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Enron Mail |
Hi Rusty,
Since Carlos is working on the Pontiac and Plano sale, I'm going to forward this to him for his handling. That way things will stay better organized. Thanks, Kay Rusty Stevens 02/26/2001 10:45 AM To: Kathleen Carnahan/NA/Enron@Enron, Kay Mann/Corp/Enron@Enron cc: Fred Mitro/HOU/ECT@ECT, Ben Jacoby/HOU/ECT@ECT Subject: Pontiac Land Option Our current land option on the Pontiac site goes to June 11th, with a 6 month extension for $5000. In order to enhance and maintain the value of the site (we're trying to sell it now) I have gotten Ben's authorization to secure an additional 12 month extension on the deal for $10,000. I spoke to the landowner - Dick Greene - and he indicated that they would consider it, although he has never been in favor of an option structure since he is 80 years old and just wants the money from the sale. The concept I pitched today was that we would pay them for the 6 month extension, and give them an additional $5000 now in exchange for adding another 12 month extension on the back. At the time we exercise that 12 month extension we would pay them another $5000. He said he would have to hear what his lawyer said in this regard, but I think its close to a deal. Perhaps we could arrange a conference call with Karen Way at Piper-Rudnick as she has dealt extensively with their lawyer Ed Legner. Its good timing to hit him now, since he does a lot of tax work so he will want to wrap us up quickly. As regards accounting issues, the total exercise price is 117 acres * $4500 / ac. = $526,500, and 5% = $26,325. Total option premiums (including this extension I am proposing) will be $20,000. I believe we may also need to amend the original option language to make it clear that the option fee is not part of the price.
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