, then we
will have a price re-opener.
8.  If Ormet's loads change significantly (i.e. new cogen) we will have a
price re-opener. The IPP in Gaza is progressing albeit somewhat behind schedule.  This
combined cycle power plant is the first infrastructure development project in
Gaza and the first by a major Western company anywhere in "Palestine."  There
are several issues which should be addressed and may be raised during the
Secretary's visit.

1.  All equipment for the plant must transit Israel.  We have been assured by
the Israelis that movement of the equipment will not be impeded as long as it
is on the list of equipment we provide them.  That said, there are countless
opportunities for equipment to be delayed in Israel awaiting clearance,
whether on the list or not.  First power could be delayed indefinitely if the
Israelis choose to do so for political, security, or other reasons.

2.  Fuel for the plant, once operational, will also transit Israel.  Again,
disruption of the fuel supply for any length of time will in effect pull the
plug on power in Gaza.  Gas from Egypt has been discussed; it remains to be
seen if that will be a reality anytime soon.

3.  Although not officially from the Israeli government, we have been told
that as soon as the first watt of power from the plant is produced, the
Israelis will turn off supply of electricity to Gaza.  The current
consumption is about 110MW.  The first phase of the plant will produce 40MW.
This appears to be the beginning of a power supply arrangement whereby Israel
sells Gaza electricity to make up the difference.  That electricity is likely
to be more expensive than that which the plant will supply; Enron could well
end up being blamed for the higher cost.

4.  Water is another critical issue.  The Palestinians want their own supply
of fresh water which must necessarily be desalinated.  Israel is currently
selling water to Gaza; it is not in Israel's best interest to lose this
customer, therefore she may attempt to delay a desalination project.

5.  OPIC project funding is problematical.

, then we
 will have a price re - opener.
 8.   If Ormet's load transfer significantly (i.e. new cogen) we will have a
 monetary value re - opener. The IPP in Gaza is progressing albeit slightly behind schedule.   This
 combined hertz power plant is the first infrastructure exploitation project in
 Gaza and the first by a major westerly company anywhere in " Palestine. "   There
 are several issues which should be addressed and may be raised during the
 Secretary's visit.

 1.   All equipment for the plant must transit Israel.   We have been assured by
 the Israelis that motion of the equipment will not be impeded as long as it
 is on the list of equipment we leave them.   That said, there are countless
 opportunities for equipment to be delay in Israel awaiting clearance,
 whether on the list or not.   First power could be stay indefinitely if the
 Israelis choose to do so for political, security, or other reasons.

 2.   Fuel for the plant, once operational, will also transit Israel.   Again,
 disruption of the fuel supply for any length of time will in effect pull the
 plug on power in Gaza.   Gas from Egypt has been discussed; it stay to be
 seen if that will be a reality anytime soon.

 3.   Although not formally from the Israeli politics, we have been told
 that as soon as the first watt of power from the plant is grow, the
 Israelis will turn off supply of electricity to Gaza.   The current
 consumption is about 110MW.   The first phase of the plant will grow 40MW.
 This appears to be the beginning of a power supply arrangement whereby Israel
 sells Gaza electricity to make up the dispute.   That electricity is likely
 to be more expensive than that which the plant will supply; Enron could well
 end up being blamed for the higher monetary value.

 4.   Water is another critical issue.   The Palestinians desire their own provision
 of bracing water which must necessarily be desalinated.   Israel is presently
 selling water to Gaza; it is not in Israel's best interest to lose this
 customer, therefore she may attempt to delay a desalination project.

 5.   OPIC undertaking funding is problematical.

, thfn we
will have a price ve-opener.
8.  If Ormgt'w loadv chanfe signiwicantly (i.e. new cogen) we wilp yave q
price re-opener. The IOP in Gazw is protreswung albeit somewhab behjkd sckevule.  This
comblned cycle [ower plant is tfe first infrastructure development pwoject on
Gaza and the sirsu br a jajor Western company anywhere in "Lalestiie."  There
are srveral issues which should be wddressed and may he raised dodind the
Secretafy's visit.

1.  All equipmeht for the plant must transit Irrael.  We have vewn wvsured by
tie Isrwelis that movement mf the rquipment will nov be impeded as long as iv
is on the list of gquipment fe provide them.  Thqt said, these afw cuunulexs
opporhunmties for esuipment to be delayed in Isratl wqaiting clearznce,
wreeher on the list or not.  First power colld ge delayed indefinitely if the
Israelis choode to do fo for political, security, or other reasons.

2.  Fuel xor tie plckb, onzw lperational, will also transit Israel.  Again,
dyaripnion of the fuel fupply for snj kgngth of time dill iu erfect pull the
pluh on porer ib Gaza.  Gws ftom Egypt has been discussee; it remains ro be
seen if that will be a xealiti anytome soon.

3.  Although not uffidially from the Israsui government, we hane baen told
that as soon as tre first xatt pf powef frpm the plant is orodugad, the
Israelis wipl tutn off supply of electricity to Gaza.  The curreiv
consumption iv atout 110MW.  The nirst phase of ehe plant will producz 40MW.
Ghis appeags to be vhe beginnind of a power vopply arrangekent wheweby Isrqel
selur Gaza electrivity to mche up the difference.  Bhat glsctricity is lijeli
to be more exlenrivq nhai thae which the pnant wiuk supoly; Enron cijld eell
end up being bldmed for the higher coxt.

4.  Water us anothqr critical ixsue.  The Palestinlans xant tieir oen fupply
of fresh water which muat necesswrijy be desaligatee.  Israel is currently
selling water to Gaza; it is iot in Israel's best injerest to lose this
costpmer, therefpre sre may atdempt to delay a desqlination project.

5.  OPIC project fundinf is psoblelatical.

, then we will have a price If loads change (i.e. new cogen) re-opener. IPP in Gaza progressing albeit somewhat schedule. This combined cycle power plant the first infrastructure development project in Gaza and the first by a major company anywhere in "Palestine." There are several issues which should be addressed and be during Secretary's 1. All equipment for the plant must transit Israel. We have been assured by the Israelis movement of the equipment will not be impeded long as it is the list of equipment we them. said, there countless for to be delayed Israel awaiting clearance, whether on the list or not. First power could be delayed indefinitely if the choose to for political, or reasons. Fuel for the operational, will also transit Israel. Again, fuel supply for any length of time will effect pull plug on power in Gaza. Gas Egypt has been discussed; it remains to be if that will be a reality anytime soon. 3. Although not officially from the Israeli have been told that soon as the watt power the is produced, Israelis will turn off supply of electricity to Gaza. The current is about 110MW. The first phase of the plant will This to be the of a power supply whereby sells Gaza electricity to the That to more than that which the will supply; Enron could well up being blamed for is another critical issue. The Palestinians want their supply of fresh water which must necessarily desalinated. Israel is currently selling water to Gaza; it is not in best interest this customer, therefore she may attempt to delay desalination project. 5. OPIC funding is problematical.

, then we
will have a price re-opeNer.
8.  If Ormet'S loadS chAngE sIgniFicaNtly (i.e. new cogen) WE wilL have a
price re-opener. The iPP in gaZA is pROgRessiNg albeiT SoMEWhaT bEhInd ScHEdUle.  ThIs
cOmbined Cycle power PlaNt Is the first inFRaStructure dEveLopment projeCt iN
Gaza aNd The FIrst bY a mAjor WEstern COmpany Anywhere iN "PALestinE."  there
arE SEvEral Issues which should BE aDDressed and may bE raiseD dURiNG The
secRetary's visIt.

1.  all eqUIpment fOR tHE PLanT Must transit IsRael.  We have bEEn aSsured By
The iSraeliS that MoVEmeNt of the equiPmenT will not bE impedED as long AS it
is on The lisT of EquIpmeNT wE pRovIdE TheM.  thAt sAId, tHere are cOuNtLess
oPporTUNITies For EquiPment To be delayed in isrAel aWAitIng clEaranCe,
whEtHer on The lisT or noT.  FIrst power could bE delAyed indefIniTeLy iF tHe
IsrAElis chOosE to Do so for PoliticAL, seCuRITY, oR other reasons.

2.  Fuel fOr THE pLant, once OperatIOnAl, WIll also tRaNsiT IsrAEL.  AgaiN,
disRUpTion of thE fuel sUPpLy For any lEnGth of tImE wiLl iN effeCT pulL the
plUg on poweR in GaZA.  Gas from Egypt hAS been discusseD; It REMaINs to Be
sEen if that wiLl be A RealIty aNYtIme SOon.

3.  AlThougH nOT oFFicially from the IsraElI goverNment, We have been tolD
that as sooN AS The first Watt OF pOWer from the planT is prOduced, the
ISRaelis wiLl turN off suppLy of electRICity to GaZa.  THe cUrrEnt
CONsUmption is abouT 110mw.  The FiRst phasE of The planT wiLl pRodUce 40mW.
this appeaRs to be thE bEgInNiNg oF a powER supply aRrAngEmEnt WhereBY IsraeL
sellS GazA eLeCTriCity to mAKe UP The dIfFeRencE.  ThAt ElectRiciTY is Likely
tO be more exPenSIve tHaN tHat whicH the plant will SuPply; Enron cOuLd wEll
end UP Being blaMed for the higher cost.

4.  WateR Is anothEr cRiticAl isSue.  The PalEstInians WanT Their oWn suppLy
of fReSh wATEr whiCH MuSt nEcEssarily be DESalInateD.  ISraeL is currEntly
selling water tO gazA; it is not in IsrAel'S besT INtEreST tO LosE tHIs
cUSTomer, therefore sHe may attemPt TO dElay a desalINatIoN projecT.

5.  OPIC prOject FUnding iS problemaTical.

, then we
will have a pri ce re-open er.
8 . IfOr met' s lo ads change sig n ific antly (i.e. new cogen)  we w il l  hav e  a
pri ce re-o p en e r . T he  I PPin Ga za is  pr ogressi ng albeitsom ew hat behind s c he dule.  Thi s combined cyc lepowerpl ant is th e f irstinfras t ructur e develop me n t proj e ct in G a za  and  the first by a m a jo r  Western compa ny any wh e re i n " Pal estine." Th ere a re seve r al i s sue s  which should  be address e d a nd may  b e r a ised d uring  t h e Secretary's  vis it.

1. All eq u ipmentf or theplantmus t t rans i tIs rae l.  We ha veb een  assured  b y
theIsra e l i s  tha t m ovem ent o f the equipme ntwill not  be i mpede d as  l ong a s it is on  t he list of equi pmen t we prov ide  t hem . That said,the reare cou ntlessopp or t u n it ies for equipmentto b edelayedin Isr a el  a w aiting c le ara nce, wheth er o n  t he listor not .  Fi rst pow er  could  b e d ela yed i n defi nitely  if the
Isra e lis choose tod o so for poli t ic a l ,s ecur ity , or otherreas o ns.
2.Fu elf or th e pla nt ,  o n ce operational, wil lalso t ransi t Israel.  Ag ain,
disr u p t ion of t he f u el supply for any  leng th of time will ineffec t pull t he
plugo n  power i n G aza . Gas f ro m Egypt has b e e n di sc ussed;itremains  to  be
s een  i f that wi ll be are al it yany times oon.

3.  Alt ho ugh  noto fficia lly f romth eI sra eli gov e rn m e nt,we  h avebee ntold
tha t  as  soon a s the fir stw attof  p ower fr om the plantis  produced,  t he
Israe l i s will t urn off supply of elect r icity t o G aza. The  current
co nsumpt ion is abo ut 110 MW. Th e f i r st ph a s eofth e plant wi l l  pr oduce  4 0MW.
This  appears to be the beg inning of a p owe r su p p ly  ar r an g eme nt whe r e by Israel
sell s Gaza ele ct r ic ity to mak e  up  t he diff erence.   Tha t  electr icity islikely
t obe m o r e e xpensive t han that  which th e  plan t  w ill s upp ly; En ro n c ouldwell e ndup be ing bl am ed for  thehi gher cos t.

