RE: LPG Supply to Humberto

Gentlemen,

It seems to me that the price should be MB plus $0.12 for every month. The last cargo purchase saw a value gain for ProCaribe through optimization of the pricing structure by using price swaps. The prices below transfer that value gain away from ProCaribe. I cannot tell if the value is being transferred to the Progasco sale or to Tropigas. Comments???

Paul

-----Original Message-----
From: Chavarria, Javier
Sent: Wednesday, May 30, 2001 9:43 AM
To: Maltes, Miguel; Curran, Greg; Y'Barbo, Paul; Haeussler, Federico
Subject: LPG Supply to Humberto

In order to provide Humberto the short term supply we have been talking about for a while, and to secure a 5-cent margin for Procaribe as agreed to with Mariella, we will sell him the product with the following terms:

Term: 4 months @ 1MM gal/mo.
Start Date: On closing of Progasco sale (June)

Pricing: (depending on month of delivery)
June MB + 11.25
July MB + 11.00
August MB + 12.00
September MB + 12.00
October MB + 12.00

Miguel has a model contract approved by Coralina with the rest of the standard terms. I suggest we send it to Humberto so he is ready to go by closing.
JC