Twanda, please pull all emails on this subject matter out of my in box and print for the file.  Thanks.  MHC
-----Original Message-----
From: Funkhouser, Shanna 
Sent: Tuesday, August 21, 2001 10:25 PM
To: Butcher, Sharon
Cc: Cash, Michelle
Subject: RE: Bluewater Communications (Brad Romine)


Hi Sharon,
 
Brad's manager is aware that we are exploring the possibility of a conflict.  Brad is currently in the Freight Markets group where he has developed pricing models for this new business. Brad's current manager does not foresee a conflict and I believe Brad developed these models in between being an associate and a full time hire.  Brad did not create the models as a part of his job responsibilities and although Brad says we are not currently in the business of trading long distance minutes, it is not far-fetched to think that we may at some point.
 
If you have further questions, I would be happy to arrange a brief meeting with Brad and his manager - this is the extent of my knowledge on the subject.
 
Thanks,
Shanna

-----Original Message----- 
From: Butcher, Sharon 
Sent: Tue 8/21/2001 7:01 PM 
To: Funkhouser, Shanna 
Cc: Cash, Michelle 
Subject: RE: Bluewater Communications (Brad Romine)



Dear Shanna: 

Thanks for your message.  Has Brad discussed his involvement with his manager?  What is the nature of Brad's position here at Enron.  Does his management foresee the possibility of a conflict with respect to his responsibilities here at Enron?  Did Brad develop the model while an Enron employee?  Does he create models as part of his job responsibilities at Enron?  Is Enron in this market?  Does Enron anticipate entering into this market?

Please advise. 

Thanks. 

Sharon 

 -----Original Message----- 
From:   Funkhouser, Shanna  
Sent:   Tuesday, August 21, 2001 1:14 PM 
To:     Butcher, Sharon 
Cc:     Cash, Michelle 
Subject:        FW: Bluewater Communications (Brad Romine) 

Sharon, 

Have you had an opportunity to review this issue?  Brad is anxious to continue the employment agreement process, but we need to determine whether his involvement in this business poses any conflict first.

Thanks, 
Shanna 

 -----Original Message----- 
From:   Funkhouser, Shanna  
Sent:   Monday, August 13, 2001 10:32 AM 
To:     Butcher, Sharon 
Cc:     Cash, Michelle 
Subject:        FW: Bluewater Communications (Brad Romine) 

Sharon, 

This is the write-up that Brad Romine prepared explaining his involvement with a communications company. 

Per our conversation last week, we are now trying to determine if this business involvement presents a conflict with Enron's Code of Conduct and if so, how to handle.  This situation arose when EGM offered Brad an employment agreement.   Brad reviewed the non-competition language and wondered how his involvement in this business would be handled.

Please advise as to next steps so that we may proceed with the employment agreement process. 

Thanks, 
Shanna 

 -----Original Message----- 
From:   Romine, Brad  
Sent:   Monday, August 13, 2001 10:19 AM 
To:     Funkhouser, Shanna 
Subject:        Bluewater Communications 

Shanna, 
        Per your request here is a brief description of my relationship with Bluewater Communications. 

        Bluewater is a provider of prepaid calling cards. They purchase minutes from wholesale telcom carriers on a take or pay basis and then resell them to retail customers. Bluewater is responsible for marketing the minutes to the retail customers, and all volume and price risk for the minutes.

        I developed for Bluewater a model that allows them to structure their prepaid calling cards to maximize profitability while minimizing volume risk. The model uses their historical calling profiles and allows them to compute the expected profitability of a given calling card platform. The model utilizes statistics as well optimization theory.

        My current  working relationship with Bluewater is a licensing aggrement which allows them to use my model on an ongoing basis. They pay me a percentage of their monthly revenues for use of the model. As they collect more data from their switch I am occasionally asked to recalibrate the model (about once every 2 months). 

        That is the extent of my envolvment with Bluewater. 

Brad