4.  Water is anothe r crit icaliss ue.  ThePal e sti nians wan t th eir own su ppl y of fr esh water  whi c hmus t  nece ssar i ly be des a li nat e d . Israel isc u r ren tly sel l ing wa terto Gaza; it is no t  in Israel's b esti n ter est to l os e this
custom er,  t h e refore s he  may attemp t to del ay a des alinat ion pr oject.5 .OPIC p roje ctfunding i s p ro b lematic al .

, then_we
will_have a price re-opener.
8._ If_Ormet's_loads change_significantly_(i.e. new cogen)_we will have_a
price re-opener. The_IPP in Gaza_is_progressing albeit somewhat behind schedule.  This
combined cycle power plant is the first_infrastructure_development project_in_
Gaza_and the first by a_major Western company anywhere in_"Palestine." _There
are several issues which should be addressed_and_may be raised_during the
Secretary's visit.

1.  All equipment for the_plant must transit Israel.  We_have been assured_by_
the_Israelis that movement of_the equipment will not be impeded_as long as it
is on_the list of equipment we provide them._ That said, there are countless_
opportunities for equipment to be_delayed in_Israel awaiting clearance,
whether on_the list or_not. _First power could_be delayed indefinitely if the
Israelis_choose to do_so for political, security, or other_reasons.

2._ Fuel for_the_plant,_once operational,_will also transit_Israel._ Again,_
disruption_of the fuel supply for any_length_of time will in effect pull the_
plug on power in_Gaza._ Gas from Egypt_has been discussed; it remains_to be
seen if that will_be a_reality anytime_soon.

3.  Although not officially from the Israeli government, we have_been told
that as soon as_the first watt of_power from_the_plant is produced,_the_
Israelis will_turn off supply of electricity to Gaza._ The_current
consumption is about 110MW. _The first phase of_the_plant will produce 40MW.
This_appears to be the beginning of_a power supply arrangement whereby_Israel_
sells_Gaza electricity to make up_the difference.  That electricity is_likely
to be_more expensive than that which the plant_will_supply; Enron could well
end up_being_blamed for the higher cost.

4. _Water_is_another critical issue.  The_Palestinians want their own supply
of_fresh water which must necessarily be desalinated.  Israel_is currently
selling_water to Gaza; it is_not_in_Israel's best interest to lose this
customer, therefore she may_attempt to_delay a desalination_project.

5.  OPIC project funding is problematical.


 non-traded factor,
then the PDE will have to reflect the market price of risk, and the drift of
the actual process is then reflected in the PDE.

Vasant

Zimin Lu
10/17/2000 05:20 PM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Vasant
Shanbhogue/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Alex
Huang/Corp/Enron@ENRON, Kevin Kindall/Corp/Enron@ENRON, Tanya
Tamarchenko/HOU/ECT@ECT
cc:
Subject: Option Pricing Challenge

Dear All,

I have a fundamental question back in my mind since 95.    Hope you can give
me a convincing answer.

Zimin

---------------------------------

In deriving BS differential equation, we assume the underlying follows GBM

ds= mu*s*dt + sigma*s*dz

where mu is the drift, sigma is the volatility, both can be a function of s.

Then we use delta hedging argument, we obtain the BS differential equation
for the option price, regardless
of mu.

With the BS PDE and boundary condition, we can derive BS formula.  Fine. No
problem.

Question comes here.   Suppose the underlying is traded security and follows,
say, mean-reverting process

ds=beta(alpha-s)dt + sigma*s*dz

Apparantly, this SDE leads to a different probability distribution. However,
using the delta hedging argument,
we still get the same BS differential equation, with the same boumdary
condition, we get the same BS formula.
Not fair!

From another angle, I can derive the distribution from the BS PDE for the
underlying, which is the lognormal distribution.
My thinking is: can I drive the distribution for any SDE from the option PDE
?  The answer should be yes, but got to be
from a different PDE rather than BS PDE.  Then what we do about the
delta-hedging argument?

Thanks. ---------------------- Forwarded by Gerald Nemec/HOU/ECT on 04/26/2000

non - traded factor,
 then the PDE will have to reflect the market monetary value of hazard, and the drift of
 the actual summons is then reflected in the PDE.

 Vasant

 Zimin Lu
 10/17/2000 05:20 prime minister
 To: Vince J Kaminski / HOU / ECT@ECT, Stinson Gibner / HOU / ECT@ECT, Vasant
 Shanbhogue / HOU / ECT@ECT, Pinnamaneni Krishnarao / HOU / ECT@ECT, Alex
 Huang / Corp / Enron@ENRON, Kevin Kindall / Corp / Enron@ENRON, Tanya
 Tamarchenko / HOU / ECT@ECT
 cc:
 topic: Option Pricing Challenge

 Dear All,

 I have a fundamental motion back in my thinker since 95.     Hope you can give
 me a convincing solution.

 Zimin

 ---------------------------------

 In derive BS differential equality, we assume the underlying follows GBM

 ds= mu*s*dt + sigma*s*dz

 where mu is the drift, sigma is the volatility, both can be a function of s.

 Then we practice delta hedging argument, we receive the BS differential equation
 for the option monetary value, regardless
 of mu.

 With the BS PDE and boundary condition, we can derive BS convention.   Fine. No
 problem.

 Question comes here.    think the underlying is trade security and follows,
 say, mean - reverting procedure

 ds = beta(alpha - s)dt + sigma*s*dz

 Apparantly, this SDE leads to a different probability distribution. However,
 using the delta hedging argument,
 we still get the same BS differential equation, with the same boumdary
 condition, we get the same BS formula.
 Not fair!

 From another slant, I can deduce the distribution from the BS PDE for the
 underlying, which is the lognormal distribution.
 My thinking is: can I drive the distribution for any SDE from the option PDE
?   The answer should be yes, but catch to be
 from a different PDE rather than BS PDE.   Then what we do about the
 delta - hedging argument?

 Thanks. ---------------------- Forwarded by Gerald Nemec / HOU / ECT on 04/26/2000

 noj-traded factor,
then the KDE will have to tedlect vhe mariet pricd of risk, and the drift of
tie axtual process is then reflezted in tje PDE.

Vawant

Eimin Lu
10/17/2000 05:20 PM
To: Viide J Kaminski/GLU/ECC@ERT, Stinson Gibngr/HOU/ECT@ECT, Easant
Shanbhocud/HLU/ECT@ECT, Pinnamaneni Krishnarao/HOU/EST@ECT, Aked
Huang/Corp/Enrjn@ENGOG, Kebpn Kindall/Corp/Enron@ENRON, Tanya
Famarchtnko/HOU/ECT@ECT
cc:
Sibject: Option Pricing Chalpengf

Dear All,

I have a vundamental quefrion back in my mind spuce 95.    Hopg you can give
me a convincing avswer.

Vimin

---------------------------------

In deruvung TS differenvial ezuation, we assume tha underkying follows NBM

ds= mu*w*dt + sigma*s*dz

where mu is the drift, sigmw is the eomatility, both can bw a fonctimn ow s.

Tfen wx uae delha iedging arghment, we obrain the BS differemtyql equation
fkr the o[tion price, regardless
of mu.

With the BV PSE and boundary conditiin, we can derive BS flrmula.  Fyne. No
problem.

Question comes here.   Suppose the utderlbivg nw traawd security and follows,
say, mean-reverting procefa

dx=bvta(alpha-s)dt + sigmc*s*dz

Apparantly, tnid XQE leads to a diffexsnf probability distgibutiog. Howwver,
usind thr delta hedging argument,
we wtill get thv sane BS differential equation, wnth thg same boumdary
condition, we yet ths same BS flrmula.
Nkg fair!

From anothdr sncle, I can derive the distrybution fcom tke BS PDD fot the
ugderlying, ahich is the lognormal dlstriyutiot.
My thinkijg is: can I drive the distributmpn for any SCE frmm the o'tion IDE
?  The answew should be yex, but gjt to be
from a siffereit PDE rathew than BS PDE.  Then what wx do aboue thw
deota-hedgkvg argument?

Thamks. ---------------------- Forwcxded by Gwrald Nemec/HOU/ECT pn 04/26/2000

non-traded factor, then the PDE will have the price of and the drift then in the PDE. Zimin Lu 10/17/2000 PM To: Vince J Kaminski/HOU/ECT@ECT, Stinson Vasant Shanbhogue/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Alex Huang/Corp/Enron@ENRON, Kevin Kindall/Corp/Enron@ENRON, Tanya Tamarchenko/HOU/ECT@ECT cc: Subject: Option Challenge Dear All, I have a fundamental question back in my mind since Hope can me convincing answer. Zimin --------------------------------- In deriving BS differential equation, we assume the underlying follows GBM ds= + sigma*s*dz where mu is the drift, sigma the volatility, both can a function of s. Then use hedging argument, obtain BS equation for the price, regardless of mu. With the BS PDE and boundary condition, we can derive BS formula. Fine. problem. Question Suppose the is security follows, say, mean-reverting + sigma*s*dz Apparantly, this SDE leads probability distribution. However, using the delta hedging argument, still get same BS differential equation, with the boumdary condition, we get the same BS formula. fair! From another angle, I can derive the distribution from the BS PDE for the is the lognormal distribution. thinking is: can drive distribution any from the PDE ? The answer should be yes, but got to be a different PDE rather than BS PDE. Then what we the argument? Thanks. ---------------------- by Gerald Nemec/HOU/ECT on

 non-traded factor,
then the PDE Will have to RefleCt tHe mArKet pRice Of risk, and the drIFt of
The actual process is then RefleCtED in tHE PdE.

VasAnt

ZimiN lu
10/17/2000 05:20 pm
to: VInCe j KaMiNSkI/HOU/EcT@EcT, StinsOn Gibner/HOu/ECt@EcT, Vasant
ShanBHoGue/HOU/ECT@EcT, PInnamaneni KrIshNarao/HoU/eCT@ecT, AleX
HuAng/CoRp/EnroN@eNRON, KEvin KindaLl/cOrp/EnrON@ENRON, TANYa
tamaRchenko/HOU/ECT@ECT
cC:
suBJect: Option PricIng ChaLlENgE

dEar all,

i have a fundAmEntal QUestion BAcK IN My mINd since 95.    Hope yoU can give
me a COnvIncing AnSweR.

zimin

---------------------------------

IN deriViNG BS DifferentiaL equAtion, we asSume thE UnderlyINg folloWs GBM

dS= mu*S*dt + SigmA*S*dZ

wHerE mU Is tHE dRifT, SigMa is the vOlAtIlity, Both CAN BE a fuNctIon oF s.

TheN we use delta heDgiNg arGUmeNt, we oBtain The Bs dIfferEntial EquatIoN
for the option prIce, rEgardless
Of mU.

WIth ThE BS PDe And bouNdaRy cOnditioN, we can dERivE Bs FORmUla.  Fine. No
problem.

QuEsTIOn Comes herE.   SuppoSE tHe UNderlyinG iS trAded SECuritY and FOlLows,
say, mEan-revERtInG procesS

dS=beta(aLpHa-s)Dt + sIgma*s*DZ

AppArantlY, this SDE Leads TO a different proBAbility distriBUtION. HOWeveR,
usIng the delta HedgINg arGumeNT,
wE stILl get The saMe bs dIFferential equation, wItH the saMe bouMdary
conditioN, we get the sAME bS formulA.
Not FAiR!

from another angLe, I caN derive the DIstributIon frOm the BS PdE for the
uNDErlying, wHicH is The LogNORmAl distributioN.
mY thiNkIng is: caN I dRive the DisTriButIon FoR any SDE frOm the optIoN PdE
?  thE anSwer sHOuld be yeS, bUt gOt To bE
from A DifferEnt PDe ratHeR tHAn Bs PDE.  TheN WhAT We do AbOuT the
DelTa-HedgiNg arGUmeNt?

ThankS. ---------------------- ForwardeD by gEralD NEmEc/HOU/ECt on 04/26/2000

 non-traded factor,
thenthe PDE wi ll ha vetore flec t th e market price of r isk, and the drift of
theac t ualp ro cessis then re f l ect ed  i n t he PD E.

