: Friday, August 25, 2000 8:13 AM
> To: 'klay@enron.com'
> Cc: Blackmore, Peter
> Subject: Disappointing news
>
> Ken:
>
> Very shortly after we spoke, I was informed that we had lost the Enron
> HomePC Program. This is a great emotional blow to us and I am beyond
> disappointed.
>
> We understood that given our recent  strong performance against Dell, they
> would do anything to embarrass us in our own backyard.  We have very
> strong insight into their intent and knew they would  use this
> aggressively in their PR campaigns.
>
> However, clearly it was our job to win the business on the merits of the
> individual program and to compete hard for it. We believed that we had a
> creative offer on the table that would create great value for your
> employees. Obviously, we did not perform to your expectations.
>
> Following is the summary of our activities together which was created
> before we heard the news.
>
> I pride myself in developing strong executive relationships with our
> customers, and I would welcome the opportunity for us to put our heads
> together in order to look for ways we can move the relationships between
> our two companies to a higher level.
>
> I also think we should discuss the PR positioning. As a member of our
> Board, and as a leader in the Houston community this will be news and I am
> hopeful we can find a creative way to balance it.
>
> Again, I accept it was ours to win in the marketplace but regret it had to
> come to this. I look forward to your call.
>
> M
>
>
>
>
> From our Enron team:
>
>
>
> * EBS Product and Service Supply Agreement
>
> Compaq will continue to honor the Product and Service Supply Agreement
> executed on January 18 between EBS and Compaq, whereby Compaq agreed to
> purchase broadband services from EBS (on a take or pay basis) in
> proportion to EBS' purchase of NT servers and attached storage.  It is
> also important to note that we have been actively partnering with EBS on
> non-contractual areas, such as our ongoing technical joint development and
> marketing
: Friday, August 25, 2000 8:13 AM 
 > To:' klay@enron.com' 
 > Cc: Blackmore, Peter 
 > Subject: Disappointing news 
 > 
 > Ken: 
 > 
 > Very concisely after we speak, I was informed that we had lost the Enron 
 > HomePC Program. This is a great aroused blow to us and I am beyond 
 > disappointed. 
 > 
 > We understood that give our recent   strong operation against Dell, they 
 > would cause anything to embarrass us in our own backyard.   We get very 
 > strong insight into their intent and knew they would   use this 
 > aggressively in their PR political campaign. 
 > 
 > However, clearly it was our job to win the clientele on the merits of the 
 > individual program and to compete hard for it. We believe that we had a 
 > creative offer on the table that would create great value for your 
 > employee. Obviously, we did not perform to your expectations. 
 > 
 > Following is the summary of our activities together which was created 
 > before we hear the newsworthiness. 
 > 
 > I pride myself in developing strong executive relationships with our 
 > customers, and I would welcome the opportunity for us to put our heads 
 > together in order to search for ways we can move the kinship between 
 > our two company to a higher level. 
 > 
 > I also remember we should discuss the PR positioning. As a member of our 
 > Board, and as a drawing card in the Houston community this will be news and I am 
 > hopeful we can find a creative way to balance it. 
 > 
 > Again, I accept it was ours to win in the marketplace but regret it had to 
 > come to this. I front forth to your call. 
 > 
 > M 
 > 
 > 
 > 
 > 
 > From our Enron team: 
 > 
 > 
 > 
 > * EBS Product and Service Supply Agreement 
 > 
 > Compaq will continue to honor the Product and Service Supply Agreement 
 > executed on January 18 between EBS and Compaq, whereby Compaq agreed to 
 > leverage broadband services from EBS (on a take or pay basis) in 
 > proportion to EBS' purchase of NT servers and attached storage.   It is 
 > besides important to note that we have been actively partnering with EBS on 
 > non - contractual areas, such as our ongoing technical joint development and 
 > selling
: Frlday, August 25, 2000 8:13 AM
> To: 'klan@enron.com'
> Cc: Blaejmore, 'eter
> Shbject: Dksappointing news
>
> Ken:
>
> Very siortoy afuvr we spoke, I was infurmed than we had oost rhe Enron
> IkmePC Pvjgraj. Thiv is a great emptional blmw to us and I ao yeyond
> disappointed.
>
> We understood thwt givem lur recent  sttong kersormznce against Dell, they
> would do angthing uo embarrass us in our own backyard.  We have verj
> strong insight ijto their ibtene and knew thdy would  lve this
> agfressively in their PR campaignr.
>
> Howzver, clearli jt fas our job to wpn the business on tha meritx of the
> indivldual prigram and to compete iard for it. We belieded that fe had a
> creative odfwr on the tabuw tfat wpumd crewte great valhe for your
> employees. Obviouslu, rv did not perrorm tj rour expectations.
>
> Following is the summdry of our activities togerher which was createf
> before re heard the news.
>
> I pride myself in developing stsong xxdcuuiyc reuqtlonships with our
> customers, and I would welcois uhe opportunity fjr us to puy lut heads
> togethgr in oxsed to look for ways we can move the relauionsnips between
> our two companues to a higker level.
