Developmental Plan

Please reference the memo below.
---------------------- Forwarded by Brenda F Herod/HOU/ECT on 07/11/2000
11:20 AM ---------------------------

Enron North America Corp.

From: Hector McLoughlin @ ENRON 07/07/2000 06:04 PM

To: Kristin Albrecht/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, David
Hall/GCO/Enron@ENRON, Brenda F Herod/HOU/ECT@ECT, Shona
Wilson/NA/Enron@Enron, Eugenio Perez/HOU/ECT@ECT, James
Scribner/Corp/Enron@Enron, Sheri Thomas/HOU/ECT@ECT, Mary
Solmonson/HOU/ECT@ECT, Joel Henenberg/NA/Enron@Enron, Leslie
Reeves/HOU/ECT@ECT
cc: Lisa B Cousino/HOU/ECT@ECT
Subject: Developmental Plan

If you had any employees that were rated "needs improvement" or "issues"
please read the e-mail that Norma and I wrote for her group. If you have
any questions or need help with this process please call me at ext. 36703
hgm

---------------------- Forwarded by Hector McLoughlin/Corp/Enron on
07/07/2000 05:46 PM ---------------------------

From: Norma Villarreal @ ECT 07/07/2000 05:12 PM

To: Susan Harrison/HOU/ECT@ECT, Jefferson D Sorenson/HOU/ECT@ECT, Steve
Jackson/HOU/ECT@ECT, Robert Superty/HOU/ECT@ECT, Scott Mills/HOU/ECT@ECT
cc: Brent A Price/HOU/ECT@ECT, Hector McLoughlin/Corp/Enron@Enron, Sheila
Walton/HOU/ECT@ECT

Subject: Developmental Plan

Per the request of the management team, attached is a form to assist managers
in documenting performance improvement guidelines for poor performers. There
are two pages: Page one is the template with a brief description of the
information needed on it. Page two is a completed example to show how it
might look when finished.

Please begin working with the appropriate manager in completing the document
for those individuals who have a ranking of Needs Improvement or Issues for
2000 Mid Year review. In order to complete section of the form titled
'Agreed Developmental Plans', managers must provide quantifiable evidence of
previous lack of satisfactory performance.

As discussed in prior meetings, reviews requiring developmental plans should
be conducted by two levels of management. Also, HR and Legal must review
prior to employee receiving developmental plan and counselling. Please
complete and submit by Monday, July 17, 2000.

Please call if you have any questions or to set time aside to discuss the
developmental plan.

Norma Villarreal
X31545