Message-ID: <1243769.1075858592247.JavaMail.evans@thyme> Date: Wed, 10 Oct 2001 15:40:08 -0700 (PDT) From: melba.lozano@enron.com To: jeff.blumenthal@enron.com, susan.musch@enron.com, bjorn.hagelmann@enron.com, tom.moran@enron.com, john.sweeny@enron.com, legal <.taylor@enron.com> Subject: PLEASE APPROVE US Benzene Fin Options Cc: chris.walker@enron.com, kevin.meredith@enron.com, christian.lebroc@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable Bcc: chris.walker@enron.com, kevin.meredith@enron.com, christian.lebroc@enron.com X-From: Lozano, Melba X-To: Blumenthal, Jeff , Musch, Susan , Hagelmann, Bjorn , Moran, Tom , Sweeny, John , Taylor, Mark E (Legal) X-cc: Walker, Chris , Meredith, Kevin , LeBroc, Christian X-bcc: X-Folder: \MTAYLO1 (Non-Privileged)\Taylor, Mark E (Legal)\Deleted Items X-Origin: Taylor-M X-FileName: MTAYLO1 (Non-Privileged).pst Your review and approval of the following product types in the EOL Datamana= ger is needed (for directions on approval, please see steps for approval at= the bottom of this e-mail). If you have any questions please call me at ex= t. 39555 or Chris Walker at ext. 37533 =20 ******** DO NOT APPROVE PRODUCT TYPES BETWEEN THE HOURS OF 6AM - 11AM******= ***** =20 Sigma =3D 1.50/bbl =20 Puts calls straddles The products are Asian Financial Options quoted in lots: 1lot =3D 1,000 ba= rrels =3D 42,000 gallons. =20 Product Type(s): =09US Benzene Fin Option (2170) Trader(s): =09=09Christian LeBroc Description(s):=09 CALL US Benz Fin Opt CMAI Spot AsC4.5 Oct01 USD/GL-L 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 month during the Term of the Transaction will be a De= termination Period, provided that if the Term of the Transaction is less th= an one calendar month the Determination Period shall be the Term of the Tra= nsaction. The Notional Quantity per Determination Period shall be calculate= d from the volume submitted by Counterparty on the website in accordance wi= th the unit of measure. The Premium shall equal the product of (i) the pric= e submitted by Counterparty via the Website, multiplied by (ii) the Notiona= l Quantity per Determination Period, multiplied by (iii) the number of Dete= rmination Periods during the Term of the Transaction. The Payment Date for = the Premium shall be 2 business days after the Trade Date of the Transactio= n. The Payment Date(s) for the Cash Settlement Amount shall be 5 business d= ays after the Cash Settlement Amount is determinable. Where this Transactio= n is a Call Option, the Cash Settlement Amount shall be the product of (a) = the Notional Quantity per Determination Period, multiplied by (b) the great= er of (i) zero, or (ii) the Index minus the Strike Price. Where this Transa= ction is a Put Option, the Cash Settlement Amount shall be the product of (= a) the Notional Quantity per Determination Period, multiplied by (b) the gr= eater of (i) zero, or (ii) the Strike Price minus the Index. Where this Tra= nsaction is a Straddle Option, the Cash Settlement Amount shall be the prod= uct of (a) the Notional Quantity per Determination Period, multiplied by (b= ) the absolute difference between the Strike Price and the Index. The Term of the Transaction shall be from the Effective Date of 01 Oct 2001= to the Termination Date of 31 Oct 2001. The Exercise Period(s) shall be the last Trading Day of the Determination P= eriod. The Index for a month shall be the average of the means of the high = and low price in Cents/Gallon of Benzene published under the headings "Pric= es for Period Ending [DATE]: United States: Benzene)" under the caption "SP= OT: Cents/Lb." in each issue of Chemical Market Associates, Inc.'s Aromatic= s Market Report (Weekly) that reports prices effective for such 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 volume is shown shall be 42,000 gallo= ns per month. The Option style and type shall be an Asian Call, ("AsC"). Automatic Exercise is Applicable. The strike price for the transaction is 4.5 United States Dollar/Gallon Lot= s. PUT US Benz Fin Opt CMAI Spot AsP4.5 Oct01 USD/GL-L 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 month during the Term of the Transaction will be a De= termination Period, provided that if the Term of the Transaction is less th= an one calendar month the Determination Period shall be the Term of the Tra= nsaction. The Notional Quantity per Determination Period shall be calculate= d from the volume submitted by Counterparty on the website in accordance wi= th the unit of measure. The Premium shall equal the product of (i) the pric= e submitted by Counterparty via the Website, multiplied by (ii) the Notiona= l Quantity per Determination Period, multiplied by (iii) the number of Dete= rmination Periods during the Term of the Transaction. The Payment Date for = the Premium shall be 2 business days after the Trade Date of the Transactio= n. The Payment Date(s) for the Cash Settlement Amount shall be 5 business d= ays after the Cash Settlement Amount is determinable. Where this Transactio= n is a Call Option, the Cash Settlement Amount shall be the product of (a) = the Notional Quantity per Determination Period, multiplied by (b) the great= er of (i) zero, or (ii) the Index minus the Strike Price. Where this Transa= ction is a Put Option, the Cash Settlement Amount shall be the product of (= a) the Notional Quantity per Determination Period, multiplied by (b) the gr= eater of (i) zero, or (ii) the Strike Price minus the Index. Where this Tra= nsaction is a Straddle Option, the Cash Settlement Amount shall be the prod= uct of (a) the Notional Quantity per Determination Period, multiplied by (b= ) the absolute difference between the Strike Price and the Index. The Term of the Transaction shall be from the Effective Date of 01 Oct 2001= to the Termination Date of 31 Oct 2001. The Exercise Period(s) shall be the last Trading Day of the Determination P= eriod. The Index for a month shall be the mean of the average of the high = and low price in Cents/Gallon of Benzene published under the headings "Pric= es for Period Ending [DATE]: United States: Benzene)" under the caption "SP= OT: Cents/Lb." in each issue of Chemical Market Associates, Inc.'s Aromatic= s Market Report (Weekly) that reports prices effective for such 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 volume is shown shall be 42,000 gallo= ns per month. The Option style and type shall be an Asian Put, ("AsP"). Automatic Exercise is Applicable. The strike price for the transaction is 4.5 United States Dollar/Gallon Lot= s. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D STEPS FOR APPROVAL: click the =09START button=20 select =09PROGRAMS select =09TEST APPLICATIONS select=09ENRONONLINE CLUSTER(PROD) =09PROCEED WITH USUAL LOGIN/PASSWORD=20 click the=09Enron Online Production Cluster "START" button =20 select=09EnronOnline (this is the EOL Datamanager) =09PROCEED WITH EOL LOGIN/PASSWORD click on the "+" for EnronOnline click on the "+" for Product Types click on the "+" for "Partially Approved" select the product requiring review as stated in e-mail above Right "mouse" click on "properties" to view product set-up=20 TO APPROVE: Right mouse click on "Approved"