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Enron Mail |
Sara,
Procter & Gamble has proposed that we start negotiating using their ISDA schedule. Enclosed is a note (that addresses a few critical issues) from my business counterpart and a draft schedule. P&G is the largest buyer of pulp and containerboard in North America - two key commodities for our business. Executing a Master with them is very important. If at all possible, I would like to accomodate their requests to negotiate from their schedule. However, as you know, I am not a lawyer. Please review and share your thoughts with me. Thanks. Ed Quinn ---------------------- Forwarded by Ed Quinn/HOU/ECT on 11/06/2000 10:19 AM --------------------------- larsh.rt@pg.com on 11/06/2000 09:27:56 AM To: ed.quinn@enron.com cc: Subject: P&G ISDA Schedule Ed- As promised, I have attached our standard ISDA Schedule. All bank and non-bank (commodity financial instrument) counterparties with whom we transact have signed essentially the same ISDA Schedule without non-reliance and set off or cross default. As I have discussed previously, I think that it is beneficial to both of us to work directly versus sleeving transactions through a third party. Given our credit limit policies, we will require some form of credit enhancement from you, but I think that cost effective alternatives exist beyond using banks as stand-in counterparties. I realize that our approach may differ from other companies, but I think that we can dramatically assist in the development of the pulp and paper financial instrument market. Certainly, as Enron is an important market maker, we would like to be in position to transact a significant portion of our volume with you. Net, very positive results for both of our companies. I will be interested in your response to the attached schedule. Regards Roger (See attached file: 92SchedForm.doc) - 92SchedForm.doc
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