Subject: FW: Netting Agreement
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked]
Date: Wed, 7 Nov 2001 08:18:12 -0800 (PST)

Alan to assist on an as needed basis.

 -----Original Message-----
From: 	Simons, Paul  
Sent:	Tuesday, November 06, 2001 5:13 PM
To:	[email-masked]; [email-masked]
Cc:	Hastings, Simon
Subject:	Netting Agreement

Phil/Andrew

As promised, I am pleased to attach a form of netting agreement for your review, covering trades between ECTRL and BEPETL under their GTMA, Coal Master and potentially other trades between those entities.  

Note in particular:

 that the agreement is triggered by an event of bankruptcy (following the ISDA definition) in relation to either party or its affiliated credit support provider and requires the close out of both masters or neither of them (at the option of the non-defaulting party) - ie no "cherry-picking"

that in order to net the two masters, it was necessary to include a valuation methodology for coal trades (none was included in the Coal Master).

I look forward to receiving you comments on the attached as soon as possible.

Kind regards

Paul

tel:  0207 783 6566