TERRA NITROGEN CO L P /DE
CONVEYANCE, ASSIGNMENT & ASSUMPTION AGREEMENT
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<DESCRIPTION>CONVEYANCE, ASSIGNMENT & ASSUMPTION AGREEMENT
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">Exhibit 10.2 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CONVEYANCE, ASSIGNMENT AND ASSUMPTION AGREEMENT </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This CONVEYANCE, ASSIGNMENT AND ASSUMPTION AGREEMENT (this &#147;Agreement&#148;), dated as of September 1, 2005 is made by and between Terra Nitrogen
Corporation, a Delaware corporation (the &#147;Company&#148;), and Terra Nitrogen GP Inc., a Delaware corporation (&#147;New GP&#148;). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>W</U> <U>I</U> <U>T</U> <U>N</U> <U>E</U> <U>S</U> <U>S</U> <U>E</U> <U>T</U> <U>H</U> </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Company holds a 0.025/99ths general partner interest represented by 4,720 General Partner Units (the &#147;MLP
GP Interest&#148;) in Terra Nitrogen Company, L.P., a Delaware limited partnership (the &#147;Partnership&#148;), and serves as the sole general partner of the Partnership; and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Company holds (i) a 0.025% general partner interest (the &#147;OLP GP Interest&#148;) in Terra Nitrogen,
Limited Partnership, a Delaware Limited Partnership (the &#147;Operating Partnership&#148;), and serves as the sole general partner of the Operating Partnership; and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Company desires to transfer the MLP GP Interest and the OLP GP Interest to New GP, and New GP desires to assume
the role of successor general partner of (i) the Partnership under the First Amended and Restated Agreement of Limited Partnership, dated as of the date hereof (the &#147;MLP Partnership Agreement&#148;) and (ii) the Operating Partnership under its
Amended and Restated Agreement of Limited Partnership, dated as of the date hereof (the &#147;OLP Partnership Agreement&#148;); and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Section 11.2 of the MLP Partnership Agreement allows the Company to transfer the MLP GP Interest to New GP, subject to the receipt of an opinion
of counsel that such transfer would not result in the loss of limited liability of any limited partner of the Partnership or of any limited partner of the Operating Partnership or cause the Partnership or the Operating Partnership to be taxable as a
corporation or otherwise treated as an association taxable as a corporation for federal income tax purposes; and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Section 11.2(b) of the MLP Partnership Agreement provides that any transferee of the MLP GP Interest pursuant to Section 11.2 who is proposed as
successor general partner of the Partnership shall automatically be admitted to the Partnership as successor general partner of the Partnership; and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Section 10.2 of the OLP Partnership Agreement allows the Company to transfer the OLP GP Interest to New GP, subject to the receipt of an opinion
of counsel that such transfer would not result in the loss of limited liability of the limited partners of the Operating Partnership or cause the Operating Partnership to be taxable as a corporation or otherwise treated as an association taxable as
a corporation for federal income tax purposes; and </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS,
Section 10.2 of OLP Partnership Agreement provides that any transferee of the OLP GP Interest pursuant to Section 10.2 who is proposed as successor general partner of the </FONT></P>



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<FONT FACE="Times New Roman" SIZE="2">Operating Partnership shall automatically be admitted to the relevant Operating Partnership as successor general partner of such Operating Partnership.
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Company proposes to transfer the OLP GP Interest
and MLP GP Interest (collectively, the &#147;GP Interests&#148;) to New GP and that New GP be admitted immediately prior to such transfer as general partner of the Operating Partnership and Partnership. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree as follows: </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Transfer and Assignment of GP Interests</U>. The Company hereby grants, bargains, conveys, assigns, transfers and
delivers the GP Interests to New GP, and its successors and assigns, and New GP hereby accepts such GP Interests, in exchange for $395,000, at and as of the date hereof. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Transfer and Assignment of Incentive Distribution Rights</U>. New GP hereby grants, bargains, conveys, assigns,
transfers and delivers the right of New GP to the proceeds of any and all distributions it may receive under the allocation specifically to the &#147;General Partner&#148; in Sections 5.4 (D), (E) or (F) of the MLP Partnership Agreement (i.e.
