Message-ID: <8712602.1075844947875.JavaMail.evans@thyme> Date: Sun, 5 Mar 2000 12:54:00 -0800 (PST) From: jenny.rub@enron.com To: mike.mcconnell@enron.com, stanley.horton@enron.com, philippe.bibi@enron.com Subject: EDS Insourcing Update Cc: robert.jones@enron.com, rod.hayslett@enron.com, dave.schafer@enron.com, ben.herman@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: robert.jones@enron.com, rod.hayslett@enron.com, dave.schafer@enron.com, ben.herman@enron.com X-From: Jenny Rub X-To: Mike McConnell, Stanley Horton, Philippe A Bibi X-cc: Robert Jones, Rod Hayslett, Dave Schafer, Ben Herman X-bcc: X-Folder: \Stanley_Horton_1\Notes Folders\Discussion threads X-Origin: HORTON-S X-FileName: shorton.nsf I have another meeting with Phil Clark (EDS) on Wednesday, 3/8. According to Steve, who will probably not be at this meeting since his name is now on the "official list", these are the outstanding items: I have offiered $5000 finders fee per person, Phil would like more. Our economic analysis assumed a $10k finders fee, so we are still within that limit. EDS definitely wants the contract minimums for 2001 and 2002 increased. I will offer $8mm for both years, an increase of $2mm in 2001 and $3mm in 2002. Again, I want to stress to them that they must EARN this additional work. I am still playing phone tag with Ken Stott on this to see what Azurix plans for 2001 and 2002. Our orginal plan, which was quite agressive, targeted 4/1 as the transition date. GIven that we are in the second week of March, I think a more realistic timeline for transition is 5/1. This means the employee offers should be out no later than 4/1, with a yes/no answer back by 4/15. Then actual transition of the "yes" employees will take place effective 5/1. I think our initial "yes" response will be at 75%, but by the time 4/15 hits, that amount will be 90-95%. In discussions with Steve, he thinks this is a realistic guess. So, the next steps include: Finishing up negotiations with EDS/Phil Clark. Start developing a transition workplan/communication plan with HR (Robert Jones and Ben Herman). Please let me know if you have any questions. I'll provide another update after my meeting on Wednesday. Thanks. Jenny