Subject: Re: Proposal to Siemens Westinghouse
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 3 Apr 2001 06:22:00 -0700 (PDT)

Please see the two additions below.

   

	From:  Chris Booth                           04/03/2001 01:14 PM

To: Kay Mann/Corp/Enron@Enron, Ben Jacoby/HOU/ECT@ECT
cc:  

Subject: Proposal to Siemens Westinghouse

Kay and Ben,

Per my conversation with Ben, I have revised the offer to now read:

Lynn ,

In an effort to expeditiously resolve our issues regarding the damaged 
generator, we suggest the following offer, subject to ENA Management approval 
and the execution of the appropriate documents:

Enron will pay Siemens Westinghouse $1,500,000 towards the cost of the 
Replacement Generator.
Enron and Siemens Westinghouse agree to split the proceeds of the insurance 
claim on a 50/50 basis up to the point where Enron has recouped their 
$1,500.000 payment
Any insurance proceeds recovered in excess of $3,000,000 ($1,500,000 to 
Enron, $ 1,500,000 to Siemens Westinghouse) are to Siemens Westinghouse 
account.
By Siemens Westinghouse acceptance of this offer, Enron waives its claim to 
Delivery Liquidated Damages

Example:

Enron Payment to Siemens Westinghouse:   $1,500,000

Insurance Proceeds from Damaged Generator   $4,000,000     
 Enron's share of insurance proceeds:   $1,500,000  =($4,000,000 x 0.5) up to 
$1,500,000
 Siemens Westinghouse's share of insurance proceeds: $2,500,000  = 
($4,000,000 - $1,500,000)

This suggestion is for settlement purposes only, and is without prejudice to 
any rights or positions of Enron or Siemens Westinghouse.