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Enron Mail |
FYI
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/16/2001 01:00 PM --------------------------- From: Douglas S Friedman 01/16/2001 11:17 AM To: John L Nowlan/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT cc: Subject: EnronOnline / Envera The Agenda from our meeting with Andy on Nov 7. Doug ---------------------- Forwarded by Douglas S Friedman/HOU/ECT on 01/16/2001 11:16 AM --------------------------- From: John Viverito@ENRON on 11/07/2000 10:14 AM To: Douglas S Friedman/HOU/ECT@ECT, Alan Engberg/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT, Mark Greenberg/NA/Enron@ENRON cc: Michael A Robison/HOU/ECT@ECT Subject: EnronOnline / Envera All- Pursuant to our meeting yesterday, regarding the captioned matter, I have prepared a brief summary of the general issues, which are likely to be of interest to EOL and may be discussed in the meeting today with Andy Zipper. Please feel free to add any points that you deem appropriate. 1. The Links: A link from Envera's site to EOL will be created. The link would only be to the home page of EOL. There would be no effect upon normal EOL vetting procedures for counterparties. A link from Envera's site to Deal Bench will be created. Again the link would only be to the home page of Deal Bench. The Envera member companies would be required to follow normal Deal Bench registration of participants, however, such parties during 1Q 2000, would be permitted to engage in two free transactions on Deal Bench, with a maximum of 25 such free transactions in total. Presently, it is still under consideration as to whether such access would be to the auction area, or the collaboration area, or some variation thereof. The fees to be charged post 1Q 2000 are under consideration. 2. Trades On a case-by-case basis, with no preexisting commitment, EGM would consider requests from Envera customers to make trades on a contingent basis on EOL. In the event that such trade is considered promising, then such pricing would be posted on EOL. This would be free for the first 12 months, but thereafter such service would be provided for a fee. 3. Envera Membership and Enron Services as Consideration for Envera Equity EGM would pay between $300-500k for the ability to utilize the Envera hub to do deals for the period of [one year]. Some portion of the fee may also be considered as payment for equity in Envera LLC. The Enron services provided (points 1. and 2. above, as well as access to Enron risk management and utility outsourcing ) will also be considered as payment for some portion of the Envera LLC equity. The total equity received, is anticipated to be around five percent and the capitalization of the company is believed to be around $50,000,000. The breakdown for the consideration for the equity still needs to be reviewed from the accounting side. 4. Board Seat Considerations Discussion regarding Enron obtaining an Envera Board seat has been discussed. The fiduciary risks need to be considered, as we may be restricted in competing with Envera, unless certain steps are taken. For example, if Commodity Logic were to be considered a competitor to Envera, unless we had the specific right to compete we could be subject to suit by Envera. These risks may be negated through negotiation. The upside here would be the ability to have access to executives of certain petrochemical companies who are also shareholders in Envera and have Board seats. It is believed that this type of access would likely lead to more deals for EGM and potentially for other Enron entities. Unrelated to the Board seat, other promotional activities relating to Enron's services are foreseen through activities at Trade Shows and other networking venues. 5. Building Connectivity Between Envera and Enron It will be necessary to consider what activities, from the technical side, would be undertaken by Envera and what activities would be undertaken by Enron, to achieve the stated objectives, i.e. linking. 6. Press Release Envera is likely to want to make a public statement regarding this transaction with Enron. The restrictions on the scope of such announcement must be considered. I hope this is helpful. John ----- Forwarded by John Viverito/Corp/Enron on 11/07/2000 09:12 AM ----- John Viverito 11/06/2000 01:45 PM To: Douglas S Friedman/HOU/ECT@ECT, Alan Engberg/HOU/ECT@ECT, Travis McCullough/HOU/ECT@ECT cc: Michael A Robison/HOU/ECT@ECT Subject: EnronOnline / Envera Doug/Alan/Travis I have reserved EB 38C1 at 4:00 p.m. today to discuss the captioned matter. I look forward to seeing you there. Thanks, John Viverito
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