Louise,

- UBS is planning to tell all of those who are offered positions to come to work at the Houstonion on Friday, not at the Enron building. At the Houstonian, they will have a series of presentations on the new company. I raised concerns about this last night:
- Having the UBS offerees offsite means that everyone left in the building is effectively told they are not a first-round pick.
- Those who remain in the building will have little to do but sit and feed off each other's discontent.
- Some of the initial offerees may refuse, in which case we then have to go back to a discontent Estate person to offer them a position. This makes it very obvious to them and all their peers that they were a second-round draft choice.

I have suggested that they either accelerate the contracting process so we know that we have everyone before Friday, or else delay the Friday meeting. The Friday meeting was stated as necessary so that everyone could understand their benefits before signing. This doesn't sound like a good reason to me.

- I am told I will be approached today by someone from UBS HR. I assume this is what you warned me about and that my "real" contract/meeting will be with you.

- UBS wants me to sign before they offer positions to others within EnronOnline. This doesn't make sense, but if true, can we meet as soon as possible? I'd like to make sure my people have their offers ASAP (for the above reasons), but I'd also like a little time to think about the offer you have in mind for me.

- I remain concerned that the people who were previously offered retention bonuses will be in a position to walk away at the end of Feb. We are in a position where the critical people will be free to go, while the less critical people are incentivised to stay for 6 months.

Dave