Term and Termination Rights - EFET Allowance Provision

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2007 EFET General Agreement
Version 2.1(a) (Power)

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§ 10 Term and Termination Rights. § 10 of the General Agreement is hereby amended with respect to both Individual Contracts for Electricity and Individual Contracts for Allowances at any time in which the Parties have outstanding Allowance Transactions remaining between them to be partially or fully performed by: (i) the addition in the second line of § 10.3(a) (Termination for Material Reason) after the words “may terminate the Agreement” of the words “or the Allowances Appendix only”; and (ii) the following amendments:

§ 10.5 Definition of Material Reason. The addition at the end of the second line of § 10.5 after the words “(each a “Material Reason”)” of the words “save that in the event of termination pursuant to § 10.5(a) (Non Performance) or § 10.5(f) (Representation or Warranty) of the General Agreement, the Non-Defaulting Party may, at its sole discretion, elect to terminate only the Allowances Appendix and not the previously executed General Agreement, if and only when such uncured non-performance, warranty breach or misrepresentation concerns only one or more Allowance Transactions. If the Non-Defaulting Party elects to terminate only the Allowances Appendix together with all Allowance Transactions thereunder, it may do so in the manner prescribed in § 10 (Term and Termination Rights) and § 11 (Calculation of Termination Amount), but only with respect to its Allowance Transactions and in such manner as to result in the accrual of an amount due from one Party to the other Party analogous to a Termination Amount but concerning only the Allowance Transaction(s) terminated (an “Allowances Termination Amount”).”

§ 10.5(d) Failure to Transfer or Accept. § 10.5(d) is deleted in its entirety.

§ 10.5(e) Force Majeure. § 10.5(e) is deleted in its entirety and replaced with the words: “Unless expressly agreed to the contrary by the Parties, Force Majeure’s or Suspension Event’s impairment of a Party’s ability to perform its obligations with respect to any single Allowance Transaction shall not give rise to a Material Reason for initiating an Early Termination of either the Agreement or this Allowances Appendix and all then outstanding Allowance Transactions.”


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You wait for forty years for a legal draftsperson to use a possessive apostrophe in a financial contract, and them in § 10.5(e) of the EFET Master Agreement, you get three in the space of seven words. And two of them look like grocer’s apostrophes — but, on closer inspection, are not.

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Template:M sa EFET Allowance Annex 10