Enron Mail

To:kenneth.lay@enron.com, greg.whalley@enron.com
Date:Mon, 10 Sep 2001 14:15:55 -0700 (PDT)

Ken and Greg:

Prior to your potential meeting on Wednesday, I just wanted to get my two cents in with respect to Heath Schiesser and the Xlerator.

I vote in favor of supporting the Xlerator based on a few rationales:
First and foremost, Heath is a quality player - with a unique set of skills that would contribute to Enron's human capital;
The discipline that the Xlerator would bring to new businesses, in and of itself, probably justifies its existence: for example, I believe that the investment in AMPS approaches $20 million - much of which is at risk due to inadequate discipline; and
The Xlerator appears to be a low cost R&D option of relatively limited size while compared to Enron - that may very well incubate businesses which create meaningful value for Enron.
At the same time, I acknowledge the costs, both financial and resources, and risks but feel the above benefits are greater.

Although support from the Management Committee would be nice, I believe that support from you two would provide the foundation upon which Heath and the Xlerator can be successful.

Jeff Donahue