Expenses - ISDA Provision

1992 ISDA

11. Expenses
A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party by
reason of the enforcement and protection of its rights under this Agreement or any Credit Support Document
to which the Defaulting Party is a party or by reason of the early termination of any Transaction, including,
but not limited to, costs of collection.

2002 ISDA

11. Expenses
A Defaulting Party will on demand indemnify and hold harmless the other party for and against all reasonable out-of-
pocket expenses, including legal fees, execution fees and Stamp Tax, incurred by such other party by reason of the
enforcement and protection of its rights under this Agreement or any Credit Support Document to which the
Defaulting Party is a party or by reason of the early termination of any Transaction, including, but not limited to,
costs of collection.

Commentary

Observers will note that, but for the odd comma, these two provisions are identical. And revolutionarily brief. Not that they couldn't be improved, of course; they just weren't.

The Expenses referred to in this provision would not be captured by the definition of "Close Out Amount" or "Early Termination Amount" because, qed, they arise only once that amount has been determined and the non-defaulting party is in the process of collecting it.