Message-ID: <26451530.1075842601890.JavaMail.evans@thyme> Date: Wed, 19 Jul 2000 03:27:00 -0700 (PDT) From: steve.hooser@enron.com To: barbara.gray@enron.com Subject: Sale of Power Barges to Enron North America Corp. Cc: ron.tapscott@enron.com, brian.redmond@enron.com, gerald.nemec@enron.com, erica.braden@enron.com, pat.radford@enron.com, scott.monson@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: ron.tapscott@enron.com, brian.redmond@enron.com, gerald.nemec@enron.com, erica.braden@enron.com, pat.radford@enron.com, scott.monson@enron.com X-From: Steve Van Hooser X-To: Barbara Gray X-cc: Ron Tapscott, Brian Redmond, Gerald Nemec, Erica Braden, Pat Radford, Scott Monson X-bcc: X-Folder: \Gerald_Nemec_Dec2000_June2001_1\Notes Folders\All documents X-Origin: NEMEC-G X-FileName: gnemec.nsf Barbara, Attached is the Memorandum Of Agreement referenced in my voicemail to you of 10:15 a.m. today. The Turbine sale is to be documented by an Asset Purchase Agreement attached as Exhibit E--it is very vanilla from a Seller's perspective and should be easy to negotiate into final form. As mentioned in my voicemail, the only legal issue I have with the Barge Sale portion of the document is Section 12 (b), the Indemnification Clause which does not indemnify ENA for third party claims arising out of BargeCo's breach of the contract. A reasonable compromise, in my opinion, would be to require Bargeco to indemnify us against third party claims for which there is no specifically identified remedy (such as delay damages or MW buydown damages) in the Memorandum of Agreement. This would take care of most LIPA risks. Aside from the foregoing, I'm happy with the document. Now Ron and Curly Baca have to come to terms on (i) the 90/10 Price payment timing; (ii) the $1,000,000 in spares that Ron thought he was buying and (iii) whether the is a purchase price adjustment if the barges test out at less than 66 MW of capacity. Thanks, Steve ----- Forwarded by Steve Van Hooser/HOU/ECT on 07/19/2000 10:17 AM ----- "DEBBIE STANLEY" 07/18/2000 05:36 PM To: carlos.ryerson@enron.com, Curly.Baca@enron.com, Kirk.McDaniel@enron.com, Steve.Van.Hooser@enron.com cc: "DAVID JUNGMAN" Subject: Sale of Power Barges to Enron North America Corp. As instructed by David Jungman, attached is a memo and redlined Memorandum of Agreement for your review. - 495785(1).doc - 495734(RED).doc