Lance,

Thanks for passing this message on -- it is good to know what is on the rumor mill, and nobody who knows what I do ever passes those on to me directly!

I believe that we should carefully stay away from any statement that cuts are based on mid-year PRC, as that would not be the best legal defense to have.   

Instead, HR, with assistance from legal, has put forth a matrix for businesses to use in determining which employees, if any, will be affected.  Listed on that matrix include factors such as job criticality (which is weighted to be twice as significant as any of the other factors), ability to perform several different types of jobs, business knowledge, leadership, teamwork, and historical performance over the last 18 months.  PRC results would not be the sole factor.  Otherwise, someone who is the only person who knows how to do a mission-critical job might be affected simply because he rated out lower at mid-year review.  That result obviously would be disasterous.

Michelle

 -----Original Message-----
From: 	Schuler, Lance (Legal)  
Sent:	Sunday, November 18, 2001 11:17 AM
To:	Haedicke, Mark E.; Cash, Michelle
Subject:	FW: *Cuts



W. Lance Schuler
Enron North America Corp.
1400 Smith Street
Houston, Texas  77002
Phone: 713/853-5419
Fax:  281/664-4890
Email:  lance.schuler-legal@enron.com

 -----Original Message-----
From: 	Rossi, Robbi  
Sent:	Friday, November 16, 2001 3:36 PM
To:	Schuler, Lance (Legal)
Subject:	*Cuts

Lance,

  I have been told that all cuts will be based on PRC.  Kristina Mordaunt was my last reviewer and I have serious doubts about the fairness of her review.  If this becomes an issue, I would appreciate it if you would talk to Paul Racicot and Jim Fallon about the quality of my performance at EBS.  Thanks