Common use of Interest Rate Protection Agreements or Other Hedging Agreements Clause in Contracts

Interest Rate Protection Agreements or Other Hedging Agreements. No Credit Party will, nor will it permit any of its Subsidiaries to, enter into any Interest Rate Protection Agreement or Other Hedging Agreement, except the following (in each case so long as entered into for non-speculative purposes, it being understood and agreed that raw materials and inventory xxxxxx entered in the ordinary course of business and consistent with past practices prior to the Effective Date are not for speculative purposes): (a) Interest Rate Protection Agreements or Other Hedging Agreements entered into to hedge or mitigate risks relating to fluctuations in currency values or commodities prices to which any Credit Party, any Subsidiary or Terra Nitrogen has actual exposure (other than those in respect of Equity Interests of any Credit Party or any of its Subsidiaries); provided that any Interest Rate Protection Agreement or Other Hedging Agreement entered into by any Credit Party or any Subsidiary to hedge risks of Terra Nitrogen shall be entered into in accordance with Target’s and Terra Nitrogen’s practices prior to the Effective Date and pursuant to arrangements whereby Terra Nitrogen compensates Target (or the respective Credit Party or Subsidiary) for any costs associated therewith (although Terra Nitrogen shall be entitled to receive the benefits of any hedging so entered into for its benefit), (b) Interest Rate Protection Agreements or Other Hedging Agreements entered into in order to effectively cap or collar interest rates with respect to any interest-bearing liability of any Credit Party or any Subsidiary or to exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing investment of any Credit Party or any Subsidiary and (c) Other Hedging Agreements entered into with respect to commodities with the intention of delivering inventory to the relevant hedge counterparties at the maturity of or on the date otherwise required under such Other Hedging Agreements.