Subject: Salerno Timeline
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Fri, 17 Nov 2000 01:25:00 -0800 (PST)

Salerno Swap Agreement ) Discussion Timeline
Salerno deal: 6 months, Nov ,00 ) Apr ,01, LLDPE swap sold at 39.5 cpp basis 
CMAI mid.
Deal discussed Oct 2-6, verbal agreement was reached on the 5th.  Faxed 
non-binding indication sheet initialed by Bob Lampo on Oct 5.

10/03, Tues: Salerno calls requesting quote, we quote verbally a couple hours 
later that same day.

10/05, Thur: Conversations during which Bob negotiates price and we hold 
firm.  Also conversations during which I question him about whether or not he,
s back to backing the deal and what are his motivations for entering into the 
deal.  He wouldn't elucidate on any of the questions.  Finally discussions 
regarding the need for a credit check, and the likely requirement for an LC.  
He asked at that point how large an LC would be required, I informed that I 
didn,t know but that it depended on credit,s review of his business and of 
our forward view on the market.  We agreed on price and all commercial 
terms.  I informed that I would fax an indication sheet and that he should 
initial it then return it to me by fax to indicate his approval of the deal.  
He did so.

10/11, Wed: conversation regarding financial docs being sent to credit 
(details in tape transcript).

10/17, 19 or 20: messages from Bob asking for clarification on the confirm.  
Message from me roughly explaining the salient points of the confirm.  
Subsequent conversation sharing the good news that he,d been granted a credit 
line of $250k and for exposure beyond that he,d have to post an LC.  No 
indication of any refusal of our terms at that point (details once tapes 
reviewed). 

10/23-27: no conversations that I can recall

10/30, Mon:  Received Salerno message communicating intention to renege 
(vacation day)

10/31, Tue: Legal advised.  Bob,s message forwarded

11/1, Wed: travelling..msg left with Bob Lampo at Salerno stating that our 
position was that a deal was in place as he faxed to us our term sheet with 
his initials and we had done a credit check giving him a line of credit.

11/2, Thu: Confirms sent to legal

11/3, Fri: Legal calls Salerno.  Message left.

11/6-9, Mon to Thu: messages traded with legal

11/10, Fri: Legal recommends pulling the tapes. 

11/14, Tues: Legal calls Salerno.  Message left.  Bob responds with his own 
message.  Bob doesn,t dispute price but does dispute credit terms and uses 
this as basis to drop the deal.   Tapes received.   Transcripts of Nov 11 
conversation made.  Additional tapes requested for 10-16, 19, 20.

11/16, Thur: Meeting with Richard, Sara, Jay, Doug and Alan.  Message left 
with Bob Lampo informing that we were willing to work with him on addressing 
his credit issues.  Call not yet returned.