Spreadsheet: louise_kitchen__22727__issues summary
Sheet: Sheet1

 |  |  |  |  | UBS Warburg Energy Key Integration Issues List
 |  |  |  |  |  |  |  | Level of
Dept. | Contact | status |  | Key Issues | Description | Action Being Taken | Impact | Concern
Canada | [NAME] |  | 1 | Finalising Canadian Contracts | Canadian contract templates have not yet been completed | [NAME] (CDN UBS Warburg Energy legal) will be in Houston on Thursday this week to work with legal team on completing documents. | Canada cannot transact until contracts are complete | Medium
 |  |  |  | Resolution of Company name and structure | Company name and structure is required to finalise contracts, establish level and method of credit guarantee and ensure participation online. | Working with UBS for resolution | Canada can not transact until structure is known | Medium
Operations | [NAME] |  |  | Confirmation Form Templates Required | Confirmation templates need to be drafted by legal which are consistent with the requirements of the GTC's and Master Agreements. | Waiting for contract template completion. Working with legal on confirms format. | Written confirmations cannot be sent until the templates are established. | Low
Gas Commercial | [NAME] Tycholiz/ [NAME] |  |  | Issues duplicated elsewhere in this document
Power Commercial | [NAME] |  |  | Issues duplicated elsewhere in this document
Finance | [NAME] |  | 4 | Several Issues being actively worked on (lease, insurance, security), but all are on target.
Treasury | [NAME] |  |  | Replacement of "Citibanking" application with "Keylink" | Changing Cash Flow Management Software | Software changeout underway | If the new software does not work, standalone software can be used in the interim. | Low
IT Development | [NAME] |  |  | New Credit requirements are causing significant changes to credit calculation system | Changes identified as Day 1 requirements by UBS will result in significant changes to the internal credit calculation system, such that it will not be possible to accommodate all change requests for Day 1. | Discussions underway between IT, UBSWenergy credit and UBS credit to ensure everyone understands how the the current system operates and that only the critical Day 1 changes are identified and accomplished. | If reduced change list is not identified, launch will occur with a mix of new  and old credit functionality. | Medium
 |  |  |  | F/X data flows and hedging procedures need to be defined. | Proposed f/x processes are not consistent with current UBSWenergy/UBS system functions. Procedures and data flows need to be defined to ensure accurate f/x hedging. | Meeting required between UBSWenergy commercial f/x trader and between UBSWenergy and UBS IT development | If new processes are not defined, f/x hedging will be inaccurate | Medium
IT Infrastructure | [NAME] |  |  | Issues duplicated elsewhere in this document
Credit | [NAME] |  |  | Counterparty Approval, Limits | Approving specific counterparts for UBS Warburg Energy and assigning headroom limits to each. | Working to define headroom limits consistent with UBS policy and ensuring UBS requirements for approval are met. | Companies which are not approved or which do not have headroom limits assigned will be unable to transact with us. | Low
 |  |  |  | Completion of Custom Master Agreements | Credit clauses must be tailored as appropriate for each Counterparty/Master Agreement | Working to define the clauses which will be used for each company | Appopriate credit clauses are required before the Master Agreement can be released to the Counterparty | Medium
Legal | [NAME] |  |  | Finalising contract templates | Incorporating UBS comments into existing drafts and obtaining UBS legal signoff. | The legal departments are working together on this. [NAME] will be in Houston by Thursday morning to represent UBS legal. | Marketing to potential customers cannot commence until contracts are complete. | High
Regulatory | [NAME] |  |  | Issues duplicated elsewhere in this document
Risk | [NAME] |  |  | Approval of Risk model required | UBSW Energy risk model differs from UBS model and approval by the European Central Bank is required. | We are preparing a White Paper which describes the risk model processes and will be applying for approval, which we hope to have prior to launch | If the Risk Model is not approved, we will not be able to report correctly on risk position and trading may be stopped or severely curtailed. | High
 |  |  |  | Risk reporting must be aggregated at a global level | UBS Warburg Energy risk reporting must be aggregated with other UBS entities in Zurich on a daily basis. The processes to incorporate UBS Warburg Energy reporting must be implemented. | A process is being developed to incorporate both the data and methodology used by UBS Warburg Energy. | If risk reporting cannot be aggregated, trading may be stopped or severely curtailed. | High
HR | [NAME] |  |  | Seeking Clarification that employment conditions have been met. | The UBS/Enron contract specifies a set of requirements with regard to employees joining the new UBS Warburg Energy entity. A definitive statement that these requirements have now been met would ensure this condition does not become problematic at Closing | Seeking a statement to the effect that the conditions have been met. | If a condition precedent for closing is not deemed to be met, then unless UBS waives such requirement, the Closing Date cannot be determined. | Medium