
parties to that which would have prevailed had the regulatory authority not disregarded any of
those provisions.

	12.5	 	Save in the case of fraud or fraudulent concealment by Terra or Kemira, JVCo irrevocably
waives, releases, discharges and acquits Terra and Kemira from any and all claims or causes of
action by JVCo (whether based on statute, regulation or common law) in relation to any
liability under Environmental Law or otherwise for Hazardous Substances in, on, at or escaping
from or affecting any Terra Property or Kemira Property except for those rights of claim
specifically set forth in this agreement. Nothing in this agreement
shall render Terra liable for any liability of Kemira under this schedule nor render Kemira
liable for any liability of Terra under this schedule 13.

 

102

 

SCHEDULE 14

Kemira Working Capital and Debt

Part I — Adjustments

	1.	 	DEFINITIONS

	 
	 	 	“Adjustment Payment” means any amount due pursuant to paragraph 4;

	 
	 	 	“Adjustment Payment Date” means the date which is the later of (i) 30 November 2007 and
(ii) the date five Business Days following the agreement or determination of the Kemira
Completion Accounts in accordance with the provisions of paragraph 2;

	 
	 	 	“Agreed Rate” means one per cent. above the base rate from time to time of Barclays Bank
plc;

	 
	 	 	“Cash” means:

	 	(a)	 	cash in hand or credited to any account with a financial institution on the
basis that full withdrawal may be made at any time on not more than seven days’
notice; and

	 
	 	(b)	 	securities with a maturity of less than one year which are readily
convertible into cash and provided that the value which shall be attributed to such
securities shall be after deduction of any costs (including charges and costs levied
in respect of early redemption), expenses or taxes which would be incurred on or by
such conversion;

“Default Rate” means three per cent. above the base rate from time to time of Barclays Bank
plc;

“firm” shall bear the meaning given to such term in paragraph 2.5;

“JVCo’s Account” means such account in the name of JVCo as JVCo shall notify to Kemira;

“Kemira Additional Trade Creditors” means any trade and sundry creditors of the Kemira
Companies (excluding Kemira Intra-Group Payables) owed by the Kemira Companies at close of
business on the JVCo Accounts Date to the extent not included (for whatever reason) in the
Kemira Completion Accounts;

“Kemira Completion Accounts” means a document in the format set out in part 2 of this
schedule to be prepared in relation to the Kemira Companies on a consolidated basis in
accordance with paragraph 2 and on the basis of the accounting policies and procedures set
out in part III of this schedule;

“Kemira Completion Working Capital Amount” means:

	 	•	 	the aggregate value of those assets of the Kemira Companies, prepared on a
consolidated basis, comprised in the balance sheet categories set out in part 2 of
this schedule; less

	 
	 	•	 	the aggregate value of those liabilities of the Kemira Companies, prepared on a
consolidated basis, comprised in the balance sheet categories set out in part 2 of
this schedule,

 

103

 

in each case, as at the close of business on the JVCo Accounts Date and calculated in
accordance with paragraph 2 and on the basis of the accounting policies and procedures set
out in part 3 of this schedule;

“Kemira Estimated Completion Working Capital Amount” means £27,000,000;

“Kemira’s Account” means such account in the name of Kemira as Kemira shall notify to JVCo;

“Reference Date” means the later of (a) the Business Day first following the date on which
the Kemira Completion Accounts are agreed or determined pursuant to this schedule and (b)
the Business Day first following the date 90 days after the JVCo Accounts Date; and

“Third Party Kemira Debt” means the aggregate amount of indebtedness of the Kemira
Companies, on a consolidated basis, for borrowed monies, for finance leases from banks or
similar institutions, overdrafts and any guarantee, counter-indemnity, letter of credit,
indemnity, performance bonds or similar assurance against the financial loss of any other
person (excluding Kemira Intra-Group Payables) as at close of business on the JVCo Accounts
Date (including in each case accrued interest and penalties thereon and including any break
fees required to be incurred in relation to the termination of a facility), as set out in
the Kemira Completion Accounts and calculated in accordance with paragraph 2 and on the
basis of the accounting policies and procedures set out in part 3 of this schedule.

	2.	 	KEMIRA COMPLETION ACCOUNTS

	2.1	 	JVCo shall procure that the Kemira Companies prepare drafts of the Kemira Completion Accounts
on the basis of the accounting policies and procedures set out in part III of this schedule
and shall deliver them to Kemira within 30 Business Days of the JVCo Accounts Date.

	 
	2.2	 	Kemira shall notify JVCo in writing within 30 Business Days of receipt of such draft Kemira
Completion Accounts whether or not it accepts the draft Kemira Completion Accounts for the
purposes of this agreement.

	 
	2.3	 	If Kemira notifies JVCo that it does not accept such draft Kemira Completion Accounts:

	 	(a)	 	it shall, at the same time as it notifies JVCo that it does not accept such
draft Kemira Completion Accounts, set out in such notice in writing its reasons for
such non-acceptance and specify the adjustments which, in its opinion, should be made
to the draft Kemira Completion Accounts in order to comply with the requirements of
this agreement; and

	 
	 	(b)	 	JVCo and Kemira shall use all reasonable endeavours to:

	 	(i)	 	meet and discuss the objections of Kemira; and

	 
	 	(ii)	 	try to reach agreement upon the adjustments (if any) required
to be made to the draft Kemira Completion Accounts

in each case, within 20 Business Days of Kemira’s notice of non-acceptance pursuant
to paragraph 2.2 (or such other time as the parties may agree in writing).

	2.4	 	If Kemira is satisfied with the draft Kemira Completion Accounts (either as originally
submitted or after adjustments agreed between Kemira and JVCo) or if Kemira fails to notify
JVCo of its non-acceptance of the draft Kemira Completion Accounts within the 30 Business Day
period referred to in paragraph 2.2, then the draft Kemira Completion
Accounts (incorporating any agreed adjustments) shall constitute the Kemira Completion
Accounts for the purposes of this agreement.

 

104

 

	2.5	 	If Kemira and JVCo do not reach agreement within the 20 Business Day period referred to in
paragraph 2.3(b) (or such other time as the parties may agree in writing) then the matters in
dispute and in respect of which full details have been provided by Kemira to JVCo at the time
that it notified JVCo that it does not accept the Kemira Completion Accounts in accordance
with paragraph 2.3(a) (and only those) shall be referred, on the application of either Kemira
or JVCo, for determination by an independent firm of internationally recognised chartered
accountants to be agreed upon by Kemira and JVCo or, failing agreement, to be selected, on the
application of either Kemira or JVCo, by the President for the time being of the Institute of
Chartered Accountants in England and Wales or his duly appointed deputy (the “firm"). The
following provisions shall apply to such determination:

	 	(a)	 	JVCo and/or JVCo’s accountants and Kemira and/or Kemira’s accountants shall
each promptly (and in any event within such time frame as reasonably enables the firm
to make its decision in accordance with the time frame set down in this paragraph 2.5)
prepare and deliver to the firm a written statement on the matters in dispute
(together with the relevant documents);

	 
	 	(b)	 	the firm shall be requested to give its decision within 20 Business Days (or
such later date as the firm determines) of the confirmation and acknowledgment by the
firm of its appointment hereunder;

	 
	 	(c)	 	in giving such determination, the firm shall state what adjustments (if any)
are necessary to the draft Kemira Completion Accounts in respect of the matters in
dispute in order to comply with the requirements of this agreement and shall give its
reasons therefor;

	 
	 	(d)	 	the firm shall act as an expert (and not as an arbitrator) in making any such
determination which shall be final and binding on the parties (in the absence of
manifest error);

	 
	 	(e)	 	each party shall bear the costs and expenses of all counsel and other
advisers, witnesses and employees retained by it and the costs and the expenses of the
firm shall be borne between Kemira and JVCo in such proportions as the firm shall in
its discretion determine or, in the absence of any such determination, equally between
Kemira and JVCo.

	2.6	 	When Kemira and JVCo reach (or pursuant to paragraph 2.4 are deemed to reach) agreement on
the Kemira Completion Accounts or when the Kemira Completion Accounts are finally determined
at any stage in accordance with the procedures set out in this paragraph 2:

	 	(a)	 	the Kemira Completion Accounts as so agreed or determined shall be the Kemira
Completion Accounts for the purposes of this agreement and shall be final and binding
on the parties; and

	 
	 	(b)	 	the Kemira Completion Working Capital Amount shall be as set out in the
Kemira Completion Accounts.

	2.7	 	Subject to any rule of law or any regulatory body or any provision of any contract or
arrangement entered into prior to the date of this agreement to the contrary, Kemira shall
procure that each member of the Kemira Group shall, and JVCo shall procure that each Kemira
Company shall, promptly provide each other, their respective advisers, the firm, JVCo’s
accountants and Kemira’s accountants with all information (in their respective possession or
control) relating to the operations of the Kemira Group and/or the Kemira
Companies, as the case may be, including access at all reasonable times to all relevant
employees, books, records, and other relevant information and all co-operation and
assistance, as may in any such case be reasonably required to:

	 	(a)	 	enable the production of the Kemira Completion Accounts; and

	 
	 	(b)	 	enable the firm to determine the Kemira Completion Accounts.

 

105

 

Kemira and JVCo hereby authorise each other, their respective advisers and the firm to take
copies of all information which they have agreed to provide under this paragraph 2.7.

	2.8	 	Subject to paragraph 2.5(e), Kemira and JVCo shall each bear their own costs and expenses
arising out of the preparation and review of the Kemira Completion Accounts.

	 
	3.	 	ADDITIONAL TRADE CREDITORS

	 
	 	 	JVCo may prior to the Reference Date notify Kemira of any Kemira Additional Trade
Creditors, setting out reasonable details thereof which demonstrate that any such amount is
an outstanding liability of the Kemira Companies at Completion, and Kemira shall notify
JVCo in writing within 10 Business Days of receipt of any such notice whether or not it
accepts such notice, and if Kemira notifies JVCo that it does not accept such notice, the
procedures set out in paragraphs 2.3 to 2.8 (inclusive) of this schedule shall apply save
that references therein to Kemira Completion Accounts shall be replaced with references to
the notice of Kemira Additional Trade Creditors and references to the Kemira Working
Capital Amount shall be replaced with the amount of Kemira Additional Trade Creditors.

	 
	4.	 	PAYMENTS AND INTEREST

	 
	4.1	 	If the Kemira Completion Working Capital Amount is less than the Kemira Estimated Completion
Working Capital Amount then Kemira shall pay to JVCo the amount of such shortfall on the
Adjustment Payment Date.

	 
	4.2	 	If the Kemira Completion Working Capital Amount is more than the Kemira Estimated Completion
Working Capital Amount then JVCo shall pay to Kemira the amount of such excess on the
Adjustment Payment Date.

	 
	4.3	 	Kemira shall pay to JVCo a sum equal to the amount of any Kemira Additional Trade Creditors
within five Business Days of the agreement or determination of such amount.

	 
	4.4	 	Any Adjustment Payment shall include interest at the Agreed Rate from 1 October 2007 until
the Adjustment Payment Date (inclusive) and interest at the Default Rate from the day
following the Adjustment Payment Date until the date of actual payment (inclusive).

	 
	4.5	 	Any payment due under this paragraph 4 shall be made by way of telegraphic transfer in
immediately available funds to:

	 	(a)	 	in the case of payments to JVCo, JVCo’s Account; and

	 
	 	(b)	 	in the case of payments to Kemira, Kemira’s Account.

 

106

 

Part II – Pro Forma Kemira Completion Accounts

	 	 	 	 	 	 	 
	Cash

	 	 	 	 	 	l
	 
	 	 	 	 	 	 
	Trade accounts receivable	 	– from the Kemira Group	 	l
	 
	 	 	 	 	 	 
	 

	 	 	 	– from third parties
	 	l
	 
	 	 	 	 	 	 
	Stock

	 	– Finished Goods
	 	 	 	l
	 
	 	 	 	 	 	 
	 	 	– Raw materials and supplies	 	l
	 
	 	 	 	 	 	 
	 

	 	– Replacement parts
	 	 	 	l
	 
	 	 	 	 	 	 
	Other current assets	 	l
	 
	 	 	 	 	 	 
	Total current assets (A)	 	l
	 
	 	 	 	 	 	 
	Trade accounts payable	 	– to the Kemira Group	 	l
	 
	 	 	 	 	 	 
	 

	 	 	 	– to third parties
	 	l
	 
	 	 	 	 	 	 
	Accrued expenses	 	l
	 
	 	 	 	 	 	 
	Bank overdrafts	 	l
	 
	 	 	 	 	 	 
	Other current liabilities (including, for the avoidance of doubt, any Liability to Tax)	 	l
	 
	 	 	 	 	 	 
	Total current liabilities	 	l
	 
	 	 	 	 	 	 
	Third Party Kemira Debt	 	l
	 
	 	 	 	 	 	 
	Total current liabilities and Third Party Kemira Debt (B)	 	l
	 
	 	 	 	 	 	 
	Kemira Completion Working Capital Amount (C) (A-B)	 	l
	 
	 	 	 	 	 	 
	Kemira Estimated Completion Working Capital Amount (D)	 	l
	 
	 	 	 	 	 	 
	Working Capital Amount due to (from) Kemira (C-D)	 	l

107

 

Part III – Accounting Policies and Procedures for the Kemira Completion Accounts

	1.	GENERAL REQUIREMENTS

	 
	 	The Kemira Completion Accounts shall:

	 	(a)	 	be prepared using accounting policies consistent with those used in
completion of the Kemira Accounts and in accordance with UK GAAP;

	 
	 	(b)	 	be prepared as if the period beginning with 1 January 2007 and ending on 30
September 2007 was a financial year of each of the Kemira Companies and as if an
accounting period for the purposes of section 12 of the TA had ended at close of
business on the JVCo Accounts Date;

	 
	 	(c)	 	make appropriate provisions for all unprovided pension contributions due by
any of the Kemira Companies in respect of the period up to close of business on the
JVCo Accounts Date at the rate then in force (but, for the avoidance of doubt, no
other provision shall be made for any liabilities under any Disclosed Scheme or Former
Scheme (as defined in paragraph 19 of schedule 6));

	 
	 	(d)	 	exclude any asset or liability of the Kemira Companies which is the subject
of clauses 11.3 and 11.4;

	 
	 	(e)	 	exclude any liability the subject of the release referred to in paragraph
1.12 of schedule 1;

	 
	 	(f)	 	not re-appraise the value of any of the assets of the Kemira Companies solely
as a result of the change in ownership of the share capital of the Kemira Companies
(or any changes in the business of any of the Kemira Companies since Completion
following such change in ownership);

	 
	 	(g)	 	with respect to inventory items, quantities shall be determined as of close
of business on the JVCo Accounts Date pursuant to a physical count of inventory
performed by such of JVCo (or its agents). Representatives from Terra shall have the
right to observe such physical count of inventory; and

	 
	 	(h)	 	include an amount added back that is equal to any Kemira Companies Leakage.

 

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SCHEDULE 15

Terra Working Capital and Debt

Part I – Adjustments

	1.	 	DEFINITIONS

	 
	 	 	“Adjustment Payment” means any amount due pursuant to paragraph 4;

	 
	 	 	“Adjustment Payment Date” means the date which is the later of (i) 30 November 2007 and
(ii) the date five Business Days following the agreement or determination of the Terra
Completion Accounts in accordance with the provisions of paragraph 2;

	 
	 	 	“Agreed Rate” means one per cent. above the base rate from time to time of Barclays Bank
plc;

	 
	 	 	“Cash” means:

	 	(a)	 	cash in hand or credited to any account with a financial institution on the
basis that full withdrawal may be made at any time on not more than seven days’
notice; and

	 
	 	(b)	 	securities with a maturity of less than one year which are readily
convertible into cash and provided that the value which shall be attributed to such
securities shall be after deduction of any costs (including charges and costs levied
in respect of early redemption), expenses or taxes which would be incurred on or by
such conversion;

“Default Rate” means three per cent. above the base rate from time to time of Barclays Bank
plc;

“firm” shall bear the meaning given to such term in paragraph 2.5;

“JVCo’s Account” means such account in the name of JVCo as JVCo shall notify to Terra;

“Reference Date” means the later of (a) the Business Day first following the date on which
the Terra Completion Accounts are agreed or determined pursuant to this schedule and (b)
the Business Day first following the date 90 days after the JVCo Accounts Date;

“Terra Additional Trade Creditors” means any trade and sundry creditors of the Terra
Company (excluding Terra Intra-Group Payables) owed by the Terra Company at close of
business on the JVCo Accounts Date to the extent not included (for whatever reason) in the
Terra Completion Accounts;

“Terra Completion Accounts” means a document in the format set out in part 2 of this
schedule to be prepared in accordance with paragraph 2 and on the basis of the accounting
policies and procedures set out in part III of this schedule;

“Terra Completion Working Capital Amount” means:

	 	•	 	the aggregate value of those assets of the Terra Company comprised in the balance
sheet categories set out in part 2 of this schedule; less

	 
	 	•	 	the aggregate value of those liabilities of the Terra Company comprised in the
balance sheet categories set out in part 2 of this schedule,

in each case, as at the close of business on the JVCo Accounts Date and calculated in
accordance with paragraph 2 and on the basis of the accounting policies and procedures set
out in part 3 of this schedule;

 

109

 

“Terra Estimated Completion Working Capital Amount” means £33,000,000;

“Terra’s Account” means such account in the name of Terra as Terra shall notify to JVCo;
and

“Third Party Terra Debt” means the aggregate amount of indebtedness of the Terra Company
for borrowed monies, for finance leases from banks or similar institutions, overdrafts and
any guarantee, counter-indemnity, letter of credit, indemnity, performance bonds or similar
assurance against the financial loss of any other person (excluding Terra Intra-Group
Payables) as at close of business on the JVCo Accounts Date (including in each case accrued
interest and penalties thereon and including any break fees required to be incurred in
relation to the termination of a facility), as set out in the Terra Completion Accounts and
calculated on the basis of the accounting policies and procedures set out in part 3 of this
schedule.

	2.	 	TERRA COMPLETION ACCOUNTS

	 
	2.1	 	JVCo shall procure that the Terra Company prepares drafts of the Terra Completion Accounts,
on the basis of the accounting policies and procedures set out in part III of this schedule
and shall deliver them to Terra within 30 Business Days of the JVCo Accounts Date.

	 
	2.2	 	Terra shall notify JVCo in writing within 30 Business Days of receipt of such draft Terra
Completion Accounts whether or not it accepts the draft Terra Completion Accounts for the
purposes of this agreement.

	 
	2.3	 	If Terra notifies JVCo that it does not accept such draft Terra Completion Accounts:

	 	(a)	 	it shall, at the same time as it notifies JVCo that it does not accept such
draft Terra Completion Accounts, set out in such notice in writing its reasons for
such non-acceptance and specify the adjustments which, in its opinion, should be made
to the draft Terra Completion Accounts in order to comply with the requirements of
this agreement; and

	 
	 	(b)	 	JVCo and Terra shall use all reasonable endeavours to:

	 	(i)	 	meet and discuss the objections of Terra; and

	 
	 	(ii)	 	try to reach agreement upon the adjustments (if any) required
to be made to the draft Terra Completion Accounts

	 	in each case, within 20 Business Days of Terra’s notice of non-acceptance pursuant
to paragraph 2.2 (or such other time as the parties may agree in writing).