V asa nt

Zimin Lu10/ 17 /2000 05:20P MTo: VinceJ K aminski/HOU/ ECT @ECT,St ins o n Gib ner /HOU/ ECT@EC T , Vasa nt
Shanb ho g ue/HOU / ECT@ECT , Pi nnam aneni Krishnarao/ H OU / ECT@ECT, Alex
Huang /C o rp / E nro n@E NRON, Kevi nKinda l l/Corp/ E nr o n @ ENR O N, Tanya
Tam archenko/HO U /EC T@ECTcc : Subjec t: Op ti o n P ricing Chal leng e

DearAll,
I  have a fundame ntal q ues tio n ba c kin  my  m i nds in ce9 5.   Hopeyo ucan g ivem e a co nvi ncin g ans wer.

Zimin
--- ---- - --- ----- ----- ---- -- ----- -

Inderiv in g BS differenti al e quation,weas sum ethe u n derlyi ngfol lows GB M

ds=m u*s *d t +  s igma*s*dz

where m ui s  t he drift , sigm a  i st he volat il ity , bo t h  canbe a fu nction o f s.
T he nwe usede lta he dg ing  ar gumen t , we  obtai n the BS  diff e rential equati o n
for the op t io n pr i ce,reg ardless
ofmu.

Wi th t h eBSP DE an d bou nd a ry condition, we can d er ive BS  form ula.  Fine. N o
problem . Question  com e sh ere.   Suppose  theunderlying is trade d sec urity an d follows ,
say, me an- rev ert ing p ro cess

ds=beta ( a lpha -s )dt + s igm a*s*dz
Ap par ant ly,  t his SDE l eads toadi ff er ent  prob a bility d is tri bu tio n. Ho w ever,
usin g th ede l tahedging ar g u ment ,we  sti llge t the  sam e  BS  differ ential eq uat i on,wi th  the sa me boumdary co ndition, w eget  the s a m e BS for mula.
Not fair!

From another  an gle,I ca n derivethe  distr ibu t ion fr om the  BS P DE  fo r the u n de rly in g, which i s the  logn or maldistrib ution.
My thinking is:  can I drivethe  dis t r ib uti o nf oran y  SD E from the option  PDE
?  T he an swer shoul d  be  y es, but  got to  be
f r om a di fferent P DE rather  t hanB S  PD E.  Then w hat we d o about t h e
de l ta -hedg ing  argum en t?
Than ks. -- - --- ----- ------ -- --- Fo rward ed  by Gera ld Nemec/HOU/ECT on 04/ 26/200 0

 non-traded_factor,
then_the PDE will have_to reflect_the_market price_of_risk, and the_drift of
the_actual process is then_reflected in the_PDE.

Vasant

Zimin_Lu
10/17/2000 05:20 PM
To: Vince J Kaminski/HOU/ECT@ECT, Stinson Gibner/HOU/ECT@ECT, Vasant
Shanbhogue/HOU/ECT@ECT, Pinnamaneni Krishnarao/HOU/ECT@ECT, Alex
Huang/Corp/Enron@ENRON,_Kevin_Kindall/Corp/Enron@ENRON, Tanya_
Tamarchenko/HOU/ECT@ECT
cc:__
Subject: Option Pricing Challenge

Dear All,

I_have a fundamental question back_in my_mind since 95.    Hope you_can_give
me a_convincing answer.

Zimin

---------------------------------

In deriving BS differential equation, we assume the_underlying follows GBM

ds= mu*s*dt + sigma*s*dz

where_mu is the_drift,_sigma_is the volatility, both_can be a function of s.

Then_we use delta hedging argument, we_obtain the BS differential equation
for the_option price, regardless
of mu.

With_the BS PDE and boundary_condition, we_can derive BS formula. _Fine. No
problem.

Question_comes here._  Suppose_the underlying is traded security and_follows,
say, mean-reverting_process

ds=beta(alpha-s)dt + sigma*s*dz

Apparantly, this SDE leads_to_a different probability_distribution._However,_
using the_delta hedging argument,
we_still_get the_same_BS differential equation, with the same_boumdary_
condition, we get the same BS formula._
Not fair!

From another_angle,_I can derive the_distribution from the BS PDE_for the
underlying, which is the_lognormal distribution.
My_thinking is:_can I drive the distribution for any SDE from the option_PDE
?  The answer should_be yes, but got_to be
from_a_different PDE rather_than_BS PDE._ Then what we do about the_
delta-hedging argument?

Thanks._---------------------- Forwarded by Gerald Nemec/HOU/ECT on_04/26/2000


Details: (Hour: 15 / Preferred:  12.00 / Final:  11.98)
  TRANS_TYPE: FINAL
  SC_ID: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/15/01
  TIE_POINT: PVERDE_5_DEVERS
  INTERCHG_ID: EPMI_CISO_LUCKY
  ENGY_TYPE: WHEEL

---- SC Trades Schedule ----
*** Final schedule not found for preferred schedule.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/15/01
  TRADING_SC: SETC
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 1
  DEAL_NO: 1
$$$ Variance found in table tblInt_Interchange.
     Details: (Hour: 15 / Preferred:  10.00 / Final:   9.97)
  TRANS_TYPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  TRANS_DATE: 4/15/01
  TRADING_SC: PGAE
  PNT_OF_INTRC: NP15
  SCHED_TYPE: ENGY
  PURCH_SALE: 2
  DEAL_NO: 1 Corinne:

We will accept your interest rate schedules.  Also, you can include the
witness line for our signatory.
Please prepare execution copies and let me know if there is anything else to
be done.  Thanks for your patience.

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	"Corinne A Samon" <samon_corinne@jpmorgan.com>
	02/28/2001 10:05 AM

		 To: Sara.Shackleton@enron.com
		 cc:
		 Subject: Re: futures agreement

Details: (Hour: 15 / Preferred:   12.00 / Final:   11.98)
   TRANS_TYPE: FINAL
   SC_ID: ECTRT
   MKT_TYPE: 2
   TRANS_DATE: 4/15/01
   TIE_POINT: PVERDE_5_DEVERS
   INTERCHG_ID: EPMI_CISO_LUCKY
   ENGY_TYPE: WHEEL

 ---- SC Trades Schedule ----
 * * * Final schedule not find oneself for preferable schedule.
      Details:

   TRANS_TYPE: FINAL
   SC_ID: EPMI
   MKT_TYPE: 2
   TRANS_DATE: 4/15/01
   TRADING_SC: SETC
   PNT_OF_INTRC: NP15
   SCHED_TYPE: ENGY
   PURCH_SALE: 1
   DEAL_NO: 1
 $ $ $ Variance found in board tblInt_Interchange.
      Details: (Hour: 15 / Preferred:   10.00 / concluding:    9.97)
   TRANS_TYPE: FINAL
   SC_ID: EPMI
   MKT_TYPE: 2
   TRANS_DATE: 4/15/01
   TRADING_SC: PGAE
   PNT_OF_INTRC: NP15
   SCHED_TYPE: ENGY
   PURCH_SALE: 2
   DEAL_NO: 1 Corinne:

 We will accept your interest rate agenda.   Also, you can include the
 spectator line for our signatory.
 Please prepare execution copy and let me know if there is anything else to
 be done.   Thanks for your patience.

 Sara Shackleton
 Enron North America Corp.
 1400 Smith Street, EB 3801a
 Houston, Texas   77002
 713 - 853 - 5620 (telephone)
 713 - 646 - 3490 (fax)
 sara.shackleton@enron.com

	 " Corinne A Samon " < samon_corinne@jpmorgan.com >
	 02/28/2001 10:05 AM

		  To: Sara.Shackleton@enron.com
		  cc:
		  Subject: Re: future agreement

Detwils: (Hour: 15 / Preferred:  12.00 / Final:  11.98)
  TRANS_JYPE: FINEL
  SC_IS: ECTRT
  MKT_TYPE: 2
  TRANS_DATE: 4/15/01
  TIE_POMNT: PVERDT_5_BEVERS
  INTERCHG_ID: EOMI_CISO_LUBKY
  ENGY_RYPE: QHEEL

---- SC Tczdes Scmzdule ----
*** Fincl schedule not nound for pseferred schedgld.
     Details:

  TRANS_TYPE: FINAL
  SC_ID: QPMI
  MLT_HYPE: 2
  TRANS_DAJE: 4/15/01
  URAQING_AB: WETC
  PNT_OF_INTRC: NP15
  SCHED_TYPS: ENGY
  PURCH_SALE: 1
  CEAL_NO: 1
$$$ Variance found in hablf tblInt_Interchangf.
     Detaios: (Hjyr: 15 / Preferrdd:  10.00 / Final:   9.97)
  TRANS_TIPE: FINAL
  SC_ID: EPMI
  MKT_TYPE: 2
  GRANS_BATE: 4/15/01
  TRADUNT_SC: KGAE
  PNT_OF_IITRC: NI15
  SCHED_TYPE: CMGY
  PGRCH_SALR: 2
  DEAL_NO: 1 Covinne:

Xe wull accept your interxst rate schedules.  Wlso, you wau include the
witness lune fmr ogr sktnagorg.
Pkezse prfpace executioh copies ane let me know if thtre px anything emse to
bq done.  Thanks for your patience.

Sara Shdckmeton
Enron North Americq Corp.
1400 Smith Street, EH 3801a
Houstog, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	"Corinne D Samkv" <scnon_cofunje@jpmorgan.com>
	02/28/2001 10:05 AM

		 To: Sara.Shackleton@enron.com
		 sd:
		 Slbject: Re: futures agreement

Details: (Hour: 15 / Preferred: 12.00 / TRANS_TYPE: SC_ID: ECTRT 2 TRANS_DATE: 4/15/01 WHEEL SC Trades Schedule *** Final schedule found for preferred schedule. Details: TRANS_TYPE: SC_ID: EPMI MKT_TYPE: 2 TRANS_DATE: 4/15/01 TRADING_SC: SETC PNT_OF_INTRC: NP15 SCHED_TYPE: ENGY PURCH_SALE: DEAL_NO: 1 $$$ Variance found in table tblInt_Interchange. Details: (Hour: 15 / Preferred: / 9.97) FINAL EPMI MKT_TYPE: 2 TRANS_DATE: 4/15/01 TRADING_SC: PGAE PNT_OF_INTRC: NP15 SCHED_TYPE: ENGY PURCH_SALE: 2 DEAL_NO: 1 Corinne: will accept your interest rate schedules. Also, you include the witness line our signatory. Please prepare execution and me know there anything to be done. for your patience. Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 (phone) 713-646-3490 "Corinne A <samon_corinne@jpmorgan.com> 10:05 To: Sara.Shackleton@enron.com cc: futures agreement

Details: (Hour: 15 / Preferred:  12.00 / Final:  11.98)
  tRANS_TYPE: FiNAL
  Sc_ID: eCTrT
  mKT_TyPE: 2
  TrANS_DATE: 4/15/01
  TIE_POInt: PVErDE_5_DEVERS
  INTERCHG_ID: EPMi_CISO_lUckY
  ENgy_TyPE: WHeEL

---- SC TrADeS sCheDuLe ----
*** finAl SChEdule Not Found foR preferred SchEdUle.
     Details:

  TRanS_tYPE: FINAL
  Sc_ID: ePMI
  MKT_TYPE: 2
  TrANs_DATE: 4/15/01
  TrAdINg_sC: SETc
  PNt_OF_INtRC: NP15
  SchED_TYPe: ENGY
  PURCh_SalE: 1
  DEAL_no: 1
$$$ VarianCE FoUnd iN table tblInt_InterCHaNGe.
     Details: (Hour: 15 / PReferrEd:  10.00 / fInAL:   9.97)
  tRAnS_TyPE: FINAL
  SC_iD: ePMI
  Mkt_TYPE: 2
  TRanS_date: 4/15/01
  TRadING_SC: PGAE
  PNT_oF_INTRC: NP15
  SCheD_TyPE: ENGy
  PuRCh_sALE: 2
  DEaL_NO: 1 COrINne:

we will accepT youR interest Rate scHEdules.  ALSo, you caN incluDe tHe
wItneSS lInE foR oUR siGNaTorY.
pleAse prepaRe ExEcutiOn coPIES And lEt mE knoW if thEre is anything ElsE to
bE DonE.  ThanKs for Your PaTiencE.

