Message-ID: <26334318.1075860078261.JavaMail.evans@thyme>
Date: Mon, 21 Aug 2000 11:54:00 -0700 (PDT)
From: mark.taylor@enron.com
To: david.forster@enron.com
Subject: Re: Gross Error language
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X-From: Mark Taylor
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That works to make it more bilateral.  I think we still have the fundamenta=
l=20
problem that it is a basically flawed concept.  But that's not going to be=
=20
fixed by drafting.



=09David Forster@ENRON
=0908/21/2000 06:48 PM
=09=09
=09=09 To: Mark Taylor/HOU/ECT@ECT
=09=09 cc:=20
=09=09 Subject: Re: Gross Error language

I think we need for this to be reciprocal -although I agree the errors are=
=20
likely to be only our own.

Therefore, I suggest the following:

(f) Notwithstanding any provision of this Agreement, any master agreement o=
r=20
any GTC to the contrary, any Transaction resulting from a Gross Error may  =
be=20
voided and the parties agree that any such voided Transaction shall be of n=
o=20
force or effect.  =01&Gross Error=018 shall mean the posting of any price t=
hat is=20
[5]% or more above or below then prevailing market prices, which difference=
=20
is verified by the average of quotations from three or more participants in=
=20
the relevant market for Transactions which would be conducted at the time o=
f=20
the Transaction containing the Gross Error. For a Transaction to qualify as=
=20
subject to Gross Error, one party must communicate by facsimile to the othe=
r=20
the claimed existence of Gross Error within [3] hours of the Transaction=20
occurring.=20


What do you think?

Dave




From: Mark Taylor@ECT on 08/14/2000 05:27 PM
To: David Forster/Corp/Enron@Enron
cc: =20

Subject: Gross Error language

(f) Notwithstanding any provision of this Agreement, any master agreement o=
r=20
any GTC to the contrary, any Transaction resulting from a Gross Error by=20
Enron shall be voided at Enron=01,s election and Counterparty agrees that a=
ny=20
such voided Transaction shall be of no force or effect.  =01&Gross Error=01=
8 shall=20
mean the posting of any price that is [30]% or more above or below then=20
prevailing market prices, which difference is verified by the average of=20
quotations from three or more participants in the relevant market.