	2.4	 	If Terra is satisfied with the draft Terra Completion Accounts (either as originally
submitted or after adjustments agreed between Terra and JVCo) or if Terra fails to notify JVCo
of its non-acceptance of the draft Terra Completion Accounts within the 30 Business Day period
referred to in paragraph 2.2, then the draft Terra Completion Accounts (incorporating any
agreed adjustments) shall constitute the Terra Completion Accounts for the purposes of this
agreement.

	 
	2.5	 	If Terra and JVCo do not reach agreement within the 20 Business Day period referred to in
paragraph 2.3(b) (or such other time as the parties may agree in writing) then the matters in
dispute and in respect of which full details have been provided by Terra to JVCo at the time
that it notified JVCo that it does not accept the Terra Completion Accounts in accordance with
paragraph 2.3(a) (and only those) shall be referred, on the application of either Terra or
JVCo, for determination by an independent firm of internationally recognised chartered
accountants to be agreed upon by Terra and JVCo or, failing agreement, to be selected, on the
application of either Terra or JVCo, by the President for
the time being of the Institute of Chartered Accountants in England and Wales or his duly
appointed deputy (the “firm”). The following provisions shall apply to such determination:

 

110

 

	 	(a)	 	JVCo and/or JVCo’s accountants and Terra and/or Terra’s accountants shall
each promptly (and in any event within such time frame as reasonably enables the firm
to make its decision in accordance with the time frame set down in this paragraph 2.5)
prepare and deliver to the firm a written statement on the matters in dispute
(together with the relevant documents);

	 
	 	(b)	 	the firm shall be requested to give its decision within 20 Business Days (or
such later date as the firm determines) of the confirmation and acknowledgment by the
firm of its appointment hereunder;

	 
	 	(c)	 	in giving such determination, the firm shall state what adjustments (if any)
are necessary to the draft Terra Completion Accounts in respect of the matters in
dispute in order to comply with the requirements of this agreement and shall give its
reasons therefor;

	 
	 	(d)	 	the firm shall act as an expert (and not as an arbitrator) in making any such
determination which shall be final and binding on the parties (in the absence of
manifest error);

	 
	 	(e)	 	each party shall bear the costs and expenses of all counsel and other
advisers, witnesses and employees retained by it and the costs and the expenses of the
firm shall be borne between Terra and JVCo in such proportions as the firm shall in
its discretion determine or, in the absence of any such determination, equally between
Terra and JVCo.

	2.6	 	When Terra and JVCo reach (or pursuant to paragraph 2.4 are deemed to reach) agreement on the
Terra Completion Accounts or when the Terra Completion Accounts are finally determined at any
stage in accordance with the procedures set out in this paragraph 2:

	 	(a)	 	the Terra Completion Accounts as so agreed or determined shall be the Terra
Completion Accounts for the purposes of this agreement and shall be final and binding
on the parties; and

	 
	 	(b)	 	the Terra Completion Working Capital Amount shall be as set out in the Terra
Completion Accounts.

	2.7	 	Subject to any rule of law or any regulatory body or any provision of any contract or
arrangement entered into prior to the date of this agreement to the contrary, Terra shall
procure that each member of the Terra Group shall, and JVCo shall procure that each Terra
Company shall, promptly provide each other, their respective advisers, the firm, JVCo’s
accountants and Terra’s accountants with all information (in their respective possession or
control) relating to the operations of the Terra Group and/or the Terra Company, as the case
may be, including access at all reasonable times to all relevant employees, books, records,
and other relevant information and all co-operation and assistance, as may in any such case be
reasonably required to:

	 	(a)	 	enable the production of the Terra Completion Accounts; and

	 
	 	(b)	 	enable the firm to determine the Terra Completion Accounts.

Terra and JVCo hereby authorise each other, their respective advisers and the firm to take
copies of all information which they have agreed to provide under this paragraph 2.7.

 

111

 

	2.8	 	Subject to paragraph 2.5(e), Terra and JVCo shall each bear their own costs and expenses
arising out of the preparation and review of the Terra Completion Accounts.

	 
	3.	 	ADDITIONAL TRADE CREDITORS

	 
	 	 	JVCo may prior to the Reference Date notify Terra of any Terra Additional Trade Creditors,
setting out reasonable details thereof which demonstrate that any such amount is an
outstanding liability of the Terra Company at close of business on the JVCo Accounts Date,
and Terra shall notify JVCo in writing within 10 Business Days of receipt of any such
notice whether or not it accepts such notice, and if Terra notifies JVCo that it does not
accept such notice, the procedures set out in paragraphs 2.3 to 2.8 (inclusive) of this
schedule shall apply save that references therein to Terra Completion Accounts shall be
replaced with references to the notice of Terra Additional Trade Creditors and references
to the Terra Working Capital Amount shall be replaced with the amount of Terra Additional
Trade Creditors.

	 
	4.	 	PAYMENTS AND INTEREST

	 
	4.1	 	If the Terra Completion Working Capital Amount is less than the Terra Estimated Completion
Working Capital Amount then Terra shall pay to JVCo the amount of such shortfall on the
Adjustment Payment Date.

	 
	4.2	 	If the Terra Completion Working Capital Amount is more than the Terra Estimated Completion
Working Capital Amount then JVCo shall pay to Terra the amount of such excess on the
Adjustment Payment Date.

	 
	4.3	 	Terra shall pay to JVCo a sum equal to the amount of any Terra Additional Trade Creditors
within five Business Days of the agreement or determination of such amount.

	 
	4.4	 	Any Adjustment Payment shall include interest at the Agreed Rate from 1 October 2007 until
the Adjustment Payment Date (inclusive) and interest at the Default Rate from the day
following the Adjustment Payment Date until the date of actual payment (inclusive).

	 
	4.5	 	Any payment due under this paragraph 4 shall be made by way of telegraphic transfer in
immediately available funds to:

	 	(a)	 	in the case of payments to JVCo, JVCo’s Account; and

	 
	 	(b)	 	in the case of payments to Terra, Terra’s Account.

 

112

 

Part II – Pro Forma Terra Completion Accounts

	 	 	 	 	 	 	 
	Cash

	 	 	 	 	 	l
	 
	Trade accounts receivable	 	– from the Terra Group	 	l
	 
	 

	 	 	 	–  from third parties
	 	l
	 
	Stock	 	–  Finished Goods	 	l
	 
	 	 	–  Raw materials and supplies	 	l
	 
	 	 	–  Replacement parts	 	l
	 
	Other current assets	 	l
	 
	Total current assets (A)	 	l
	 
	Trade accounts payable	 	–  to the Terra Group	 	l
	 
	 

	 	 	 	–  to third parties
	 	l
	 
	Accrued expenses	 	l
	 
	Bank overdrafts	 	l
	 
	Other current liabilities (including, for the avoidance of doubt, any Liability
to Tax)	 	l
	 
	Total current liabilities	 	l
	 
	Third Party Terra Debt	 	l
	 
	Total current liabilities and Third Party Terra Debt (B)	 	l
	 
	Terra Completion Working Capital Amount (C) (A-B)	 	l
	 
	Terra Estimated Completion Working Capital Amount (D)	 	l
	 
	Working Capital Amount due to (from) Terra (C-D)	 	l

 

113

 

Part III – Accounting Policies and Procedures for the Terra Completion Accounts

	1.	 	GENERAL REQUIREMENTS

The Terra Completion Accounts shall:

	 	(a)	 	be prepared using accounting policies consistent with those used in
completion of the Terra Accounts and in accordance with UK GAAP;

	 
	 	(b)	 	be prepared as if the period beginning with 1 January 2007 and ending on 30
September 2007 was a financial year of each of the Terra Company and as if an
accounting period for the purposes of section 12 of the TA had ended on Completion;

	 
	 	(c)	 	make appropriate provisions for all unprovided pension contributions due by
the Terra Company in respect of the period up to close of business on the JVCo
Accounts Date at the rate then in force (but, for the avoidance of doubt, no other
provision shall be made for any liabilities under any Disclosed Schemes or Former
Scheme (as defined in paragraph 19 of schedule 7));

	 
	 	(d)	 	exclude any asset or liability of the Terra Company which is the subject of
clauses 12.3 and 12.4;

	 
	 	(e)	 	exclude any liability the subject of the release referred to in paragraph
1.12 of schedule 2;

	 
	 	(f)	 	not re-appraise the value of any of the assets of the Terra Company solely as
a result of the change in ownership of the share capital of the Terra Company (or any
changes in the business of the Terra Company since Completion following such change in
ownership);

	 
	 	(g)	 	with respect to inventory items, quantities shall be determined as of close
of business on the JVCo Accounts Date pursuant to a physical count of inventory
performed by such of JVCo (or its agents). Representatives from Kemira shall have the
right to observe such physical count of inventory;

	 
	 	(h)	 	include an amount added back that is equal to any Terra Company Leakage; and

	 
	 	(i)	 	include an amount added back that is equal to any amount paid, or any
provision made or other liability accounted for, in connection with any redundancies
or proposed redundancies of any employees of the Terra Company announced or proposed
on or after the date of this agreement.

 

114

 

SCHEDULE 16

Documents in Agreed Terms

	1.	 	Shareholders’ Agreement

	 
	2.	 	Business Plan

	 
	3.	 	Kemira deed of release (schedule 1)

	 
	4.	 	Terra deed of release (schedule 2)

	 
	5.	 	GrowHow Trade Mark Licence Agreement

	 
	6.	 	Terra Trade Mark Licence Agreement

	 
	7.	 	Kemira Parental Services Agreement

	 
	8.	 	Terra Parental Services Agreement

	 
	9.	 	Kemira director resignations

	 
	10.	 	Terra director and secretary resignations

	 
	11.	 	JVCo board resolutions (clause 3.5)

	 
	12.	 	Budget

	 
	13.	 	Press Announcement

	 
	14.	 	Kemira Disclosure Letter and Terra Disclosure Letter

	 
	15.	 	Kemira IT Separation Agreement

 

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SCHEDULE 17

Kemira Tax Deed

	1.	 	INTERPRETATION

	 
	1.1	 	Subject to paragraph 1.2 below and unless the context otherwise indicates, words, expressions
and abbreviations defined in clause 1.1 of the agreement shall have the same meanings in this
schedule.

	 
	1.2	 	The following words, expressions and abbreviations used in this schedule shall, unless the
context otherwise requires, have the following meanings:

	 
	 	 	“Actual Tax Liability” includes any liability of the Company to make an actual payment of
Tax, or in respect of Tax (including in relation to a group payment arrangement entered
into in accordance with section 36 of the FA 1998), in which case the amount of the Tax
Liability shall be the amount of the actual payment;

	 
	 	 	“Buyer” means JVCo;

	 
	 	 	“Buyer’s Group” means the Buyer, the Kemira Companies and the Terra Company;

	 
	 	 	“Buyer’s Relief” means any Kemira Completion Accounts Relief;

	 
	 	 	“Claim for Tax” means:

	 	(a)	 	any claim, assessment, demand, notice, determination or other document issued
or action taken by or on behalf of any Taxation Authority or any other person by
virtue of which the Company has or may have a Tax Liability; and/or

	 
	 	(b)	 	any self-assessment made by the Company in respect of any Tax Liability which
it considers that it is or may become liable to pay;

	 	 	“Company” means any one of the Kemira Companies;

	 
	 	 	“Covenantor” means Kemira;

	 
	 	 	“Covenantor’s Group” means Kemira, its holding companies and other subsidiary undertakings
and associated companies from time to time of such holding companies (but excluding the
Company), all of them and each of them as the context admits;

	 
	 	 	“Deemed Tax Liability” includes:

	 	(a)	 	the loss, non-availability or reduction of any Kemira Completion Accounts
Relief other than a right to a repayment of Tax, in which case the amount of the
Deemed Tax Liability shall be the amount of Tax paid by the Company which would not
have been paid but for such loss, non-availability or reduction;

	 
	 	(b)	 	the loss, non-availability or reduction of any Kemira Completion Accounts
Relief which is a right to a repayment of Tax, in which case the amount of the Deemed
Tax Liability shall be the amount shown in the Kemira Completion Accounts as the value
of such repayment; and

	 
	 	(c)	 	the utilisation or set-off of a Buyer’s Relief available to the Company
against any Actual Tax Liability or against any income, profits or gains where, but
for such setting off, the Buyer would have been entitled to make a claim under this
schedule (ignoring for these purposes any financial limitations), in which case the
amount of the Deemed Tax Liability shall be equal to the amount which would have been
payable in the absence of that or any other Buyer’s Relief;

 

116

 

	 	 	“income, profits or gains” includes any other measure by reference to which Tax is
computed;

	 
	 	 	“Kemira Completion Accounts Relief” means any Relief to the extent that the same has either
been shown as an asset of the Company in the Kemira Completion Accounts or been taken into
account in computing, and so reducing or extinguishing any provision for Tax which appears,
or would otherwise have appeared, in the Kemira Completion Accounts;

	 
	 	 	“Relevant Event” means every event, act, omission, default, occurrence, circumstance,
transaction, dealing or arrangement of any kind whatsoever done or omitted to be done by
the Covenantor or the Company or which in any way concerns or affects the Company whether
or not done or omitted to be done by the Company or the Covenantor;

	 
	 	 	“Relief” means any allowance, credit, exemption, deduction or relief from, in computing,
against or in respect of Tax or any right to the repayment of Tax; and

	 
	 	 	“Tax Liability” means an Actual Tax Liability or a Deemed Tax Liability.

	 
	1.3	 	References to income, profits or gains being earned, accrued or received before a particular
date shall include income, profits or gains deemed or treated as earned, accrued or received
prior thereto.

	 
	1.4	 	For the purposes of this schedule, and in particular for determining to what extent any
liability for Tax arises in respect of or by reference to any income, profits or gains earned,
accrued or received on or before Completion or otherwise relates to the period ending on the
date of Completion, the date of Completion shall be deemed to be an actual accounting date of
the Company for the purposes of section 12 of the TA (or its equivalent in any other
jurisdiction) and without prejudice to the generality of the foregoing:

	 	(a)	 	any Relief which would on that basis arise after the date of Completion shall
be deemed for the purposes of this schedule to be a Relief which arises in respect of
a period after Completion or in respect of any Relevant Event occurring after
Completion;

	 
	 	(b)	 	any income, profits or gains which would on that basis accrue after the date
of Completion shall be deemed for the purposes of this schedule to be income, profits
or gains earned, accrued or received after Completion;

	 
	 	(c)	 	any Relief which would on that basis arise on or before the date of
Completion shall be deemed for the purposes of this schedule to be a Relief which
arises in respect of a period on or before Completion or in respect of any Relevant
Event occurring on or before Completion; and

	 
	 	(d)	 	any income, profits or gains which would on that basis accrue on or before
the date of Completion shall be deemed for the purposes of this schedule to be income,
profits or gains earned, accrued or received on or before Completion.

	2.	 	INDEMNITY

	 
	2.1	 	Subject to paragraph 2.2, the Covenantor hereby covenants with the Buyer to pay from time to
time to the Buyer an amount equal to:

	 	(a)	 	any Actual Tax Liability which arises:

	 	(i)	 	as a consequence of one or more Relevant Events occurring or
entered into on or before Completion; or

 

117

 

	 	(ii)	 	in respect of any income, profits or gains earned, accrued or
received on or before Completion,

	 	 	 	whether or not the tax is primarily chargeable against or attributable to any other
Person;

	 
	 	(b)	 	any Deemed Tax Liability; and

	 
	 	(c)	 	any costs and expenses reasonably and properly incurred or payable in
connection with any Tax Liability which is the subject of a successful claim under
this schedule.

	2.2	 	The covenant contained in paragraph 2.1 shall not apply to any Tax Liability to the extent
that:

	 	(a)	 	it has been paid on or before Completion or that provision or reserve for the
liability to which the same relates has been made in the Kemira Completion Accounts;

	 
	 	(b)	 	it shall have arisen in consequence of any act, omission or transaction of
the Company and/or the Buyer’s Group after Completion otherwise than in the ordinary
and proper course of the business of the Company as at present carried on;

	 
	 	(c)	 	it arises as a result of or by reference to income, profits or gains actually
earned or received by or actually accrued to the Company on or before Completion and
not reflected in the Kemira Completion Accounts;

	 
	 	(d)	 	it would not have arisen or is increased as a result of any failure by the
Company or the Buyer to comply with its obligations under this schedule;

	 
	 	(e)	 	it would not have arisen but for the passing of or any change in, after the
date of this agreement, any law, rule, regulation, interpretation of the law or
administrative practice of any government, governmental department, agency or
regulatory body or an increase in the rate of Tax or any imposition of Tax not
actually or prospectively in force at the date of this agreement or any withdrawal of
any extra-statutory concession after such date;

	 
	 	(f)	 	it would not have arisen but for:

	 	(i)	 	any claim, election, surrender or disclaimer made, or notice or
consent given, or any other thing done after the date of Completion (other than
one the making, giving or doing of which was taken into account in computing
any provision or reserve for Tax in the Kemira Completion Accounts) under or in
connection with the provisions of any taxation statutes by the Buyer, the
Company or any other member of the Buyer’s Group; or

	 
	 	(ii)	 	the failure or omission by the Company to make any claim,
election, surrender or disclaimer, or give any notice or consent or do any
other thing the making, giving or doing of which was taken into account in
computing any provision or reserve for Tax in the Kemira Completion Accounts;

	 	(g)	 	it would not have arisen but for some act, omission, transaction or
arrangement carried out at the written request or with the written approval of the
Buyer prior to Completion or which is expressly authorised by this agreement;

	 
	 	(h)	 	any Relief (other than a Buyer’s Relief) is available to the Company to set
against or otherwise mitigate the Tax Liability in question or would be available on
the making of an appropriate claim;

 

118

 

	 	(i)	 	it arises as a result of any change after Completion in any accounting policy
(including the length of any accounting period for Tax purposes), any Tax or
accounting basis or practice of the Company;

	 
	 	(j)	 	the Company has satisfied such Tax Liability by receiving cash from a person
or persons other than the Buyer or any member of the Buyer’s Group;

	 
	 	(k)	 	any amount in respect of such Tax Liability has been recovered under the
Kemira Warranties or otherwise under this agreement or this schedule (or in either
case would have been so recovered but for a threshold or de minimis provision limiting
liability) or the Covenantor’s Group has made payment in respect of such Tax Liability
pursuant to sections 767A and 767AA of the TA or any other provision in the United
Kingdom or elsewhere imposing liability on the Covenantor or any member of the
Covenantor’s Group for Tax primarily chargeable against the Company; and

	 
	 	(l)	 	the liability of the Covenantor in respect thereof is limited or restricted
pursuant to the provisions of schedule 8 of this agreement.

