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Enron Mail |
Just for your info.
---------------------- Forwarded by Kay Mann/Corp/Enron on 06/08/2000 01:55 PM --------------------------- Jeff Blumenthal@ECT 06/06/2000 06:44 PM To: Kay Mann/Corp/Enron@ENRON, Brian D Barto/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Peggy Banczak/HOU/ECT@ECT, Steve Irvin/HOU/ECT@ECT, Marc Sabine/NA/Enron@ENRON Subject: RE: language for Withholding (Section 5.2.2) Kay and Brian, In reply to Tim Lederach's e-mail below to Jeff Smith on June 6th, I have the following comments: 1. Regarding Tim's addition of the second and third sentences to my original suggested language, it appears that there may be a misunderstanding. Under Mexican tax law, EEIM would be obligated to withhold tax on any payments it makes to GE that are subject to Mexican withholding tax. EEIM would submit such amounts directly to the Mexican tax authorities and, in exchange, would receive an official receipt (Official Form 37-A) that it could then forward to GE. It appears that Tim wants to ensure that GE obtains a copy of the official receipt so that GE can claim a foreign tax credit on its U.S. income tax return for any withholding tax to which payments it receives are subject under Mexican tax law. Tim's suggested additional language therefore needs to modified to reflect that EEIM would pay the tax and could then provide GE with the receipt. I'd be glad to visit with Tim to discuss this matter. 2. The language that I have proposed should be inserted in both the onshore agreement and the offshore agreement. Tim is proposing that it be inserted (with his additional suggestions) only in the onshore agreement. Please contact me at ext. 35777 if you have any questions. Best regards, Jeff From: Kay Mann @ ENRON 06/06/2000 06:09 PM To: Jeff Blumenthal/HOU/ECT@ECT, Peggy Banczak/HOU/ECT@ECT cc: Subject: RE: language for Withholding (Section 5.2.2) ---------------------- Forwarded by Kay Mann/Corp/Enron on 06/06/2000 06:08 PM --------------------------- jeffreye.smith@ps.ge.com on 06/06/2000 06:08:59 PM To: Kay.Mann@enron.com cc: Brian.D.Barto@enron.com, tim.lederach@ps.ge.com, john.schroeder@ps.ge.com, karl.siverling@ps.ge.com Subject: RE: language for Withholding (Section 5.2.2) Kay, See the proposed wording, below. This is the only contract text issue I am aware of. Other than the items mentioned in my e-mail of June 1st/2nd (on the consolidation agreement) and finalization of the "letter agreement" (you got my fax), we are there. Implied in the above, is that at this point I think the split agreement approach would get us to closure faster. Regards, Jeff Smith -----Original Message----- From: Lederach, Timothy P (PS, Finance) Sent: Tuesday, June 06, 2000 4:12 PM To: Smith, Jeffrey E (PS, CommOps) Subject: RE: language for Withholding (Section 5.2.2) I have no problem with their proposed addition as it applies to the onshore contract. However, I would recommend modifying it as follows: If Purchaser is obligated to make any payment to Seller that is subject to any withholding tax, then Purchaser shall remit the appropriate withholding tax to the proper governmental authorities, and Purchaser shall then remit the net amount of the payment (i.e., the gross payment minus the applicable withholding tax) to Seller. Seller agrees to provide Purchaser with an original tax receipt, in Seller's name, indicating remittance by the Purchaser of the amounts withheld. Failure to provide this receipt within a reasonable period of time will result in the amount withheld becoming payable to the Seller. Regards Tim Lederach GEPS Taxes -----Original Message----- From: Smith, Jeffrey E (PS, CommOps) Sent: Tuesday, June 06, 2000 2:43 PM To: Lederach, Timothy P (PS, Finance) Subject: FW: language for Withholding (Section 5.2.2) Importance: High Tim, Enron wants to add this to the end of Clause 5.2.2. Attached is the latest version of the On-Shore Contract for reference. Please let me know your opinion. We can talk to Enron about this if appropriate. Thanks, Jeff Smith << File: VITRO5-on-r1b.wpd << -----Original Message----- From: Brian D Barto [mailto:Brian.D.Barto@enron.com] <mailto:[mailto:Brian.D.Barto@enron.com]< Sent: Tuesday, June 06, 2000 2:23 PM To: jeffreye.smith@ps.ge.com Subject: language for Withholding (Section 5.2.2) If Purchaser is obligated to make any payment to Seller that is subject to any withholding tax, then Purchaser shall remit the appropriate withholding tax to the proper governmental authorities, and Purchaser shall then remit the net amount of the payment (i.e., the gross payment minus the applicable withholding tax) to Seller.
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