Re: Paper Products

I fully agree with the "fade" effect. But this looks right to me. As I
remember it, we were not totally happy with the Notional Quantity language
but this was the best we could do. We were going to make sure that whether
the submitted volume was per day or per month was clearly reflected elsewhere
in the long description. Not elegant, but adequate.

David Forster
10/19/99 11:30 AM
To: Mark Taylor/HOU/ECT@ECT
cc: Jennifer deBoisblanc Denny/HOU/ECT@ECT
Subject: Re: Paper Products

Mark,

This is rapidly fading into a blur.

I think we discussed this previously and came up with the following for US
Financial Gas Options:

A Transaction under which the Option Buyer has the right, in relation to the
Option Seller, in return for payment of the Total Premium by the Premium
Payment Date, to receive after exercise of the Option with respect to a
Determination Period, the Cash Settlement Amount for such Determination
Period being, for a Put Option the Strike Price minus the Floating Price for
such Determination Period, in respect of the Notional Quantity, and for a
Call Option the Floating Price for such Determination Period minus the Strike
Price in respect of the Notional Quantity. The Notional Quantity shall be the
volume for the relevant Determination Period (calculated using the volume
submitted by counterparty). The Total Premium shall be the price submitted
by Counterparty via EnronOnline multiplied by the sum of the Notional
Quantities for each Determination Period. Each calendar month during the
term of the Transaction shall be a Determination Period. The Payment Date(s)
shall be the fifth Business Day following the date on which the Floating
Price is determinable.The Floating Price shall be the Index.

but, I'm not sure if this is latest version we came up with. Could you check
your emails and confirm the latest version which you were happy with?

Thanks,

Dave

Jennifer deBoisblanc Denny
19/10/99 16:03
To: David Forster/LON/ECT@ECT
cc: Bob Crane/HOU/ECT@ECT
Subject: Paper Products

Dave,
The first long product type description below defines a paper product. In all
paper/pulp products, with the exception of the second one below,
the description uses the words "volume submitted multiplied by the number of
days".
Bob Crane of Paper / Pulp Trading, said this confusing due to the commodity
is monthly delivey. He would like the words "multiplied by the number of
days" removed from the long descriptions of the paper/pulp product types.
Should we delete the whole sentence possibly? (See second desription below.)