Message-ID: <5309749.1075841595098.JavaMail.evans@thyme> Date: Thu, 1 Nov 2001 10:08:07 -0800 (PST) From: geoff.storey@enron.com To: randall.oneal@williams.com Subject: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Storey, Geoff X-To: 'randall.oneal@williams.com' X-cc: X-bcc: X-Folder: \ExMerge - Storey, Geoff\Credit Rings X-Origin: STOREY-G X-FileName: geoff storey 6-26-02.PST Randy, What we wanted to look at on the gas side would be a three way ring trade t= hat is out-of-the-money on one side and in-the-money on the other.=20 For example: Counterparty A sells to Enron a jan02-dec02 nymex swap at current market + = $2 Enron sells to Williams a jan02-dec02 nymex swap at current market + $2 Williams sells to Counterparty A a jan02-dec02 nymex swap at current market= + $2 There will be no net position change for each counterparty, but if will rep= lace Counterparty A's Enron credit exposure with Williams. All the trades would fall within our existing ISDAs. Our lawyers have added= some language for the confirms that would tie the trades together. That la= nguage is included below. If you have any legal questions feel free to call= our lawyer Mark Taylor at 713-853-7459. If you have any questions feel free to call me at 713-853-7058. I'll ring y= ou latter this afternoon to go over the details and talk about possible cou= nterparties. Thanks for your time. Geof Storey "Each of the parties to this Agreement recognizes and acknowledges that the= parties are acting and agreeing to perform their obligations hereunder in = reliance upon (i) the timely execution and delivery by [legal name of other= counterparty] ("Third Party") and Party A of a transaction in substantiall= y the form attached hereto as Exhibit A ("Third Party Transaction A") and w= ould not otherwise agree to execute, deliver and perform under this Agreeme= nt if Third Party and Party A were not contemporaneously executing and deli= vering Third Party Transaction A and (ii) the timely execution and delivery= by Third Party and Party B of a transaction in substantially the form atta= ched hereto as Exhibit B ("Third party Transaction B") and would not otherw= ise agree to execute, deliver and perform under this Agreement if Third Par= ty and Party B were not contemporaneously executing and delivering Third pa= rty Transaction B. The effectiveness of this Agreement shall be subject to = the condition that contemporaneously with the execution and delivery of thi= s Agreement Party A and Third Party execute and deliver Third Party Transac= tion A and Party B and Third Party execute and deliver Third Party Transact= ion B."