Mark,

Did you ever get a final answer on the Product Description?

Homer

---------------------- Forwarded by Homer Lin/HOU/ECT on 06/07/2001 07:10 AM ---------------------------


Homer Lin
06/04/2001 08:19 AM
To:	Mark Taylor/HOU/ECT@ECT
cc:	Scott Moncrieff/Enron@EUEnronXGate, Joe King/Enron@EnronXGate 
Subject:	Re: Tanker Freight Long Description   


Mark,

Whether or not the mid-month to mid-month deals are likely, you should probably ask Scott Moncrieff or Joe King to answer that question.

I was just suggesting the possibility...  I do like the additional language that covers deals shorter than one month

"Each calendar month during the term of the Transaction will be a Determination Period; provided that, if the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction."

Perhaps we should proceed with the current Product Description and worry about the mid-month to mid-month description if/when we need it.

Homer



From:	Mark Taylor on 06/01/2001 10:47 AM
To:	Homer Lin/HOU/ECT@ECT
cc:	Carlos Alatorre/Enron@EnronXGate, Joe King/Enron@EnronXGate, Robert Quick/Enron@EUEnronXGate, Scott Moncrieff/Enron@EUEnronXGate 
Subject:	Re: Tanker Freight Long Description   

Homer - 

The problem with the language you suggest is that it will be triggered by any term that is longer than a month.  As far as I know, we have never had a product that went from mid-month to mid-month.  Is that a real issue for us here?  We have language in a few products already that takes care of the second issue (deals shorter than one month):

Each calendar month during the term of the Transaction will be a Determination Period; provided that, if the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction.

In some cases (e.g. power swaps), when the deal is for less than a month the payment dates are modified to fall at the beginning of the following month (rather than 5 days after the floating price is determinable).  That is a commercial call.  Just let me know how you want to handle that issue.

If mid-month to mid-month deals are likely, let me know and I will come up with alternative language.

Mark




	Homer Lin 06/01/2001 10:15 AM 	  To: Mark Taylor/HOU/ECT@ECT, Joe King/Enron@EnronXGate, Scott Moncrieff/Enron@EUEnronXGate  cc: Carlos Alatorre/Enron@EnronXGate, Robert Quick/Enron@EUEnronXGate  Subject: Re: Tanker Freight Long Description 	


Mark,

Looks good.  The product description looks fine for copying the shipping products that Scott Moncrieff is trading now in London.

I'm a little concerned about the line: "Each calendar month during the term of the Transaction will be a Determination Period"...

Is it flexible enough in changing determination periods from mid-month to mid-month?
As in June 15 to July 14 to represent a month?  Or will that just be another Long Description that we would have to draft for another product type?

Also, what if we wanted to break up the determination periods into smaller increments than one month?  
Let us say a 1-week or 2-week period instead of a full month.

May be something like:
"Each calendar month during the term of the Transaction will be a Determination Period unless otherwise specified by the Effective Dates"

That's my two cents,
Homer
x57642



From:	Mark Taylor on 05/31/2001 06:25 PM
To:	Joe King/Enron@EnronXGate, Homer Lin/HOU/ECT@ECT, Carlos Alatorre/Enron@EnronXGate
cc:	Scott Moncrieff/Enron@EUEnronXGate, Robert Quick/Enron@EUEnronXGate 
Subject:	Tanker Freight Long Description

Here is a draft of the US version.  Please let me know if it works for you.

 











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