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Enron Mail |
Matt:
Thanks for the quick turnaround. I have only a few comments to the draft request for advice to Kim & Chang: 1) I think you should clarify that the servers for EOL are located and maintained outside Korea. 2) I think you should mention that in other jurisdictions we have reviewed (e.g., US, Australia) for the legality of weather derivatives, counsel has advised us that the instruments are not likely to be treated as insurance contracts. This is primarily because the payout is not linked to a casualty event as would be the case in an insurance contract. David Minns may have additional language to add here. 3) Under Weather Derivatives, delete "Osaka" and replace with "Australia". 4) Just a point of clarification, but as currently envisioned by the Korean commercial team (e.g., Chris Hunt, Jae-Moo and Michelle Lee) when we met with them here in Houston earlier this week, financial derivatives (e.g., interest rate, f/x) would not be traded online with Korean counterparties. Basically, any financial derivatives that would be traded would involve personnel likely located in Japan entering into via phone (e.g., conventional means) an interest rate hedge or f/x hedge with a Korean financial counterparty in order to facilitate the management of the risks carried in Enron Corp.'s global financial risk book in Houston. This would just be an extension of the services that would be performed by Enron Japan on behalf of Enron. Accordingly, I think we need to delete the "On-Line Financial Derivatives" portion of the draft request b/c I think the analysis captured in the earlier memos from Kim & Chang generally addresses this type of derivative activity. If you think otherwise, please adjust the request appropriately. 4) As to ECTRIC's GTCs, I think you should just attach the collateral version for now. Susan : Do you have any comments to add to the request for advice from a tax perspective? I have also copied David Minns on this note to keep him apprised of this request b/c of the Weather Derivatives piece. Matt, assuming you receive no further comments internally, I think you should go ahead and finalize the request and e-mail to Kim & Chang for their review by the end of this week. Regards, Alan Matthias Lee 06/28/2000 07:30 AM To: Alan Aronowitz/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT, Edmund Cooper/LON/ECT@ECT cc: Nony Flores/HOU/ECT@ECT, Angeline Poon/SIN/ECT@ECT, John Viverito/Corp/Enron@Enron Subject: Draft EOL Legal Survey Korea Alan/Mark/Edmund Attached is a first draft EOL Legal Survey on Korea addressed to Kim & Chang for your comments/approval. Also attached are the Annexes thereto for your easy reference. I understand the products to be posted online are Weather Derivatives out of Enron Australia, Financial Derivatives out of Enron Japan and Commodity Derivatives out of Enron Singapore. I thought it sufficient to attach for Kim & Chang's review ECTRS's EOL GTC (with Collateral) as the operative GTCs for Commodity Derivatives. Please let me know if you think the without collateral version should be forwarded as well. I have also assumed that Enron Japan's GTCs for Financial Trades will be substantially simialr to ECTRS's GTCs. Again, please advise if otherwise. There is some reference to a more general memorandum on derivatives trading that Kim & Chang produced in 1996 and updated in 1999. I have attempted not to repeat questions that were already answered by Kim & Chang (in an attempt to save some cost) particularly on general issues of Financial and Commodity Derivatives, choice of law, dispute resolution etc. which I thought were quite extensively covered. But I did request for clarification of some issues which I thought would be relevant to this exercise. I have already contacted Kim & Chang to give them a "heads up". IR Huh has confirmed that he and SK Hong would be available to attend to our request. Edmund, if you do not have the 1999 updated memorandum, let me know and I'll fax one across to you. Thanks and regards Matt
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