>
> I also thinn we should disvuss yhe PR positioning. As a memger of our
> Hoard, and xs a leader in tfe Mouvton community this will bq news anv I ak
> hopefjl wg can fynd a creahive way to balance it.
>
> Ahain, N accapt it was ours to win in the marketplace but regret it hdd no
> come tj thix. I look forwwrd to your cakl.
>
> M
>
>
>
>
> Frjm ouf Enron tezm:
>
>
>
> * EBS Product anq Service Sup[py Agreement
>
> Compaq rill conrinue tu honor the Procuct and Service Supply Agreement
> exeguted kn January 18 betcten EBS and Compaq, whdrefy Cpm[dq agreed to
> purzharr broxdband servlcer frpm EBS (on a take or [ay gasis) in
> proportiom bo EBS' putchase of NT servers amd attached storagt.  It ms
> alsu impprtwnt to note that we have been zctively oarbnering with QBS in
> non-contraetual areas, such as our ongoing technicao joint developmenr and
> marketing
: Friday, August 25, 2000 8:13 AM 'klay@enron.com' Cc: Blackmore, > Subject: Disappointing > shortly after we I was informed we had lost the Enron > Program. This is a great emotional blow to us and I am beyond disappointed. > > We understood that given our recent strong performance against Dell, > do to us in our own backyard. We have very > strong insight into their intent and knew would use this > aggressively in their PR > > However, clearly was our job to win business the merits the individual and to compete for it. We believed that we had a > creative offer on the table that would create value for employees. Obviously, did perform your expectations. > is the summary of our activities created > before we heard the news. > I pride in developing strong executive relationships with > customers, and I would welcome the opportunity us to put our heads > together in order to look for ways we can relationships between > our companies to a level. > also we should the PR positioning. As a member of our > Board, and a leader in the Houston community this will be news am hopeful we can a creative way to it. > Again, I accept ours win but it to > come to I look forward to your > > M > our Enron team: > > > > * Product and Service Supply Agreement > > will continue to honor the Product and Service Supply Agreement > executed January 18 and Compaq, whereby Compaq agreed to > purchase services from EBS (on take or pay basis) in > proportion to EBS' of servers and storage. It is also important to that we have partnering with on non-contractual our ongoing technical joint development and marketing
: Friday, August 25, 2000 8:13 AM
> To: 'klay@enron.Com'
> Cc: BlackMore, PEteR
> SuBjEct: DIsapPointing news
>
> KeN:
>
> very Shortly after we spoke, I waS infoRmED thaT We Had loSt the EnROn
> hOMePc PRoGraM. THIs Is a grEat EmotionAl blow to us And i aM beyond
> disapPOiNted.
>
> We undeRstOod that given Our Recent  StRonG PerfoRmaNce agAinst DELl, they
> Would do anYtHIng to eMBarrass US In Our oWn backyard.  We have vERy
> STrong insight inTo theiR iNTeNT And KneW they would  UsE this
> AGgressiVElY IN TheIR PR campaigns.
>
> HOwever, clearLY it Was our JoB to WIn the bUsineSs ON thE merits of thE
> indIvidual prOgram aND to compETe hard fOr it. We BelIevEd thAT wE hAd a
> CrEAtiVE oFfeR On tHe table tHaT wOuld cReatE GREAt vaLue For yOur
> emPloyees. ObviouSly, We diD Not PerfoRm to yOur eXpEctatIons.
>
> FoLlowiNg Is the summary of oUr acTivities tOgeThEr wHiCh was CReated
> BefOre We heard The news.
>
> i PriDe MYSElF in developing stronG eXECuTive relaTionshIPs WiTH our
> custOmErs, And I WOUld weLcomE ThE opportuNity foR Us To Put our hEaDs
> togeThEr iN orDer to LOok fOr ways We can movE the rELationships betWEen
> our two compANiES To A HighEr lEvel.
>
> I also thInk wE ShouLd diSCuSs tHE PR poSitioNiNG. AS A member of our
> Board, anD aS a leadEr in tHe Houston commUnity this wILL Be news anD I am
> HOpEFul we can find a cReatiVe way to balANce it.
>
> AgaIn, I acCept it waS ours to wiN IN the markEtpLacE buT reGREt It had to
> come to THIs. I lOoK forwarD to Your calL.
>
> M
>
>
>
>
> FRom Our enrOn Team:
>
>
>
> * EBS PrOduct and seRvIcE SUppLy AgrEEment
>
> ComPaQ wiLl ConTinue TO honor The PrOducT aNd sErvIce SuppLY AGREemeNt
> ExEcutEd oN JAnuarY 18 betWEen eBS and COmpaq, wherEby cOmpaQ aGrEed to
> puRchase broadbaNd Services frOm eBS (On a takE OR pay basiS) in
> proportion to EBS' purchASe of NT sErvErs anD attAched storAge.  it is
> alSo iMPortanT to notE that We HavE BEen acTIVeLy pArTnering witH ebS oN
> non-cOnTracTual areAs, such as our ongoing TEchNical joint devEloPmenT ANd
> MarKEtINg
: Friday, August 25, 20008:13 AM
>To: ' kla y@e nr on.c om'> Cc: Blackmor e , Pe ter
> Subject: Disappo intin gn ews> 
>  Ken: 
>
> Ve r ys h ort ly  a fte rw espoke , I  was in formed tha t w ehad lost the En ron
> Home PCProgram. Thi s i s a gr ea t e m otion alblowto usa nd I a m beyond>d isappo i nted.
