Message-ID: <26031904.1075852962740.JavaMail.evans@thyme> Date: Wed, 3 Oct 2001 07:55:59 -0700 (PDT) From: larry.may@enron.com To: lindsay.renaud@enron.com Subject: RE: Ready for your approval Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: May, Larry X-To: Renaud, Lindsay X-cc: X-bcc: X-Folder: \LMAY2 (Non-Privileged)\Sent Items X-Origin: May-L X-FileName: LMAY2 (Non-Privileged).pst Looks good thanks -----Original Message----- From: =09Renaud, Lindsay =20 Sent:=09Friday, September 28, 2001 9:06 AM To:=09May, Larry Subject:=09Ready for your approval Importance:=09High Larry, I just wanted to check with you whether this looks okay. As long as you are= satisfied with this updated long description we are ready to make the chan= ges in the system. Let me know what you think. US Gas Daily Opt GD/D HHub - IF HHub ES A financial Option Transaction with Enron North America Corp., under which = the Seller receives the Premium and the Buyer receives the Cash Settlement = Amount. Each calendar day during the Term of the Transaction will be a Dete= rmination Period. The Notional Quantity per Determination Period shall be t= he volume submitted by Counterparty on the website in accordance with the u= nit of measure. The Premium shall equal the product of (i) the price submit= ted by Counterparty via the website, multiplied by (ii) the number of calen= dar days during the Term of the Transaction, multiplied by (iii) the volume= submitted by Counterparty on the website. The Payment Date for the Premium= shall be 2 business days after the Trade Date of the Transaction. The Paym= ent Date(s) for the Cash Settlement Amount shall be 5 business days after t= he last Determination Period with respect to each calendar month for those = Determination Periods occurring during such calendar month. Where this Tran= saction is a Call Option, the Cash Settlement Amount shall be the sum of th= e product of (a) the Notional Quantity per Determination Period, multiplied= by (b) the greater of (i) zero, or (ii) the Index minus the Strike Price. = Where this Transaction is a Put Option, the Cash Settlement Amount shall be= the sum of the product of (a) the Notional Quantity per Determination Peri= od, multiplied by (b) the greater of (i) zero, or (ii) the Strike Price min= us the Index. Where this Transaction is a Straddle Option, the Cash Settlem= ent Amount shall be the sum of the product of (a) the Notional Quantity per= Determination Period, multiplied by (b) the absolute difference between th= e Strike Price and the Index. The term of the Transaction shall correspond = to the date(s) set forth in the Product description on the Website. The Ind= ex for a calendar day shall be the Daily Midpoint price published for such = calendar day under the heading "Daily Price Survey" in the Louisiana -Onsho= re South - Henry Hub section of Gas Daily. The Strike Price for each Deter= mination period during each calendar month during the term shall be the Sou= th Louisiana - Henry Hub Index price in the "Market Center Spot-Gas Prices"= section located in the first issue of Inside Ferc's Gas Market Report publ= ished for such calendar month. The price is quoted in US Dollars per unit of volume, which will be the Con= tractual Currency. The unit of measure against which the price is quoted shall be millions of = British thermal units and the quantity shown shall be in millions of BTUs p= er day. The Option Style is European, and the Option Type is a Straddle (the simult= aneous buy or sale of Calls and Puts at the specified Strike Price). =09Automatic Exercise is Applicable. Thanks, Lindsay Lindsay Renaud EnronOnline (713) 345-3703