Subject: EDS Insourcing Update
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Sun, 5 Mar 2000 12:54:00 -0800 (PST)

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