Message-ID: <23282244.1075858671535.JavaMail.evans@thyme> Date: Sun, 17 Jun 2001 00:16:15 -0700 (PDT) From: showard@agsk.com To: b..sanders@enron.com Subject: sETTLEMENT Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: showard@agsk.com@ENRON X-To: Sanders, Richard B. , wcp@quinnemanuel.com X-cc: X-bcc: X-Folder: \Sanders, Richard B (Non-Privileged)\Sanders, Richard B.\NSM X-Origin: Sanders-R X-FileName: Sanders, Richard B (Non-Privileged).pst Richard and Bill: Damage figures with prejudgment interest thru 3/31/01 are: Farallon $21.8 million Oaktree $13.2 million Legg Mason $4.9 million Farallon's damages are 62% of the total damages in Hennigan's case. If the case were to settle for the total that Hennigan seeks, $29.3 million= , Farallon would get $18.2 million, and Oaktree would get $11.1 million. If Enron were to contribute $1.25 million to an overall settlement as suggested, we would be paying about 7% of Farallon's damages. If everyone but us were to settle for the suggested retail price (assuming that Hennigan would do such a deal), Farallon's remaining damages would be $4.4 million. The ratio of Farallon's damages to Legg Mason's is 4.4:1. ********* I think our goal should be to settle Farallon for $1,000,000 and Legg Mason for $200,000, and I think that should be achievable. I would offer the other defendants a contribution from Enron of $750,00 (pointing out to the defendants that this is a substantial increase over ou= r opening offer to Hennigan of $450,000.) I would stick on $750,00 quite a while, saying that we are very reluctant to pay any seven figure number, tr= y to get defendants to think that their biggest challenge is to get us to $1 million, then finally give in to that figure. We have bargaining power. Any defendant who wants to settle has to have us= in it's group; therefore we can hold out for a smaller share. If we so settle, we need mutual releases of all NSM-related claims among al= l settling defendants. If the settling group is less than all defendants, the settlement must be conditioned on obtaining a good faith settlement order. Good luck. Steve = = = = = = = = = = = = = = = = = = ................= ................................ ALSCHULER GROSSMAN STEIN & KAHAN LLP ATTORNEYS AT LAW www.agsk.com 2049 Century Park East Thirty-Ninth Floor Los Angeles, CA 90067-3213 Tel 310-277-1226 Fax 310-552-6077 This transmission is intended only for the use of the addressee and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately via e-mail at postmaster@agsk.com or by telephone at 310-277-1226. Thank you. ...............................................