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Enron Mail |
Kay: We are in receipt of Enron's proposed changes to the Settlement Agreement and Release on the Gleason Project. Unfortunately, it appears that the intent of the Settlement Agreement has strayed away from initial discussions between our respective business representatives. In past discussions with Enron regarding its claim for costs associated with reconstruction of the Gleason CT exhaust stacks, Enron tied its local low frequency noise concerns to the stack reconstruction issue. Although the causes for reconstruction of the stacks were beyond SWPC responsibilities, SWPC agreed that in the interest of continued customer relations, we would be willing to make a business policy concession to Enron on the reconstruction costs in exchange for indemnification on future stack and noise issues. The latest revisions to the Settlement Agreement deletes any references to the noise issues in the warranty definition, thereby eliminating any coverage for indemnification for future claims which may arise on that issue from the Settlement Agreement. This elimination substantially erodes the value of Enron's indemnification, and the settlement overall. As modified, the deal is no longer palatable to SWPC, and it is in our best interest not to enter into the Agreement as proposed by Enron. Should Enron be willing to re-insert the language struck from the third WHEREAS paragraph, SWPC would be willing to sign on to the deal. Please contact me directly if you wish to discuss this further. SWPC would like to resolve all outstanding issues with Enron, but we will not make payment on a claim for an issue which we believe we bear no responsibility unless such payment is part of a more global settlement. Regards, Ann Davis Counsel Siemens Westinghouse Power Corporation 4400 Alafaya Trail, MC Q2-480 Orlando, FL 32826 direct: (407) 736-2017 fax: (407) 736-5034 -----Original Message----- From: Mann, Kay [mailto:Kay.Mann@enron.com] Sent: Monday, October 01, 2001 5:57 PM To: ann.davis@swpc.siemens.com Subject: Settlement agreement Hi Ann, I'm attaching a redline with just a couple of changes to the draft you sent. Hopefully, we can wrap this up. Thanks, Kay <<EnrGleasonStackSettle 10-1redline against 10-1.doc<< ps, here's the clean copy: <<EnrGleasonStackSettle 10-1.doc<< ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. **********************************************************************
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