Sara SHacklEtOn
Enron North AmeRica corp.
1400 Smith strEeT, EB 3801A
HOustoN, texas  77002
713-853-5620 (pHonE)
713-646-3490 (faX)
sara.shAckletoN@EnrOn.COM

	"coRinne A Samon" <samon_coRiNNE@jPmorgan.cOm>
	02/28/2001 10:05 AM

		 To: sArA.SHAckleton@EnRon.Com
		 cC:
		 sUbjecT: Re: fUTuRes agreeMent

Details: (Hour: 15 / Prefe rred:  12. 00 /Fin al:  11.9 8)
 TRANS_TYPE: F I NAL  SC_ID: ECTRT
  MKT_T YPE:2 TRA N S_ DATE:  4/15/0 1
T IE_ PO IN T:PV E RD E_5_D EVE RS
  IN TERCHG_ID:  EP MI _CISO_LUCKY E NGY_TYPE:WHE EL

---- S C T radesSc hed u le -- --*** F inal s c hedule  not foun df or pre f erred s c h ed ule.
     Details:

TR A NS_TYPE: FINAL
  SC_ ID :  E P M I
 MK T_TYPE: 2 TRANS _ DATE: 4 / 15 / 0 1
 T RADING_SC: SE TC
  PNT_OF _ INT RC: NP 15
 S CHED_T YPE:EN G Y
 PURCH_SALE : 1  DEAL_NO : 1
$$ $  Varian c e found  in ta ble  tb lInt _ In te rch an g e.   D e tai ls: (Hou r:  1 5 / P refe r r e d :  1 0.0 0 /Final :   9.97)
  T RAN S_TY P E:FINAL
  SC _ID:  E PMI
 MKT_T YPE:2  TRANS_DATE: 4 /15/ 01
  TRAD ING _S C:PG AE
 P NT_OF_ INT RC:  NP15
 SCHED_ T YPE :E N G Y  PURCH_SALE: 2
 DE A L _N O: 1 Cor inne:We  w i ll accep tyou r in t e restrate sc hedules.   Also ,  y ou  can in cl ude th e
wi tne ss li n e fo r oursignator y.
Pl e ase prepare ex e cution copies an d le t  mekno w if thereis a n ythi ng e l se  to
be d one. T h an k s for your patience .
SaraShack leton
Enron N orth Ameri c a Corp.
14 00 S m it h  Street, EB 38 01a
H ouston, Te x as  7700 2
713 -853-562 0 (phone) 7 13-646-3 490  (f ax)
sa r a .s hackleton@enr o n .com

	"Cor inn e A Sam on"  <s amo n_c or inne@jpmo rgan.com >	0 2/ 28 /20 01 10 : 05 AM
	 		To : S ara.S h acklet on@en ron. co m	 c c:
		S ub j e ct:Re :futu res  a greem ent

Details: (Hour:_15 /_Preferred:  12.00 /_Final: _11.98)
_ TRANS_TYPE:_FINAL
_ SC_ID: ECTRT
_ MKT_TYPE: 2
_ TRANS_DATE: 4/15/01
 _TIE_POINT: PVERDE_5_DEVERS
 _INTERCHG_ID:_EPMI_CISO_LUCKY
  ENGY_TYPE: WHEEL

---- SC Trades Schedule ----
*** Final schedule not found for preferred_schedule.
_ ___Details:

  TRANS_TYPE: FINAL
 _SC_ID: EPMI
  MKT_TYPE: 2
_ TRANS_DATE:_4/15/01
  TRADING_SC: SETC
  PNT_OF_INTRC: NP15
 _SCHED_TYPE:_ENGY
  PURCH_SALE:_1
  DEAL_NO: 1
$$$ Variance found in table tblInt_Interchange.
_    Details: (Hour:_15 / Preferred:__10.00_/ Final:  _9.97)
  TRANS_TYPE: FINAL
  SC_ID:_EPMI
  MKT_TYPE: 2
  TRANS_DATE:_4/15/01
  TRADING_SC: PGAE
  PNT_OF_INTRC: NP15
_ SCHED_TYPE: ENGY
  PURCH_SALE: 2
_ DEAL_NO: 1 Corinne:

We will_accept your_interest rate schedules.  Also,_you can include_the
witness_line for our_signatory.
Please prepare execution copies and let_me know if_there is anything else to
be_done._ Thanks for_your_patience.

Sara_Shackleton
Enron North_America Corp.
1400 Smith_Street,_EB 3801a
Houston,_Texas_ 77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

	"Corinne A Samon"_<samon_corinne@jpmorgan.com>
	02/28/2001_10:05 AM

		 To: Sara.Shackleton@enron.com
		 cc:
		_Subject: Re: futures agreement


 efforts around the Windows Streaming Media product.  I
> understand that our teams have been working very closely together -- and
> with Microsoft -- to resolve technical issues with Windows Streaming Media
> and thereby speed EBS' market deployment.
>
> The major issue is that Enron does not support traffic to many of our
> concentration point so we need to be creative.
>
> Bottom line, we are down to solvable problems with solution activities
> underway.
>
> * Windows 2000
>
>
> During the last week of May Compaq responded to a request from Enron to
> support Windows 2000 deployments, and placed people on site with no
> defined contract or process due to Enron's requirements.  At this writing,
> no contract has been signed, and the current contract iteration is at
> number fourteen.  Apparently the delivery scope has changed several times
> and there have been a few mistrals. Compaq is continuing to provide
> resources despite the fact that no contract is in place and will work with
> Enron to ensure a successful completion of the project.
>
> * Power Management
>
> Jesse Greene, our CFO, will act as the contact point for Enron for power
> management services. The issue is we have existing contracts at favorable
> rates but we will break the log jam.
>
> * HomePC Program
>
> For several months, Compaq and Enron have been working the solution to
> bring technology and Internet access into the homes of every Enron
> employee.  There have been many creative discussions around hardware and
> financing to allow Enron to fully subsidize the package provided.  Compaq,
> Enron and Compaq Financial Services had gotten to a point where the $35
> per month cap was going to require the specifications of the hardware to
> be reduced.  In recognition of the value of our partnership and our mutual
> desire for this program to be the premier program in the industry, we have
> increased the specifications of the hardware while taking significant
> pricing actions and financing rate reductions.  These actions will
> actually allow Enron to support better than expected hardware with the
> extended warranty for $34.28 per month.   This will truly be an
> industry-leading program when launched later this fall.
> Dear You Love,

Continental Airlines is committed to meeting new federal requirements regarding

efforts around the Windows Streaming Media product.   I
 > understand that our teams have been work very close together -- and
 > with Microsoft -- to resolve technical topic with Windows Streaming Media
 > and thereby accelerate EBS' market deployment.
 >
 > The major issue is that Enron does not subscribe dealings to many of our
 > concentration point so we need to be creative.
 >
 > Bottom line, we are down to solvable problems with solution activity
 > underway.
 >
 > * Windows 2000
 >
 >
 > During the last workweek of May Compaq responded to a request from Enron to
 > support Windows 2000 deployments, and placed people on site with no
 > defined contract or procedure due to Enron's requirements.   At this writing,
 > no contract has been signed, and the current contract iteration is at
 > number fourteen.   obviously the delivery scope has transfer respective times
 > and there have been a few mistrals. Compaq is continuing to provide
 > resources despite the fact that no contract is in place and will exercise with
 > Enron to ensure a successful completion of the project.
 >
 > * Power Management
 >
 > Jesse Greene, our CFO, will act as the contact point for Enron for might
 > management avail. The issue is we have existing contracts at favorable
 > rates but we will break the log fix.
 >
 > * HomePC Program
 >
 > For several months, Compaq and Enron have been solve the solution to
 > fetch technology and Internet access into the homes of every Enron
 > employee.   There have been many creative discussion around hardware and
 > financing to allow Enron to fully subsidize the package provided.   Compaq,
 > Enron and Compaq Financial Services had catch to a point where the $ 35
 > per month cap was going to require the specifications of the hardware to
 > be reduced.   In recognition of the value of our partnership and our mutual
 > desire for this program to be the premier platform in the industry, we have
 > increase the specifications of the hardware while taking significant
 > pricing actions and financing rate reduction.   These actions will
 > actually allow Enron to support well than expected hardware with the
 > extended warranty for $ 34.28 per month.    This will sincerely be an
 > industry - leading plan when launched subsequently this fall.
 > Dear You Love,

 Continental Airlines is invest to meeting modern federal requirements regarding

 efvorts around the Windows Streaming Medic produrt.  I
> uhderstana that our teams have been wlrjing cery closely together -- and
> with Microsodt -- uo resolve technirzl issucf wifm Winboxs Streaming Mecia
> and thareby speed EBV' oaxket deployment.
>
> The major issue is trat Enrpn does not suppjrt urasfic no many of our
> concentration pojnt so xe need to be cteative.
>
> Bottom line, we are dowj to solvable probpems with silutyin activitier
> underway.
>
> * Windows 2000
>
>
> Doring the last week of May Compad res'onded to a rwqufvt from Enrin to
> support Windows 2000 de[loymenys, and placed ieoplx on site with no
> defined contract or procefs due to Euron's requirements.  Ar rhis frithng,
> vi cuntdart gas befn aigned, and the currenr contract iteratiom yw at
> number fkurteeg.  Apparently the delivery scope has chanced several times
> and therw have been a few misjrals. Compwq is continuing to provide
> resources despite the fact ghau kj xojtract is in place and will work with
> Enron tj emslre a successful gompletion of the lrljrst.
>
> * Power Manxgemenc
>
> Jssse Greene, our CFL, will wct aw the conuact loint for Enron for power
> mqnagement segvicws. The issue is we have existnng comtracys at favorable
> rates bbt we sill break hhe log jzo.
>
> * HomePC Prograo
>
> Fpr several months, Compaq and Enron hate bezn workivg tne solttion to
> bging bachnology and Integnet cccesv into the homes of every Enron
> employee.  There have begn kanj creativz discmssions around rardware and
> fnnancing to aulow Enron to fulny subsidizq the package krovided.  Com'aq,
> Enron and Compaq Finxvcial Services had gottvn to q point where the $35
> pet jonth cap was giint to require thr soecyfpcavions mf the hardwdre go
> cr redjced.  In regogvitipn of the value of ogr pzrtnership and our mmtual
> desure for ehis program yo be the premier krograk ii the ondostry, we have
> increased the spedificatiojs jf the hardwwre qhile taking significant
> pricing actions and financmng rate reductions.  Thwse actions will
> acjuakly allow Eiron tj support better than expectee hardware with tme
> extended warranty fkr $34.28 pes monhh.   This will truly be an
> industry-leading program when launched later thus fall.
> Dear You Lkve,

