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Enron Mail |
Gentlemen -
Bob has asked me to forward revised versions of the Broker ETA and Fee Agreement for the BrokerClient product. Attached you will find marked versions of these documents. In making the noted revisions, I have relied upon the revisions forwarded to Bob on 3/21, Bob's notes of your discussions on 3/21 and discussions earlier today that I had with Bob. A few items to note: 1. Neither the BETA nor the Fee Agreement reflect changes allowing APB to enter into these agreements on behalf of affiliates or to assign these agreements. Since the access and use of the website is intended to be supported by the credit of APB, allowing APB to act on behalf of or to transfer its obligations to an unknown party would result in possible unknown (and possibly unacceptable) credit risk to Enron. 2. The provisions relating to Liquidated Damages are the corner stone of Enron's ability to recover from APB in the event a counterparty/participant fails to honor a deal that APB has executed. In order to have a liquidated damages concept be effective, the calculation of liquidated damages must be reflected in the agreement and not left to negotiation. 3. Currently, the website contemplates that each broker will sign - electronically - the BETA agreement contained online. Since we will be physically signing these agreements, there is no need to refer in the agreements to the online signing. There is, however, the need to address future online BETA agreements (modifications or amendments to current forms) and, accordingly, language surrounding this issue has been placed into the agreements. 4. We have provided for a quarterly payment of the Access Fee. While this is not consistent with the requested monthly payment, it is possible this will be acceptable to sr. management. Currently, this item is subject to final approval by Enron management. Please take a look at the attached at your convenience. As we would like to move this process along promptly, I understand Bob will contact you tomorrow to further discuss these matters. In the meantime, please feel free to call me with any questions or comments. Mark Senior Counsel, ENA Phone: 713-345-8897 Facsimile: 713-646-3940 E-Mail: Mark.Greenberg@enron.com
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