Enron Mail

From:alan.aronowitz@enron.com
To:mark.taylor@enron.com
Subject:Chart for US Trading Contract Confirmations, effective 10/1/00
Cc:
Bcc:
Date:Fri, 23 Jun 2000 11:47:00 -0700 (PDT)

Mark:

Based on our discussion, let me know if you concur with the draft chart below:


CHART FOR TRADING CONTRACT CONFIRMATIONS BETWEEN TWO U.S. COUNTERPARTIES, AS
OF 10/1/00

Type of Trade Contract Formation Method Trade Confirmation required to be
sent? If yes, get signed by CP?

Physical (w/ no Master) Phone Yes, but can be electronic No, unless
commodity not "good"
On-line No N/A

Physical (w/ Master) Phone Yes, but can be electronic No
On-line No, unless Master requires No

Financial (w/ no Master) Phone Yes, but can be electronic Yes, unless
NY law governs
On-line No N/A

Financial (w/ Master) Phone Yes, but can be electronic Yes, unless NY
law governs On-line No, unless Master requires No


In summary, as a result of the new U.S. federal legislation on e-signatures
and contracts, on-line trades between two U.S. counterparties would not
legally require the sending of a paper or electronic trade confirmation after
the electronic contract is formed on-line unless expressly required by the
applicable master trading agreement. An electronic confirmation, of course,
could be sent if the counterparty elects to receive one. We agreed to obtain
a legal opinion from outside counsel to confirm this conclusion.


Regards, Alan