Michelle, if we own more than or equal to 50% of the economic interest, it would apply.  The idea here is to manage exposure to Enron Shareholders whether the company is accounted through Merchant Accounting or Equity Investment Accounting or Consolidated Accounting, etc.

Aaron

 -----Original Message-----
From: 	Cash, Michelle  
Sent:	Wednesday, October 10, 2001 5:04 PM
To:	Brown, Aaron (Executive Comp)
Cc:	Joyce, Mary; Butcher, Sharon; Sullivan, Kriste; 'fmackin@aol.com'; Butler, Pam
Subject:	RE: Subsidiary Equity or Phantom Equity

Aaron, does this apply to companies in which we have a large ownership interest, but that may not be a "subsidiary"?  Thanks.  Michelle

 -----Original Message-----
From: 	Brown, Aaron (Executive Comp)  
Sent:	Wednesday, October 10, 2001 5:01 PM
To:	Cash, Michelle
Cc:	Joyce, Mary; Butcher, Sharon; Sullivan, Kriste; 'fmackin@aol.com'; Butler, Pam
Subject:	Subsidiary Equity or Phantom Equity

Michelle,

This email confirms our discussion that one of the mandates of the Compensation Committee of the Board of Directors of Enron is that they approve all formations of and grants related to any subsidiary equity or phantom equity plans.

Mary and I can and will work closely and quickly with any group needing to get this done.  Mary is responsible for presenting the plan for approval to the Compensation Committee after Tax, Legal, Accounting, Commercial and HR interests are scrubbed.

These types of plans have accounting, legal and tax complexities that need to be worked out and change regularly.  Also, it is very important that no written or verbal promise related to equity grants before Compensation Committee approval is obtained.

Regards,
Aaron
x39280