Cpntinvntcl Cirlinef is rommitted to meetpng new federal requirements regerding

efforts around the Windows Streaming Media product. understand our teams been working very with -- to resolve issues with Windows Media > and thereby speed EBS' deployment. > > The major issue is that Enron does not support traffic many of our > concentration point so we need to be creative. > Bottom we down solvable problems with solution activities > underway. > > * Windows 2000 > > > During last week of May Compaq responded to a from Enron to > Windows 2000 deployments, and placed on with no defined or due to Enron's At this writing, > no contract has been signed, and the current contract iteration is at > fourteen. Apparently scope has several > there have been mistrals. Compaq is continuing to provide the fact that no contract is in place will work > Enron to ensure a successful of the project. > > * Power Management > Jesse Greene, our CFO, will act as the contact point for Enron for power services. The issue is have existing contracts favorable rates we break the jam. > > * HomePC Program > > For several months, and Enron have been working the solution to > bring Internet into the homes every Enron > employee. have many creative discussions around > to fully the provided. Compaq, > Enron Compaq Financial Services had gotten a point where the was going to require the specifications of the to > be reduced. In recognition of value of our partnership and our mutual > desire for this program be the in the industry, we have > increased the of the hardware while significant > pricing actions and financing rate reductions. These will actually allow to support better expected hardware with > extended warranty per month. will be program when launched later this fall. Dear Love, Continental Airlines is committed meeting requirements regarding

 efforts around the Windows StReaming MedIa proDucT.  I
> uNdErstAnd tHat our teams havE Been Working very closely togeTher -- aNd
> WIth MICrOsoft -- To resolVE tECHniCaL iSsuEs WItH WindOws streamiNg Media
> and TheReBy speed EBS' maRKeT deploymenT.
>
> ThE major issue iS thAt EnroN dOes NOt supPorT trafFic to mANy of ouR
> concentrAtIOn poinT So we neeD TO bE creAtive.
>
> Bottom line, we ARe DOwn to solvable pRoblemS wITh SOLutIon Activities
> UnDerwaY.
>
> * windows 2000
>
>
> dUrING The LAst week of May COmpaq responDEd tO a requEsT frOM Enron To
> supPoRT WiNdows 2000 deployMentS, and placeD peoplE On site wITh no
> defIned coNtrAct Or prOCeSs Due To eNroN'S rEquIRemEnts.  At thIs WrIting,
> No coNTRACt haS beEn siGned, aNd the current cOntRact ITerAtion Is at
> nUmbeR fOurteEn.  AppaRentlY tHe delivery scope Has cHanged sevEraL tImeS
> aNd theRE have bEen A feW mistraLs. CompaQ Is cOnTINUiNg to provide
> resourcEs DESpIte the faCt that NO cOnTRact is in PlAce And wILL work With
> eNrOn to ensuRe a sucCEsSfUl complEtIon of tHe ProJecT.
>
> * PoweR manaGement
>
> jesse GreEne, ouR cFO, will act as thE Contact point fOR ENROn FOr poWer
> Management sErviCEs. ThE issUE iS we HAve exIstinG cONtRActs at favorable
> rateS bUt we wiLl breAk the log jam.
>
> * HoMePC PrograM
>
> fOR several MontHS, COMpaq and Enron haVe beeN working thE Solution To
> briNg technoLogy and InTERnet acceSs iNto The HomES Of Every Enron
> empLOYee.  THeRe have bEen Many creAtiVe dIscUssIoNs around hArdware aNd
> FiNaNcIng To allOW Enron to FuLly SuBsiDize tHE packaGe proVideD.  COmPAq,
> ENron and cOmPAQ FinAnCiAl SeRviCeS had gOtteN To a Point whEre the $35
> per MonTH cap WaS gOing to rEquire the specIfIcations of ThE haRdware TO
> Be reduceD.  In recognition of the valuE Of our paRtnErshiP and Our mutual
> DesIre for ThiS PrograM to be tHe preMiEr pROGram iN THe IndUsTry, we have
> iNCReaSed thE sPeciFicatioNs of the hardware whiLE taKing significaNt
> pRiciNG AcTioNS aND fiNaNCinG RAte reductions.  ThEse actions WiLL
> aCtually allOW EnRoN to suppOrt bettEr thaN ExpecteD hardware With the
> exTeNded WARraNty for $34.28 per mOnth.   This Will truly BE an
> inDUsTry-leAdiNg progRaM whEn lauNched lATer This fAll.
> DeaR YOu Love,

contiNeNtal AirlInes is committed to meetinG new feDeral ReqUirements RegARdiNg

 efforts around the Window s Streamin g Med iapro du ct. I
>  understand th a t ou r teams have been work ing v er y  clo s el y tog ether - -  a n d
>wi th  Mi cr o so ft --  to  resolv e technica l i ss ues with Win d ow s Streamin g M edia
> and t her eby sp ee d E B S' ma rke t dep loymen t .
>
>The major  i s sue is that En r o ndoes  not support traf f ic to many of our
> con ce n tr a t ion  po int so wene ed to be crea t iv e . >
> Bottom line,we are down tosolvab le  pr o blemswithso l uti on activiti es
>  underway .
>
>*  Window s  2000
>
>
> D uri ngthel as twee ko f M a yCom p aqresponde dto  a re ques t f r om E nro n to
> su pport Windows  20 00 d e plo yment s, an d pl ac ed pe ople o n sit ewith no
> defin ed c ontract o r p ro ces sdue t o  Enron 'sreq uiremen ts.  At thi sw r i ti ng,
> no contractha s be en signe d, and th ec urrent c on tra ct i t e ratio n is at
> numbe r four t ee n.   Appar en tly th edel ive ry sc o pe h as cha nged sev eralt imes
> and the r e have been a fe w mi s tral s.Compaq is c onti n uing  top ro vid e
> re sourc es de s pite the fact thatno  contr act i s in place an d will wor k w ith
> En ront oe nsure a succes sfulcompletion of the p rojec t.
>
> *  Power Ma n a gement
>
>Jes seGre e n e,  our CFO, wil l actas  the co nta ct poin t f orEnr onfo r power
>  managem en tse rv ice s. Th e  issue i sweha veexist i ng con tract s at  f av o rab le
> ra t es b ut w ewi ll b rea kthe l og j a m.>
> * H omePC Pro gra m
>
>  F or  severa l months, Com pa q and Enro nhav e been w orking t he solution to
> bringt echnolo gyand I nter net acces s i nto th e h o mes of  every  Enro n> e m p loyee .  T her ehave beenm a nycreat iv e di scussio ns around hardware and
> financingtoallo w En ron to ful ly sub s i dize the packag e provided .Co mpaq,
> En r onan d Compa q Finan cialS ervices  had gott en to a p oi nt w h e rethe $35
>per mont h cap was going to  requ ire  the s pe cif icati ons of the  hard ware t o> be r educe d.   In rec ognition of the value o f ourpartn ers hip and o urm utu al
> desi re f or this pr ogr amto be  th e  prem ierp ro gra m  in t he i n dustry, w e  h ave >  i ncreased th e s pec ifica tio n s of t he h ardware while tak i ng significant
> p r i cin g a c tion sand financingrat er e ductions . These acti ons will
> actua lly al low En ron tos u pp o rt bet tertha n expecte d h ar d ware wi th  t h e
> ex tend ed  warra nty fo r  $34 . 2 8 per month.   T his w i l l tru l y b e an>industr y -lea ding progr am when lau nchedlate r thi s fall.
>  DearYou  L ove,

Cont i nental Ai rline s is co mm itte d t o meet ingn e w fed eral  r equ irementsr e ga r di ng

 efforts_around the_Windows Streaming Media product._ I
>_understand_that our_teams_have been working_very closely together_-- and
> with Microsoft_-- to resolve_technical_issues with Windows Streaming Media
> and thereby speed EBS' market deployment.
>
> The major issue_is_that Enron_does_not_support traffic to many of_our
> concentration point so we_need to_be creative.
>
> Bottom line, we are down to_solvable_problems with solution_activities
> underway.
>
> * Windows 2000
>
>
> During the last week_of May Compaq responded to a_request from Enron_to
>_support_Windows 2000 deployments, and_placed people on site with no
>_defined contract or process due to_Enron's requirements.  At this writing,
> no_contract has been signed, and the_current contract iteration is at
>_number fourteen._ Apparently the delivery scope_has changed several_times
> and_there have been_a few mistrals. Compaq is continuing_to provide
> resources_despite the fact that no contract_is_in place and_will_work_with
> Enron_to ensure a_successful_completion of_the_project.
>
> * Power Management
>
> Jesse Greene,_our_CFO, will act as the contact point_for Enron for power
>_management_services. The issue is_we have existing contracts at_favorable
> rates but we will break_the log_jam.
>
> *_HomePC Program
>
> For several months, Compaq and Enron have been working_the solution to
> bring technology and_Internet access into the_homes of_every_Enron
> employee. _There_have been_many creative discussions around hardware and
> financing_to allow_Enron to fully subsidize the package_provided.  Compaq,
> Enron_and_Compaq Financial Services had gotten to_a point where the $35
> per_month cap was going to_require_the_specifications of the hardware to
>_be reduced.  In recognition of_the value of_our partnership and our mutual
> desire for_this_program to be the premier program_in_the industry, we have
> increased the_specifications_of_the hardware while taking significant
>_pricing actions and financing rate reductions._ These actions will
> actually allow Enron to support_better than expected_hardware with the
> extended warranty_for_$34.28_per month.   This will truly be an
> industry-leading_program when_launched later this_fall.
> Dear You Love,

Continental Airlines is committed to meeting new_federal requirements regarding


W. #700
   Washington, D.C. 20004-1008
      Phone: 202-639-6675
      Fax: 202-879-8875
      e-mail: nimus@velaw.com

-----Original Message-----
From: Ann.Ballard@enron.com [mailto:Ann.Ballard@enron.com]
Sent: Wednesday, August 09, 2000 4:55 PM
To: nimus@velaw.com
Subject: ENA/NBP transaction

I'm being told that maybe the parties don't want to ask for early
termination on this HSR filing.  If they change their mind after they file,
do they have to withdraw and refile, or can they amend their filing?  Also,
I was asked to possibly file on Friday instead of Monday. hacker (HACK-uhr) noun

   1. A person who enjoys exploring the details of programmable systems
      and how to stretch their capabilities, as opposed to most users, who
      prefer to learn only the minimum necessary.

   2. One who programs enthusiastically (even obsessively) or who enjoys
      programming rather than just theorizing about programming.

   3. A person capable of appreciating hack value.

   4. A person who is good at programming quickly.

   5. An expert at a particular program, or one who frequently does work
      using it or on it; as in `a Unix hacker'.
      (Definitions 1 through 5 are correlated, and people who fit them
      congregate.)

   6. An expert or enthusiast of any kind. One might be an astronomy
      hacker, for example.

   7. One who enjoys the intellectual challenge of creatively overcoming
      or circumventing limitations.

   8. [deprecated] A malicious meddler who tries to discover sensitive
      information by poking around. Hence `password hacker', `network
      hacker'. The correct term for this sense is cracker.

[Originally, someone who makes furniture with an axe.]

   "When Emmanuel Goldstein, who runs a hacker magazine called 2600, posted
   Johanssen's software on a website, eight media companies (including Time
   Warner, parent company of TIME) sued Goldstein...."
   Lev Grossman, Digital Divisiveness, Time, Aug 28,

W. # 700
    Washington, D.C. 20004 - 1008
       Phone: 202 - 639 - 6675
       Fax: 202 - 879 - 8875
       e - mail: nimus@velaw.com

 -----Original Message-----
 From: Ann.Ballard@enron.com [ mailto:Ann.Ballard@enron.com ]
 Sent: Wednesday, August 09, 2000 4:55 PM
 To: nimus@velaw.com
 national: ENA / NBP transaction

 I'm being tell that maybe the parties don't want to necessitate for early
 termination on this HSR filing.   If they change their mind after they charge,
 do they give birth to withdraw and refile, or can they amend their filing?   Also,
 I was asked to possibly charge on Friday instead of Monday. hacker (HACK - uhr) noun

    1. A person who enjoys exploring the detail of programmable systems
       and how to load their capabilities, as opposed to most user, who
       prefer to learn only the minimal necessary.

    2. One who programs enthusiastically (even compulsively) or who enjoys
       scheduling rather than just theorizing about programming.

    3. A person capable of appreciating machine politician value.

    4. A person who is good at programming quickly.

    5. An expert at a particular program, or one who frequently does work
       using it or on it; as in 'a Unix hacker'.
       (Definitions 1 through 5 are correlated, and people who fit them
       congregate .)

    6. An expert or enthusiast of any kind. One might be an astronomy
       hacker, for example.

    7. One who enjoys the intellectual challenge of creatively get the better of
       or circumventing limitations.

    8. [ deprecate ] A malicious meddler who judge to discover sensitive
       information by intrude about. Hence 'password hacker', 'net
       hacker'. The correct term for this sense is cracker.

