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Enron Mail |
Jerry,
Here would be the prosed trade: For example: Counterparty buys from Enron=09jan02-dec02 nymex swap 350 contracts/mo @ cu= rrent market + $2 Enron buys from TXU =09=09jan02-dec02 nymex swap 350contracts/mo @ current= market + $2 TXU buys from Counterparty =09jan02-dec02 nymex swap 350 contracts/mo @ cu= rrent market + $2 There will be no net position change for anyone. It lowers TXU's and the Co= unterparty's open positions and VAR with Enron. It will also replace the Co= unterparty's Enron credit exposure with TXU. Enron releases TXU margin and TXU posts margin with the Counterparty based = on their contractual obligations. All the trades would fall within our existing ISDAs. Our lawyers have added= some language for the confirms that would tie the trades together. That la= nguage is included below. If you have any legal questions feel free to call= our lawyer Mark Taylor at 713-853-7459. If you have any questions feel free to call me at 713-853-7058. I'll ring y= ou latter this afternoon to go over the details and talk about possible cou= nterparties. Thanks for your time. Geof Storey "Each of the parties to this Agreement recognizes and acknowledges that the= parties are acting and agreeing to perform their obligations hereunder in = reliance upon (i) the timely execution and delivery by [legal name of other= counterparty] ("Third Party") and Party A of a transaction in substantiall= y the form attached hereto as Exhibit A ("Third Party Transaction A") and w= ould not otherwise agree to execute, deliver and perform under this Agreeme= nt if Third Party and Party A were not contemporaneously executing and deli= vering Third Party Transaction A and (ii) the timely execution and delivery= by Third Party and Party B of a transaction in substantially the form atta= ched hereto as Exhibit B ("Third party Transaction B") and would not otherw= ise agree to execute, deliver and perform under this Agreement if Third Par= ty and Party B were not contemporaneously executing and delivering Third pa= rty Transaction B. The effectiveness of this Agreement shall be subject to = the condition that contemporaneously with the execution and delivery of thi= s Agreement Party A and Third Party execute and deliver Third Party Transac= tion A and Party B and Third Party execute and deliver Third Party Transact= ion B."
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