Baltic Exchange changes Please review the proposed changes(shown in blue) to the Tanker Freight products as a result of the Baltic Exchange index changes.  If we receive your approval of the change, we will make the change to the short and long description this weekend.

Tkr Freight Swap BITR BDTI 9                  Dec01           WS/mt

A financial swap Transaction with Enron North America Corp. under which the Seller pays a Floating Price and the Buyer pays a Fixed Price in each case in respect of the Notional Quantity per Determination Period.  Each calendar month during the term of the Transaction will be a Determination Period, provided that, if the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction. The Fixed Price shall be equal to the Flat Rate (as defined below) multiplied by the percentage submitted by Counterparty via EnronOnline.  The Notional Quantity per Determination Period shall be the volume submitted by Counterparty via EnronOnline. The Floating Price shall be the Index.  The Payment Date shall be the fifth Business Day following the date on which the Floating Price is determinable.
The term of the Transaction shall be from the Effective Date (or start date) to the Termination Date (or end date). The Effective Date (or start date) is 01 Dec 2001. The Termination Date (or end date) is 31 Dec 2001.
The Index shall be the arithmetic average of the prices in the Determination Period. Such prices shall be calculated by multiplying the Flat Rate (as defined below) for the route known as ["70,000 tonnes loading Puerto La Cruz to Corpus Christi"] by the World Scale (or "WS") under the heading 'The Baltic International Tanker Route (BITR) Baltic Dirty Tanker Index (BDTI); Route [9]' whenever published by The Baltic Exchange Limited within the Determination Period. The Flat Rate is the rate in US dollars per metric tonne as published by Worldscale Association (London) Limited and Worldscale Association (NYC) Inc.  in effect on the last day of the Determination Period for the above mentioned route.  If for any reason the Baltic Exchange Limited does not provide any prices during the Determination Period, then the Forward Freight Agreement Brokers Association ("FFABA") may be instructed by either Enron or Counterparty to form a panel to establish such price, which will be binding on both Counterparty and Enron.
The price quoted on EnronOnline is World Scale (or "WS"), expressed as a percentage of the Flat Rate. The Contractual Currency will be US dollars.
The unit of measure against which the price is quoted shall be metric tonnes and the quantity shown shall be the number of LOTs per Determination Period (each LOT being 5000 metric tonnes).


Kevin Meredith

EnronOnline
(713) 853-9555