	3.	 	TIMING

	3.1	 	Where the Covenantor becomes liable to make any payment pursuant to paragraph 2, the due date
for the making of that payment shall be the later of seven days after the date of demand
therefor and:

	 	(a)	 	insofar as the claim relates to an Actual Tax Liability, three days before
the last day on which a payment of that Tax may be made by the Company without
incurring any liability to interest and/or penalties;

	 
	 	(b)	 	insofar as the claim arises in respect of a Deemed Tax Liability:

	 	(i)	 	which relates to the loss, non-availability or reduction of a
repayment of Tax, three days before the day on which such repayment (or
increased repayment) of Tax would have been due;

	 
	 	(ii)	 	which relates to the loss, non-availability or reduction of any
Kemira Completion Accounts Relief other than a repayment of Tax, three days
before the last date on which the Company must (to avoid any charge to
interest/penalties) pay any Tax which it would not, but for such loss,
non-availability or reduction have had to pay; and

	 
	 	(iii)	 	which relates to the utilisation or set-off of a Buyer’s
Relief against any Actual Tax Liability, three days before the last date on
which the Company would, but for such utilisation or set-off, have been liable
to pay such Actual Tax Liability to avoid any charge to interest/penalties;

	 	(c)	 	insofar as the claim arises pursuant to paragraph 2.1(c), three days before
the day on which the costs and expenses fall due for payment.

	3.2	 	If any sum due under paragraph 2 is not paid by the Covenantor by the Due Date (and save to
the extent that the Buyer is compensated for such late payment by reason of its claim under
this schedule extending to penalties and interest), the same shall carry interest (from such
later date until the date of payment) at the rate of two per cent. over base rate for the time
being of Barclays Bank Plc (or in the absence of such rate at such equivalent rate as the
Buyer shall select).

 

119

 

	4.	 	RIGHT TO REIMBURSEMENTS AND CREDITS

	4.1	 	If the Buyer or the Company is or becomes entitled to recover from some other person any
amount as a result of or by reference to any Tax Liability which is likely to result or has
resulted in a payment by the Covenantor to the Buyer under this schedule, then the Buyer shall
promptly notify the Covenantor of the said entitlement and, if so required by the Covenantor
and if the Covenantor undertakes to pay all reasonable costs and expenses properly incurred by
the Buyer and the Company, shall and shall procure that the Company shall enforce that
recovery (keeping the Covenantor fully informed of progress) and shall apply the same in
accordance with paragraph 4.2.

	4.2	 	If the Buyer or the Company receives a recovery as mentioned in paragraph 4.1 or a Relief or
other benefit as a result of a Tax Liability which gives rise to a claim by the Buyer under
the terms of this schedule, then:

	 	(a)	 	where the Covenantor has previously paid any amount in respect of such Tax
Liability under this schedule, the Buyer shall promptly pay to the Covenantor an
amount equal to so much of the recovery or Relief or other benefit received (less any
Tax paid by the recipient in respect thereof) as does not exceed the amount which the
Covenantor has previously paid under this schedule (together with so much of any
interest or repayment supplement paid to the recipient of the recovery or Relief or
benefit in respect thereof as corresponds to the proportion of the recovery or Relief
or benefit accounted for under this paragraph); and

	 
	 	(b)	 	where the Covenantor has not yet paid any amount in respect of such Tax
Liability, the amount of such recovery, Relief or other benefit (less any Tax paid by
the recipient in respect thereof, but together with any interest or repayment
supplement received) shall be offset against any subsequent payment which the
Covenantor would otherwise have been liable to make.

	4.3	 	To the extent the sum recovered or Relief or benefit received (less any Tax paid by the
recipient in respect thereof, but together with any interest or repayment supplement received)
exceeds the amount which the Covenantor has previously paid under this schedule or the amount
of any subsequent payment which would otherwise have been made in respect of that Tax
Liability, then such excess shall be carried forward and set off against any future claims
made against the Covenantor under this schedule.

	5.	 	OVERPROVISIONS

	5.1	 	The Covenantor may require the auditors for the time being of the Company to certify (at the
Covenantor’s expense) the existence and amount of any overprovision and the Buyer shall
provide, or procure that the Company provides, any information or assistance reasonably
required for the purpose of production by the auditors of a certificate to that effect.

	5.2	 	If any liability contingency or provision in the Kemira Completion Accounts has proved to be
an overprovision, then the amount of such overprovision shall be dealt with in accordance with
paragraph 5.3.

	5.3	 	Where it is provided under paragraph 5.2 that any amount is to be dealt with in accordance
with this paragraph 5.3:

	 	(a)	 	the amount of the overprovision shall first be set against any payment then
due from the Covenantor under this schedule or other provision of this agreement;

	 
	 	(b)	 	to the extent there is an excess, a refund shall be made to the Covenantor of
any previous payment or payments made by the Covenantor under this schedule or other
provision of this agreement (and not previously refunded) up to the amount of the
excess; and

 

120

 

	 	(c)	 	to the extent that the excess referred to in paragraph 5.3(b) is not
exhausted under that paragraph, the remainder of that excess shall be carried forward
and set against any future payment or payments which become due from the Covenantor to
the Buyer under this schedule or other provision of this agreement.

	5.4	 	For the purposes of this paragraph an overprovision exists if:

	 	(a)	 	any liability in respect of Tax has been overstated in the Kemira Completion
Accounts, or such liability has been discharged or satisfied below the amount
attributed thereto in the Kemira Completion Accounts; or

	 
	 	(b)	 	any contingency or provision in respect of Tax in the Kemira Completion
Accounts proves to be overstated.

	6.	 	REFUNDS

	6.1	 	The Buyer shall promptly notify the Covenantor of any repayment or right to a repayment of
Tax which the Company is or becomes entitled to or receives in respect of a Relevant Event
occurring or period prior to Completion, where or to the extent that such right or repayment
was not included in the Kemira Completion Accounts as an asset (a “Refund”).

	6.2	 	Any Refund obtained (less any reasonable costs of obtaining it) shall be promptly paid by the
Buyer to the Covenantor.

	7.	 	RESISTANCE OF CLAIMS

	7.1	 	If the Buyer or the Company becomes aware of any Claim for Tax which may result in the Buyer
having a claim against the Covenantor under this schedule (or which would so result in any
such case but for the provisions of paragraph 2.2), the Buyer shall give notice to the
Covenantor in the manner provided in this agreement and in any event at least 21 days prior to
the expiry of any time limit in which an appeal against the Claim for Tax has to be made and
the Covenantor shall be entitled at its sole discretion (but after consultation with the
Buyer) to resist such Claim for Tax in the name of the Buyer or the Company or any of them but
at the expense of the Covenantor and to have the conduct of any appeal or incidental
negotiations PROVIDED THAT:

	 	(a)	 	the Buyer shall be kept informed of all relevant material matters pertaining
to the Claim for Tax; and

	 
	 	(b)	 	no material written communication pertaining to the Claim for Tax (and in
particular no proposal for or consent to any settlement or compromise thereof) shall
be transmitted to HMRC or other Taxation Authority or governmental body or authority
without the same having been submitted to and approved by the Buyer, such approval not
to be unreasonably withheld or delayed.

	7.2	 	The Buyer shall give and shall procure that the Company gives the Covenantor all reasonable
co-operation, access and assistance, technical or otherwise, for the purpose of resisting such
Claim for Tax.

	8.	 	COUNTER INDEMNITY

	8.1	 	The Buyer covenants with the Covenantor to pay to the Covenantor any liability to Tax for
which the Covenantor or any member of the Covenantor’s Group becomes liable as a result of the
failure by the Company or any member of the Buyer’s Group to discharge the same.

	8.2	 	The covenant contained in paragraph 8.1 shall:

 

121

 

	 	(a)	 	extend to all costs reasonably and properly incurred by the Covenantor or
such other person in connection with such liability to Tax under paragraph 8.1;

	 
	 	(b)	 	not apply to any liability to Tax to the extent that the Buyer could claim
payment in respect of it under paragraph 2; and

	 
	 	(c)	 	apply to any such liability to Tax arising in any jurisdiction.

	8.3	 	Paragraphs 3 and 7 of this schedule shall apply to the covenants contained in this paragraph
8 as they apply to the covenants contained in paragraph 2, replacing references to the
Covenantor by the Buyer (and vice versa) and making any other necessary modifications.

 

122

 

SCHEDULE 18

Terra Tax Deed

	1.	 	INTERPRETATION

	1.1	 	Subject to paragraph 1.2 below and unless the context otherwise indicates, words, expressions
and abbreviations defined in clause 1.1 of this agreement shall have the same meanings in this
schedule.

	1.2	 	The following words, expressions and abbreviations used in this schedule shall, unless the
context otherwise requires, have the following meanings:

	 	 	“Actual Tax Liability” includes any liability of the Company to make an actual payment of
Tax, or in respect of Tax (including in relation to a group payment arrangement entered
into in accordance with section 36 of the FA 1998), in which case the amount of the Tax
Liability shall be the amount of the actual payment;

	 
	 	 	“Buyer” means JVCo;

	 
	 	 	“Buyer’s Group” means the Buyer, the Kemira Companies and the Terra Company;

	 
	 	 	“Buyer’s Relief” means any Terra Completion Accounts Relief;

	 
	 	 	“Claim for Tax” means:

	 	(a)	 	any claim, assessment, demand, notice, determination or other document issued
or action taken by or on behalf of any Taxation Authority or any other person by
virtue of which the Company has or may have a Tax Liability; and/or

	 
	 	(b)	 	any self-assessment made by the Company in respect of any Tax Liability which
it considers that it is or may become liable to pay;

	 	 	“Company” means Terra Industries Nitrogen (UK) Limited;

	 
	 	 	“Covenantor” means Terra;

	 
	 	 	“Covenantor’s Group” means Terra, its holding companies and other subsidiary undertakings
and associated companies from time to time of such holding companies (but excluding the
Company), all of them and each of them as the context admits;

	 
	 	 	“Deemed Tax Liability” includes:

	 	(a)	 	the loss, non-availability or reduction of any Completion Accounts Relief
other than a right to a repayment of Tax, in which case the amount of the Deemed Tax
Liability shall be the amount of Tax paid by the Company which would not have been
paid but for such loss, non-availability or reduction;

	 
	 	(b)	 	the loss, non-availability or reduction of any Completion Accounts Relief
which is a right to a repayment of Tax, in which case the amount of the Deemed Tax
Liability shall be the amount shown in the Terra Completion Accounts as the value of
such repayment; and

	 
	 	(c)	 	the utilisation or set-off of a Buyer’s Relief available to the Company
against any Actual Tax Liability or against any income, profits or gains where, but
for such setting off, the Buyer would have been entitled to make a claim under this
schedule (ignoring for these purposes any financial limitations), in which case the
amount of the Deemed Tax Liability shall be equal to the amount which would have been
payable in the absence of that or any other Buyer’s Relief;

 

123

 

	 	 	“income, profits or gains” includes any other measure by reference to which Tax is
computed;

	 
	 	 	“Relevant Event” means every event, act, omission, default, occurrence, circumstance,
transaction, dealing or arrangement of any kind whatsoever done or omitted to be done by
the Covenantor or the Company or which in any way concerns or affects the Company whether
or not done or omitted to be done by the Company or the Covenantor;

	 
	 	 	“Relief” means any allowance, credit, exemption, deduction or relief from, in computing,
against or in respect of Tax or any right to the repayment of Tax;

	 
	 	 	“Tax Liability” means an Actual Tax Liability or a Deemed Tax Liability; and

	 
	 	 	“Terra Completion Accounts Relief” means any Relief to the extent that the same has either
been shown as an asset of the Company in the Terra Completion Accounts or been taken into
account in computing, and so reducing or extinguishing any provision for Tax which appears,
or would otherwise have appeared, in the Terra Completion Accounts.

	 
	1.3	 	References to income, profits or gains being earned, accrued or received before a particular
date shall include income, profits or gains deemed or treated as earned, accrued or received
prior thereto.

	 
	1.4	 	For the purposes of this schedule, and in particular for determining to what extent any
liability for Tax arises in respect of or by reference to any income, profits or gains earned,
accrued or received on or before Completion or otherwise relates to the period ending on the
date of Completion, the date of Completion shall be deemed to be an actual accounting date of
the Company for the purposes of section 12 of the TA (or its equivalent in any other
jurisdiction) and without prejudice to the generality of the foregoing:

	 	(a)	 	any Relief which would on that basis arise after the date of Completion shall
be deemed for the purposes of this schedule to be a Relief which arises in respect of
a period after Completion or in respect of any Relevant Event occurring after
Completion;

	 
	 	(b)	 	any income, profits or gains which would on that basis accrue after the date
of Completion shall be deemed for the purposes of this schedule to be income, profits
or gains earned, accrued or received after Completion;

	 
	 	(c)	 	any Relief which would on that basis arise on or before the date of
Completion shall be deemed for the purposes of this schedule to be a Relief which
arises in respect of a period on or before Completion or in respect of any Relevant
Event occurring on or before Completion; and

	 
	 	(d)	 	any income, profits or gains which would on that basis accrue on or before
the date of Completion shall be deemed for the purposes of this schedule to be income,
profits or gains earned, accrued or received on or before Completion.

	2.	 	INDEMNITY

	2.1	 	Subject to paragraph 2.2, the Covenantor hereby covenants with the Buyer to pay from time to
time to the Buyer an amount equal to:

	 	(a)	 	any Actual Tax Liability which arises:

	 	(i)	 	as a consequence of one or more Relevant Events occurring or
entered into on or before Completion; or

	 
	 	(ii)	 	in respect of any income, profits or gains earned, accrued or
received on or before Completion, whether or not the tax is primarily chargeable against or attributable to any other
Person;

 

124

 

	 	(b)	 	any Deemed Tax Liability; and

	 
	 	(c)	 	any costs and expenses reasonably and properly incurred or payable in
connection with any Tax Liability which is the subject of a successful claim under
this schedule.

	2.2	 	The covenant contained in paragraph 2.1 shall not apply to any Tax Liability to the extent
that:

	 	(a)	 	it has been paid on or before Completion or that provision or reserve for the
liability to which the same relates has been made in the Terra Completion Accounts;

	 
	 	(b)	 	it shall have arisen in consequence of any act, omission or transaction of
the Company and/or the Buyer’s Group after Completion otherwise than in the ordinary
and proper course of the business of the Company as at present carried on;

	 
	 	(c)	 	it arises as a result of or by reference to income, profits or gains actually
earned or received by or actually accrued to the Company on or before Completion and
not reflected in the Terra Completion Accounts;

	 
	 	(d)	 	it would not have arisen or is increased as a result of any failure by the
Company or the Buyer to comply with its obligations under this schedule;

	 
	 	(e)	 	it would not have arisen but for the passing of or any change in, after the
date of this agreement, any law, rule, regulation, interpretation of the law or
administrative practice of any government, governmental department, agency or
regulatory body or an increase in the rate of Tax or any imposition of Tax not
actually or prospectively in force at the date of this agreement or any withdrawal of
any extra-statutory concession after such date;

	 
	 	(f)	 	it would not have arisen but for:

	 	(i)	 	any claim, election, surrender or disclaimer made, or notice or
consent given, or any other thing done after the date of Completion (other than
one the making, giving or doing of which was taken into account in computing
any provision or reserve for Tax in the Terra Completion Accounts) under or in
connection with the provisions of any taxation statutes by the Buyer, the
Company or any other member of the Buyer’s Group; or

	 
	 	(ii)	 	the failure or omission by the Company to make any claim,
election, surrender or disclaimer, or give any notice or consent or do any
other thing the making, giving or doing of which was taken into account in
computing any provision or reserve for Tax in the Terra Completion Accounts;

	 	(g)	 	it would not have arisen but for some act, omission, transaction or
arrangement carried out at the written request or with the written approval of the
Buyer prior to Completion or which is expressly authorised by this agreement;

	 
	 	(h)	 	any Relief (other than a Buyer’s Relief) is available to the Company to set
against or otherwise mitigate the Tax Liability in question or would be available on
the making of an appropriate claim;

	 
	 	(i)	 	it arises as a result of any change after Completion in any accounting policy
(including the length of any accounting period for Tax purposes), any Tax or
accounting basis or practice of the Company;

 

125

 

	 	(j)	 	the Company has satisfied such Tax Liability by receiving cash from a person
or persons other than the Buyer or any member of the Buyer’s Group;

	 
	 	(k)	 	any amount in respect of such Tax Liability has been recovered under the
Terra Warranties or otherwise under this agreement or this schedule (or in either case
would have been so recovered but for a threshold or de minimis provision limiting
liability) or the Covenantor’s Group has made payment in respect of such Tax Liability
pursuant to sections 767A and 767AA of the TA or any other provision in the United
Kingdom or elsewhere imposing liability on the Covenantor or any member of the
Covenantor’s Group for Tax primarily chargeable against the Company; and

	 
	 	(l)	 	the liability of the Covenantor in respect thereof is limited or restricted
pursuant to the provisions of schedule 9 of this agreement.

	3.	 	TIMING

	3.1	 	Where the Covenantor becomes liable to make any payment pursuant to paragraph 2, the due date
for the making of that payment shall be the later of seven days after the date of demand
therefor and:

	 	(a)	 	insofar as the claim relates to an Actual Tax Liability, three days before
the last day on which a payment of that Tax may be made by the Company without
incurring any liability to interest and/or penalties;

	 
	 	(b)	 	insofar as the claim arises in respect of a Deemed Tax Liability:

	 	(i)	 	which relates to the loss, non-availability or reduction of a
repayment of Tax, three days before the day on which such repayment (or
increased repayment) of Tax would have been due;

	 
	 	(ii)	 	which relates to the loss, non-availability or reduction of any
Terra Completion Accounts Relief other than a repayment of Tax, three days
before the last date on which the Company must (to avoid any charge to
interest/penalties) pay any Tax which it would not, but for such loss,
non-availability or reduction have had to pay; and

	 
	 	(iii)	 	which relates to the utilisation or set-off of a Buyer’s
Relief against any Actual Tax Liability, three days before the last date on
which the Company would, but for such utilisation or set-off, have been liable
to pay such Actual Tax Liability to avoid any charge to interest/penalties;

	 	(c)	 	insofar as the claim arises pursuant to paragraph 2.1(c), three days before
the day on which the costs and expenses fall due for payment.

	3.2	 	If any sum due under paragraph 2 is not paid by the Covenantor by the Due Date (and save to
the extent that the Buyer is compensated for such late payment by reason of its claim under
this schedule extending to penalties and interest), the same shall carry interest (from such
later date until the date of payment) at the rate of two per cent. over base rate for the time
being of Barclays Bank Plc (or in the absence of such rate at such equivalent rate as the
Buyer shall select).

	4.	 	RIGHT TO REIMBURSEMENTS AND CREDITS

	4.1	 	If the Buyer or the Company is or becomes entitled to recover from some other person any
amount as a result of or by reference to any Tax Liability which is likely to result or has
resulted in a payment by the Covenantor to the Buyer under this schedule, then the Buyer shall
promptly notify the Covenantor of the said entitlement and, if so required by the Covenantor
and if the Covenantor undertakes to pay all reasonable costs and expenses properly incurred by the Buyer and the Company, shall and shall procure that the
Company shall enforce that recovery (keeping the Covenantor fully informed of progress) and
shall apply the same in accordance with paragraph 4.2.

