Re: Confidential

Sophie,

I think it's a fair deal.

Vince

Sophie Kingsley 08/30/2000 11:49 AM

To: Dale Surbey/LON/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT, Michele Small/LON/ECT@ECT
Subject: Re: Confidential

Both,

Thanks for your comments and comparisons, it is good to get context.

Based on your comments here would be my proposal

o63,500 basic salary -
o15K kickers for each of the 2 years - These are paid as a lump sum on each
anniversary guaranteed. Therefore guaranteed salary is effectively o78,500 -
this is completely separate and in addition to any performance bonus
Increase the value of options to o60K to vest 1/3 as before - which leaves a
1/3 ($20,000 ) hanging out there at the end of the contract.

Just FYI - Anjam is currently on o68,000 but does not have an agreement, so
this would effectively put a 10.5K gap between the two.

Let me know your thoughts.

Dale Surbey
30/08/2000 16:09
To: Sophie Kingsley/LON/ECT@ECT
cc:

Subject: Re: Confidential

Sophie,

Here's Vince's comments on your proposal for Steve. Also, what's a 2-Yr
Exec? How do the kickers work - are they basically a guaranteed minimum
bonus or incremental bonus?

- Dale

---------------------- Forwarded by Dale Surbey/LON/ECT on 30/08/2000 16:10
---------------------------

Vince J Kaminski
30/08/2000 14:21
To: Dale Surbey/LON/ECT@ECT
cc: Vince J Kaminski/HOU/ECT@ECT

Subject: Re: Confidential

Dale,

Thanks for your message.
I don't know the labor market in London that well but here the market
for quants is very hot. Steve is in my view an exceptionally talented person
and I would go an extra mile to retain him long-term for the company.

I would adjust the base salary or the kicker upward a bit.
o62,000 Basic is what Anjam is receiving currently (if I remember
correctly). Steve has a much higher value
to Enron than Anjam.

Vince

Dale Surbey
08/30/2000 07:49 AM
To: Vince J Kaminski/HOU/ECT@ECT
cc:
Subject: Confidential

Vince,

This is the package HR is proposing for Steven. What do you think?

- Dale

---------------------- Forwarded by Dale Surbey/LON/ECT on 30/08/2000 13:50
---------------------------
Sophie Kingsley 29/08/2000 20:32

To: Dale Surbey/LON/ECT@ECT
cc:

Subject: Confidential

Sorry Dale, long day, here are the proposed numbers

2 Year Exec
o62,000 Basic ( currently o55K )
o10K each year kickers
$50,000 worth of options to vest 1/3 1/3 1/3

Let me know what you think.

Regards

Sophie