Re: Employment Agreement Guidelines

FYI. Michelle
---------------------- Forwarded by Michelle Cash/HOU/ECT on 05/04/2000 10:25
AM ---------------------------

Mary Ann Long@ENRON COMMUNICATIONS
05/03/2000 01:56 PM
To: Mary Joyce/HR/Corp/Enron@ENRON, Mary McKendree/Corp/Enron@ENRON
cc: Marla Barnard/Enron Communications@Enron Communications, Linda
Strahm/Enron Communications@Enron Communications, Paul Trieschman/Enron
Communications@Enron Communications, Michelle Cash/HOU/ECT@ECT, Sharon
Butcher/Corp/Enron@Enron, Kriste Sullivan/Corp/Enron@Enron
Subject: Re: Employment Agreement Guidelines

I will sign off on request forms for EBS.
Thanks
Mary Ann

Mary Joyce@ENRON
05/03/00 01:19 PM

To: Michelle Cash/HOU/ECT@ECT, Sharon Butcher/Corp/Enron@ENRON, Kriste
Sullivan/Corp/Enron@ENRON
cc: Ray Bennett/HOU/EES@EES, Janie
Bonnard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Pam Butler/HR/Corp/Enron@ENRON,
Gerry Chatham/Corp/Enron@ENRON, Scott
Gilchrist/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert Jones/Corp/Enron@ENRON,
Sheila Knudsen/Corp/Enron@ENRON, Mary Ann Long/Enron Communications@Enron
Communications, Drew C Lynch/HOU/ECT@ECT, Mary McKendree/Corp/Enron@ENRON,
Cindy Olson/Corp/Enron@ENRON, David Oxley/HOU/ECT@ECT, Miguel
Padron/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gwendolyn
Petteway/HR/Corp/Enron@ENRON, Courtney Rath/HR/Corp/Enron@ENRON, Kimberly
Rizzi/HOU/ECT@ECT, Dave Schafer/OTS/Enron@ENRON, Ranendra
Sengupta/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Gary P Smith/OTS/Enron@ENRON
Subject: Employment Agreement Guidelines

Effective May 8, the guidelines outlined in our April 14th training session
will be officially implemented. This means that employment agreements for
VPs and above are not to be generated unless you have received a completed
and approved request form. Each business unit should call Mary McKendree
(713-345-8085) for the form and we will fax or hand deliver it to them. The
form must be signed by the appropriate HR personnel for the business unit
(names to be provided to Mary McKendree by each business unit) and then
returned to Mary McKendree. The form will be initialed by someone in
Executive Compensation (Mary McKendree, Mary Joyce, or Pam Butler) and
delivered to you for generating drafts. Please do not distribute a draft to
anyone without a signed and initialed request form.

Also, as discussed, requests for signing bonuses, retention bonuses, up-front
grants by number of options rather than value, and guaranteed LTI awards are
exceptions to the rules that the business units will need to justify before
they will be approved. Please do not make changes to these items or add any
provisions to the standard short form without contacting Executive
Compensation.

These procedures have been implemented at the request of the Office of the
Chairman. Consistent application of compensation standards and attention to
the One Enron goal are key to our success.

Please pass this memo on to others who are impacted by this implementation.
Sheila, would you please ensure that all Compensation Staff receive this?