RE: Bill Rome-- PRIVILEGED AND CONFIDENTIAL

This will just be Rome and Enron. Although we believe that most of his claims really are against HMS, his lawyer is claiming that Enron used HMS to defraud Rome. His lawsuit will be against only Enron. Therefore, it makes no sense to drag HMS into this at this point (although they probably will have to be involved in some fashion after suit is filed).

-----Original Message-----
From: Howard, Kevin A.
Sent: Monday, October 15, 2001 10:42 AM
To: Cash, Michelle
Subject: RE: Bill Rome-- PRIVILEGED AND CONFIDENTIAL

Have we received a list of other people that will be involved in the mediation? Hanover Compressor, Hanover Measurement, etc.

Kevin

-----Original Message-----
From: Cash, Michelle
Sent: Monday, October 15, 2001 9:05 AM
To: Howard, Kevin A.
Cc: Garland, Kevin; Goode, Diane
Subject: RE: Bill Rome-- PRIVILEGED AND CONFIDENTIAL

I have spoken with Kevin on this. Rome's attorney has asked for a mediation with Gary McGowan, who is an outstanding mediator. We have agreed. My paralegal, Diane Goode, will be calling you to schedule the mediation time as well as time for a preparation meeting. I am in the process of preparing a chronology of events for you and Kevin, since he said that you should be the one involved in such a mediation.

If, prior to that, you would like to engage Rome in settlement discussions directly, feel free to do so. I doubt that he will want to talk about it without his lawyer.

He still is an employee, but his deadline for redeployment is 10/31, at which time his employment will be terminated. We will continue to honor his contract and pay him through the end of the Term, although he will not remain an employee of Enron.

Let me know if you have any questions.

Michelle

-----Original Message-----
From: Howard, Kevin A.
Sent: Monday, October 15, 2001 8:45 AM
To: Cash, Michelle
Subject: Bill Rome

Michelle:

What is the status of Bill Rome? Kevin Garland would like me to take another run at reaching some mutually agreeable solutioin with Bill. Have we paid him the remainder of his contract?

Kevin