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Enron Mail |
See redlined added language which allows reasonable time to manage the clos=
eout process--tracks general ISDA mechanism. The attached forms have the a= dded language. (b) Upon the occurrence and during the continuance of a Default in respect = of any Defaulting Party, Non-defaulting Group may give notice to Defaulting= Group specifying the relevant Default, declaring Defaulting Group in defau= lt of all Underlying Master Agreements and all Transactions thereunder, and= designating a date not earlier than the date such notice is effective, but= not later than 20 days after such notice is effective, upon which date eac= h Non-defaulting Party shall (i) accelerate, terminate, and liquidate, or o= therwise close-out all Transactions under its Underlying Master Agreements = as of such designated date or as soon as reasonably practicable following s= uch designated date; (ii) exercise rights of setoff, netting, and/or recoup= ment in accordance with the terms of its Underlying Master Agreements; (iii= ) retain any Collateral; (iv) with respect to each Defaulting Party, withho= ld payment and performance of each Non-defaulting Party's Obligations to ea= ch Defaulting Party to pay, secure, setoff against, net, and/or recoup such= Defaulting Party's Obligations to such Non-defaulting Party; (v) convert a= ny Obligation from one currency into another currency as set forth in Secti= on 5; and (vi) take any other action permitted by law or in equity or by it= s Underlying Master Agreements or any Transactions thereunder necessary or = appropriate to protect, preserve, or enforce its rights or to reduce any ri= sk of loss or delay. This Section 2(b) shall be referred to herein as the = "Underlying Master Agreements Close-Out." =20 Cordially, Mary Cook Enron North America Corp. 1400 Smith, 38th Floor, Legal Houston, Texas 77002-7361 (713) 345-7732 (713) 646-3393 (fax) mary.cook@enron.com
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