 

126

 

	4.2	 	If the Buyer or the Company receives a recovery as mentioned in paragraph 4.1 or a Relief or
other benefit as a result of a Tax Liability which gives rise to a claim by the Buyer under
the terms of this schedule, then:

	 	(a)	 	where the Covenantor has previously paid any amount in respect of such Tax
Liability under this schedule, the Buyer shall promptly pay to the Covenantor an
amount equal to so much of the recovery or Relief or other benefit received (less any
Tax paid by the recipient in respect thereof) as does not exceed the amount which the
Covenantor has previously paid under this schedule (together with so much of any
interest or repayment supplement paid to the recipient of the recovery or Relief or
benefit in respect thereof as corresponds to the proportion of the recovery or Relief
or benefit accounted for under this paragraph); and

	 
	 	(b)	 	where the Covenantor has not yet paid any amount in respect of such Tax
Liability, the amount of such recovery, Relief or other benefit (less any Tax paid by
the recipient in respect thereof, but together with any interest or repayment
supplement received) shall be offset against any subsequent payment which the
Covenantor would otherwise have been liable to make.

	4.3	 	To the extent the sum recovered or Relief or benefit received (less any Tax paid by the
recipient in respect thereof, but together with any interest or repayment supplement received)
exceeds the amount which the Covenantor has previously paid under this schedule or the amount
of any subsequent payment which would otherwise have been made in respect of that Tax
Liability, then such excess shall be carried forward and set off against any future claims
made against the Covenantor under this schedule.

	5.	 	OVERPROVISIONS

	5.1	 	The Covenantor may require the auditors for the time being of the Company to certify (at the
Covenantor’s expense) the existence and amount of any overprovision and the Buyer shall
provide, or procure that the Company provides, any information or assistance reasonably
required for the purpose of production by the auditors of a certificate to that effect.

	5.2	 	If any liability contingency or provision in the Terra Completion Accounts has proved to be
an overprovision, then the amount of such overprovision shall be dealt with in accordance with
paragraph 5.3.

	5.3	 	Where it is provided under paragraph 5.2 that any amount is to be dealt with in accordance
with this paragraph 5.3:

	 	(a)	 	the amount of the overprovision shall first be set against any payment then
due from the Covenantor under this schedule or other provision of this agreement;

	 
	 	(b)	 	to the extent there is an excess, a refund shall be made to the Covenantor of
any previous payment or payments made by the Covenantor under this schedule or other
provision of this agreement (and not previously refunded) up to the amount of the
excess; and

	 
	 	(c)	 	to the extent that the excess referred to in paragraph 5.3(b) is not
exhausted under that paragraph, the remainder of that excess shall be carried forward
and set against any future payment or payments which become due from the Covenantor to
the Buyer under this schedule or other provision of this agreement.

 

127

 

	5.4	 	For the purposes of this paragraph an overprovision exists if:

	 	(a)	 	any liability in respect of Tax has been overstated in the Terra Completion
Accounts, or such liability has been discharged or satisfied below the amount
attributed thereto in the Terra Completion Accounts; or

	 
	 	(b)	 	any contingency or provision in respect of Tax in the Terra Completion
Accounts proves to be overstated.

	6.	 	REFUNDS

	6.1	 	The Buyer shall promptly notify the Covenantor of any repayment or right to a repayment of
Tax which the Company is or becomes entitled to or receives in respect of a Relevant Event
occurring or period prior to Completion, where or to the extent that such right or repayment
was not included in the Terra Completion Accounts as an asset (a “Refund”).

	6.2	 	Any Refund obtained (less any reasonable costs of obtaining it) shall be promptly paid by the
Buyer to the Covenantor.

	7.	 	RESISTANCE OF CLAIMS

	7.1	 	If the Buyer or the Company becomes aware of any Claim for Tax which may result in the Buyer
having a claim against the Covenantor under this schedule (or which would so result in any
such case but for the provisions of paragraph 2.2), the Buyer shall give notice to the
Covenantor in the manner provided by this agreement and in any event at least 21 days prior to
the expiry of any time limit in which an appeal against the Claim for Tax has to be made and
the Covenantor shall be entitled at its sole discretion (but after consultation with the
Buyer) to resist such Claim for Tax in the name of the Buyer or the Company or any of them but
at the expense of the Covenantor and to have the conduct of any appeal or incidental
negotiations PROVIDED THAT:

	 	(a)	 	the Buyer shall be kept informed of all relevant material matters pertaining
to the Claim for Tax; and

	 
	 	(b)	 	no material written communication pertaining to the Claim for Tax (and in
particular no proposal for or consent to any settlement or compromise thereof) shall
be transmitted to HMRC or other Taxation Authority or governmental body or authority
without the same having been submitted to and approved by the Buyer, such approval not
to be unreasonably withheld or delayed.

	7.2	 	The Buyer shall give and shall procure that the Company gives the Covenantor all reasonable
co-operation, access and assistance, technical or otherwise, for the purpose of resisting such
Claim for Tax.

	8.	 	COUNTER INDEMNITY

	8.1	 	The Buyer covenants with the Covenantor to pay to the Covenantor any liability to Tax for
which the Covenantor or any member of the Covenantor’s Group becomes liable as a result of the
failure by the Company or any member of the Buyer’s Group to discharge the same.

8.2 The covenant contained in paragraph 8.1 shall:

	 	(a)	 	extend to all costs reasonably and properly incurred by the Covenantor or
such other person in connection with such liability to Tax under paragraph 8.1;

	 
	 	(b)	 	not apply to any liability to Tax to the extent that the Buyer could claim
payment in respect of it under paragraph 2; and

	 
	 	(c)	 	apply to any such liability to Tax arising in any jurisdiction.

 

128

 

	8.3	 	Paragraphs 3 and 7 of this schedule shall apply to the covenants contained in this paragraph
8 as they apply to the covenants contained in paragraph 2, replacing references to the
Covenantor by the Buyer (and vice versa) and making any other necessary modifications.

 

129

 

	 	 	 	 	 	 	 
	Executed as a deed

	 	 	)	 	 	 
	for and on behalf of GROWHOW UK

	 	 	)	 	 	 
	LIMITED acting by two directors or one

	 	 	)	 	 	 
	director and the secretary:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Director

	 	 	 	 	 	/s/ Heikki Sirvio
	 
	 	 	 	 	 	 
	Director/Secretary

	 	 	 	 	 	/s/ Richard S. Sanders Jr.
	 
	 	 	 	 	 	 
	Executed as a deed

	 	 	)	 	 	 
	for and on behalf of TERRA INTERNATIONAL

	 	 	)	 	 	 
	(CANADA), INC. acting by two authorised

	 	 	)	 	 	 
	signatories:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Authorised signatory

	 	 	 	 	 	/s/ Michael L. Bennett
	 
	 	 	 	 	 	 
	Authorised signatory

	 	 	 	 	 	/s/ John W. Huey
	 
	 	 	 	 	 	 
	Executed as a deed

	 	 	)	 	 	 
	for and on behalf of KEMIRA GROWHOW OYJ acting

	 	 	)	 	 	 
	by its authorised signatory:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Authorised signatory

	 	 	 	 	 	/s/ Heikki Sirvio
	 
	 	 	 	 	 	 
	Executed as a deed

	 	 	)	 	 	 
	for and on behalf of TERRA INDUSTRIES INC.

	 	 	)	 	 	 
	acting by two authorised signatories:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Authorised signatory

	 	 	 	 	 	/s/ Michael L. Bennett
	 
	 	 	 	 	 	 
	Authorised signatory

	 	 	 	 	 	/s/ John W. Huey

 

130Filed by Bowne Pure Compliance

 

Exhibit 10.2

Dated 14 September 2007

Kemira GrowHow Oyj

and

Terra International (Canada), Inc.

and

Terra Industries Inc.

and

GrowHow UK Limited

SHAREHOLDERS’ AGREEMENT

Linklaters

Linklaters LLP

One Silk Street

London EC2Y 8HQ

Telephone (44-20) 7456 2000

Facsimile (44-20) 7456 2222

Ref Sarah Wiggins/Iain Wagstaff

 

 

 

This Agreement is made on 14 September 2007 between:

	(1)	 	Kemira GrowHow Oyj, whose registered office is at Mechelininkatu 1a, PO Box 900, FIN-00181,
Helsinki, Finland (“Kemira”);

	(2)	 	Terra International (Canada), Inc., whose registered office is at PO Box 1900, 161 Bickford
Line, Courtright, Ontario N0N 1H0, Canada (“Terra”);

	(3)	 	Terra Industries Inc., whose registered office is at 600 Fourth Street, PO Box 6000, Sioux
City, Iowa 51101 (the “Guarantor”); and

	(4)	 	GrowHow UK Limited, a private company incorporated in England (registration no. 6311363)
whose registered office is at Ince, Chester, CH2 4LB (the “Company”).

Recitals:

	(A)	 	Kemira and Terra have agreed to establish a joint venture company, the Company, to carry on
the Business;

	(B)	 	Kemira and the Guarantor are parties to a non-legally binding memorandum of understanding
dated 18 October 2006;

	(C)	 	Each of the parties is a party to a joint venture contribution agreement dated the date of
this Agreement (the “Contribution Agreement”), pursuant to which Kemira and Terra have each
agreed to transfer their respective UK fertiliser and industrial chemicals businesses to the
Company;

	(D)	 	The Company was incorporated in England and Wales on 12 July 2007 (registration no. 6311363).
Its financial year ends on 31 December of each year. As at the date of this Agreement it has
an authorised share capital of £20,000 divided into 200,000 ordinary shares of £0.10 each
(“Ordinary Shares”). Of the Ordinary Shares 100,000 have been designated as A Shares and
100,000 as B Shares. 10,000 A Shares have been issued at a subscription price of £0.10 per
share to Terra. 10,000 B Shares have been issued at a subscription price of £0.10 per share to
Kemira.

	(E)	 	The Shareholders have agreed to subscribe for further A Shares and B Shares on the terms and
conditions of the Contribution Agreement.

It is agreed as follows:

	1	 	Interpretation

In this Agreement (including the Recitals):

	1.1	 	Definitions

“45 Day Offer Period” has the meaning given in Clause 11.4.2(iv);

“90 Day Offer Period” has the meaning given in Clause 11.3.1(iv);

“Act” means the Companies Act 1985, as amended;

“A Director” means a director of the Company appointed by the A Shareholder in accordance
with Clause 5.1 and the Articles and “A Directors” shall be construed accordingly;

 

1

 

“agreed form” means a document in the terms agreed between the parties and signed for
identification by or on behalf of the parties with such alterations as may be agreed between
them;

“Articles” mean the articles of association of the Company in force at the date hereof;

“A Shareholder” means the registered holders of A Shares, which at the date of this
Agreement shall be Terra;

“A Shares” mean the Ordinary Shares designated upon issue as A Shares in the capital of the
Company;

“Associated Company” means, in relation to a Shareholder, any holding company, subsidiary,
subsidiary undertaking or fellow subsidiary or subsidiary undertaking or any other
subsidiaries or subsidiary undertakings of any such holding company and excludes, for the
avoidance of doubt, the Group Companies;

“Audited Accounts” mean the report and audited accounts of the Company and of each Group
Company and the audited consolidated accounts of the Group for the financial period ending
on the relevant balance sheet date;

“Auditors” mean Deloitte & Touche LLP or such other firm of Chartered Accountants appointed
as auditors of the Company from time to time;

“B Director” means a director of the Company appointed by the B Shareholder in accordance
with Clause 5.2 and the Articles and “B Directors” shall be construed accordingly;

“B Shareholder” means the registered holders of B Shares, which at the date of this
Agreement shall be Kemira GrowHow;

“B Shares” mean the Ordinary Shares designated upon issue as B Shares in the capital of the
Company;

“Balancing Consideration” means the payment to be made by the Company to Terra in accordance
with Schedule 12 of the Contribution Agreement;

“Bank Facility” has the meaning given in Clause 10.2.1;

“Board” means the board of directors of the Company or an authorised committee of the Board;

“Budget” means the budget for the Group approved from time to time by the Board;

“Business” means the business of the Company and the Group Companies within the Territory as
at the Effective Date, including those activities set out in Schedule 1 Part 1 but
excluding, for the avoidance of doubt, those activities set out in Schedule 1 Part 2;

“Business Day” means a day which is not a Saturday or Sunday or a bank or public holiday in
England and Wales, the US or Finland;

“Business Plan” means the business plan for the Group as approved by the Board from time to
time and prepared annually in respect of the forthcoming three year period, which sets out
details of the Group’s strategic planning in respect of customers (including market
development and capacity growth), capital expenditure, financing, tax, competitors and
contingency planning;

“CEDR” has the meaning given in Clause 9.1.3;

 

2

 

“CEO” means the chief executive officer of the Company from time to time;

“CFO” means the chief financial officer of the Company from time to time;

“Chairman” means the Chairman of the Board from time to time;

“Company Opportunity” has the meaning given in Clause 16.2.1;

“Continental Europe” means (i) all member states of the European Union as at the Effective
Date excluding the UK and the Republic of Ireland; and (ii) Switzerland, Bulgaria, Croatia,
the Former Yugoslav Republic of Macedonia, Romania, Turkey, Norway, Albania,
Bosnia-Herzegovina, Monaco, Montenegro, San Marino and Serbia;

“Contribution Agreement” has the meaning given in the Recitals;

“Control” means, in relation to a company or business, where a person (or persons acting in
concert) acquires or agrees to acquire or has options over direct or indirect control (1) of
the affairs of that company or business, or (2) if a company, over more than 50 per cent. of
the total voting rights conferred by all the issued shares in the capital of that company or
business which are ordinarily exercisable in general meeting or (3) if a company, of the
composition of the main board of directors of a company or business. For these purposes
“persons acting in concert”, in relation to a company or business, are persons which
actively co-operate through the acquisition by them of shares in that company or business,
pursuant to an agreement or understanding (whether formal or informal) with a view to
obtaining or consolidating control of that company or business;

“Counter Notice” has the meaning given in Clause 11.4.2;

“Deadlock Matter” has the meaning given in Clause 9.1.2;

“Deed of Adherence” means a deed in the form set out in Schedule 3;

“Default Notice” has the meaning given in Clause 12.4;

“Defaulting Shareholder” has the meaning given in Clause 12.1;

“Directors” means the A Directors and the B Directors, and “Director” means any one of them;

“Dispute Notice” has the meaning given in Clause 24.1;

“Dispute Meeting” has the meaning given in Clause 24.1;

“Effective Date” means the date of this Agreement;

“Fair Value” has the meaning given in Clause 13;

“First Offer” has the meaning given in Clause 15.2.1 or Clause 16.2.1, as applicable;

“Group” means the Company and its subsidiaries and its subsidiary undertakings and “Group
Company” means any one of them;

“GrowHow Trade Mark Licence Agreement” has the meaning given in Clause 19.1.2;

“ICTA 1988” means the Income and Corporation Taxes Act 1988;

“IFRS” means international accounting standards within the meaning of the IAS Regulation
1606/2002 to the extent applicable to the relevant financial statements;

“Initiator” has the meaning given in Clause 11.4.1;

 

3

 

“Kemira Business” means the business carried out by Kemira on the Effective Date, aside from
those activities carried out through the Company and/or any Group Company, including,
without limitation, those activities set out in Schedule 1 Part 2 and any business carried
on by Kemira following the Effective Date in compliance with the terms of this Agreement;

“LCIA Rules” has the meaning given in Clause 24.3;

“LIBOR” means the British Bankers Association Interest Settlement Rate for the offering of
deposits in Sterling for the relevant period and displayed on the appropriate page of the
Reuters screen as of 11:00 a.m., London time, on the first day of the relevant period;

“Material Breach” means a breach (including an anticipatory breach) which is serious in the
widest sense of having a serious effect on the benefit which the innocent party would
otherwise derive from this Agreement in accordance with its terms;

“Mediation Notice” has the meaning given in Clause 9.1.2;

“Non-Selling Shareholder” has the meaning given in Clause 11.3.1;

“Notice” has the meaning given in Clause 25.1;

“Ordinary Shares” has the meaning given in the Recitals;

“Parent Company” means, in relation to a Shareholder, any holding company of such
Shareholder;

“Parental Services Agreements” means the agreements dated on or about the date of this
Agreement governing services to be provided to the Company by the Shareholders comprising:

	 	(i)	 	an agreement between the Guarantor and the Company relating to the provision of
certain insurance services;

	 
	 	(ii)	 	an agreement between Kemira and the Company relating to the provision of
certain procurement services; and

	 
	 	(iii)	 	an agreement between Kemira and the Company in relation to the provision of
certain IT services;

“Permitted Condition” means a bona fide material consent, clearance, approval or permission
necessary to enable the relevant person to be able to complete a transfer of Shares under
(1) its constitutional documents (2) the rules or regulations of any stock exchange on which
it or its parent company is quoted or (3) any governmental, statutory or regulatory body in
those jurisdictions where that person carries on business;

“Purchase Acceptance” has the meaning given in Clause 11.4.3;

“Purchase Consideration” has the meaning given in Clause 11.4.1;

“Purchase Notice” has the meaning given in Clause 11.4.1;

“Purchase Terms” has the meaning given in Clause 11.4.1;

“Reserved Matters” has the meaning given in Clause 6.1;

“Responder” has the meaning given in Clause 11.4.1;

“Right” has the meaning given in Clause 27.5;

 

4

 

“Sale Consideration” has the meaning given in Clause 11.3.1;

“Sale Offer” has the meaning given in Clause 11.3.1;

“Sale Notice” has the meaning given in Clause 11.3.1;

“Sale Share” has the meaning given in Clause 12.4.1;

“Sale Terms” has the meaning given in Clause 11.3.1;

“Selling Shareholder” has the meaning given in Clause 11.3.1;

“Shareholders” mean the A Shareholder and the B Shareholder;

“Shares” mean the A Shares and the B Shares and (1) any shares issued in exchange for those
 shares or by way of conversion or reclassification and (2) any shares representing or
deriving from those shares as a result of an increase in, reorganisation or variation of the
capital of the Company;

“Sterling” and “£” means the lawful currency of for the time being of the United Kingdom;

“Strategy” means the strategy of the Shareholders in respect of the Company as set out in
Schedule 4;

“Terra Trade Mark Licence Agreement” has the meaning given in Clause 19.1.3;

“Territory” means the United Kingdom and the Republic of Ireland;

“Third Party Offer” has the meaning given in Clause 11.3.4;

“Transaction Documents” has the meaning given in the Contribution Agreement;

“Transfer Date” has the meaning given in Clause 12.5.1;

“US GAAP” means generally accepted accounting principles, standards and practices in the US;
and

“Vice Chairman” means the Vice Chairman of the Board from time to time.

	1.2	 	Interpretation Act 1978

	 
	 	 	The Interpretation Act 1978 shall apply to this Agreement in the same way as it applies to
an enactment.

	 
	1.3	 	Subordinate legislation

	 
	 	 	References to a statutory provision include any subordinate legislation made from time to
time under that provision.

	 
	1.4	 	Modification etc. of statutes

	 
	 	 	References to a statute or statutory provision include that statute or provision as from
time to time modified or re-enacted or consolidated whether before or after the date of this
Agreement.