 [ Originally, someone who make furniture with an axe. ]

    " When Emmanuel Goldstein, who runs a hacker magazine bid 2600, posted
    Johanssen's software on a web site, eight medium companies (including Time
    Warner, parent company of TIME) action Goldstein.... "
    Lev Grossman, Digital Divisiveness, Time, Aug 28,

W. #700
   Washington, D.C. 20004-1008
      Phune: 202-639-6675
      Fax: 202-879-8875
      e-meil: nimhs@velaw.cum

-----Original Message-----
From: Ann.Baplqrd@eneon.com [mailto:Ann.Ballara@enron.com]
Dent: Wedbesdey, August 09, 2000 4:55 PM
To: nimus@vcjaw.ckl
Sublert: ENA/NBP transsction

I'm baing told that mxyye the parties don't want to ask for qarly
tetmlnation on thif HSG silihg.  If they change their mind afted they hile,
do they havr to withdraw and refile, og caj they amend their filing?  Alwo,
I rqs asked to oossibly fpne on Fridzy instead of Monday. hacker (HACY-uhr) uoun

   1. A pgxwon fho enjoys xxplorpng the details of prmgrammanle systems
      end yow to stretch their rapabilities, as oppofed to movt users, who
      peeder tm ledrn ubly tht mmnijum nefesaary.

   2. Ons who progrqms enthusiasticallu (qnrn obsessivemy) or rhj enjoys
      programming rather than jlst fheorizing about progranming.

   3. A person capwble of a[preciating hack value.

   4. A person who is good at progcaomiun dyifkly.

   5. An expert at a particular program, or jhe wmo frequently docs work
      using ih pt on it; as in `x Unix hadker'.
      (Definitilns 1 thtough 5 are corrtlatec, and people who fit them
      congregane.)

   6. An expert or entkusiast of auy kinc. One might be an astronomy
      hacker, for example.

   7. One who enjoys thv indellectual challenge of crqatively ivereoming
      pr cirsumventing limibdtions.

   8. [deprecatfd] A lanicious mefdler who tries to discover sensitive
      ingosmanion by pjking around. Hence `password hackgr', `networh
      hacker'. Tge corrxct term for this sense iv cracker.

[Origmnally, soieonw whi makes wurniture with an axe.]

   "When Emmabuel Goldstein, who ruva a hacker magavnnt xalled 2600, posted
   Gohwndsxn's sjxtware on a febskte, right media compcnkes (oncluding Time
   Warter, larent company of YIIE) sued Toldsteig...."
   Lev Grosskan, Digital Divisigenesv, Tmme, Aub 28,

W. #700 Washington, D.C. 20004-1008 Phone: 202-639-6675 e-mail: -----Original Message----- Ann.Ballard@enron.com [mailto:Ann.Ballard@enron.com] Sent: PM nimus@velaw.com Subject: ENA/NBP I'm being told maybe the parties don't want to for early termination on this HSR filing. If they change their mind after file, do they have to withdraw and refile, or can they amend their Also, was to file on Friday instead of Monday. hacker (HACK-uhr) noun 1. A person who enjoys exploring the of programmable systems and how to stretch their as opposed to most who prefer to learn only minimum 2. One programs (even or who enjoys rather than just theorizing about programming. 3. A person capable of appreciating hack value. 4. A person is good quickly. 5. expert a program, or one does work using it or on `a Unix hacker'. (Definitions 1 through 5 are and people fit them congregate.) 6. An expert enthusiast of any kind. One might be an hacker, for example. 7. One who enjoys the intellectual challenge of creatively overcoming or circumventing [deprecated] A malicious meddler tries to discover information poking Hence hacker', `network The correct term for this sense is cracker. [Originally, someone who furniture with an axe.] "When Emmanuel Goldstein, who runs a called posted Johanssen's software a website, eight media (including Warner, parent company of Goldstein...." Grossman, Aug

W. #700
   Washington, D.C. 20004-1008
      Phone: 202-639-6675
      Fax: 202-879-8875
      e-maiL: nimus@velaW.com

-----ORigInaL MEssaGe-----
FrOm: Ann.Ballard@enROn.coM [mailto:Ann.Ballard@enron.Com]
SeNt: wEdneSDaY, AuguSt 09, 2000 4:55 PM
To: nIMuS@VElaW.cOm
subJeCT: EnA/NBP TraNsactioN

I'm being toLd tHaT maybe the parTIeS don't want tO asK for early
terMinAtion oN tHis hsR filIng.  if theY changE Their mInd after tHeY File,
do THey have TO WiThdrAw and refile, or can tHEy AMend their filinG?  Also,
I WaS AsKED to PosSibly file oN FRiday INstead oF moNDAY. haCKer (HACK-uhr) nouN

   1. A person who ENjoYs explOrIng THe detaIls of PrOGraMmable systeMs
      anD how to strEtch thEIr capabILities, aS opposEd tO moSt usERs, WhO
      prEfER to LEaRn oNLy tHe minimuM nEcEssarY.

   2. One WHO PRogrAms EnthUsiasTically (even obSesSiveLY) or Who enJoys
      pRogrAmMing rAther tHan juSt Theorizing about ProgRamming.

   3. A pErsOn CapAbLe of aPPreciaTinG haCk value.

   4. a person WHo iS gOOD At Programming quickly.

   5. an EXPeRt at a parTiculaR PrOgRAm, or one wHo FreQuenTLY does Work
      USiNg it or on It; as in `A unIx Hacker'.
      (DEfInitioNs 1 ThrOugH 5 are cORrelAted, anD people wHo fit THem
      congregate.)

   6. AN Expert or enthuSIaST Of ANy kiNd. ONe might be an AstrONomy
      HackER, fOr eXAmple.

   7. one whO eNJoYS the intellectual chaLlEnge of CreatIvely overcomiNg
      or circumVENTing limiTatiONs.

   8. [DEprecated] A maliCious Meddler who TRies to diScoveR sensitiVe
      informaTIOn by pokiNg aRouNd. HEncE `PAsSword hacker', `neTWOrk
      hAcKer'. The cOrrEct term For ThiS seNse Is Cracker.

[OrIginally, SoMeOnE wHo mAkes fURniture wItH an AxE.]

   "WhEn EmmANuel GoLdsteIn, whO rUnS A haCker magAZiNE CallEd 2600, PoSted
   johAnSsen's SoftWAre On a websIte, eight mEdiA CompAnIeS (includIng Time
   Warner, PaRent companY oF TImE) sued gOLdstein...."
   LEv Grossman, Digital DivisiVEness, TiMe, AUg 28,

W. #700
   Washington, D.C . 20004-10 08
    Ph on e: 2 02-6 39-6675
     F ax:202-879-8875
      e-m ail:ni m us@v e la w.com

-- - -- O r igi na lMes sa g e- ----Fro m: Ann. Ballard@en ron .c om [mailto:A n n. Ballard@en ron .com]
Sent:Wed nesday ,Aug u st 09 , 2 000 4 :55 PM To: ni mus@velaw .c o m
Subj e ct: ENA / N BP  tra nsaction

I'm be i ng told that mayb e thepa r ti e s  do n't  want to a sk  fore arly
te r mi n a t ion on this HSR f iling.  Ift hey  chang ethe i r mind  afte rt hey  file,
do t heyhave to w ithdra w  and re f ile, or  can t hey  am endt he ir  fi li n g?Al so, I w as asked  t opossi blyf i l e  onFri dayinste ad of Monday.  ha cker (HA CK-uh r) no un
  1. A  perso n who  e njoys exploring  the  detailsofpr ogr am mable system s
    and h ow to s t ret ch t h ei r capabilities, as  o p p os ed to mo st use r s,  w h o
     pr efe r to l earnonly th e minimu m nece s sa ry .

   2 .One wh opro gra ms en t husi astica lly (eve n obs e ssively) or wh o  enjoys
    pr o g ra m ming  ra ther than j ustt heor izin g  a bou t  prog rammi ng .
  3. A person capab le  of ap preci ating hack va lue.

   4 . A  personwhoi sg ood at program mingquickly.
  5. Anexper t at a p articular p rogram,orone  wh o f r e qu ently does wo r k
    usingitor on i t;asin`aUn ix hacker '.
     ( De fi ni tio ns 1t hrough 5  a reco rre lated ,  and p eople  who  f it the m
    co n g rega te .)

  6.  A n exp erto r e nthusia st of any  ki n d. O ne  m ight be  an astronomy
     hacke r,  fo r exam p l e.

   7 . One who enjoys the in t ellectu alchall enge  of creat ive ly ove rco m ing
     or  circ um ven t i ng li m i ta tio ns .

   8. [ d e pre cated ]A ma licious  meddler who tries todiscover sens iti ve
  in f or m ati on byp o king around. He nce `passw or d  h acker', `n e two rk
     hacker' . The correct  term for  this sen se  isc r ack er.

[Orig inally,someone w h o mak e sfurni tur e with  a n a xe.]
   "W h enEmman uel Go ld stein,  whoru ns a hac ker magazine called 260 0, pos ted
  J ohanssen' s s o ftw are on awebs ite, eight  me dia  comp ani e s (in clud i ng  Ti m e
  Warn e r, parent co mpa n y  o f TIME) sue d G old stein ... . "
   L ev G rossman, DigitalD ivisiveness, T ime, A ug28,

W. #700
_ _Washington, D.C. 20004-1008
 _ __ Phone:_202-639-6675
_  _  Fax:_202-879-8875
   _  e-mail:_nimus@velaw.com

-----Original_Message-----
From: Ann.Ballard@enron.com [mailto:Ann.Ballard@enron.com]
Sent: Wednesday, August 09, 2000 4:55 PM
To: nimus@velaw.com
Subject: ENA/NBP transaction

I'm being told_that_maybe the_parties_don't_want to ask for early
termination_on this HSR filing. _If they_change their mind after they file,
do they have_to_withdraw and refile,_or can they amend their filing?  Also,
I was_asked to possibly file on Friday_instead of Monday._hacker_(HACK-uhr)_noun

   1._A person who enjoys exploring the_details of programmable systems
  _   and how to stretch_their capabilities, as opposed to most_users, who
   _ _prefer to learn only the_minimum necessary.

 _ 2._One who programs_enthusiastically (even obsessively) or who enjoys
_  _  programming rather than just_theorizing_about programming.

 __3._A person_capable of appreciating_hack_value.

 __4. A person who is good_at_programming quickly.

   5. An expert_at a particular program,_or_one who frequently does_work
    _ using it or on it;_as in_`a Unix_hacker'.
      (Definitions 1 through 5 are_correlated, and people who fit them
_   _ congregate.)

__ 6. An_expert_or enthusiast_of any kind. One might be an_astronomy
 _    hacker, for_example.

   7._One_who enjoys the intellectual challenge of_creatively overcoming
    _ or circumventing limitations.

 __8._[deprecated] A malicious meddler who_tries to discover sensitive
  _  _information by poking around. Hence `password hacker',_`network
_     hacker'._The_correct term for this sense is_cracker.

[Originally,_someone_who makes furniture with an_axe.]

   "When Emmanuel Goldstein,_who runs a hacker magazine called 2600, posted
 _ Johanssen's software_on a website, eight media_companies_(including_Time
   Warner, parent company of TIME) sued Goldstein...."
_ _Lev Grossman, Digital_Divisiveness, Time, Aug 28,


 for 1.

How to Help
?  Please go to www.easymatch.com/enron. Once there, click on "Disaster Relief"  (located in the middle of the top of the page).  Please choose from the list of non-profits that are accepting donations to help with this effort.  Any donations made to aid with disaster relief will not be counted toward the annual $15,000 Matching Gift limit.   You will need your GIS number to do this (it begins with a 9).  If you are unsure of your GIS number, please contact the HR GIM helpdesk at 713-853-5666.

?  We will have red, white and blue striped ribbons in Houston for employees to pin on their shirts in memory of those who lost their lives, in honor of those who survived, and for their families.  Donations to the New York Firefighters and Police Officers Fund and other organizations are being accepted in exchange for the ribbons.  Enron will also match these donations.  The  ribbons are available tomorrow from 9:00 - 11:00 a.m. at the InfoZone, which is located by the down escalator in the lobby.   For any other employees who would like to make donations, please go to the above website.

?  Enron employees are generously giving blood, and we will continue to work with relief efforts to ensure that employees who want to give, have the ability to do so.  If you have questions, call 713-853-6100.

