|
|
Enron Mail |
Mark,
Please review the attached language for the Benzene options. Please let me= know if you have any questions. I am not too sure about the language whic= h is bolded. If you don't mind giving me a hand. Thanks, Melba Lozano 713-345-8986=20 713-646-8511 Fax 713-698-4847 Pager US Benzene Fin Opt =20 A financial Option Transaction with Enron North America Corp., under which = the Seller receives the Premium and the Buyer receives the Cash Settlement = Amount. Each calendar month during the Term of the Transaction will be a De= termination Period, provided that if the Term of the Transaction is less th= an one calendar month the Determination Period shall be the Term of the Tra= nsaction. The Notional Quantity per Determination Period shall be calculate= d from the volume submitted by Counterparty on the website in accordance wi= th the unit of measure. The Premium shall equal the product of (i) the pric= e submitted by Counterparty via the website, multiplied by (ii) the number = of calendar days during the Term of the Transaction, multiplied by (iii) th= e volume submitted by Counterparty on the website. The Payment Date for the= Premium shall be 2 business days after the Trade Date of the Transaction. = The Payment Date(s) for the Cash Settlement Amount shall be 5 business days= after the Cash Settlement Amount is determinable. Where this Transaction i= s a Call Option, the Cash Settlement Amount shall be the sum of the product= of (a) the Notional Quantity per day during the Determination Period, mult= iplied by (b) the greater of (i) zero, or (ii) the Index minus the Strike P= rice. Where this Transaction is a Put Option, the Cash Settlement Amount sh= all be the sum of the product of (a) the Notional Quantity per day during t= he Determination Period, multiplied by (b) the greater of (i) zero, or (ii)= the Strike Price minus the Index. Where this Transaction is a Straddle Opt= ion, the Cash Settlement Amount shall be the sum of the product of (a) the = Notional Quantity per day during the Determination Period, multiplied by (b= ) the absolute difference between the Strike Price and the Index. The Exercise Period(s) shall be the last Trading Day of the month. The Inde= x for a month shall be the mean of the average of the high and low price in= Cents/Gallon of Benzene published under the headings "Prices for Period En= ding Fri, 21 Sep 2001 07:50:10 -0700 (PDT): United States: Benzene)" under the caption "SPOT: Cents/Lb." i= n each issue of Chemical Market Associates, Inc.'s Aromatics Market Report = (Weekly) that reports prices effective for such month. The price is quoted in US Dollars per unit of volume, which will be the Con= tractual Currency.=20 The unit of measure against which the price is quoted shall be gallons and = the volume shown shall be in total number of Barrels (42 US Gallons) per mo= nth.
|