Spreadsheet: louise_kitchen__22722__issues summary
Sheet: Sheet1

 |  |  |  |  | UBS Warburg Energy Key Integration Issues List
 |  |  |  | Resolved Issues are in blue
 |  |  |  | New issues are in red
 |  |  |  |  |  |  |  | Level of | 2002-02-04 00:00:00 | 2002-02-06 00:00:00
Dept. | Contact | status |  | Key Issues | Description | Action Being Taken | Impact | Concern | Update | Update
Canada | [NAME]/[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 | s/b completed today | Contracts awaiting UBS approval. [NAME] is not optimistic these will be completed prior to launch day.
 |  |  |  | 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 | Completed
 |  |  |  | Need to finalise nature of credit support for Canadian entity | The Canadian entity name has been defined, but as of yet, has no assets and no parental guarantee. | [NAME] working with UBS | Customers will not accept the Canadian entity as a counterpart without credit assurances. | Medium |  | Waiting for status and proof of  credit arrangements
 |  |  |  | [NAME] required | [NAME] consents are required for UBS to occupy the space currently occupied by Enron. It is possible these consents will not be obtained this week. | [NAME] aware of issue. Working with [NAME]? | Completed Leases are a requirement of Closing. | High |  | Consent Acquired
 |  |  |  | Master Agreement between Canada must be finalised | Master Agreement covers nature of relationship between UBS Warburg Energy (Canada) Ltd. and UBS AG. | Draft Agreement anticipated Tuesday 2/5 | Agreement must in place for trading to commence | High |  | Still not finalised
 |  |  |  | Regulatory and Administrative issues | There are a variety of outstanding regulatory and administrative issues which need to be resolved, including regulatory and permitting approvals and authorisations, incorporation documentation, power export permits, confirmation of extra-provincial corporate registration, etc. | Legal working on issues | Failure to obtain necessary documents and permits may delay launch of Canadian products | 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 | s/b completed in next couple of days | ???
Gas Commercial | [NAME] Tycholiz/ [NAME] |  |  | Issues duplicated elsewhere in this document
Power Commercial | [NAME] |  |  | Issues duplicated elsewhere in this document
Finance | [NAME] |  |  | Portland Lease | Portland General is asking for the Estate to make good on owed rent and for the settlement of a post-petition construction project before they agree to UBS taking the lease. Portland General is asking for $538K | Working with the Estate and Portland General on the issue. | Lease must be finalised as a condition of Closing | High
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 | Software installation and training scheduled for Thursday, 2/7. | Software installation and training still scheduled for Thursday, 2/7.
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 |  | resolved
 |  |  |  | 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 | Still need to identify who will be managing f/x and interest rates on the commercial side. | Now a Day 2 issue. Not critical for this list.
 |  |  |  | Policy Needed for data migration | Legal is drafting a policy for the data migration. This policy is needed to determine absolutely what migrates and what does not. The migration must occur before we can start doing transactions (or simulations) on the new database. | Legal in Houston is working with legal in UBS. Houston is waiting for UBS approval. | If the migration policy is not completed and the migration does not occur, the simulation (and real trading) cannot commence. | Medium |  | Migration settled
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 | Suggested limits s/b largely complete as of today. Waiting for final approval. | Tier 1 list complete.
 |  |  |  | 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 | Initial Agreement set to be completed today. | Initial Agreement set has been completed and Master Agreemnents have been sent to Tier 1 companies with customised credit worksheets
 |  |  |  | Sigma Factor review needed | Need to review Sigma factors to ensure they are appropriate within the UBSWenergy framework | Reviewing Sigma factors and identifying any necessary changes | Inappropriate Sigma factors would result in inappropriate adjustments to credit headroom remaining after each transaction occurs. | Low
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 | [NAME]
 |  |  |  | Termination Letter templates needed | Employees who are being terminated with Enron  in order to join UBS require letters of termination which identify that Enron waives the right to reclaim any retention bonuses paid and which deal with payout of accrued vacation. | Legal working on drafting letters | Nature of termination should be settled before termination occurs | Low
Regulatory | [NAME] |  |  | Issues duplicated elsewhere in this document
Risk | [NAME]/[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 | Meeting Thursday with EBK. Anticipating favourable outcome. | Meeting Thursday with EBK. Anticipating favourable outcome.
 |  |  |  | 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. | Medium | Should complete book setup [NAME] 2/5. Further integration expected later this week. | Book setup is complete. Working on integration with UBS. Should be complete by Monday
HR | [NAME] | Resolved |  | 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 | Clarification has been obtained. Requirements have been met.
Online | [NAME] |  |  | UBS Marketing do not wish to proceed with www.ubswenergy.com | Materials and system locations have been prepared for www.ubswenergy.com, but concerns have been raised by UBS that this may not ultimately be acceptable and that launching with this URL should be halted. | Waiting for discussions with UBS to resolve | Until either the previously agreed website is reconfirmed, or a new website is agreed, marketing cannot commence. | High | Decision was made, but might now be reversed. Waiting for final word from UBS. | Issue resolved. [NAME] has been sent outlining branding guidelines.
General | [NAME] |  |  | Estate Secondment | Under the terms of the UBS/Enron agreement, it may be necessary to second UBS employees back to the estate, and such secondment might be required to be full time. This causes significant staffing and workload issues. | Louise working with Estate and UBS to resolve | Significantly reduced capability to conduct business as UBS Warburg Energy,if key staff are seconded to Estate. | High |  | The Estate has agreed to an advice-only role for commercial assistance in the US. In Canada, secondment will be limited to 9 people.
 |  |  |  | Incumbency Certificates for Password Applications | UBS legal are requesting that Incumbency Certificates be prepared for counterparties signing Password Applications. This will significantly slow the PA process. | In discussions with UBS legal | If incumbency certificates are required, it will slow the return of PA's, which will reduce the numbers of counterparties and transactions, particularly in the early days of the launch | High |  | Incumbency Certificates will not be required.