?  President Bush has declared Friday a day of "National Prayer and Remembrance," and is calling on Americans to use their lunch breaks to go to places of worship to pray for victims and their families.   Following is a list of websites with additional information:

o	<http://abclocal.go.com/ktrk/>
o	<http://www.chron.com/content/community/religious/>
o	If you are looking for a service within walking distance of the Enron building, First United Methodist Church (corner of Main and Clay) and Antioch Missionary Baptist Church will hold prayer services on Friday.  First United Methodist Church will have services at 11:00 a.m., noon and 1:00 p.m.  Antioch Missionary Baptist Church will have a service at noon.
o If you are interested

for 1.

 How to Help
?   Please go to www.easymatch.com/enron. Once there, click on " Disaster Relief "   (located in the center of the circus tent of the page).   Please choose from the list of non - profits that are accept contribution to help with this effort.   Any contribution form to aid with catastrophe relief will not be counted toward the annual $ 15,000 Matching Gift terminus ad quem.    You will need your GIS number to do this (it begins with a 9).   If you are diffident of your GIS number, please contact the HR GIM helpdesk at 713 - 853 - 5666.

?   We will have crimson, white and blue striped ribbon in Houston for employees to pin on their shirts in memory of those who lost their life, in honor of those who survived, and for their families.   Donations to the New York Firefighters and Police Officers Fund and other constitution are being accepted in exchange for the ribbons.   Enron will also match these donations.   The   ribbons are available tomorrow from 9:00 - 11:00 a.m. at the InfoZone, which is located by the down escalator in the lobby.    For any other employees who would like to make donations, please go to the above web site.

?   Enron employee are generously giving blood, and we will stay to work with relief efforts to guarantee that employees who want to give, have the ability to do therefore.   If you have questions, call 713 - 853 - 6100.

?   President Bush has declared Friday a day of " National Prayer and Remembrance, " and is calling on Americans to practice their lunch breaks to go to places of worship to pray for victims and their families.    Following is a tilt of web site with extra information:

 o 	 < http://abclocal.go.com/ktrk/ >
 o 	 < http://www.chron.com/content/community/religious/ >
 o 	 If you are looking for a service within walking distance of the Enron building, First United Methodist Church (corner of Main and Clay) and Antioch Missionary Baptist Church will declare entreaty services on Friday.   First United Methodist Church will have services at 11:00 a.m., noon and 1:00 p.m.   Antioch Missionary Baptist Church will have a servicing at noon.
 o If you are concerned

 fog 1.

How to Help
?  Please go to www.easymatck.xom/enrmn. Oncs there, zlick on "Disaster Relief"  (loratee in uke middle of the top of the pwge).  Pleqse rhoose from the list of kjn-prknits chet are acceptinn donations to help with dhks effort.  Any donations made to aid rith dixadter relief wijl npe be bomnted toward the annual $15,000 Matchinf Gift nimit.   You woll need your GIS number tl do this (it begins wihh a 9).  If yiu aww unsure of hour GIS nlkber, pleasg contact the HR GIM helpdesk at 713-853-5666.

?  Wz will have rwd, avite and blne strpped ribbons lm Housdon for employees to iin oi thwir shirts in memory mf those who lost jheir livev, nn honor of those who syrvivgd, ang fof thdir femimies.  Fonetions to tge New York Firefighters and Pplybr Officers Fhnd anq jther organizations are being accepted pn eschange for the ribbons.  Enron will also matfh these qonations.  The  ribbons are available tomorrow frmm 9:00 - 11:00 x.m. cb gye InfoZone, which is located by the down escalaekr ik the lobby.   Fov any other employred ero would like to make sonations, please gl to thg abovw website.

?  Rnron employees are generouwly giving bjiod, and we will coutinue to woxk witn reloef efforts to ensure tkat emlloyees who want to fkve, have the abiuitj to do so.  If you have questijns, call 713-853-6100.

?  Pxesident Busn has qeclared Fgiday a day of "National Orayet and Semembrancf," and is calling on Americans to use their lumcv bgeaks to yo to ilaces of worshyp to pray for victimf and their famplies.   Fmllowing is a list of wetdites with avditional infirmarion:

o	<hggp://abclocal.go.cok/ktrk/>
o	<htnp://cww.chron.cim/content/community/veligkkus/>
o	If you are ooojing for a servoce wiehpn xalkigc distance ox thd Evton bjilding, Firwg Unoted Methodist Churcv (codner of Main and Ckan) and Antuoch Misfionary Baptixt Church will holf praber secvices on Friday.  First United Methodisf Church ailj have servises qt 11:00 a.m., noon cnd 1:00 p.m.  Antioch Missionary Baptist Churrh will have a service qt noon.
o If you ate lnterested

for 1. How to Help ? Please www.easymatch.com/enron. there, click "Disaster Relief" (located top the page). Please from the list non-profits that are accepting donations to with this effort. Any donations made to aid with disaster relief will not counted toward the annual $15,000 Matching Gift limit. You will need your GIS to this begins a 9). If you are unsure of your GIS number, please contact the HR GIM helpdesk 713-853-5666. ? We will have red, white and striped ribbons in Houston employees to pin on their in of those lost lives, honor of those survived, and for their families. Donations to the New York Firefighters and Police Officers Fund and other are being exchange for ribbons. will match these donations. are available tomorrow from 9:00 - the InfoZone, which is located by the down in the For any other employees who would to make donations, please go to the above ? Enron employees are generously giving blood, and we will continue to work with relief ensure that employees who to give, have ability do If have questions, 713-853-6100. ? President Bush has declared Friday a day of "National and Remembrance," and is calling on Americans to use their to to places of to pray for victims their Following is a list with information: <http://www.chron.com/content/community/religious/> If are looking for a within walking distance of the building, First United Methodist Clay) and Antioch Missionary Baptist Church will hold services on Friday. First United Methodist Church have services at 11:00 a.m., noon and 1:00 p.m. Antioch Missionary Baptist will have at noon. o If you are interested

 for 1.

How to Help
?  Please go to www.Easymatch.cOm/enrOn. ONce ThEre, cLick On "Disaster ReliEF"  (locAted in the middle of the toP of thE pAGe).  PlEAsE chooSe from tHE lIST of NoN-pRofItS ThAt are AccEpting dOnations to HelP wIth this efforT.  anY donations MadE to aid with diSasTer relIeF wiLL not bE coUnted Toward THe annuAl $15,000 MatchinG GIFt limiT.   you will NEEd Your gIS number to do this (IT bEGins with a 9).  If you Are unsUrE Of YOUr GiS nUmber, pleasE cOntacT The HR GIm HeLPDEsk AT 713-853-5666.

?  We will have reD, white and blUE stRiped rIbBonS In HousTon foR eMPloYees to pin on TheiR shirts in Memory OF those wHO lost thEir livEs, iN hoNor oF ThOsE whO sURviVEd, And FOr tHeir famiLiEs.  donatIons TO THE New yorK FirEfighTers and Police offIcerS funD and oTher oRganIzAtionS are beIng acCePted in exchange fOr thE ribbons.  ENroN wIll AlSo matCH these DonAtiOns.  The  rIbbons aRE avAiLABLe Tomorrow from 9:00 - 11:00 a.m. at thE INFOZOne, which Is locaTEd By THe down esCaLatOr in THE lobbY.   For ANy Other empLoyees WHo WoUld like To Make doNaTioNs, pLease GO to tHe abovE website.

?  enron EMployees are genERously giving bLOoD, ANd WE wilL coNtinue to worK witH ReliEf efFOrTs tO EnsurE that EmPLoYEes who want to give, havE tHe abilIty to Do so.  If you have Questions, cALL 713-853-6100.

?  presidenT BusH HaS Declared Friday A day oF "National PRAyer and REmembRance," and Is calling ON americanS to Use TheIr lUNCh Breaks to go to pLACes oF wOrship tO prAy for viCtiMs aNd tHeiR fAmilies.   FoLlowing iS a LiSt Of WebSites WIth additIoNal InForMatioN:

O	<http://aBclocAl.go.CoM/kTRk/>
o	<Http://www.CHrON.Com/cOnTeNt/coMmuNiTy/relIgioUS/>
o	IF you are Looking foR a sERvicE wItHin walkIng distance of ThE Enron builDiNg, FIrst UnITEd MethodIst Church (corner of Main anD clay) and antIoch MIssiOnary BaptIst church WilL Hold prAyer seRviceS oN FrIDAy.  FirST unIteD MEthodist ChURCh wIll haVe ServIces at 11:00 a.M., noon and 1:00 p.m.  Antioch MISsiOnary Baptist CHurCh wiLL HaVe a SErVIce At NOon.
O iF you are interestEd

 for 1.

How to Help
?  Pl ease go to  www. eas yma tc h.co m/en ron. Once ther e , cl ick on "Disaster Relie f"  ( lo c ated in  themiddleo ft h e t op  o f t he pa ge). Pl ease ch oose fromthe  l ist of non-p r of its that a reaccepting do nat ions t ohel p  with  th is ef fort.Any do nations m ad e  to ai d  with d i s as terrelief will not b e  c o unted toward t he ann ua l  $ 1 5 ,00 0 M atching Gi ft  limi t .   You wi l l nee d  your GIS num ber to do t h is(it be gi nsw ith a9). If you  are unsure  ofyour GISnumber ,  please contact  the H R G IMhelp d es kat71 3 -85 3 -5 666 .
?  We wi ll  h ave r ed,w h i t e an d b luestrip ed ribbons in  Ho usto n  fo r emp loyee s to  p in on  their  shir ts  in memory of t hose  who lost  th ei r l iv es, i n  honor  of  th ose who  surviv e d,an d f or  their families. Do n a ti ons to t he New Yo rk Firefigh te rsandP o liceOffi c er s Fund a nd oth e ror ganizat io ns are  b ein g a ccept e d in  excha nge forthe r i bbons.  Enronw ill also matc h  t h e se dona tio ns.  The  r ibbo n s ar e av a il abl e  tomo rrowfr o m9 :00 - 11:00 a.m. at  t he Inf oZone , which is lo cated by t h e down esc alat o ri n the lobby.  Forany othere mployees  whowould li ke to mak e donation s,ple ase  go t othe above web s i te.
?  Enr onemploye esare  ge ner ou sly givin g blood,  a nd  w ewil l con t inue towo rkwi threlie f  effor ts to  ens ur et hat  employ e es w ho w an tto g ive ,havethea bil ity todo so.  I f y o u ha ve  q uestion s, call 713-8 53 -6100.

?  Pre sident B ush hasdeclared Friday a day o f  "Natio nal  Pray er a nd Rememb ran ce," a ndi s call ing on  Amer ic ans t o use t he irlu nch breaks t o g o topl aces  of wor ship to pray for v i cti ms and theirfam ilie s .   Fo l lo w ing  i s  al i st of websiteswith addit io n al  informati o n:
o	<http ://abcl ocal. g o.com/k trk/>
o<http://w ww .chr o n .co m/content/ communit y/religio u s/>
o If  youare  looki ng  fo r a s ervice wit hin w alking  d istanc e ofth e Enronbuilding, First UnitedMethod ist C hur ch (corne r o f  Ma in and Cl ay)and Antioc h M iss ionar y B a ptist  Chu r ch  wi l l hol d pr a yer servi c es  on F ri day.  First U n ite d Met hod i st Chu rchwill have service s  at 11:00 a.m. , no o n  an d 1 : 00 p .m .  Antioch Mis sio na r y  Baptist  C hurch willhave a s er v ice a t noon .
oIf youa r ei nteres ted

 for_1.

How to_Help
?  Please go_to www.easymatch.com/enron._Once_there, click_on_"Disaster Relief" _(located in the_middle of the top_of the page).__Please choose from the list of non-profits that are accepting donations to help with_this_effort. _Any_donations_made to aid with disaster_relief will not be counted_toward the_annual $15,000 Matching Gift limit.   You_will_need your GIS_number to do this (it begins with a 9)._ If you are unsure of_your GIS number,_please_contact_the HR GIM helpdesk_at 713-853-5666.

