Message-ID: <9306498.1075858602749.JavaMail.evans@thyme>
Date: Thu, 20 Sep 2001 13:57:43 -0700 (PDT)
From: legal <.taylor@enron.com>
To: edward.ondarza@enron.com
Subject: Payment Amount Calculation
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Example 1

Party A calculates that it is in the money $100 (which results in a "Loss" to Party A from the termination)
Party B calculates that it is out of the money $98 (which results in a "Gain" to Party B from the termination)
There are no Unpaid Amounts

The Payment Amount is 50 percent of ($100 + $98) = $99
Since the Payment Amount is positive Party B (the Party with the net Gain) pays $99 to Party A (the party with the net Loss)



Example 2

Same as example 1 except Party A owes $150 in Unpaid Amounts to Party B and Party B owes Party A $12 in Unpaid Amounts

The Payment Amount is (a) 50 percent of ($100 + $98) plus (b) $12 minus (c) $150 = negative $39
Since the Payment Amount is negative Party A (the party with the net Loss) pays $39 to Party B (the party with the net Gain)


Let me know if you need any further explanation.

Mark Taylor
Vice President and General Counsel
Enron Wholesale Services
(713)853-7459