IN: Here are my notes from today's call. As with Monday, I've focused on getting them out as quickly as possible rather than taking extra time to re-organize them by subject. Enron's business has been grouped into three buckets: Core, Non-core, and Under Review. Core: Wholesale energy business in North America and Europe, retail energy, pipelines Non-core: Broadband, water, and international assets (i.e. EGAS). Enron has approx. $8Bn in investments in these assets, and they have produced 'dismal' returns. Enron will be exiting these businesses and will attempt to wind them up in an orderly fashion. An aggressive divestiture program has been set in motion for these assets. Under Review: EGM, EIM. These businesses are being closely examined to determine whether they have a reasonable chance of long-term viability. Required resource levels are being carefully studied. Following review, Enron will move the different portions of these businesses to core or non-core as the analysis dictates. Approximately $800MM of asset sales are under contract and expected to close in the fourth quarter. These include a gas LDC in Brazil, EcoElectrica, and our Indian E&P assets. Enron is in active pursuit of an additional private equity infusion of $500MM-1Bn. Given the current environment, raising equity in the public markets would be 'inefficient', McMahon says. Short-term liquidity is provided by the $3Bn of credit drawn upon a few weeks ago, the $1Bn of new debt, and the $1.5Bn equity infusion from Dynegy. Longer-term, the proceeds from the sale of PGE will provide liquidity. Asset sales over the next year will be used to pay down debt. McMahon described the major off-balance-sheet vehicles: Marlin was set up to hold Azurix assets. It was initially capitalized with $950MM of 144a debt and $125MM of equity (raised from Enron and institutional investors). The debt is supported by the equity and by Azurix' assets. Enron is obligated to cover any deficit at the time the debt becomes due on 3/17/03 (the 'Enron topup' obligation). The 3/17/03 date is accelerated in the event that Enron is rated below-investment-grade by any one of the three major agencies. The primary asset of Marlin is Wessex Water. As long as Wessex is worth at least $2.6Bn, there will be no Enron topup required. If we take a 25% haircut to present book value, Enron will have to provide $650MM in consideration upon retirement of the debt. This $650MM would hit Enron cash, income, and equity balances. Osprey contains energy-related assets and 'other assets'. It was initially capitalized with $2.4Bn of 144a debt and $220MM in equity (ENE and institutionals). As with Marlin, the entity is an asset-backed structure with an Enron topup guarantee. The debt is supported by a) the assets; b) $1Bn of convertible preferred ENE (convertible into 50MM shares of ENE common); and c) additional ENE common as needed for topup. Assuming the same 25% hypothetical haircut to current book value, Enron would have to deliver approx. $600MM of topup funds--which would hit ENE cash, income, and equity. The debt must be retired by 9/17/02, with the same cut-to-junk early trigger provision as Marlin.

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OUT: Highlights from ENE Analyst Conference Call 11/14

IN: What's happening on Monday, December 10th? Alot. For starters, the Olympic Torch is coming right down Heights Boulevard. That right! If you can come out about 1:00 p.m. to show our support that'd be great. The Torch is scheduled to arrive in Houston by Amtrak at 1:00 p.m. It will come Washington Ave and turn right on Heights Blvd. between 1:15 and 1:30 up to 11th and back down. Please join us to cheer the Flame Relay and show Houston and the world that we are truly the Heartbeat of America. Wear or bring something patriotic. The Olympic Flame Relay won't be back in the U.S. for at least another decade. Please join us to welcome the Olympic Flame to Houston. Don't miss the HHA General Meeting this Monday, December 10, 7:00 P.M. at the Fire Station. Congresswoman Sheila Jackson Lee will be attending to make a very exciting presentation on behalf of the Heights Boulevard Reforestation & Beautification Project. It will be followed with a brief update on project funding and construction timeline. Councilman Gabriel Vasquez will then provide us with a comprehensive update on what's happening in the neighborhood i.e. street paving, townhouse development and more. The homeowners from the Holiday Home Tour will be recognized followed by festivities and a delicious cookie swap... What: Holiday Cookie Swap When: Monday, December 10th Time: Approximately 8:15 (After the HHA's General Meeting) Where: HHA's firestation, bottom floor Please bring your favorite homemade holiday cookies, at least 5 dozen, to swap out in person with other Betty Crockers. (The more dozen you bring, the more you can swap.) Please have each dozen in a zip-lock type bag. If you would like, enclose a copy of the recipe in each bag. A cookie swap is a great way to have a wide assortment of wonderful holiday cookies to be used for for guests, place in a goodie bag for the mailman, 'Santa's snack', etc. That's all the announcements from us (the HHA) for awhile! Thanks. Debbie the webmaster

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OUT: after the busy weekend is Monday...

IN: Your big opportunity appears to be here! Some guy in the for sale database under misc messages is looking to put together a team for the year 2000. This is your big break...

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OUT: eco challenge

IN: Valerie, Further to our conversation, please see the attached draft of the agreement discussed. Upon your review, please give me a call to discuss any issues or questions you may have. Regards,

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OUT:
Agreement