 

5

 

	1.5	 	Companies Act 1985

	 
	 	 	The expressions “holding company” and “subsidiary” and “subsidiary undertaking” shall have
the same meanings in this Agreement as their respective definitions in the Act.

	 
	1.6	 	Clauses, Schedules etc.

	 
	 	 	References to this Agreement include any Recitals and Schedules to it and this Agreement as
from time to time amended and references to Clauses and Schedules are to Clauses of and
Schedules to this Agreement.

	 
	1.7	 	Headings

	 
	 	 	Headings shall be ignored in construing this Agreement.

	 
	1.8	 	Several liability

	 
	 	 	Where this Agreement refers to any obligation of the Shareholders to procure or ensure
compliance by the Company or the Board of obligations under this Agreement, such obligations
of the Shareholders shall be limited to procuring or ensuring compliance by the Company or
the Board in so far as the Shareholders are able in their capacity as Shareholders, and
unless otherwise stated, where any provision of the Agreement is stated to bind more than
one person, it shall bind them severally, and not jointly or jointly and severally.

	 
	1.9	 	Winding-up

	 
	 	 	References to the winding-up of a person include the amalgamation, reconstruction,
reorganisation, administration, dissolution, liquidation, merger or consolidation of such
person and any equivalent or analogous procedure under the law of any jurisdiction in which
that person is incorporated, domiciled or resident or carries on business or has assets.

	 
	1.10	 	Information

	 
	 	 	Any reference to books, records or other information means books, records or other
information in any form including paper, electronically stored data, magnetic media, film
and microfilm.

	 
	1.11	 	Analogous terms

	 
	 	 	Any reference to any English legal term or concept (including for any action, remedy, method
of judicial proceeding, document, legal status, statute, court, official governmental
authority or agency) shall, in respect of any jurisdiction other than England, be
interpreted to mean the nearest and most appropriate analogous term to the English term in
the legal language in that jurisdiction as the context reasonably requires so as to produce
as nearly as possible the same effect in relation to that jurisdiction as would be the case
in relation to England.

 

6

 

	2	 	Warranties

	 
	2.1	 	Each of the Shareholders warrants to the other that:

	 	2.1.1	 	it has the full power and authority to enter into and to perform its
obligations under this Agreement which when executed will constitute valid and binding
obligations on it in accordance with its terms;

	 
	 	2.1.2	 	the entry and delivery of, and the performance by it of this Agreement will
not result in any breach of any provision of its memorandum and articles of association
(or its equivalent constitutional documents) or result in any claim by a third party
against the other Shareholder or the Company; and

	 
	 	2.1.3	 	the Company has never traded nor incurred any liabilities or obligations of
any kind other than its paid up shares and those imposed on the Company by virtue of:

	 	(i)	 	its incorporation;

	 
	 	(ii)	 	the Contribution Agreement and any other Transaction Documents
to which it is a party; and

	 
	 	(iii)	 	any changes in its officers and constitution since its incorporation.

	3	 	Effective Date

	 
	 	 	This Agreement shall become effective on the Effective Date.

	 
	4	 	The Business of the Company

	 
	4.1	 	Conduct of the Business

	 
	 	 	The Shareholders agree that their respective rights in the Company shall be regulated by
this Agreement and the Articles. The Shareholders and the Company agree to be bound by and
comply with the provisions of this Agreement which relate to them and all provisions of the
Articles will be enforceable by the parties between themselves in whatever capacity. The
Shareholders shall:

	 	4.1.1	 	use all reasonable endeavours to promote the best interests of the Company;

	 
	 	4.1.2	 	(so far as they lawfully can) ensure that the Company performs and complies
with all of its obligations under this Agreement, the Contribution Agreement and any
other Transaction Documents to which it is a party, the Articles and all applicable
laws and regulations; and

	 
	 	4.1.3	 	ensure that the Business is conducted in accordance with sound and good
business practice and the highest ethical standards and in accordance with the
Strategy, the Business Plan and Budget.

The Company shall deal with the Shareholders on an arm’s length basis and each Shareholder
shall procure that any existing or potential conflicts of interest are brought to the
attention of the Company and the other Shareholder at the earliest opportunity.

 

7

 

	4.2	 	Promotion of the Business

	 
	 	 	The business of the Group shall be confined to the Business and such other business as is
agreed to in the Business Plan. The Company and the Shareholders shall procure that each
Group Company shall use all reasonable and proper means to maximise profit available to the
Shareholders to the extent consistent with good business practice, and in accordance with
the Business Plan. The Business Plan in the agreed form in respect of the three year period
following the Effective Date is set out in Schedule 2.

	 
	4.3	 	Head office

	 
	 	 	The head office of the Company shall be situated in the United Kingdom.

	 
	5	 	The Board and Board committees

	 
	5.1	 	A Directors

	 	5.1.1	 	The A Shareholder may appoint up to three persons as A Directors.

	 
	 	5.1.2	 	Frank Meyer, Richard Sanders Jr. and Douglas Stone are the first A Directors.

	 
	 	5.1.3	 	Any A Director may be removed by the A Shareholder in accordance with the
Articles and in such event the Shareholders shall procure that the Company promptly
removes the A Director from his position(s). The A Shareholder can appoint another A
Director in his or her place.

	5.2	 	B Directors

	 	5.2.1	 	The B Shareholder may appoint up to three persons as B Directors.

	 
	 	5.2.2	 	Heikki Sirvio, Kaj Friman and Timo Lainto are the first B Directors.

	 
	 	5.2.3	 	Any B Director may be removed by the B Shareholder in accordance with the
Articles and in such event the Shareholders shall procure that the Company promptly
removes the B Director from his position(s). The B Shareholder can appoint another B
Director in his or her place.

	5.3	 	Chairman and Vice Chairman

	 	5.3.1	 	The Chairman of the Board shall be appointed by rotation between the
Shareholders with each Shareholder in turn being able to nominate a Director for the
post for a period of 12 months in the following order or rotation: the B Shareholder
then the A Shareholder. The first Chairman shall be Heikki Sirvio. If the Chairman is
not present at any Board meeting, the Vice Chairman shall act as Chairman for the
purpose of the meeting.

	 
	 	5.3.2	 	The Vice Chairman of the Company shall be appointed by rotation between the
Shareholders with each Shareholder in turn being able to nominate a Director for the
post for a period of 12 months in the following order or rotation: The A Shareholder
then the B Shareholder. The first Vice Chairman shall be Frank Meyer.

 

8

 

	5.4	 	Alternates

	 
	 	 	Each Shareholder may appoint an alternate for each Director appointed by it.

	 
	5.5	 	Shareholder consultation and approval for appointments

	 	5.5.1	 	Neither Shareholder shall appoint a Director, a Chairman, a Vice Chairman or
an alternate under Clauses 5.1 to 5.4 inclusive without prior consultation with the
other Shareholder provided that, for the avoidance of doubt, the other Shareholder
shall have no right of veto in respect of such appointment.

	 
	 	5.5.2	 	The Shareholder who wishes to make an appointment shall take reasonable steps
to ensure that its nominee is able to perform his duties competently.

	5.6	 	CEO and CFO

	 
	 	 	The Board shall appoint the CEO and CFO. The CEO, CFO and other executive management of the
Company shall not be Directors of the Company. The CEO and CFO shall be expected to attend
and speak at Board meetings but shall not be entitled to vote. The first CEO shall be Paul
Thompson. The first CFO shall be Simon Walkington.

	 
	5.7	 	Board meetings

	 	5.7.1	 	Board meetings shall be held at least twice per year. At least 15 Business
Days’ written notice shall be given to each of the Directors of all Board meetings
(except if there are exceptional circumstances or the majority of A and B Directors
agree to shorter notice). All Board meetings shall take place in the United Kingdom.

	 
	 	5.7.2	 	Each notice of meeting shall:

	 	(i)	 	specify a reasonably detailed agenda;

	 
	 	(ii)	 	be accompanied by any relevant papers; and

	 
	 	(iii)	 	be sent by email, courier or facsimile transmission to each
Director at the address provided by such Director to the secretary of the
Company.

	 	5.7.3	 	Subject to Clause 6.3, the quorum at a Board meeting shall be one A Director
and one B Director present at the time when the relevant business is transacted. If a
quorum is not present within half an hour of the time appointed for the meeting or
ceases to be present, the Director(s) present shall adjourn the meeting to a specified
time and place no more than 5 Business Days later. Notice of the adjourned meeting
shall be given by the secretary of the Company. The quorum at any adjourned meeting
shall be one A Director and one B Director and if a quorum is not present within half
an hour of the time appointed for the adjourned meeting or ceases to be present, the
Director(s) present shall adjourn the meeting to a specified time and place no more
than 5 Business Days later. Notice of the adjourned meeting shall be given by the
secretary of the Company. The quorum at any such further adjourned meeting shall be
one A Director and one B Director and if a quorum is not present within half an hour of
the time appointed for such further adjourned meeting, or ceases to be present, the
matters proposed to be discussed at the meeting shall be deemed to not have been
agreed, and the procedures set out in Clause 9 shall apply in relation thereto.

 

9

 

	 	5.7.4	 	Board meetings shall be chaired by the Chairman or in his absence the Vice
Chairman. If the Vice Chairman is absent from any Board meeting, the Directors present
may appoint any one of their number to act as chairman for the meeting.

	 
	 	5.7.5	 	Save for in the circumstances set out in Clause 6.3, at any Board meeting
every A Director and every B Director shall have one vote. Save for in the
circumstances set out in Clause 6.3, if the number of A Directors or B Directors
present is not equal, the number of votes exercisable by the A Directors or B Directors
shall be increased so that each class of Directors can cast the same number of votes.

	 
	 	5.7.6	 	All business arising at any Board meeting shall be determined by resolution
passed by the votes cast on such resolution. The chairman of the meeting shall not be
entitled to a second or casting vote.

	 
	 	5.7.7	 	Save for in the circumstances set out in Clause 6.3, any Director may vote on
a matter and be taken into account for the purposes of a quorum even if he is
interested in that matter.

	 
	 	5.7.8	 	The Shareholders shall use their reasonable endeavours to ensure that at least
two Directors appointed by them attend Board meetings.

	5.8	 	Committees of Directors

	 	5.8.1	 	The Board may constitute committees of Directors which must include at least
one A Director and one B Director.

	 
	 	5.8.2	 	Save for in the circumstances set out in Clause 6.3, the voting and quorum for
Board committee meetings shall be one A Director and one B Director.

	 
	 	5.8.3	 	There shall be an Audit Committee which must have one A Director and one B
Director. The Audit Committee shall review the Audited Accounts and discuss with the
Auditors the accounting policies to be adopted. The first members of the Audit
Committee are Frank Meyer and Kaj Friman.

	5.9	 	Directors duties

	 
	 	 	Notwithstanding any rule of law or equity to the contrary, a Director of the Company who has
been appointed to the Board by a Shareholder pursuant to this agreement shall not be taken
to be in breach of his fiduciary duty to act in the best interests of the Company by reason
only that:

	 	5.9.1	 	in the performance of his duties and the exercise of his powers, he has regard
to the interests and acts upon the wishes of that Shareholder; unless

	 
	 	5.9.2	 	no honest and reasonable Director could have formed the view that in so doing
the Director was also promoting the interests of the Company as a whole.

	6	 	Reserved Matters

	 
	6.1	 	Reserved Matters

	 
	 	 	The Shareholders shall procure, to the extent permitted by applicable law and regulation,
that no action is taken or resolution passed by the Company or, where expressly stated, any
Group Company in respect of the following matters or their nearest equivalent in the

 

10

 

	 	 	case of a Group Company (“Reserved Matters”), without the prior approval of at least two A
Directors and two B Directors:

	 	6.1.1	 	any change to its memorandum and Articles or the articles of association of
any Group Company;

	 
	 	6.1.2	 	the appointment and removal of the Auditors;

	 
	 	6.1.3	 	any change to the accounting reference date or accounting policies of any
Group Company;

	 
	 	6.1.4	 	any corporate action, legal proceedings or other procedure or step taken by a
Group Company in relation to its winding-up or the appointment of a liquidator,
receiver, administrator, administrative receiver or any similar officer;

	 
	 	6.1.5	 	any change in the share capital of any Group Company or the creation,
allotment or issue of any shares or of any other security or the grant of any option or
rights to subscribe for or to convert any instrument into such shares or securities of
any Group Company;

	 
	 	6.1.6	 	any reduction of the share capital or variation of the rights attaching to any
class of shares or any redemption, purchase or other acquisition by any Group Company
of any shares or other securities of that company;

	 
	 	6.1.7	 	the entry into of any joint venture, partnership, consortium or other similar
arrangement by any Group Company;

	 
	 	6.1.8	 	any expansion of the Board;

	 
	 	6.1.9	 	the sale of any Group Company or of any material business operation, or of any
material interest therein any consolidation or amalgamation with any other company;

	 
	 	6.1.10	 	the cessation of any business operation;

	 
	 	6.1.11	 	any material change to the nature or geographical area of the Business or carrying on
any business other than the Business and/or any material change to the Strategy;

	 
	 	6.1.12	 	the entry into of any transaction by any Group Company with either Shareholder or any
Associated Company;

	 
	 	6.1.13	 	the acquisition of any assets or property (other than in the ordinary course of
business) by any Group Company at a total cost (per transaction) of more than £10
million;

	 
	 	6.1.14	 	the borrowing of amounts which when aggregated with all other borrowings (or
indebtedness in the nature of borrowings) would exceed £50 million, or the creation of
any charge or other security over any assets or property of any Group Company except
for the purpose of securing borrowings (or indebtedness in the nature of borrowings)
from bankers in the ordinary course of business of amounts not exceeding in the
aggregate £50 million;

	 
	 	6.1.15	 	the disposal of or dilution of the Company’s interests, directly or indirectly, in
any Group Company;

 

11

 

	 	6.1.16	 	the payment or declaration of any dividend or other distribution by the Company on
account of shares in its capital;

	 
	 	6.1.17	 	the incorporation of a new subsidiary undertaking or the acquisition of any share
capital or other securities of any body corporate, other than of a Group Company;

	 
	 	6.1.18	 	the giving of any guarantee or indemnity by any Group Company other than in the
normal course of its business;

	 
	 	6.1.19	 	the making of any loan or advance by any Group Company to any person, firm, body
corporate or other business, other than to a Group Company other than in the normal
course of business and on an arms’ length basis;

	 
	 	6.1.20	 	the timing, amount and terms of any further funding to be provided by the
Shareholders to the Company;

	 
	 	6.1.21	 	the introduction of any new Shareholders to the Company;

	 
	 	6.1.22	 	any decision of the Company to accept a First Offer under Clause 15.2.2 of this
Agreement; and

	 
	 	6.1.23	 	the payment of any Excess Cash to Terra pursuant to Schedule 12 of the Contribution
Agreement.

	6.2	 	Related transactions

	 
	 	 	A series of related transactions shall be construed as a single transaction, and any amounts
involved in the related transactions shall be aggregated, to determine whether a matter is a
Reserved Matter.

	 
	6.3	 	Conflict situations

	 
	 	 	If any matter (other than any decision falling under clause 6.1.23) to be considered or
voted upon at a Board meeting relates to:

	 	6.3.1	 	the Company or any Group Company exercising or enforcing rights or taking
action against a Shareholder or any of its Associated Companies;

	 
	 	6.3.2	 	responding to any exercise or enforcement of rights or action taken by a
Shareholder or any of its Associated Companies against the Company or any Group Company
in relation to any matter; or

	 
	 	6.3.3	 	the entry into any agreement or arrangement by the Company or any Group
Company with any Shareholder or its Associated Companies (or amending or terminating
any such agreement or arrangement),

	 	 	then that matter shall be considered at a separate meeting or meetings of the Board, and the
Directors appointed by the relevant Shareholder shall not be entitled to:

	 	(i)	 	attend or participate in any Board discussion of that matter;

	 
	 	(ii)	 	receive advice received by the Company on such matter; or

	 
	 	(iii)	 	vote (or be counted in the quorum at a meeting) in relation to
such matter.

	 	 	and any related Board meeting shall not be inquorate by virtue of any such Directors being
prevented by this Clause 6.3 from attending.

 

12

 

	6.4	 	Parental Services

	 
	 	 	The parties shall enter into the agreed form Parental Services Agreements on the Effective
Date which shall provide for the provision by the Shareholders of certain services to the
Company. Any parental services provided to the Company shall be subject to the agreement of
the Board in accordance with the provisions of this Agreement, if the Board determine that
using such services is in the best interests of the Company. The parties acknowledge that it
may be beneficial for the Company to receive further services from a Shareholder in the
future.

	 
	7	 	Budgets and financial information

	 
	7.1	 	Information to be prepared

	 
	 	 	The Company shall prepare and submit to the Board and the Shareholders the following
information as soon as possible and no later than the dates/times set out below:

	 	7.1.1	 	the unaudited results of the Company and all Group Companies for the previous
financial year within 10 Business Days of the end of each financial year;

	 
	 	7.1.2	 	Audited Accounts within one month of the end of each financial year;

	 
	 	7.1.3	 	a draft Business Plan for the Group for the following three year period two
months before the end of each financial year;

	 
	 	7.1.4	 	a detailed draft Budget for the Group for the following financial year two
months before the end of each financial year (including estimated major items of
revenue and capital expenditure). The Budget shall be broken down on a monthly basis,
shall contain a cash flow forecast and a balance sheet showing the projected position
of the Group as at the end of the following financial year;

	 
	 	7.1.5	 	monthly unaudited management accounts for the Group including (i) a detailed
profit and loss account, balance sheet and cash flow statement; and (ii) a review of
the Budget including a reconciliation of results with revenue and capital budgets,
within 10 Business Days of the end of each month;

	 
	 	7.1.6	 	quarterly unaudited management accounts for the Group including (i) a detailed
profit and loss account, balance sheet and cash flow statement and cash flow forecast
for the next twelve months (ii) an analysis of subscriptions and other revenue and
(iii) a review of the Budget including a reconciliation of results with revenue and
capital budgets and (iv) a statement of the source and application of funds, within 20
Business Days of the end of each quarter;

	 
	 	7.1.7	 	such further information relating to any Group Company as any Shareholder (or
any member of its group) requires, in the form and within the reasonable time periods
notified in writing by that Shareholder to the Company, to comply with applicable tax,
regulatory, listing or accounting reporting requirements and any enquiries from tax
authorities; and

	 
	 	7.1.8	 	such further information as any Shareholder may reasonably require relating to
the Business or financial condition of the Company or of any Group Company.

	 	 	All financial information provided to a Shareholder in accordance with this Clause shall be
provided in accordance with IFRS with a reconciliation to US GAAP if required by Terra.

 

13

 

	7.2	 	Approval of Budgets and Business Plans

	 
	 	 	The Board shall be responsible for approving the Business Plan and Budget. The Business Plan
shall be approved annually by the Board and a draft shall be prepared at least two months
before the end of each financial year.

	 
	 	 	The Shareholders shall procure that the Board shall approve the draft Budget and Business
Plan within 20 Business Days of receiving them, subject to such amendments as the Board
determines to be appropriate. The Shareholders shall procure that the Board shall review the
Budget regularly.

