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I cringe at the thought of Six Flags. | dev42 |
I'm sure Paige can be bought. | dev42 |
She went recently and had a big time. | dev42 |
Hope your week is quiet. | dev42 |
Love/hugs, etc, to all, Kay | dev42 |
How bad is that. | dev42 |
I forgot I asked him to send it to you. | dev42 |
Hi Bob, Is there a favorite go by for an interconnection agreement? | dev42 |
I have one on my immediate to do list, and I want to point outside counsel in the right direction. | dev42 |
Thanks, Kay | dev42 |
I'm available anytime. | dev42 |
Enron North America Corp. | dev42 |
Good morning, Enron's finance people are asking about the status of the turbine contract for Pastoria. | dev42 |
Since Sheila is on vacation I thought I would check with you. | dev42 |
Is it in final form, and if so, has it been executed? | dev42 |
It would be a big help to get an electronic version sent to me. | dev42 |
Thanks, Kay | dev42 |
This is the contract that we said would be the jumping off point (an accurate description) for our GE discussions. | dev42 |
As I recall, we need to give it the off balance sheet treatment before it is distributed to the masses. | dev42 |
Rose, can you take responsibility for the basic OBS stuff? | dev42 |
I suggest we discuss assignment and indemnity separately (and soon). | dev42 |
My assistant is setting up the legal team's conference call for Wednesday at 830. | dev42 |
Details to follow. | dev42 |
Kay | dev42 |
Sounds great to me. | dev42 |
Enron North America Corp. | dev42 |
I threw the initials in there for your benefit. | dev42 |
It means Oh Bull Shit. | dev42 |
Kay | dev42 |
The following is a redline version of the execution version (so we hope) versus the last draft you saw. | dev42 |
Please advise if there are any Kay | dev42 |
Nancy, I believe we are scheduled to start at 900am Thursday. | dev42 |
I had a voice mail from Heather that said she was planning to spend the night Thursday in case the meeting went long, or we wanted to continue on Friday. | dev42 |
I haven't heard where we will be staying. | dev42 |
As for the interconnection agreement, it would be great to have a internal working draft this week. | dev42 |
That way we can discuss it with Heather and make good use of our time. | dev42 |
Also, we could have some general, preliminary discussions with VEPCO about it, if we feel ready. | dev42 |
I've been trying to get a form from someone around here, but haven't had any luck. | dev42 |
Perhaps someone BP's Houston office has an "Enron form". | dev42 |
Sheryl Gussett's name is next to "interconnection agreement" on our document team list. | dev42 |
Kay | dev42 |
As luck would have, I have to leave town this week. | dev42 |
I need to cancel this class. | dev42 |
Thanks, Kay | dev42 |
Hey, we all can use a little money. | dev42 |
Life doesn't seem to get any cheaper. | dev42 |
Honey, I think we discussed C T Systems doing the filing. | dev42 |
Do you recall how much it was? | dev42 |
If not, I can see what I can find out. | dev42 |
Which is more strange: Joe in Central America or Jack in Egypt? | dev42 |
Clark in Chicago? | dev42 |
Kay at Enron? | dev42 |
Gerry BUYING an engineering company? | dev42 |
Honey STILL at Sounds like a great time for a reunion. | dev42 |
Kay | dev42 |
FYI. | dev42 |
We are staying at the Richmond Marriott or Marriott Richmond, whichever it is. | dev42 |
What are your plans? | dev42 |
Kay | dev42 |
Nancy Wodka DC 202 8285000 is the main number Kay | dev42 |
FYI. | dev42 |
Kay | dev42 |
Thank you. | dev42 |
Kay | dev42 |
Sorry if I'm a little late in the day. | dev42 |
I feel into marathon meeting mode today. | dev42 |
Here are my observations of the GE contract. | dev42 |
I tried to confine it to significant issues since it appears to me that the negotiations are far along. | dev42 |
General Terms and Conditions I don't see where the buyer has much financial leverage for performance/warranty issues. | dev42 |
Final payment is made at shipment, with the Buyer having the benefit of a 10% retention bond; however, the retention bond expires at Provisional Acceptance. | dev42 |
There is no financial leverage for Final Acceptance or the warranty period. | dev42 |
Also, usually provisional or final acceptance requires that GE provide the operating manuals. | dev42 |
The assignment language (8) is somewhat narrow. | dev42 |
I don't know the deal, so I don't know how it fits. | dev42 |
It can help to have language which allows for free assignment after provisional acceptance or payment in full, whichever occurs first. | dev42 |
Also, the contract can allow for a substitute guaranty as payment security, in lieu of the buyer guaranty. | dev42 |
Again, I don't know the deal so this may be fine as is. | dev42 |
The contract incorporates GE's proposal as a part of the contract, but does not give an order of precedence. | dev42 |
I haven't seen the proposal or any other technical exhibits, but sometimes these can be very self-serving. | dev42 |
Therefore, you can potentially lose ground with what is in the exhibit. | dev42 |
Warranty. | dev42 |
The language is a bit confusing to me, especially the interplay of the 1st and 2nd paragraph. | dev42 |
Also, the "outs" they have are very broad. | dev42 |
It is better if there outs are limited to installation/operation/maintenance not in accoredance with their written instructions (alternatively, industry practice). | dev42 |
Also, they have an out if repairs are performed without their permission, but there's no time line or urgency for their response to a warranty claim. | dev42 |
A statement that they must provide a service engineer within 3 days or so might help. | dev42 |
I also suggest being clear that 1.2 applies to warranty obligations, but their obligation to respond quickly to warranty problems need to be explicit. | dev42 |
Excusable Delay. | dev42 |
(15) I would delete "indirectly" from the 3rd line. | dev42 |
Provisional Acceptance. | dev42 |
I don't understand the phrase "only to the extent and proportional share". | dev42 |
Does this mean that GE may not be liable for the full LD's, or that the buyer has to prove a right to collect LD's? | dev42 |
Litigation. | dev42 |
The dispute resolution (mediation then litigation) is not consistent with the usual arbitration route we request. | dev42 |
I didn't take a hard look at LD's, since I assumed these are settled. | dev42 |
13.6 Enron typically gets more precise language than this. | dev42 |
For instance, I would delete or clarify the phrase "including that due to environment or operation", as being vague. | dev42 |
13.6 (i)The phrase "proper storage, installation, operation and maintenance" should be as defined by GE's written instructions, or at least based on industry standards. | dev42 |
13.6 (ii) could conceivably allow them to drag their feet on a repair, then not allow us to get someone else to do the work. | dev42 |
14.1 The last line should include the words "strict liability" after "negligence". | dev42 |
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