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Enron Mail |
Mike,
I've been trying to figure out what is meant by the last sentence. Can you (or Dave) clarify what is wanted? Does it mean that payments must be current for the guaranty, etc, to be acceptable? Thanks, Kay michael.o.sandridge@us.abb.com on 06/30/2000 11:48:23 AM To: ben.jacoby@enron.com, kay.mann@enron.com, Kathleen.Clark@enron.com cc: karla.hesketh@us.abb.com Subject: Enron Contract Verbage Dear Team, Dave mentioned that probably the only other change would be in the assignment section article xxii and that should not be any big change. MIKE ---------------------- Forwarded by Michael O Sandridge/Field_Marketing/USTRA/ABB on 06/30/2000 11:44 AM --------------------------- |-------------< |(Embedded | |image moved | |to file: | |pic05234.pcx)| | | |-------------< <------------------------------------------------------------------------| |Frank Chmiel/StLouis/USTRA/ABB | |06/30/2000 11:38 AM (Phone: +(314) 679-4702, Dept.: FIELD SALES) | <------------------------------------------------------------------------| To: Michael O Sandridge/Field_Marketing/USTRA/ABB@ABB_USTRA cc: Karla Hesketh/Field_Marketing/USTRA/ABB@ABB_USTRA, David Onuscheck/ETI/USTRA/ABB@ABB_USTRA Subject: Enron Contract Verbage Security Level:? Internal Mike, When we spoke this morning, Dave advised that one change to the language that will be required is the addition of the words in red , in bold added by ABB at the end of this paragraph in section 22.2 of the contract. In the case of an assignment to a party described in (ii), (vi), or (vii) (other than Enron Engineering & Construction or NEPCO), Seller shall be entitled to request and receive an appropriate guaranty, letter of credit, payment bond or other reasonable form of payment security, in amount not to exceed the amount of the Purchase Amount remaining to be paid at the time of the assignment, unless the assignor agrees to remain liable for all future liabilities under this Agreement. A letter of guaranty, letter of credit, or payment bond provided by an entity rated BBB+ or better shall be deemed to be an appropriate form of security for the purpose of this provision , so long as payment in full has been made in accordance with the schedule set forth in Article VI. Additional commentary may come later today when Dave reaches his first stop on his flight back to Raliegh. Frank - pic05234.pcx
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