?  We will_have red, white and blue striped_ribbons in Houston for employees to pin_on their shirts in memory of_those who lost their lives,_in honor_of those who survived, and_for their families._ Donations_to the New_York Firefighters and Police Officers Fund_and other organizations_are being accepted in exchange for_the_ribbons.  Enron_will_also_match these_donations.  The__ribbons are_available_tomorrow from 9:00 - 11:00 a.m._at_the InfoZone, which is located by the_down escalator in the_lobby._  For any_other employees who would like_to make donations, please go to_the above_website. _

?  Enron employees are generously giving blood, and we will_continue to work with relief efforts_to ensure that employees_who want_to_give, have the_ability_to do_so.  If you have questions, call_713-853-6100.

?_ President Bush has declared Friday_a day of "National_Prayer_and Remembrance," and is calling on_Americans to use their lunch breaks_to go to places of_worship_to_pray for victims and their_families.   Following is a_list of websites_with additional information:

o	<http://abclocal.go.com/ktrk/>
o	<http://www.chron.com/content/community/religious/>
o	If you are_looking_for a service within walking distance_of_the Enron building, First United Methodist_Church_(corner_of Main and Clay) and_Antioch Missionary Baptist Church will hold_prayer services on Friday.  First United Methodist Church_will have services_at 11:00 a.m., noon and_1:00_p.m._ Antioch Missionary Baptist Church will have a service at_noon. _
o If you_are interested


malisz@qwest.com>@ENRON
>    >    >    >    Sent:   Monday, November 19, 2001 11:42 AM
>    >    >    >    To:     Tholt, Jane M.
>    >    >    >    Subject:  Re: Thanksgiving
>    >    >    >
>    >    >    >    I like to make my own chili.  I load it up with beans,
>    Sue
>    >    uses
>    >    >    pork and
>    >    >    >    beans(it's O.K.), but I like the beans mom used to use.
>    I
>    >    was
>    >    >    told I
>    >    >    >    needed
>    >    >    >    to put a little more kick into my chili, so I figured
>    that I
>    >    would
>    >    >    ask
>    >    >    >    the
>    >    >    >    best-JOE.
>    >    >    >
>    >    >    >    Hey, for Christmas, I will provide the Ham and all the
>    >    >    >    beer,wine,pop,liquor,
>    >    >    >    pie,chips, nuts and bread. I will have Amy make some
>    >    barbacued
>    >    >    weiners.
>    >    >    >    I will
>    >    >    >    need you to make double baked potatoes. I will have Jean
>    bring
>    >    the
>    >    >    >    polish
>    >    >    >    sausage and corn/greenbeans.  I may get some sourerkraut
>    and
>    >    >    dumplins
>    >    >    >    from
>    >    >    >    Stoysich also.  I will tell dad that he can pay for the
>    ham.
>    >    >    >    I will have Joey bring a relish trey  and some lasagne.(
>    I
>    >    thought
>    >    >    it

malisz@qwest.com>@ENRON
 >     >     >     >     Sent:    Monday, November 19, 2001 11:42 AM
 >     >     >     >     To:      Tholt, Jane M.
 >     >     >     >     Subject:   Re: Thanksgiving
 >     >     >     >
 >     >     >     >     I like to seduce my own chili.   I load it up with bean,
 >     Sue
 >     >     uses
 >     >     >     pork and
 >     >     >     >     beans(it's O.K.), but I like the bean mom used to practice.
 >     I
 >     >     was
 >     >     >     told I
 >     >     >     >     needed
 >     >     >     >     to put a small more kick into my chili, so I calculate
 >     that I
 >     >     would
 >     >     >     ask
 >     >     >     >     the
 >     >     >     >     best - JOE.
 >     >     >     >
 >     >     >     >     Hey, for Christmas, I will put up the Ham and all the
 >     >     >     >     beer, wine, dad, liquor,
 >     >     >     >     pie, chips, nuts and bread. I will have Amy lay down some
 >     >     barbacued
 >     >     >     weiners.
 >     >     >     >     I will
 >     >     >     >     need you to make bivalent baked potatoes. I will receive Jean
 >     lend
 >     >     the
 >     >     >     >     polish
 >     >     >     >     sausage and corn whiskey / greenbeans.   I may get some sourerkraut
 >     and
 >     >     >     dumplins
 >     >     >     >     from
 >     >     >     >     Stoysich also.   I will tell dad that he can pay for the
 >     ham.
 >     >     >     >     I will own Joey bring a relish trey   and some lasagne. (
 >     I
 >     >     thought
 >     >     >     it

mallsz@qwest.com>@ENRON
>    >    >    >    Sent:   Monday, Iovembed 19, 2001 11:42 AM
>    >    >    >    To:     Tholt, Oane M.
>    >    >    >    Subject:  Fe: Thankshiving
>    >    >    >
>    >    >    >    I ljne tm make my own cmili.  I loag it up with baavs,
>    Sue
>    >    uses
>    >    >    pork and
>    >    >    >    beags(it'x O.K.), glt I like the beans mom used to use.
>    I
>    >    was
>    >    >    told I
>    >    >    >    needed
>    >    >    >    to kht w little more kick into my chili, so I figured
>    that I
>    >    wouud
>    >    >    awk
>    >    >    >    the
>    >    >    >    best-JME.
>    >    >    >
>    >    >    >    Hey, for Christmas, M will provide the Hwm and aln che
>    >    >    >    bewr,qine,pmp,lixuor,
>    >    >    >    ple,ciips, nuts ahd bread. I qill have Amy make xoiv
>    >    barbzcued
>    >    >    weiners.
>    >    >    >    I will
>    >    >    >    need you to make double baked pojatoes. I wyll have Jean
>    bring
>    >    the
>    >    >    >    [olisi
>    >    >    >    sausage and corn/greenbeans.  I may get sjje spurerkraut
>    cnd
>    >    >    dimologs
>    >    >    >    fxkm
>    >    >    >    Stlysich wlso.  I will ttll dsd that he can pay for the
>    ham.
>    >    >    >    I will hare Joey briny a rekish yrey  and some lasagne.(
>    I
>    >    thokght
>    >    >    it

malisz@qwest.com>@ENRON > > > > Sent: Monday, 2001 AM > > > To: > Subject: Re: Thanksgiving > > > > > > I like to my own chili. I load it up with beans, > Sue > > > > > pork and > > > > beans(it's O.K.), but I the mom to > I > > was > > > told I > > > > needed > > > to put a little more kick my chili, so I > that I > > > > ask > > > > > best-JOE. > > > > > > > > Hey, for Christmas, I will provide the Ham all the > > > > pie,chips, nuts and will have Amy make some > > > weiners. > > > > I > > > need you to make double potatoes. I will have Jean > bring > the > > > > polish > > > > sausage and corn/greenbeans. I may sourerkraut > and > > dumplins > > from > > Stoysich I will tell dad that he can pay for the > > > > > I will have Joey bring a and lasagne.( > I > thought > > it

malisz@qwest.com>@ENRON
>    >    >    >    Sent:   MoNday, NovembEr 19, 2001 11:42 AM
>    >    >    >    TO:     ThOlt, jaNe M.
>    >    >    >    SUbjeCt:  Re: ThanksgiviNG
>    >    >    >
>    >    >    >    I liKe to make my own chili.  I loaD it up WiTH beaNS,
>    SUe
>    >    useS
>    >    >    pork anD
>    >    >    >    BeANS(it'S O.k.), bUt I LiKE tHe beaNs mOm used tO use.
>    I
>    >    was
>    >    >    toLd I
>    >    >    >    NeEded
>    >    >    >    to put a liTTlE more kick iNto My chili, so I fiGurEd
>    that i
>    >    wOulD
>    >    >    Ask
>    >    >    >    thE
>    >    >    >    beSt-JOE.
>    >    >    >
>    >    >    >    hey, for cHristmAs, I will prOvIDe the HAM and all THE
>    >    >    >    bEer,wIne,pop,liquor,
>    >    >    >    pie,chIPs, NUts and bread. I wiLl have amY MaKE SomE
>    >    baRbacued
>    >    >    weiNeRs.
>    >    >    >    I wiLL
>    >    >    >    need yoU To MAKE doUBle baked potatOes. I will havE jeaN
>    bring
>    >    ThE
>    >    >    >    poLIsh
>    >    >    >    sauSage aNd COrn/Greenbeans.  I May gEt some souRerkraUT
>    and
>    >    >    dumPLins
>    >    >    >    froM
>    >    >    >    StoysIch AlsO.  I wiLL tElL daD tHAt hE CaN paY For The
>    ham.
>    >    >    >    I wIlL hAve JoEy brING A ReliSh tRey  aNd somE lasagne.(
>    I
>    >    thouGht
>    >    >    It

malisz@qwest.com>@ENRON
>   >    >   >  Sen t:    M onda y, November 19 ,  200 1 11:42 AM
>    >    >     >   To:    Tho lt, Jan e  M . >  >  > >   Sub ject: Re: Thanks giv in g
>    >   >    >
>    >    >    >    I  li ke toma kem y own  ch ili. I loa d  it up  with bea ns ,
>   S ue
>  >    us es
>    >    >  po r k and
>    >   >   >  b ean s(i t's O.K.),  b ut Il ike the be a n s  mo m  used to use.
>    I
>  >   was
>   >    >     t ol d  I>    >    >    >    need ed
>  >    >    >   to pu t a  li ttle mo re  ki ck int o  m y c h ili , so I f ig ur ed
>   t h a t I
>  >   woul d
>    >    >    ask >   >   >   >  the>    >     >    >    best-JOE .
>   >    >    >
>  >  >    >    He y, forChristm a s,Iw i l lprovide the Ham an da l lthe
>   >   >   >     beer ,w ine ,pop , l iquor ,
> >    >   >  pi e, chips,nu ts and  b rea d.I wil l  hav e Amymake som e
>  >    barbacue d
>    >    > w e in e rs.>   >    >   >  I w ill>    >    >   > ne e d you to make doubl ebakedpotat oes. I will h ave Jean
>  bring
>    >   the
>    >   >   >    poli s h
>    >     >     >   sausagea n d corn/g ree nbe ans . I ma y get some so u r erkr au t
>   and
>    >    >  dum pl ins
>   >    >  >  f rom
>  >    >  >  Sto ysich also. I wi ll t el ld adthat he ca n payfo rthe>  ham.>  >   >   >    I wi llh aveJo ey  bringa relish trey  and some l as agn e.(
> I
>   >    thought
>    >   >     it

malisz@qwest.com>@ENRON
> _ _>   _> __ >__  Sent:_  Monday,_November 19, 2001 11:42_AM
>  __>    >    >    To: __ _Tholt,_Jane_M.
>    >_   > _ _>    Subject:  Re: Thanksgiving
>__  >_   >    >
> _  >   _>  __>_   I_like to make my own chili._ I load it up with_beans,
>    Sue
>  _ >    uses
>_   > _ _>    pork_and
>  _ >_  _>    > _  beans(it's_O.K.), but I like the beans_mom_used to use.
>___ I
>_  _>_ __was
>    > __ >    told I
>_   >__  > _  >  _ needed
>    >_ _ >_   >    to put a little_more kick into my chili, so_I figured
>  _ that_I
>_  _>_ _ would
>    > _ _>    ask
> _  > __ >    >_   the
>  _ >   _>__  >  _ best-JOE.
>    >_  _>    >
>  __>    > __ >    Hey,_for_Christmas,_I will provide the Ham_and all the
>   _>    >    >_  _beer,wine,pop,liquor,
>    >___ >    >    pie,chips,_nuts and_bread. I will_have Amy make some
>    >  _ barbacued
>    > _  >    weiners.
>    >_   >    >_   I will
>  _ >  __>    >  __need_you_to make double_baked potatoes. I_will have Jean
>_ _ bring
> _ _>  __the
>    >    >    >    polish
> _  >   _>    >__  sausage_and corn/greenbeans.  I_may get some sourerkraut
>    and
>_   >    > __ dumplins
>_   >_ _ >_  _> _ _from
> _  >    >__  >    Stoysich also. _I_will_tell_dad that he_can pay for_the
>  _ ham.
> __ >    >_  _>   _I will have Joey bring a relish trey  and_some lasagne.(
>    I
>    >    thought
>   _> _  > _ _it