Message-ID: <12920001.1075842012618.JavaMail.evans@thyme> Date: Wed, 14 Feb 2001 07:48:55 -0800 (PST) From: david.forster@enron.com To: andy.zipper@enron.com Subject: RE: Charges Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Forster, David X-To: Zipper, Andy X-cc: X-bcc: X-Folder: \ExMerge - Zipper, Andy\charges X-Origin: ZIPPER-A X-FileName: andy zipper 6-26-02.PST The story is: These are charges which are incurred for the setup of new countries on EnronOnline. The charges were communicated to each of the business units - and agreed to by representatives of those units before we commenced due diligence. EnronOnline receives cost allocations from legal and these charges are intended to defray those costs. (of course, this last point is a bit weak - the business units could also claim that they receive legal cost allocations as well - so if we are charging them, it is a bit like paying for it twice. In addition, EnronOnline costs are allocated out as well - so to the extent that we are allocated legal costs and then allocate those costs back to the business units, it could be argued that the business units are being charged on several fronts for the same thing. We will probably want to reduce our allocated charges by the amount of each due diligence charge. This means that this is not truly "revenue" - but it helps to ensure that we are only working on things which are really value-added). Dave From: Andy Zipper/ENRON@enronXgate on 02/14/2001 09:29 AM To: David Forster/Corp/Enron@Enron cc: Subject: RE: Charges what is our story ? let's make sure we have it straight. -----Original Message----- From: Forster, David Sent: Tuesday, February 13, 2001 3:31 PM To: Zipper, Andy Subject: Re: Charges Andy, Looks like we will be charging out around $300,000 for adding new countries, including $150,000 to metals. Chile Metals Peru Metals South Africa Coal Hong Kong Metals Taiwan Metals Israel Seafreight Latvia LPG Russia Metals Greece Seafreight Monaco Metals Slovakia Continental Power Turkey Seafreight I will authorise invoices in the next few days. We might get some push-back as even though they agreed to the charges, we have not actually levied them before now. Dave