13/99ths of all cash distributed under Section 5.4(D), 23/99ths of all cash distributed under Section 5.4(E) and 48/99ths of all cash distributed under Section 5.4(F), the &#147;Incentive Distribution Rights&#148;) to the Company and its successors
and assigns, and the Company hereby accepts such Incentive Distribution Rights. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">3. <U>Assumption of General Partner Status</U>. New GP accepts and agrees to duly and timely pay, perform and discharge the rights, duties and obligations of general partner of the Partnership and all of the terms and
conditions of the MLP Partnership Agreement in accordance with Section 11.2 of the MLP Partnership Agreement, and New GP agrees to serve as general partner of the Partnership and to be bound by the MLP Partnership Agreement, as it may be further
amended. New GP accepts and agrees to duly and timely pay, perform and discharge the rights, duties and obligations of general partner of the Operating Partnership and all of the terms and conditions of the OLP Partnership Agreement in accordance
with Section 10.2 of the OLP Partnership Agreement, and New GP agrees to serve as general partner of the Operating Partnership and to be bound by the OLP Partnership Agreement, as it may be further amended. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. <U>Assumption of Liabilities</U>. As consideration for the grant, bargain,
conveyance, assignment, transfer and delivery made under Section 1 hereof New GP assumes and agrees to duly and timely pay, perform and discharge all liabilities and obligations of the Operating Partnership and the Partnership to the full extent
(and only to the extent) that the Company, as general partner of the Operating Partnership and Partnership, respectively, has been heretofore or would have been in the future, were it not for the execution and delivery of this Agreement, obligated
to pay, perform and discharge such liabilities and obligations. (the &#147;Liabilities&#148;). New GP hereby agrees to indemnify, defend and hold harmless the Company, its successors and assigns, of and from any and all costs, liabilities and
expense, including court costs and attorneys fees, arising from or connected with the Liabilities hereby assumed. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <U>Further Assurances</U>. The parties hereto hereby each covenant and agree that, at any time and
from time to time after the delivery of this Agreement, at the other party&#146;s request and expense, each party, its successors and assigns, will do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered,
any and all such further acts, conveyances, transfers, assignments, powers of attorney and assurances as the other party reasonably may require to more effectively grant, convey, assign, transfer, set over to or vest in New GP the GP Interests, or
to better enable New GP to realize upon or otherwise enjoy the GP Interests, to effect the assumption by New GP of the Liabilities or to otherwise carry into effect the intent and purposes of this Agreement. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <U>Governing Law</U>. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware without reference to the choice of law principles thereof. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. <U>Counterparts</U>. This Agreement may be executed in two counterparts, each of which shall be deemed an original, but all of which shall be
considered one and the same agreement. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the parties as of the date
first written above. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P><DIV ALIGN="right">
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">TERRA NITROGEN CORPORATION</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;F<SMALL>RANCIS</SMALL> G. M<SMALL>EYER&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Francis G. Meyer</B></FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Vice President</B></FONT></TD></TR>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">TERRA NITROGEN GP INC.</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;M<SMALL>ARK</SMALL> A. K<SMALL>ALAFUT&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SMALL></FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></P></TD>
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<TD VALIGN="bottom" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Mark A. Kalafut</B></FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></P></TD>
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<TD VALIGN="bottom" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Vice President, General Counsel and</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>Corporate Secretary</B></FONT></P></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2">C<SMALL>ONVEYANCE</SMALL>, A<SMALL>SSIGNMENT</SMALL> <SMALL>AND</SMALL> A<SMALL>SSUMPTION</SMALL> A<SMALL>GREEMENT</SMALL> </FONT></P>


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