	 
	8	 	Distribution policy

	 
	8.1	 	Distribution of profit

	 	8.1.1	 	The annual general meeting of the Company at which Audited Accounts are laid
before the Shareholders must be held not later than three months after the end of the
relevant financial year.

	 
	 	8.1.2	 	The Auditors shall be instructed to report (at the expense of the Company) the
amount of the profits available for distribution by the Company at the same time as
they sign their report on the Audited Accounts.

	 
	 	8.1.3	 	The Board shall determine the distribution policy of the Company and the
Company shall distribute to the Shareholders such percentage of the Company’s profits
lawfully available for distribution in each financial year, as the Board determines and
having regard to paragraph 8.1.4 below.

	 
	 	8.1.4	 	In determining the Company’s distribution policy the Board shall have regard
to the following principles: (i) the Company shall distribute cash available on a
regular basis save to the extent that, in the Board’s opinion, the profits are required
to be retained by the Company or invested in the Group; (ii) no distribution shall be
made to Shareholders until the Balancing Consideration has been paid; and (iii) the
Board shall consider tax efficient methods of distributing profit and seek to
distribute such profit to Shareholders in a tax efficient way.

	 
	 	8.1.5	 	To the extent that the Company is restricted from paying a dividend which has
been agreed upon by both Shareholders as a consequence of having insufficient
distributable reserves, but a subsidiary of the Company has available distributable
reserves, the Company shall take all reasonable steps to maximise profits available for
distribution by the Company including, without limitation, procuring the payment of
such dividends by a subsidiary to enable the Company to pay the dividend.

	8.2	 	Conditions for distribution of profit

	 
	 	 	Distribution of profits in accordance with this Clause may not be made if the distribution
would result in:

	 	8.2.1	 	a breach of any covenant or undertaking given by the Company to any lender; or

	 
	 	8.2.2	 	the Company breaching any applicable legal obligations, under the Act or
otherwise, with regard to maintenance of capital,

 

14

 

	 	 	or would, in the opinion of the Board, be likely to do so within the 12 months following any
such distribution. Any distribution of profits shall be determined in accordance with
Clause 6 of this Agreement.

	 
	9	 	Deadlock

	 
	9.1	 	Escalation

	 	9.1.1	 	If the Board cannot reach agreement on any resolution before it within 10
Business Days of such resolution first being tabled at the Board meeting or two
consecutive Board meetings have been dissolved because a quorum is not present, the
subject of any such resolution before them shall be referred immediately to the
Shareholders’ respective chief executive officers.

	 
	 	9.1.2	 	If the Shareholders’ respective chief executive officers cannot reach
agreement on any matter referred to them under Clause 9.1.1 within 20 Business Days of
that matter being referred to them (a “Deadlock Matter”), either party may serve on the
other a notice requiring the Deadlock Matter to be referred to mediation (the
“Mediation Notice”) the Shareholders shall refer the Deadlock Matter to mediation in
accordance with Clause 9.1.3.

	 
	 	9.1.3	 	Within 20 Business Days of a Shareholder serving a Mediation Notice the
Deadlock Matter shall be referred to mediation in accordance with the model procedure
of the Centre for Effective Dispute Resolution, London (“CEDR”), such mediation to be
commenced within 20 Business Days of service of the Mediation Notice.

	 
	 	9.1.4	 	In the event that the Deadlock Matter amounts to a Reserved Matter under
Clause 6 the findings and/or recommendations of the independent mediation, if any,
shall not be binding on the parties.

	10	Finance for the Company

	 
	10.1	Additional finance

	 
	 	The Shareholders acknowledge that the Company may require further finance to fund its
projected cash requirements under the Budget and the Business Plan which cannot be covered
from the income of its Business.

	 
	10.2	External finance

	 	10.2.1	 	If the Board determines that the Company requires additional finance, it shall
arrange a facility with a bank which the Shareholders consider suitable on the best
terms reasonably available in the open market (the “Bank Facility”). The Bank Facility
shall not confer any right on the lender to participate in the share capital of the
Company or in the Business.

	 
	 	10.2.2	 	There shall be no recourse to the Shareholders in respect of the Bank Facility and
the Shareholders shall not be required to provide guarantees or security in respect of
the Bank Facility.

 

15

 

	 	10.2.3	 	The Company shall use all reasonable endeavours to ensure that the terms of the Bank
Facility contain no provisions which would amount to a restriction on the ability of
the Company to pay the Balancing Consideration under Schedule 12 of the Contribution
Agreement.

	10.3	 	Shareholder Finance

	 	10.3.1	 	If the Company is unable to obtain a Bank Facility in accordance with Clause 10.2,
either Shareholder may, but shall not be obliged to, provide additional financing by
way of subscription for shares or loan notes or by advancing loans, on commercial terms
agreed with the Company in accordance with Clause 6.

	 
	 	10.3.2	 	On or after the Effective Date the Shareholders may agree a minimum amount of
additional financing to be provided by each Shareholder and the structure for the
provision of such financing.

	11	 	Transfers of Shares

	 
	11.1	 	General prohibition against Share transfers

	 
	 	 	No Shareholder can do, or agree to do, any of the following without the prior written
consent of the other Shareholder unless it is permitted by this Clause or Clause 12:

	 	11.1.1	 	pledge, mortgage, charge or otherwise encumber any of its Shares or any interest in
any of its Shares;

	 
	 	11.1.2	 	sell, transfer or otherwise dispose of, or grant any option over, any of its Shares
or any interest in its Shares (and, for the avoidance of doubt, any such transfer shall
be treated as a Material Breach of this Agreement even if such transfer is outside of
the control of the relevant Shareholder); or

	 
	 	11.1.3	 	enter into any agreement in respect of the votes attached to any of its Shares.

	11.2	 	Transfers to Associated Companies

	 	11.2.1	 	Any Shareholder may transfer all or some of its Shares (or any interest in its
Shares) to an Associated Company on giving prior written notice to the other
Shareholder. An Associated Company must be under an obligation to retransfer its Shares
to the Shareholder or another Associated Company of that Shareholder immediately if it
ceases to be an Associated Company.

	 
	 	11.2.2	 	Following a transfer of Shares to an Associated Company, the original transferring
Shareholder (but not a subsequent transferor in a series of transfers to Associated
Companies) shall remain party to this Agreement and shall be jointly and severally
liable with the transferee under this Agreement as a Shareholder in respect of the
transferred Shares. Any transferee Shareholder will be required to sign a Deed of
Adherence.

	 
	 	11.2.3	 	Where not all of the Shares held by the original transferring Shareholder (but not a
subsequent transferor in a series of transfers) are transferred:

	 	(i)	 	the transferring Shareholder must be granted the exclusive
right to exercise votes in respect of each Share transferred on behalf of the
transferee;

 

16

 

	 	(ii)	 	this Agreement and the Articles shall apply as if the
transferring Shareholder and the transferee are one Shareholder;

	 
	 	(iii)	 	all the rights of the transferee under this Agreement and the
Articles shall be exercised exclusively by the transferring Shareholder;

	 
	 	(iv)	 	any notice given by the transferring Shareholder under the
Agreement or the Articles shall be deemed also to be given by the transferee;
and

	 
	 	(v)	 	any notice required to be given to the transferee shall be
given also to the transferring Shareholder.

	11.3	 	Transfers to third parties

	 
	 	 	Shares must not be transferred to any third party other than an Associated Company before
the third anniversary of the Effective Date.

	 	11.3.1	 	From the date that is three years after the Effective Date, a Shareholder wishing to
sell its Shares (the “Selling Shareholder”) to a third party may only do so if it first
serves a written notice (the “Sale Notice”) on the other Shareholder (the “Non-Selling
Shareholder”) offering to sell its Shares to the Non-Selling Shareholder (the “Sale
Offer”). The Sale Offer shall:

	 	(i)	 	relate to all of the Selling Shareholder’s Shares;

	 
	 	(ii)	 	specify the consideration for which the Shares are offered to
the Non-Selling Shareholder (the “Sale Consideration”);

	 
	 	(iii)	 	list all other material terms and conditions upon which the
Selling Shareholder is prepared to transfer the Shares to the Non-Selling
Shareholder (the “Sale Terms”); and

	 
	 	(iv)	 	be open for acceptance for a period of 90 days following
service of the Sale Notice (the “90 Day Offer Period”).

	 	11.3.2	 	If at any time before the expiry of the 90 Day Offer Period the Non-Selling
Shareholder accepts the Sale Offer, the Shareholders shall conclude an agreement to
effect the transfer of the Selling Shareholder’s Shares based on the Sale Consideration
and the Sale Terms within 30 Business Days of the expiry of the 90 Day Offer Period.

	 
	 	11.3.3	 	If:

	 	(i)	 	the Non-Selling Shareholder does not accept the Sale Offer, or
does not respond to the Sale Offer by the expiry of the 90 Day Offer Period; or

	 
	 	(ii)	 	the Shareholders fail to conclude an agreement in accordance
with Clause 11.3.2 by the time limit set out therein,

	 	 	 	then Clause 11.3.4 shall apply.

	 
	 	11.3.4	 	After the expiry of the 90 Day Offer Period and only in the circumstances set out in
Clause 11.3.3, the Selling Shareholder may offer all, but not some only, of its Shares
to a third party on the following terms (the “Third Party Offer”):

	 	(i)	 	within 90 days of the date on which the event specified in
Clause 11.3.3 occurred which triggered the right to make the Third Party Offer,
the Selling

 

17

 

	 	 	 	Shareholder must have executed a binding agreement with a third party which
has its own financial resources to meet its obligations under the Third
Party Offer or has an unconditional and legally binding commitment from a
lender(s) for that finance;

	 
	 	(ii)	 	the Third Party Offer must be governed by English law;

	 
	 	(iii)	 	the Third Party Offer must contain all material terms and
conditions which must be comparable to the Sale Terms (including the intended
completion date of the Third Party Offer); and

	 
	 	(iv)	 	the Third Party Offer must be made at or above the amount of
the Sale Consideration and be payable in cash in immediately available funds.

	 	 	 	If the Selling Shareholder fails to reach agreement with a third party on the basis
set out in the Third Party Offer on the terms set out in this Clause 11.3.4 within
the time specified in Clause 11.3.4(i), then the Selling Shareholder may only
transfer its Shares after such date by once more complying with Clause 11.3.1.

	 
	 	11.3.5	 	Upon reaching agreement with a third party on the basis set out in the Third Party
Offer in accordance with Clause 11.3.4, the Selling Shareholder must give written
notice to the Non-Selling Shareholder of the proposed transfer and the identity of the
third party.

	 
	 	11.3.6	 	Following a transfer of Shares to a third party in accordance with Clause 11.3.5:

	 	(i)	 	the Selling Shareholder shall procure that the transferee third
party signs a Deed of Adherence; and

	 
	 	(ii)	 	the rights and obligations of the relevant parties under the
Parental Services Agreement shall continue for a reasonable transitional period
in accordance with and subject to the terms of the Parental Services Agreement.

	11.4	 	Sale to a Shareholder

	 	11.4.1	 	From the date that is seven years after the Effective Date, in addition to the
mechanism set out in Clause 11.3, a Shareholder wishing to purchase the Shares (the
“Initiator”) held by the other Shareholder (the “Responder”) may serve a notice (the
“Purchase Notice”) on the Responder offering to buy all of the Responder’s Shares. The
Purchase Notice shall:

	 	(i)	 	relate to all of the Responder’s Shares;

	 
	 	(ii)	 	specify the consideration in cash or otherwise for which the
Initiator is prepared to buy the Responder’s Shares (the “Purchase
Consideration”);

	 
	 	(iii)	 	list all other material terms and conditions upon which the
Initiator is prepared to purchase the Responder’s Shares (the “Purchase
Terms”);

	 
	 	(iv)	 	constitute an offer by the Initiator to purchase all of the
Responder’s Shares at the Purchase Consideration; and

	 
	 	(v)	 	be open for acceptance for a period of 90 days following
service of the Purchase Notice (the “90 Day Offer Period”).

 

18

 

	 	11.4.2	 	At any time before the expiry of the 90 Day Offer Period the Responder may either
accept the offer in the Purchase Notice or give written notice (a “Counter Notice”) to
the Initiator offering to purchase all of the Initiator’s Shares. The Counter Notice
shall:

	 	(i)	 	specify the consideration for which the Responder is prepared
to buy the Initiator’s Shares, which shall be not less than five per cent.
above the last offered Purchase Consideration;

	 
	 	(ii)	 	be subject only to the Purchase Terms;

	 
	 	(iii)	 	constitute an offer by the Responder to purchase all of the
Initiator’s Shares in accordance with sub-Clauses (i) and (ii) above; and

	 
	 	(iv)	 	be open for acceptance for a period of 45 days following
service of the Counter Notice (“45 Day Offer Period”).

	 	11.4.3	 	At any time before the expiry of the 45 Day Offer Period under Clause 11.4.2 the
Shareholder in receipt of the Counter Notice may give written notice to the offering
Shareholder that it shall accept the offer in the Counter Notice (the “Purchase
Acceptance”). Upon service of a Purchase Acceptance, the Shareholder in receipt of the
Counter Notice must sell (upon payment of the last offered Purchase Consideration), and
the offering Shareholder must buy, the Shares in accordance with the offer in the
Counter Notice.

	 
	 	11.4.4	 	Alternatively, at any time before the expiry of the 45 Day Offer Period the
Shareholder in receipt of the Counter Notice may submit a revised Counter Notice in
compliance with Clause 11.4.2(i) to (iv) to the other Shareholder.

	 
	 	11.4.5	 	The procedure in Clauses 11.4.2 to 11.4.4 shall be repeated until: (i) a Shareholder
serves a Purchase Acceptance, or (ii) a 45 Day Offer Period expires without a
Shareholder having either served a Purchase Acceptance or a Counter Notice, in which
case the offer in the last served Purchase Notice or Counter Notice shall be deemed to
have been accepted.

	11.5	 	Service of notices

	 	11.5.1	 	For the avoidance of doubt, if a Sale Notice and Purchase Notice are delivered in
accordance with Clauses 11.3 and 11.4 respectively at or around the same date, the
first notice to be properly delivered shall prevail and the procedure commenced by such
notice shall be followed in accordance with Clause 11.3 or 11.4 as the case may be.

	 
	 	11.5.2	 	The Shareholders shall, so far as is reasonably practicable, keep the Company
informed, at all times, of the issue and content of any notice served pursuant to this
Clause 11 and any election or acceptance relating to those notices.

	12	 	Default

	 
	12.1	 	Events of Default

	 
	 	 	A Shareholder (the “Defaulting Shareholder”) suffers an Event of Default where:

 

19

 

	 	12.1.1	 	it or any member of its group commits a Material Breach of this Agreement and either
(i) the breach is not capable of being remedied or (ii) the Defaulting Shareholder does
not remedy that breach within 20 Business Days of the other Shareholder sending it
written notice requiring it to remedy that breach; or

	 
	 	12.1.2	 	it, or any Parent Company of it, is unable or admits inability to pay its debts as
they fall due, suspends making payments on any of its debts or, by reason of actual or
anticipated financial difficulties, commences negotiations with one or more of its
creditors with a view to rescheduling any of its indebtedness;

	 
	 	12.1.3	 	a moratorium is declared in respect of any of its, or any Parent Company’s,
indebtedness; or

	 
	 	12.1.4	 	any corporate action, legal proceedings or other procedure or step is taken (or any
analogous procedure or step is taken in any jurisdiction) in relation to:

	 	(i)	 	the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) other than a solvent
liquidation or reorganisation of any of its Associated Companies or a solvent
reorganisation of the Shareholder;

	 
	 	(ii)	 	the appointment of a liquidator (other than in respect of a
solvent liquidation of any of its Associated Companies), receiver,
administrator, administrative receiver, compulsory manager or other similar
officer in respect of any of its assets; or

	 
	 	(iii)	 	enforcement of any security over any of its assets.

	12.2	 	For the avoidance of doubt a technical default under any banking facility in respect of which
the lender or lenders thereunder do not take measures to enforce security against or
accelerate repayment by any Shareholder or any member of its group shall not constitute an
Event of Default.

	 
	12.3	 	Notice of Default

	 
	 	 	If an Event of Default occurs, the Defaulting Shareholder shall notify the other Shareholder
in writing as soon as reasonably practicable. This notification should specify, in
reasonable detail, the circumstances surrounding the Event of Default.

	 
	12.4	 	Default Notice

	 
	 	 	Following an Event of Default, the non-defaulting Shareholder may give written notice (a
“Default Notice”) to the Defaulting Shareholder within 30 Business Days of receiving
notification of the Event of Default from the Defaulting Shareholder or of its becoming
aware of the Event of Default, whichever is the earlier requiring the Defaulting Shareholder
either:

	 	12.4.1	 	to sell all of the Shares held by the Defaulting Shareholder (the “Sale Shares”) to
the non-defaulting Shareholder at a price per Share equal to the Fair Value of the Sale
Shares: or

	 
	 	12.4.2	 	to purchase all of the Shares held by the non-defaulting Shareholder (also “Sale
Shares”) at a price equal to the Fair Value of the Sale Shares.

 

20

 

	12.5	 	Completion of transfer

	 
	 	 	The sale and purchase of the Sale Shares in accordance with this Clause shall be made on the
following terms:

	 	12.5.1	 	if any of the Permitted Conditions in relation to the sale and purchase of any Sale
Shares is not satisfied or waived 60 Business Days or, where a regulatory approval is
required, 150 Business Days, after service of that Default Notice then that Default
Notice shall lapse. Otherwise, completion of the transfer of the Sale Shares shall be
completed seven Business Days after written notice of the determination of the Fair
Value of the Sale Shares or the date of satisfaction or waiver of all Permitted
Conditions (whichever is the later) (the “Transfer Date”) at such reasonable time and
place that the shareholders agree or, failing which, at the registered office of the
Company;

	 
	 	12.5.2	 	the selling Shareholder shall deliver to the buyer in respect of the Sale Shares on
or before the Transfer Date:

	 	(i)	 	duly executed share transfer forms; and

	 
	 	(ii)	 	the relevant share certificates; and

	 
	 	(iii)	 	a power of attorney in such form and in favour of such person
as the buyer may nominate to enable the buyer to exercise all rights of
ownership in respect of the Sale Shares including, without limitation, the
voting rights; and;

	 	12.5.3	 	the buyer shall pay the consideration for the Sale Shares to the selling Shareholder
by telegraphic transfer to the bank account of the selling Shareholder notified to it
for the purpose on the Transfer Date; and

	 
	 	12.5.4	 	the provisions of Clause 14 shall apply to the transfer.

	12.6	 	Failure to transfer

	 	12.6.1	 	If the Defaulting Shareholder does not comply with its obligations in this Clause,
the Company may authorise a person to execute and deliver the necessary transfer on its
behalf. The Company may receive the purchase money in trust for the selling Shareholder
and cause the buyer to be registered as the holder of the Shares. The receipt by the
Company of the purchase money shall be a good discharge to the buyer (who shall not be
bound to see to the application of those moneys). After the buyer has been registered
as holder of the Sale Shares in purported exercise of these powers the validity of the
proceedings shall not be questioned by any person.

