From day one I had a problem with the counterintuitive language we have in Part 4 (f) of the Schedule about Netting.  In addition to being counterintuitive, I have a really hard time explaining it to my Mexican counterparties.

I would like to propose the language below.  I believe it leaves no room for interpretation and everybody will understand it immediately.

"The limitation set forth in subparagraph (ii) of Section 2(c) of this Agreement will not apply and any netting pursuant to Section 2(c) will apply across all Transactions under this Agreement"

Francisco Pinto-Leite
Enron Americas
1400 Smith Street, EB 3888 
Houston, TX 77002-7361

Tel: 713-345-7942
Fax:713-646-3490
fleite@enron.com