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Enron Mail |
Greg - looks good to me on the legal procedures. My only comments would be
(i) that I'm not sure that the confirm desk generates deal tickets (I thought they were prepared by the commercial guys) and (ii) we usually don't have the commercial guys sign confirms as a control matter, even when it's an unusual matter. I agree about Tana. Mark Greg Johnston 11/06/2000 02:34 PM To: Mark Taylor/HOU/ECT@ECT cc: Subject: Canadian Financial Trading Confirmation Process Mark, as discussed here is a draft of my proposed e-mail for your review. Please let me know if it accurately reflects our understanding and I will then send it out to everyone. I really think that having Tana come up for a few days as soon as she can would be very helpful for Linda and Sharon. Thanks Greg ---------------------- Forwarded by Greg Johnston/CAL/ECT on 11/06/2000 01:33 PM --------------------------- Greg Johnston 11/06/2000 11:53 AM To: Mary Cook/HOU/ECT, Sharon Crawford/CAL/ECT, Chris Gaffney/TOR/ECT, Mark E Haedicke/HOU/ECT, Peggy Hedstrom/CAL/ECT, Tana Jones/HOU/ECT, Peter Keohane/CAL/ECT, Jonathon McKay/CAL/ECT, Rob Milnthorp/CAL/ECT, Mark Powell/CAL/ECT, Dianne Seib/CAL/ECT, Linda Sietzema/CAL/ECT, Mark Taylor/HOU/ECT, John Zufferli/CAL/ECT cc: bcc: Subject: Canadian Financial Trading Confirmation Process Further to a discussion with Mark Taylor, I wanted to confirm our collective understanding/proposal regarding the legal procedures associated with the financial trading process in Canada. As you are all aware, all financial confirms for Enron Canada are now generated and distributed by the confirm desk in Calgary. However, it seems that there has been some confusion relating to the legal procedures associated with this process. In short, I believe that everyone is in agreement that the legal process regarding Canadian financial confirms will be basically the same as for Canadian physical confirms. That is, as is currently the process for physical deals, the Canadian confirm desk will generate all deal tickets and, to the extent that the financial transactions are straight forward, will generate, have executed and distribute to counterparties the confirmation letters, with no involvement of the legal department. However, for any financial transactions that are out of the ordinary or contain special terms (as well as amendments), just as with physical transactions, the confirm desk will generate the deal ticket and provide it to Linda or Sharon in Calgary. Linda and Sharon will then prepare the draft financial confirm based upon the deal tickets, which will be reviewed and approved by either myself or Mark Powell. Once approved, the confirm will be initialed by the reviewing lawyer, checked for credit and sent to the commercial person to review, approve and have executed. The executed confirm will then be returned to either Linda or Sharon, who will attend to distributing it to the counterparty. Again, this will only be required for transactions which are out of the ordinary. With respect to negotiating and implementing, and addressing ongoing legal concerns with respect to, ISDAs on behalf of Enron Canada, Mark Taylor's group, and I understand specifically Mary Cook, will continue to have responsibility for such matters. Therefore, to the extent that we need to put an ISDA in place with a counterparty or if a counterparty has legal concerns about the implementation of the ISDA, the process will be the same as it has been in the past, meaning that those matters will be dealt with in Houston. Given that Linda and Sharon will now have responsibility for preparing initial drafts of atypical financial confirmations, I think it is essential that Tana spend a few days in Calgary as soon as her schedule permits to run each of Sharon and Linda (as well as perhaps some of the people in Peggy's group who will be dealing with financial confirmation matters) through her ISDA training course and to help Linda and Sharon set up the process in our legal group to deal with these matters. As well, we will need to ensure that Linda and Sharon receive (either from Houston or Dianne) electronic versions of all confirmation precedents (ie. confirm forms, amendment forms, etc.) necessary for them to properly undertake these activities. If anyone has any questions or concerns regarding the above, please do not hesitate to contact me. Otherwise, I think we should implement these procedures as soon as possible, including having Tana join us for a few crisp winter days in Calgary. Thanks Greg
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