	 
	 	12.6.2	 	If the selling Shareholder fails or refuses to transfer any Shares in accordance with
this Clause the buyer may serve a default notice. Within five Business Days of service
of a default notice (unless such non-compliance has previously been remedied to the
reasonable satisfaction of the buyer), the defaulting seller shall not exercise any of
its powers or rights in relation to management of, and participation in the profits of,
the Company under this Agreement, the Articles or otherwise. The Directors appointed by
the defaulting seller (or its predecessor in title) shall not:

	 	(i)	 	be entitled to vote at any Board meeting;

 

21

 

	 	(ii)	 	be required to attend any meeting of Directors in order to
constitute a quorum; or

	 
	 	(iii)	 	be entitled to receive or request any information from the Company.

	12.7	 	General

	 	12.7.1	 	The Shareholders shall keep the Company informed at all times of the issue and
contents of any notice served pursuant to this Clause and any election or acceptance
relating to those notices.

	 
	 	12.7.2	 	The Shareholders waive their pre-emption rights on the transfer of Shares contained
in this Agreement and the Articles to the extent necessary to give effect to this
Clause.

	 
	 	12.7.3	 	The Shareholders shall do all reasonable things within their power to ensure that the
Business is continued to be run as a going concern during the period between the
service of the Default Notice and the completion of the transfer of the Sale Shares.
For the avoidance of doubt, nothing in this Clause 12.7.3 shall oblige either
Shareholder to contribute additional capital or debt financing to the Company.

	13	 	Determination of Fair Value

	 
	13.1	 	Appointment of expert

	 
	 	 	The “Fair Value” of the Shares for the purposes of this Agreement shall be determined by an
independent investment bank appointed by the Shareholders within 30 Business Days of the
date of the Default Notice. If the Shareholders do not agree on an independent investment
bank within such period, any Shareholder may request the President of the London Investment
Bankers Association to make the appointment.

	 
	13.2	 	Method and adjustments

	 	13.2.1	 	The independent investment bank shall determine the Fair Value of the Shares to be
sold as at the date of the relevant Default Notice and on the following assumptions and
bases:

	 	(i)	 	valuing the Shares to be sold as on an arm’s length sale
between a willing seller and a willing buyer;

	 
	 	(ii)	 	if any Group Company is then carrying on business as a going
concern, on the assumption that it will continue to do so;

	 
	 	(iii)	 	that the Shares to be sold are capable of being transferred
without restriction;

	 
	 	(iv)	 	valuing the Shares to be sold as a rateable proportion of the
total value of all the issued shares of the Company without any premium or
discount being attributable to the class of the Shares to be sold or the
percentage of the issued share capital of the Company which they represent.

	 	13.2.2	 	The independent investment bank shall determine the Fair Value to reflect any other
factors including for the avoidance of doubt taxation in respect of a Group
Company which the independent investment bank reasonably believes should be taken
into account.

 

22

 

	 	13.2.3	 	If any difficulty arises in applying any of these assumptions or bases then the
independent investment bank shall resolve that difficulty in such manner as it shall in
its absolute discretion think fit.

	13.3	 	Determination

	 	13.3.1	 	The independent investment bank must determine the Fair Value within 30 Business Days
of its appointment and shall notify the Shareholders of its determination. The fees of
the independent investment bank shall be borne by the Shareholders equally.

	 
	 	13.3.2	 	The independent investment bank shall act as an expert and not as an arbitrator and
its determination shall be final and binding on the parties (in the absence of fraud or
manifest error).

	 
	 	13.3.3	 	The independent investment bank may have access to all accounting records or other
relevant documents of the Company, subject to any confidentiality provisions.

	14	 	Terms and consequences of transfers of Shares

	 
	14.1	 	Transfer terms

	 
	 	 	Any sale and/or transfer of Shares pursuant to this Agreement shall be on terms that those
Shares:

	 	14.1.1	 	are transferred free from all claims, pledges, equities, liens, charges and
encumbrances; and

	 
	 	14.1.2	 	are transferred with the benefit of all rights attaching to them as at the date of
the relevant Default Notice or Sale Notice or Counter Notice as appropriate.

	14.2	 	Registration

	 
	 	 	The parties shall procure that a transfer of Shares is not approved for registration unless
this Agreement and Articles have been complied with. The Company shall procure that each
share certificate issued by it shall carry the following statement:

	 
	 	 	“Any disposition, transfer, charge of or dealing in any other manner in the Shares
represented by this certificate is restricted by a Shareholders’
Agreement dated [ • ] 2007
and made between Kemira GrowHow Oyj, Terra International (Canada) Inc., Terra Industries
Inc. and the Company”.

	 
	14.3	 	Further assurance

	 
	 	 	Each party shall do all things and carry out all acts which are reasonably necessary to
effect the transfer of the shares in accordance with the terms of this Agreement in a timely
fashion.

 

23

 

	14.4	 	Return of documents, etc.

	 
	 	 	On ceasing to be a Shareholder, a Shareholder must hand over to the Company material
correspondence, Budgets, Business Plans, schedules, documents and records relating to the
Business held by it or an Associated Company or any third party which has acquired such
matter through that Shareholder and shall not keep any copies.

	 
	14.5	 	Loans, borrowings, guarantees and indemnities

	 	14.5.1	 	Upon a transfer of all the Shares held by a Shareholder:

	 	(i)	 	the continuing Shareholder shall procure that all loans,
borrowings and indebtedness in the nature of borrowings outstanding owed by the
Company to a transferring Shareholder (together with any accrued interest) are
either assigned to the continuing Shareholder for such value as may be agreed
between the transferring Shareholder and the continuing Shareholder, or failing
agreement with the continuing Shareholder, are repaid by the Company;

	 
	 	(ii)	 	all loans, borrowings and indebtedness in the nature of
borrowings outstanding owed by that transferring Shareholder to the Company
shall be repaid; and

	 
	 	(iii)	 	the continuing Shareholder shall use all reasonable endeavours
(but without involving any financial obligation on its part) to procure the
release of any guarantees, indemnities, security or other comfort given by the
transferring Shareholder to or in respect of the Company or its Business and,
pending such release, shall indemnify the transferring Shareholder in respect
of them.

	 	14.5.2	 	Any assumption of the obligations of a transferring Shareholder by the continuing
Shareholder is without prejudice to the right of the continuing Shareholder and/or the
Company to claim from the transferring Shareholder in respect of liabilities arising
prior to the completion date of the transfer of Shares.

	14.6	 	Assumption of obligations

	 
	 	 	The parties shall procure that no person other than an existing Shareholder acquires any
Shares unless it enters into a Deed of Adherence agreeing to be bound by this Agreement as a
Shareholder.

	 
	14.7	 	Removal of appointees

	 	14.7.1	 	If a Shareholder ceases to be a Shareholder it shall upon transfer of its Shares
procure the resignation of all its appointees to the Board, whether as Director,
Chairman, Vice-Chairman or otherwise and to the Board of directors of each Group
Company. If the continuing Shareholders request, it shall do all such things and sign
all such documents as may otherwise be reasonably necessary to procure the resignation
or dismissal of such persons from such appointments in a timely manner.

 

24

 

	 	14.7.2	 	Those resignations shall take effect without any liabilities on the Company for
compensation for loss of office or otherwise except to the extent that the liability
arises in relation to a service contract with a Director who was acting in an
executive capacity. Any Shareholder removing a Director appointed by it shall fully
indemnify and hold harmless the other Shareholder and the Company from and against
any claim for unfair or wrongful dismissal arising out of such removal.

	14.8	 	Power of Attorney

	 	14.8.1	 	Each of the Shareholders irrevocably appoints the other Shareholder by way of
security for the performance of their respective obligations under Clauses 11 and 12,
its attorney to execute, deliver and/or issue any necessary document, agreement,
certificate and instrument required to be executed by it under the provisions of
Clauses 11 and 12 including any transfer of shares or other documents which may be
necessary to transfer title to the Shares required by Clauses 11 and 12.

	 
	 	14.8.2	 	The purchase monies shall, to the extent that they are not delivered to the selling
party on or before the appropriate completion date, bear interest against the
purchasing party at the rate of 2 per cent over the base lending rate from time to time
of LIBOR calculated on a daily basis from such date until the selling party is
reimbursed by the other party.

	14.9	 	Change of name

	 
	 	 	If a Shareholder ceases to be a Shareholder and the corporate name of the Company or any
Group Company consists of or contains any word the same or similar to the corporate name, or
any distinctive part of the corporate name, of that Shareholder, the remaining parties shall
procure that the corporate name of the Company or any Group Company shall be changed to
exclude that word within 20 Business Days of the Shareholder ceasing to be a Shareholder.

	 
	15	 	Competition with the Business

	 
	15.1	 	Restrictions on Shareholders

	 	15.1.1	 	Subject to Clauses 15.2 and 15.4 and unless it has obtained the prior written consent
of the other Shareholder, a Shareholder must not, either alone or jointly, with,
through or on behalf of any person, (other than any member of the Group) directly or
indirectly:

	 	(i)	 	carry on or be engaged or concerned or interested in supplying
to persons located within the Territory services or products competitive with
the Business;

	 
	 	(ii)	 	seek to (1) procure orders from, (2) do business with or (3)
procure directly or indirectly any other person to procure orders from or do
business with, any person located within the Territory for or in respect of any
services competitive with the Business; or

	 
	 	(iii)	 	solicit or contact with a view to the engagement or employment
by any person, any employee, officer or manager of any Group Company who
receives a remuneration in excess of £50,000 of any Group Company.

 

25

 

	15.2	 	Right of first refusal

	 	15.2.1	 	If a Shareholder wishes to either (i) acquire Control of a company and/or group of
companies and/or a business in the Territory (a “Shareholder Opportunity”) which is
involved in activities not carried on by the Shareholder in question on the Effective
Date but would be in competition with the Business, or (ii) engage in or become a party
to any contract, business opportunity, transaction or other arrangement in the
Territory that relates to activities not carried on by the Shareholder in question on
the Effective Date but would be in competition with the Business, it must first serve a
written notice on the Company offering the Shareholder Opportunity to the Company on
the following terms (the “First Offer”):

	 	(i)	 	the First Offer must specify the material terms and conditions
of the Shareholder Opportunity; and

	 
	 	(ii)	 	the First Offer must state that it is open for the Offer
Period.

	 	15.2.2	 	The decision of the Company as to whether or not to accept the First Offer shall be
made in accordance with the provisions of Clause 6.

	 
	 	15.2.3	 	If the Company does not accept the First Offer, or if the Company fails to respond
within the Offer Period, the Shareholder may proceed with the Shareholder Opportunity
and for the avoidance of doubt: (i) neither the Company nor any other party shall have
any right to the Shareholder Opportunity or the income and profits derived therefrom;
and (ii) the provisions of Clause 15.1.1 shall not apply to that Shareholder
Opportunity.

	 
	 	15.2.4	 	Each Shareholder agrees to procure that each of their Associated Companies shall
comply with the provisions of Clauses 15.2.1 to 15.2.3 as though it applied directly to
them.

	15.3	 	Invalidity

	 	15.3.1	 	Each of the restrictions in Clauses 15.1 and 15.2 is an entirely separate and
independent restriction on each Shareholder and the validity of one restriction shall
not be affected by the validity or unenforceability of another.

	 
	 	15.3.2	 	Each Shareholder considers the restrictions in this Clause to be reasonable and
necessary for the protection of the interests of the Company. If any such restriction
shall be held to be void but would be valid if deleted in part or reduced in
application, such restriction shall apply with such deletion or modification as may be
necessary to make it valid and enforceable.

	15.4	 	Exclusions

	 
	 	 	Nothing contained in this Clause 15 precludes or restricts any Shareholder or any of its
Associated Companies:

	 	15.4.1	 	holding not more than 5 per cent of the issued voting share capital of any company
whose shares are listed on a stock exchange provided that such holding is held for
investment purposes only;

	 
	 	15.4.2	 	carrying on or being engaged in or furthering any of the activities set out in Part 2
of Schedule 1;

 

26

 

	 	15.4.3	 	carrying on or being engaged or concerned or interested in any activities within the
Territory, or supplying persons located within the Territory, provided that such
activities are not in competition with the Business; or

	 
	 	15.4.4	 	carrying on or being engaged or concerned or interested in any activities outside the
Territory, or supplying persons located outside the Territory, whether or not such
ventures are similar to or in competition with the Business,

	 	 	and for the avoidance of doubt such activities shall not be subject to Clause 15.2.

	 
	15.5	 	Duration

	 
	 	 	The undertakings set out in this Clause 15 shall apply in respect of a Shareholder for the
period from the Effective Date until the later of:

	 	15.5.1	 	the third anniversary of the Effective Date; and

	 
	 	15.5.2	 	the date on which such Shareholder ceases to be a Shareholder other than as a
consequence of a transfer of Shares to an Associated Company in accordance with Clause
11.

	16	 	Competition with the Kemira Business

	 
	16.1	 	Restrictions on the Company

	 
	 	 	Subject to Clauses 16.2 and 16.3 and unless it has obtained the prior written consent of
Kemira, the Company must not, either alone or jointly, with, through or on behalf of any
person, (other than any member of the Group) directly or indirectly:

	 	16.1.1	 	carry on or be engaged or concerned or interested in supplying to persons located
within Continental Europe services or products competitive with the Kemira Business; or

	 
	 	16.1.2	 	seek to (1) procure orders from, (2) do business with or (3) procure directly or
indirectly any other person to procure orders from or do business with, any person
located within Continental Europe for or in respect of any services competitive with
the Kemira Business.

	16.2	 	Right of first refusal

	 	16.2.1	 	If the Company wishes to either: (i) acquire Control of a company and/or group of
companies and/or a business in Continental Europe (a “Company Opportunity”) which is
involved in activities which relate to or would be competitive with the Kemira
Business; or (ii) engage in or become a party to any contract, business opportunity,
transaction or other arrangement in Continental Europe that relates to activities of or
would be competitive with the Kemira Business it must first serve a written notice on
Kemira offering the Company Opportunity to Kemira on the following terms (the “First
Offer”):

	 	(i)	 	the First Offer must specify the material terms and conditions
of the Company Opportunity; and

	 
	 	(ii)	 	the First Offer must state that it is open for the Offer
Period.

 

27

 

	 	16.2.2	 	If Kemira does not accept the First Offer, or if Kemira fails to respond within the
Offer Period, the Company may proceed with the Company Opportunity and for the
avoidance of doubt the provisions of Clause 16.1 shall not apply to that Company
Opportunity.

	 
	 	16.2.3	 	The Company agrees to procure that each Group Company shall comply with the
provisions of Clauses 16.1 and 16.2. as though it applied directly to them.

	16.3	 	Invalidity

	 	16.3.1	 	Each of the restrictions in Clauses 16.1 and 16.2 is an entirely separate and
independent restriction on the Company and the validity of one restriction shall not be
affected by the validity or unenforceability of another.

	 
	 	16.3.2	 	The Company considers the restrictions in this Clause to be reasonable and necessary
for the protection of the interests of Kemira GrowHow. If any such restriction shall be
held to be void but would be valid if deleted in part or reduced in application, such
restriction shall apply with such deletion or modification as may be necessary to make
it valid and enforceable.

	16.4	 	Duration

	 
	 	 	The undertakings set out in this Clause 16 shall apply in respect of JVCo for the period
from the Effective Date until the later of:

	 	16.4.1	 	the third anniversary of the Effective Date; and

	 
	 	16.4.2	 	the date on which Kemira ceases to be a Shareholder other than as a consequence of a
transfer of Shares to an Associated Company in accordance with Clause 11.

	17	 	Public announcements

	 
	17.1	 	Shareholder approval

	 
	 	 	A Shareholder must not make any public announcement or issue any circular relating to the
Group or this Agreement without the prior written approval of the other Shareholder. This
does not affect any announcement or circular required by law or any regulatory body or the
rules of any recognised stock exchange, but the party with an obligation to make an
announcement or issue a circular shall consult with the other party/parties so far as is
reasonably practicable before complying with such obligation.

	 
	17.2	 	Oral statements

	 
	 	 	The Shareholders intend that any oral statements made or replies to questions given by
either Shareholder relating to the Group shall be consistent with any such public
announcements or circulars.

 

28

 

	18	 	Information, insurance, records, licences

	 
	18.1	 	Rights to information

	 
	 	 	Save where any existing or potential conflict of interest as referred to in Clause 4 has
arisen, a Shareholder may at all reasonable times and at its own expense:

	 	18.1.1	 	discuss the affairs, finances and accounts of the Company and the Group with their
officers, principal executives and employees; and

	 
	 	18.1.2	 	have access to all facilities, service providers, customers, vendors, employees and
information; to include systems, data, books, records, accounts and documents relating
to the Business and the affairs, operations, finances and accounts of the Company and
the Group; and

	 
	 	18.1.3	 	have read access to all electronic data relating to the Business and the affairs,
operations, finances and accounts of the Company and the Group.

	18.2	 	Insurance, records and licences

	 
	 	 	The Shareholders undertake that they shall use their reasonable endeavours to procure that:

	 	18.2.1	 	the Group maintains, with a well established and reputable insurer, prudent
insurance, in accordance with current industry practice from time to time, against all
risks usually insured against by companies carrying on the same or similar business to
the Business, which shall include product liability insurance, insurance against loss
of profits and consequential loss and insurance for the full replacement or
reinstatement value of all its assets of an insurable nature;

	 
	 	18.2.2	 	the Group keeps proper books of account and makes true and complete entries of all
its dealings and transactions of and in relation to the Business; and

	 
	 	18.2.3	 	the Group shall use its best endeavours to obtain and maintain in full force and
effect all approvals, consents or licences necessary for the conduct of the Business.

	19	 	Intellectual Property

	 
	19.1	 	Trade Mark Licence Agreements

	 	19.1.1	 	On the Effective Date, Kemira, the Guarantor and the Company shall (as appropriate)
enter into, and shall procure entry by each Group Company into, the agreed form GrowHow
Trade Mark Licence Agreement and Terra Trade Mark Licence Agreement.

	 
	 	19.1.2	 	“GrowHow Trade Mark Licence Agreement” means the trade mark licence agreement to be
entered into by Kemira and each Group Company regarding use of the “GrowHow” name and
trade marks.

	 
	 	19.1.3	 	“Terra Trade Mark Licence Agreement” means the trade mark licence agreement to be
entered into by the Guarantor and each Group Company regarding use of the “Terra” name
and trade marks.

 

29

 

	20	 	Parent company guarantee

	 
	20.1	 	Guarantee of Terra’s obligations

	 
	 	 	In consideration of the entry by Kemira and the Company into this Agreement, the Guarantor
unconditionally and irrevocably guarantees to Kemira and the Company the due and punctual
performance and observance by Terra of all its obligations, commitments and undertakings
under or pursuant to this Agreement (the “Guaranteed Obligations”) and agrees to indemnify
Kemira and the Company against all losses, liabilities, costs, (including without limitation
legal costs) charges, expenses, actions, proceedings, claims and demands which Kemira or the
Company may suffer through or arising from any breach by Terra of its obligations under this
Agreement.

