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Enron Mail |
Looks fine by me.
-----Original Message----- From: =09Meredith, Kevin =20 Sent:=09Wednesday, October 17, 2001 11:02 AM To:=09Lin, Homer; King, Joe; Taylor, Mark E (Legal) Cc:=09Garner, Kate Subject:=09Baltic Exchange changes Please review the proposed changes(shown in blue) to the Tanker Freight pro= ducts as a result of the Baltic Exchange index changes. If we receive your= approval of the change, we will make the change to the short and long desc= ription this weekend. Tkr Freight Swap BITR BDTI 9 Dec01 WS/mt A financial swap Transaction with Enron North America Corp. under which the= Seller pays a Floating Price and the Buyer pays a Fixed Price in each case= in respect of the Notional Quantity per Determination Period. Each calend= ar month during the term of the Transaction will be a Determination Period,= provided that, if the term of the Transaction is less than one calendar mo= nth, the Determination Period shall be the term of the Transaction. The Fix= ed Price shall be equal to the Flat Rate (as defined below) multiplied by t= he percentage submitted by Counterparty via EnronOnline. The Notional Quan= tity per Determination Period shall be the volume submitted by Counterparty= via EnronOnline. The Floating Price shall be the Index. The Payment Date = shall be the fifth Business Day following the date on which the Floating Pr= ice is determinable. The term of the Transaction shall be from the Effective Date (or start date= ) to the Termination Date (or end date). The Effective Date (or start date)= is 01 Dec 2001. The Termination Date (or end date) is 31 Dec 2001. The Index shall be the arithmetic average of the prices in the Determinatio= n Period. Such prices shall be calculated by multiplying the Flat Rate (as = defined below) for the route known as ["70,000 tonnes loading Puerto La Cru= z to Corpus Christi"] by the World Scale (or "WS") under the heading 'The B= altic International Tanker Route (BITR) Baltic Dirty Tanker Index (BDTI); R= oute [9]' whenever published by The Baltic Exchange Limited within the Dete= rmination Period. The Flat Rate is the rate in US dollars per metric tonne = as published by Worldscale Association (London) Limited and Worldscale Asso= ciation (NYC) Inc. in effect on the last day of the Determination Period f= or the above mentioned route. If for any reason the Baltic Exchange Limite= d does not provide any prices during the Determination Period, then the For= ward Freight Agreement Brokers Association ("FFABA") may be instructed by e= ither Enron or Counterparty to form a panel to establish such price, which = will be binding on both Counterparty and Enron. The price quoted on EnronOnline is World Scale (or "WS"), expressed as a pe= rcentage of the Flat Rate. The Contractual Currency will be US dollars. The unit of measure against which the price is quoted shall be metric tonne= s and the quantity shown shall be the number of LOTs per Determination Peri= od (each LOT being 5000 metric tonnes). Kevin Meredith EnronOnline (713) 853-9555
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