Michelle,

All efforts to try to get Mo to reduce his contract pay and end the separation negotiations have been unsuccessful and on August 9th, he sent me an e-mail stating that he has decided to continue his garden leave with full pay & benefits and will await "Enron's notification regarding termination according to his employment terms."

We were prepared that he would come back with this and we will continue to pay him, but it's this last statement about the notification of termination that concerns me.

I would have thought that our presentation of a separation agreement to him back in November would have been enough written "notification" that we do not wish to continue his employment past the contract end date, but in speaking with him further, he seems to think that its not.  

His contract states that if the Company terminates your employment without 12 months written notice, then the Company shall pay you the remainder of your salary for the 12 months from the date it gave your notice, in a lump sum.  

His contract end date is 6/30/2002 and the last thing we want to do is to pay him additional money.  Please let me know what your legal interpretation of this notification clause is and whether or not we are required to give him a formal termination notice.

Thanks
Cathy


Human Resources
Enron Metals & Commodity Corp.
520 Madison Ave., 28th Floor
New York, NY 10022
Tel: 212-715-5276
Fax: 212-715-5231
E-Mail: Catherine.Huynh@Enron.com