	 
	20.2	 	Liability

	 
	 	 	The liability of the Guarantor under this Clause shall not exceed the liability of Terra and
shall not be released or diminished by any variation of the terms of the Guaranteed
Obligations, or any forbearance, neglect or delay in seeking performance of the Guaranteed
Obligations or any granting of time for such performance or any other fact or circumstance
other than a specific written waiver.

	 
	20.3	 	Default

	 
	 	 	If and whenever Terra defaults for any reason in the performance of any of the Guaranteed
Obligations, the Guarantor shall forthwith upon demand unconditionally perform (or procure
performance of) and satisfy (or procure the satisfaction of) the Guaranteed Obligations in
regard of which such default has been made in accordance with this Agreement and so that
Kemira and/or the Company (as the case may be) receives the same benefits as it would have
received if the Guaranteed Obligation had been duly performed and satisfied by Terra.

	 
	20.4	 	General

	 	20.4.1	 	This guarantee is a continuing guarantee and remains in force until all the
Guaranteed Obligations have been performed or satisfied.

	 
	 	20.4.2	 	This guarantee is in addition to, without prejudice to and not in substitution for
any rights or security which Kemira and/or the Company may now or after have or hold
for the performance and observance of the Guaranteed Obligations.

	 
	 	20.4.3	 	Any amounts payable under this guarantee shall be paid in full on demand without any
deduction or withholding whatsoever (whether in respect of set-off, counterclaim,
duties, charges, taxes or otherwise).

	21	 	Consortium tax relief

	 
	21.1	 	Each Shareholder which is a member of the consortium which owns the Company for the purpose
of Section 413(6) of the ICTA 1988 shall be entitled to require, to the extent permitted by
applicable tax legislation, a Group Company to surrender to it (or any of its associated
companies), and shall (to the extent that it or any such associated company is permitted by
applicable tax legislation to do so) use all reasonable commercial endeavours to accept the
surrender to it (or procure that any such associated company uses all reasonable commercial
endeavours to accept the surrender to it), of a proportionate share

 

30

 

	 	 	of any consortium relief losses which may be available to it and which arises from the
trading activities of a Group Company, for consideration (payable on 1 January following the
end of the accounting period to which such losses relate), in the case of each recipient,
equal to the amount of the losses and/or other amounts surrendered to it by way of
consortium relief multiplied by the rate of corporation tax on income profits for the
account period of the Group Company to which the losses or other amounts relate. No
Shareholder shall knowingly enter into arrangements (for the purposes of Section 410 of ICTA
1988) which shall affect the right of any Shareholder to obtain consortium relief at any
time when a Group Company has losses or other amounts available for surrender by way of
consortium relief, provided that, subject to Clause 11 and the Articles, this shall not
prevent any Shareholder from transferring Shares in accordance with the provisions relating
thereto set out in this Agreement and the Articles. In the event that payments are made for
consortium relief which is subsequently found not to be available or not required, the
relevant Group Company shall repay the amount overpaid within 15 Business Days of the issue
of a written claim by the payer.

	 
	21.2	 	The Shareholders and the Company shall consent to all such surrenders as are referred to in
this Clause 21 in accordance with paragraph 70 of Schedule 18 to the Finance Act 1998, and the
Shareholders and the Company shall do all such things as may be necessary and as may be
required by the H.M. Revenue & Customs to effect such surrenders, and without prejudice to the
foregoing, the Shareholders shall procure that each Company complies with all its obligations
under this Clause 21.

	 
	22	 	Duration and termination

	 
	22.1	 	Duration

	 
	 	 	Subject to the other provisions of this Agreement, this Agreement shall continue in full
force and effect without limit in point of time until the earlier of:

	 	22.1.1	 	the Shareholders agree in writing to terminate this Agreement; and

	 
	 	22.1.2	 	an effective resolution is passed or a binding order is made for the winding-up of
the Company other than to effect a scheme of reconstruction or amalgamation;

	 	 	provided that this Agreement shall cease to have effect as regards any Shareholder who
ceases to hold any Shares (other than as a consequence or a transfer of Shares to an
Associated Company in accordance with clause 11) save for any of its provisions which are
expressed to continue in force after termination.

	 
	22.2	 	Termination

	 
	 	 	Termination of this Agreement shall be without prejudice to any liability or obligation in
respect of any matters, undertakings or conditions which shall not have been observed or
performed by the relevant Shareholder prior to such termination.

 

31

 

	23	 	Confidentiality

	 
	23.1	 	Confidential Information

	 
	 	 	The parties shall use all reasonable endeavours to keep confidential and to ensure that
their respective Associated Companies and their respective officers, employees, agents and
professional and other advisers keep confidential any information (the “Confidential
Information”):

	 	23.1.1	 	relating to the customers, Business, assets or affairs of any Group Company which
they may have or acquire through ownership of an interest in the Company;

	 
	 	23.1.2	 	relating to the customers, business, assets or affairs of the other parties or any
member of their group which they may have or acquire through being a Shareholder or
making appointments to the Board or through the exercise of its rights or performance
of its obligations under this Agreement; or

	 
	 	23.1.3	 	which relates to the contents of the Transaction Documents (or any agreement or
arrangement entered into pursuant to the Transaction Documents).

	23.2	 	Restrictions

	 	23.2.1	 	No party may use for its own business purposes or disclose to any third party any
Confidential Information without the consent of the other parties.

	 
	 	23.2.2	 	This Clause does not apply to:

	 	(i)	 	information which is or becomes publicly available (otherwise
than as a result of a breach of this Clause); or

	 
	 	(ii)	 	information which is independently developed by the relevant
party or acquired from a third party, to the extent that it is acquired with
the right to disclose it;

	 
	 	(iii)	 	information which was lawfully in the possession of the
relevant party free of any restriction on disclosure as can be shown by that
party’s written records or other reasonable evidence;

	 
	 	(iv)	 	information which following disclosure under this Clause,
becomes available to the relevant party (as can be demonstrated by that party’s
written records or other reasonable evidence) from a source which is not bound
by any obligation of confidentiality in relation to such information;

	 
	 	(v)	 	the disclosure by a party of Confidential Information to its
directors or employees or to those of its Associated Companies who need to know
that confidential information in its reasonable opinion for purposes relating
to this Agreement but those directors and employees shall not use that
Confidential Information for any other purpose;

	 
	 	(vi)	 	the disclosure of information to the extent required to be
disclosed by law or any court of competent jurisdiction, any governmental
official or regulatory authority or any binding judgment, order or requirement
of any other competent authority;

 

32

 

	 	(vii)	 	the disclosure of information to any tax authority to the
extent reasonably required for the purposes of the tax affairs of the party
concerned or any member of its group;

	 
	 	(viii)	 	the disclosure to a party’s professional advisers of information reasonably
required to be disclosed for purposes relating to this Agreement.

	 	23.2.3	 	Each party shall inform any officer, employee or agent or any professional or other
adviser advising it in relation to matters relating to this Agreement, or to whom it
provides Confidential Information, that such information is confidential and shall
instruct them:

	 	(i)	 	to keep it confidential; and

	 
	 	(ii)	 	not to disclose it to any third party (other than those persons
to whom it has already been or may be disclosed in accordance with the terms of
this Clause).

	23.3	 	Damages not an adequate remedy

	 
	 	 	Without prejudice to any other rights or remedies which a party may have, the parties
acknowledge and agree that damages may not be an adequate remedy for any breach of this
Clause 23 or any other provision of this Agreement and the remedies of injunction, specific
performance and other equitable relief are appropriate for any threatened or actual breach
of any such provision and no proof of special damages shall be necessary for the enforcement
of the rights under any such provision.

	 
	23.4	 	Survival

	 	23.4.1	 	The disclosing party shall remain responsible for any breach of Clause 23.1 by the
person to whom that confidential information is disclosed.

	 
	 	23.4.2	 	The provisions of this Clause 23 shall survive the termination of this Agreement for
whatever cause for a period of 3 years.

	24	 	Disputes

	 
	24.1	 	Escalation

	 
	 	 	In the event of any dispute between the parties arising out of or relating to this
Agreement, other than Deadlock (which shall be dealt with in accordance with Clause 9),
representatives of the parties shall, within 10 Business Days of service of a written notice
by any party to the other parties (a “Dispute Notice”), hold a meeting (a “Dispute Meeting”)
in an effort to resolve the dispute. Each party shall use all reasonable endeavours to send
a representative who has authority to settle the dispute to attend the Dispute Meeting.

	 
	24.2	 	Alternative Dispute Resolution

	 
	 	 	Any dispute which is not resolved within 20 Business Days after the service of a Dispute
Notice, whether or not a Dispute Meeting has been held, shall, at the request of either
party within 20 Business Days of the Dispute Notice being served, be referred first to
mediation in accordance with the model procedure of the CEDR, such mediation to be completed
within 20 Business Days of signature of the CEDR Mediation Agreement.

 

33

 

	24.3	 	Arbitration

	 
	 	 	Any dispute which is not resolved in accordance with Clauses 24.1 and 24.2 shall be referred
to arbitration under the rules of the LCIA, formerly the London Court of International
Arbitration (the “LCIA Rules”) in accordance with Clause 29 of this Agreement.

	 
	24.4	 	Deadlock matters

	 
	 	 	For the avoidance of doubt, a Deadlock Matter shall be dealt with in accordance with Clause
9 and not this Clause 24.

	 
	25	 	Notices

	 
	25.1	 	Addresses

	 
	 	 	Any notice, claim or demand in connection with this Agreement or with any arbitration under
this Agreement shall be in writing in English (each a “Notice”) shall be sufficiently given
if delivered or sent to the recipient, at the fax number or the address stated in this
Agreement or last known to the party and to the Company or the party at their registered
office and marked “IMPORTANT LEGAL NOTICE”.

	 
	25.2	 	Form

	 
	 	 	Any Notice shall be in writing in English and may be sent by messenger, telegram, telex, fax
or prepaid post (first class in the case of service in the United Kingdom and airmail in the
case of international service). Any Notice shall be deemed to have been received on the next
working day in the place to which it is sent, if sent by telegram, telex or fax, or 60 hours
from the time of posting, if sent by post.

	 
	26	 	Whole agreement and remedies

	 
	26.1	 	Whole agreement

	 
	 	 	This Agreement contains the whole agreement between the parties relating to the subject
matter of this Agreement at the date hereof to the exclusion of any terms implied by law
which may be excluded by contract and supersedes any previous written or oral agreement
between the parties in relation to the matters dealt with in this Agreement. In this Clause
“this Agreement” includes the Transaction Documents and all documents entered into on or
before the Effective Date pursuant to or as contemplated by this Agreement or the other
Transaction Documents.

	 
	26.2	 	No inducement

	 
	 	 	Each of the Shareholders acknowledges that it has not been induced to enter into this
Agreement by any representation, warranty or undertaking not expressly incorporated into it.

 

34

 

	26.3	 	Remedies

	 
	 	 	So far as permitted by law and except in the case of fraud, each party agrees and
acknowledges that its only right and remedy in relation to any representation, warranty or
undertaking made or given in connection with this Agreement shall be for breach of the terms
of this Agreement.

	 
	26.4	 	Legal advice

	 
	 	 	Each party to this Agreement confirms it has received independent legal advice relating to
all the matters provided for in this Agreement, including the provisions of this Clause, and
agrees, having considered the terms of this Clause and the Agreement as a whole, that the
provisions of this Clause are fair and reasonable.

	 
	27	 	General

	 
	27.1	 	Survival of rights, duties and obligations

	 
	 	 	Termination of this Agreement for any cause shall not release a party from any liability
which at the time of termination has already accrued to another party or which thereafter
may accrue in respect of any act or omission prior to such termination.

	 
	27.2	 	Conflict with the Articles

	 
	 	 	In the event of any conflict between the provisions of this Agreement and the Articles, the
provisions of this Agreement shall prevail and accordingly the Shareholders shall exercise
all voting and other rights and powers available to them so as to give effect to the
provisions of this Agreement and shall further if necessary procure any required amendment
to the Articles.

	 
	27.3	 	No partnership

	 
	 	 	Nothing in this Agreement shall be deemed to constitute a partnership between the parties
nor constitute any party the agent of any other party for any purpose.

	 
	27.4	 	Release etc.

	 
	 	 	Any liability to any party under this Agreement may in whole or in part be released,
compounded or compromised or time or indulgence given by that party in its absolute
discretion as regards any party under such liability without in any way prejudicing or
affecting its rights against any other party under the same or a like liability, whether
joint and several or otherwise.

	 
	27.5	 	Waiver

	 
	 	 	No failure of any party to exercise, and no delay by it in exercising, any right, power or
remedy in connection with this Agreement (each a “Right”) shall operate as a waiver of that
Right, nor shall any single or partial exercise of any Right preclude any other or further
exercise of that Right or the exercise of any other Right. Any express waiver of any breach
of this Agreement shall not be deemed to be a waiver of any subsequent breach.

 

35

 

	27.6	 	Variation

	 
	 	 	No variation of this Agreement shall be effective unless in writing and signed by or on
behalf of each of the parties.

	 
	27.7	 	Assignment

	 
	 	 	This Agreement is personal to the parties and the rights and obligations of the parties may
not be assigned or otherwise transferred without the prior written consent of the other
parties.

	 
	27.8	 	Time of the essence

	 
	 	 	Time shall be of the essence of this Agreement, both as regards any dates, times and periods
mentioned and as regards any dates, times and periods which may be substituted for them in
accordance with this Agreement or by agreement in writing between the parties.

	 
	27.9	 	Further assurance

	 
	 	 	At any time after the date of this Agreement the parties shall, and shall use all reasonable
endeavours to procure that any necessary third party shall, at the cost of the relevant
party execute such documents and do such acts and things as that party may reasonably
require for the purpose of giving to that party the full benefit of all the provisions of
this Agreement.

	 
	27.10	 	Invalidity

	 
	 	 	If any provision in this Agreement shall be held to be illegal, invalid or unenforceable, in
whole or in part, under any enactment or rule of law, such provision or part shall to that
extent be deemed not to form part of this Agreement but the legality, validity and
enforceability of the remainder of this Agreement shall not be affected.

	 
	27.11	 	Counterparts

	 
	 	 	This Agreement may be entered into in any number of counterparts, all of which taken
together shall constitute one and the same instrument. Any party may enter into this
Agreement by signing any such counterpart.

	 
	27.12	 	Costs

	 
	 	 	Each party shall bear all costs incurred by it in connection with the preparation,
negotiation and entry into this Agreement and the documents to be entered into pursuant to
it.

	 
	28	 	Contracts (Rights of Third Parties) Act 1999

	 
	28.1	 	Application of Act

	 
	 	 	A person who is not a party to this Agreement has no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any term of this Agreement.

 

36

 

	29	 	Arbitration, Governing Law and Jurisdiction

	 	29.1.1	 	Any dispute arising out of or connected with this agreement (including a dispute as
to the validity, existence, formation or termination of this Agreement and/or this
Clause 29) shall be resolved by arbitration in London conducted in English before three
arbitrators pursuant to the rules of the LCIA, which rules are deemed incorporated by
reference in this clause, save that, unless the parties agree otherwise, the third
arbitrator, who shall act as chairman of the tribunal, shall be nominated by the two
arbitrators nominated by or on behalf of the parties. If he is not so nominated within
30 days of the date of nomination of the later of the two party-nominated arbitrators
to be nominated he shall be chosen by the LCIA.

	 
	 	29.1.2	 	This Agreement (and any dispute, controversy, proceedings or claim of whatever nature
arising out of or in any way relating to this agreement or its formation) and the
documents entered into pursuant to it shall be governed by and construed in accordance
with English law.

	 
	 	29.1.3	 	Each of the parties to this agreement irrevocably submits to the non-exclusive
jurisdiction of the courts of England to support and assist the arbitration process
pursuant to Clause 29.1, including if necessary the grant of interlocutory relief
pending the outcome of that process.

	 
	 	29.1.4	 	Each party irrevocably agrees that any arbitration award made pursuant to this
Agreement shall be final and binding upon the parties.

	 
	 	29.1.5	 	Kemira covenants that it has irrevocably appointed Linklaters (marked for the
attention of Sarah Wiggins/Iain Wagstaff) of One Silk Street, London EC2Y 8HQ as its
agent to accept service of process in England in any legal or arbitration proceedings
arising out of or in connection with this Agreement, service upon whom shall be deemed
completed whether or not forwarded to or received by Kemira. Kemira agrees to inform
Terra and JVCo in writing of any change of address of such process agent within 28 days
of such change. If such process agent ceases to be able to act as such or to have an
address in England, Kemira irrevocably agrees to appoint a new process agent in England
acceptable to Terra and JVCo, such acceptance not to be unreasonably withheld or
delayed, and to deliver to Terra and JVCo within 14 days a copy of a written acceptance
of appointment by the new process agent.

	 
	 	29.1.6	 	Terra covenants that it has irrevocably appointed The Endeavour Partnership LLP of
Westminster, St Mark’s Court, Teesdale Business Park, Teesside TS17 6QP (marked for the
attention of Head of Litigation and marked Ref. 003053.0001) as its agent to accept
service of process in England in any legal or arbitration proceedings arising out of or
in connection with this Agreement, service upon whom shall be deemed completed whether
or not forwarded to or received by Terra. Terra agrees to inform Kemira and JVCo in
writing of any change of address of such process agent within 28 days of such change.
If such process agent ceases to be able to act as such or to have an address in
England, Terra irrevocably agrees to appoint a new process agent in England acceptable
to Kemira and JVCo, such acceptance not to be unreasonably withheld or delayed, and to
deliver to Kemira and JVCo within 14 days a copy of a written acceptance of appointment
by the new process agent.

 

37

 

	 	29.1.7	 	Nothing in this Agreement shall affect the right to serve process in any other manner
permitted by law or the right to bring proceedings in any other jurisdiction for the
purposes of the enforcement or execution of any arbitration award made pursuant to this
agreement or any court order associated with any arbitration brought pursuant to this
agreement.

	 
	 	29.1.8	 	The parties hereby agree to deliver a copy of any documents served under this Clause
29 to the other party at the addresses specified in Clause 25 or as otherwise notified
in accordance therewith, provided that failure to do so shall not permit the intended
recipient to allege that service of process has thus been defective so long as the
remaining provisions of this Clause 29 have been observed.

	30	 	Authority to deliver

	 
	 	 	The signature or sealing of this Agreement by or on behalf of a party shall constitute an
authority to the solicitors, or an agent or employee of the solicitors, acting for that
party in connection with this Agreement to deliver it as a deed on behalf of that party.

 

38

 

In witness whereof this Agreement has been duly executed.

	 	 	 	 	 
	SIGNED by

on behalf of

Kemira GrowHow Oyj:

	 	
	 	
/s/ Heikki Sirvio
	 
	 	 	 	 
	SIGNED by an authorised signatory for

and on behalf of

Terra International (Canada), Inc.:

	 	
	 	
/s/ Michael L. Bennett
	 
	 	 	 	 
	SIGNED by an authorised signatory for

and on behalf of

Terra Industries Inc.:

	 	
	 	
/s/ Michael L. Bennett
	 
	 	 	 	 
	SIGNED by

on behalf of

GrowHow UK Limited:

	 	
	 	
/s/ Heikki Sirvio
	 

	 	 	 	/s/ Richard S. Sanders Jr.

 

39

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