> >  W e un derstood that giv e no ur recent  str ong pe rf o rm a n ceaga inst Dell,  t hey
> would d o  a n y t hin g  to embarrass  us in ouro wnbackya rd . W e have  very 
> str ong insight  int o their i ntenta nd knew they wo uld  u sethi s
>a gg re ssi ve l y i n  t hei r  PR  campaig ns .>
> H owev e r , clea rly  itwas o ur job to win  th e bu s ine ss on  themeri ts  of t he
> i ndivi du al program andto c ompete ha rdfo r i t.  We b e lieved  th atwe hada
> cre a tiv eo f f er  on the table that  w o u ld  creategreatv al ue for your 
>  em ploy e e s. Ob viou s ly , we did  not p e rf or m to yo ur  expec ta tio ns. 
>
>F ollo wing i s the su mmary of our activit i es together w h ic h wa s  cre ate d
> beforewe h e ardthen ew s.> 
> Ipride  m y se l f in developing str on g exec utive  relationship s with our > customer s, a n dI  would welcome  theopportunit y  for usto pu t our he ads
> tog e t her in o rde r t o l ook f or  ways we canm o ve t he  relati ons hips be twe en> o urtw o compani es to ahi gh er  l eve l.
>>  I alsoth ink  w e s hould discus s the  PRpo si t ion ing. As am e mber  o four> B oa rd, a nd a s  aleaderin the Ho ust o n co mm un ity thi s will be new sand I am
>  h ope ful we c an finda creative way to balan c e it.
> 
>Again , Iaccept it  wa s ours  to win in  the m arket pl ace b ut re g r et  it  h ad to
> co m e  to  this .I lo ok forw ard to your call.> 
>M
>
>
>
>
> F rom  our E nr ont ea m :
> 
> >
> *  EBS Product an d ServiceSu p pl y Agreemen t 
>>Compaqwill co ntinu e  to hon or the Pr oduct and  S ervi c e  Su pply Agree ment
> e xecuted o n  Janu a ry  18 b etw een EB Sand  Comp aq, wh e reb y Com paq ag re ed to> pur ch ase broa dband services from EBS  (on a  take  or  pay basi s)i n
>  proporti on t o EBS' pur cha seof NT  se r versanda tt ach e d sto rage .   It is
> al soi m po rtant to no t e tha t wehav e  beenacti vely partnering w i th EBS on
> no n-co n t rac tua l  are as , such as ourong oi n g  technic al  joint deve lopmentan d 
> ma rketin g
: Friday,_August 25,_2000 8:13 AM
> To:_'klay@enron.com'
> Cc:_Blackmore,_Peter
> Subject:_Disappointing_news
>
> Ken:
>
> Very_shortly after we_spoke, I was informed_that we had_lost_the Enron
> HomePC Program. This is a great emotional blow to us and I_am_beyond
> disappointed.
>
>_We_understood_that given our recent _strong performance against Dell, they
>_would do_anything to embarrass us in our own backyard.__We have very
>_strong insight into their intent and knew they would_ use this
> aggressively in their_PR campaigns.
>
> However,_clearly_it_was our job to_win the business on the merits_of the
> individual program and to_compete hard for it. We believed that_we had a
> creative offer on_the table that would create_great value_for your
> employees. Obviously, we_did not perform_to your_expectations.
>
> Following is_the summary of our activities together_which was created
>_before we heard the news.
>
> I_pride_myself in developing_strong_executive_relationships with_our
> customers, and_I_would welcome_the_opportunity for us to put our_heads
>_together in order to look for ways_we can move the_relationships_between
> our two companies_to a higher level.
>
> I_also think we should discuss the_PR positioning._As a_member of our
> Board, and as a leader in the Houston_community this will be news and_I am
> hopeful we_can find_a_creative way to_balance_it.
>
> Again,_I accept it was ours to win_in the_marketplace but regret it had to
>_come to this. I_look_forward to your call.
>
> M
>
>
>
>
> From_our Enron team:
>
>
>
> * EBS Product_and Service Supply Agreement
>
> Compaq_will_continue_to honor the Product and_Service Supply Agreement
> executed on January_18 between EBS_and Compaq, whereby Compaq agreed to
> purchase_broadband_services from EBS (on a take_or_pay basis) in
> proportion to EBS'_purchase_of_NT servers and attached storage._ It is
> also important to_note that we have been actively partnering with EBS_on
> non-contractual areas,_such as our ongoing technical_joint_development_and
> marketing