Message-ID: <13465049.1075840954251.JavaMail.evans@thyme>
Date: Wed, 6 Feb 2002 08:58:41 -0800 (PST)
From: tim.belden@enron.com
To: eddy.daniels@enron.com, louise.kitchen@enron.com
Subject: RE: More Portland Issues
Cc: david.steiner@enron.com, f..calger@enron.com
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Here is a trade for you.  According to the Master Agreement, all technology=
 equipment on Schedule 27 was being conveyed to UBS.  All FF&E on Schedule =
18 was not.  It turns out that the Estate in Portland needs some of the tec=
hnology equipment on Schedule 27.  This includes servers, computers, printe=
rs, etc.  We need some of the stuff on Schedule 18 such as the desks and ch=
airs.  We are guaranteed use of this stuff so long as we stay in this build=
ing.  Therefore, we could use it forever for free if we chose to stay here.=
  It seems that we have a fair trade here.  If you don't convey this equipm=
ent to us the only effect is that you will likely prevent us from moving as=
 it will be too expensive!!!  An option to buy the equipment from the estat=
e is essentially a worthless option.  The furiture will have little value t=
o the estate and may be a liability as demand for that stuff in Portland is=
 low and the cost to move is high (e.g., in Mexico shutting down the office=
 cost $40k plus storage fees to move furniture into storage).  Furthermore,=
 I have no reason to believe that an accounting firm working for the estate=
 will give us a "fair" value on the furniture.  We don't want any furniture=
 from the 4th floor that the estate will need.  Bottom line, we can give th=
e estate computers and servers and they can keep the fourth floor furniture=
 and everything will work well for them.  We give up some computers and ser=
vers to the estate but keep the furniture on the 3rd floor.  Everyone is ha=
ppy and it makes economic sense.

Let's just do this trade that makes sense for everybody.



-----Original Message-----
From: Daniels, Eddy=20
Sent: Wednesday, February 06, 2002 8:45 AM
To: Belden, Tim; Kitchen, Louise
Subject: RE: More Portland Issues


I have asked Jeff Golden and Don Miller.  Don is leaning towards giving UBS=
 a purchase option at fair market value.  Though I haven't heard from Jeff,=
 he could decide to "give" UBS the FF&E now, but he'd probably need to trad=
e it for something else he wants.

-----Original Message-----
From: Belden, Tim=20
Sent: Tuesday, February 05, 2002 6:22 PM
To: Daniels, Eddy; Kitchen, Louise
Subject: More Portland Issues


It was just brought to my attention by Dave Steiner that the Estate will co=
ntinue to own the F(urniture), F(ixtures), and E(quipment) and that UBS wil=
l be able to use it for free so long as we are in this building.

As you both know, it is possible that we will move from this floor and woul=
d like to take a good portion of the FFE with us.  My understanding is that=
 Enron is leasing the furniture in Houston and owns the furniture in Portla=
nd.  Therefore, it makes sense for the Houston office to continue to use th=
e furniture but not move it.  It doesn't make as much sense here as it will=
 be expensive for the Estate to dispose of the furniture here and it will b=
e even more expensive to move it to sell it.

Here's the issue -- the Estate should convey the furniture in Portland to U=
BS.  Is this possible?  What do we need to do to make this happen?