Message-ID: <1738579.1075855912194.JavaMail.evans@thyme> Date: Mon, 27 Dec 1999 03:20:00 -0800 (PST) From: sally.beck@enron.com To: lisa.cousino@enron.com, stephen.schwarz@enron.com Subject: Credit Policy with AEGIS Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Sally Beck X-To: Lisa B Cousino, Stephen P Schwarz X-cc: X-bcc: X-Folder: \Sally_Beck_Dec2000\Notes Folders\Sent X-Origin: Beck-S X-FileName: sbeck.nsf What is the latest on this? ---------------------- Forwarded by Sally Beck/HOU/ECT on 12/27/99 11:20 AM --------------------------- Shannon Bedrich@ENRON 12/20/99 09:13 AM To: Sally Beck/HOU/ECT@ECT cc: Subject: Credit Policy with AEGIS Sally, Cris asked me to follow up with you regarding the AEGIS insurance policy and Enron's reporting requirements which we met about a couple of months ago. Below is a series of e-mail that talks about Enron's obligations as defined in the insurance policy. Please let me know if I can be of assistance in pulling this information together. Thanks, Shannon Bedrich X39172 ---------------------- Forwarded by Shannon Bedrich/Corp/Enron on 12/19/99 09:03 PM --------------------------- Cris Sherman@ECT 12/17/99 05:08 PM James L Bouillion 12/17/99 12:34 PM To: William S Bradford/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, Joseph M Deffner/HOU/ECT@ECT, Cris Sherman/HOU/ECT@ECT cc: Subject: Credit Policy with AEGIS Please see below and advise. Cris had started some dialogue with accounting, however, I have seen nothing come forth. It would not be good to have a loss with so many open items. ---------------------- Forwarded by James L Bouillion/HOU/ECT on 12/17/99 12:32 PM --------------------------- Mary Harkins on 12/16/99 01:00:35 PM To: James L Bouillion/HOU/ECT@ECT cc: Alastair Muir-Taylor , Paul Sparks , Darren Sonderman Subject: Credit Policy with AEGIS Jim, we are pleased to advise that AEGIS is putting the final touches on the wording and we hope to have it to you shortly. In working with them, we made note of the obligations of both Enron and AEGIS as respects documentation to support the contract. In particular, AEGIS is obligated pursuant to VIII. (c) to provide an accounting of the EAB from the date they received the premium to the date six months after the policy incepted. Thereafter, the accounting will be due every six months. We have requested this from AEGIS and will provide a statement to you when it is received. Enron on the other hand is required to provide the following: Page 4 of 13: IV. Definitions(i) Documents: Prior to each anniversary, INSURED agrees to notify COMPANY of any material change in the form of the agreements (ISDA, Enfolio Master Firm Purchase/Sale Agreement, Master Energy Purchase and Sale Agreement and others which govern INSURED TRANSACTIONS). The report shall consist of summary of changes and red lined version of documents. Page 7 of 13: VI. Conditions to Payment by the COMPANY(e) Evaluation of Creditworthiness by INSURED: The INSURED hereby agrees to promptly notify the COMPANY in writing of any material changes in the process and procedures set forth in the document titled XXXXXX (Credit Procedures). Page 7 of 13: VI. Conditions to Payment by the COMPANY (g) Report of Overdue Items: The INSURED shall remit a report to the COMPANY no later than 45 days subsequent to the end of each calendar month, a listing of all past due amounts in excess of 60 days past due as of that month-end date, which may be subject to coverage hereunder. Page 7 of 13: VII. Settlement of Payments Due by the COMPANY or the INSURED (a): The INSURED shall provide to the COMPANY within thirty (30) days after the end of each half-year period a bordereau..... Page 7 of 13: VII. Settlement of Payments Due by the COMPANY or the INSURED (c): Notwithstanding the foregoing, the INSURED must notify the COMPANY in writing within thirty (30) days after the INSURED first has knowledge of any loss actually or potentially subject to coverage under this policy.... There was some correspondence in October regarding the report of overdue items (VI.(g)) and the bordereau (VII.(a)), both on page 7 of 13, however I don't think that these reports have been generated. We would appreciate your assistance in obtaining these in order to provide them to AEGIS. Additionally, we are obligated to provide underwriters with the revised Credit Procedures and would appreciate an update on that process also. Thank you for your assistance on these items. Please let us know if you have any questions or assist you in compiling these reports.