Message-ID: <26931408.1075853268025.JavaMail.evans@thyme>
Date: Wed, 27 Dec 2000 07:04:00 -0800 (PST)
From: richard.sanders@enron.com
To: andrew.edison@enron.com
Subject: Salerno Timeline
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----- Forwarded by Richard B Sanders/HOU/ECT on 12/27/2000 03:08 PM -----

=09Alan Engberg
=0911/17/2000 09:25 AM
=09=09=20
=09=09 To: Sara Shackleton/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT
=09=09 cc: Douglas S Friedman/HOU/ECT@ECT, Jason R Williams/NA/Enron@ENRON
=09=09 Subject: Salerno Timeline

Salerno Swap Agreement =01) Discussion Timeline
Salerno deal: 6 months, Nov =01,00 =01) Apr =01,01, LLDPE swap sold at 39.5=
 cpp basis=20
CMAI mid.
Deal discussed Oct 2-6, verbal agreement was reached on the 5th.  Faxed=20
non-binding indication sheet initialed by Bob Lampo on Oct 5.

10/03, Tues: Salerno calls requesting quote, we quote verbally a couple hou=
rs=20
later that same day.

10/05, Thur: Conversations during which Bob negotiates price and we hold=20
firm.  Also conversations during which I question him about whether or not =
he=01,
s back to backing the deal and what are his motivations for entering into t=
he=20
deal.  He wouldn't elucidate on any of the questions.  Finally discussions=
=20
regarding the need for a credit check, and the likely requirement for an LC=
. =20
He asked at that point how large an LC would be required, I informed that I=
=20
didn=01,t know but that it depended on credit=01,s review of his business a=
nd of=20
our forward view on the market.  We agreed on price and all commercial=20
terms.  I informed that I would fax an indication sheet and that he should=
=20
initial it then return it to me by fax to indicate his approval of the deal=
. =20
He did so.

10/11, Wed: conversation regarding financial docs being sent to credit=20
(details in tape transcript).

10/17, 19 or 20: messages from Bob asking for clarification on the confirm.=
 =20
Message from me roughly explaining the salient points of the confirm. =20
Subsequent conversation sharing the good news that he=01,d been granted a c=
redit=20
line of $250k and for exposure beyond that he=01,d have to post an LC.  No=
=20
indication of any refusal of our terms at that point (details once tapes=20
reviewed).=20

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

10/30, Mon:  Received Salerno message communicating intention to renege=20
(vacation day)

10/31, Tue: Legal advised.  Bob=01,s message forwarded

11/1, Wed: travelling..msg left with Bob Lampo at Salerno stating that our=
=20
position was that a deal was in place as he faxed to us our term sheet with=
=20
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.=20

11/14, Tues: Legal calls Salerno.  Message left.  Bob responds with his own=
=20
message.  Bob doesn=01,t dispute price but does dispute credit terms and us=
es=20
this as basis to drop the deal.   Tapes received.   Transcripts of Nov 11=
=20
conversation made.  Additional tapes requested for 10-16, 19, 20.

11/16, Thur: Meeting with Richard, Sara, Jay, Doug and Alan.  Message left=
=20
with Bob Lampo informing that we were willing to work with him on addressin=
g=20
his credit issues.  Call not yet returned.
