Greg,

Please call me regarding this note. I just want to be sure that everyone is in agreement. Javier feels that EGM promised EGA a 5-cent margin on LPG sales to Humberto. The lower cost LPG therefore benefits the Progasco Sales Transaction & EGM rather than ProCaribe & EGA. Your thoughts???

Paul 

 -----Original Message-----
From: 	Y'Barbo, Paul  
Sent:	Wednesday, May 30, 2001 11:58 AM
To:	Chavarria, Javier; Maltes, Miguel; Curran, Greg; Haeussler, Federico
Subject:	RE: LPG Supply to Humberto


Gentlemen,

It seems to me that the price should be MB plus $0.12 for every month. The last cargo purchase saw a value gain for ProCaribe through optimization of the pricing structure by using price swaps. The prices below transfer that value gain away from ProCaribe. I cannot tell if the value is being transferred to the Progasco sale or to Tropigas. Comments???

Paul

 -----Original Message-----
From: 	Chavarria, Javier  
Sent:	Wednesday, May 30, 2001 9:43 AM
To:	Maltes, Miguel; Curran, Greg; Y'Barbo, Paul; Haeussler, Federico
Subject:	LPG Supply to Humberto

In order to provide Humberto the short term supply we have been talking about for a while, and to secure a 5-cent margin for Procaribe as agreed to with Mariella, we will sell him the product with the following terms:

Term:	4 months @ 1MM gal/mo.
Start Date:  On closing of Progasco sale (June)

Pricing: (depending on month of delivery)
	June		MB + 11.25
	July		MB + 11.00
	August		MB + 12.00
	September	MB + 12.00
	October		MB + 12.00

Miguel has a model contract approved by Coralina with the rest of the standard terms.  I suggest we send it to Humberto so he is ready to go by closing.
JC