Subject: "Independent Amounts".

Body: I've gone back through the ISDA Credit Support Annex and the "green book" and my conclusion is that unless we modify the standard form, we have to give an Independent Amount back to the counterparty when we go out of the money far enough (note that the definition of Exposure results in a negative number when we are out of the money reducing the Credit Support Amount below the Independent Amount). The theory there is that as the market moves against us, we are cushioned by our "out-of-the-moneyness" and will be able to ask for support as the market moves back in our favor before we are actually in the money. I'm afraid that Credit has been operating under the assumption that we get to keep Independent Amounts until the Transaction terminates. We need to set up a system with Credit so we all know what is meant on the credit work sheets -- i.e. whether a cushion or up-front amount should be

Subject: "What's Up?".

Body: Mark Taylor just heard that Edmund is very sick and has been out for quite awhile. What's the scoop? Is he in the hospital, will he continue to be out, is there someplace we can send flowers? Can you let me know what's going on. Thanks!

Subject: "Cheryl Nelson - In around 11:30 am today".

Body: Good morning all! Cheryl just called and has let me know that she will be in the office today around 11:30 am; she is not feeling well this morning. If you should need anything, please feel free to contact me directly.

Subject: "Appropriate people at Enron".

Body:
Dear Nicolas: I am pleased that you found the Cancun meeting to be a good experience. My wife and I also thought if was a very enjoyable couple of days. With reference to contacting the appropriate people representing Enron in Mexico, you should contact either Jaime Alatorre or Max Yzaguirre. Either one of these individuals could entertain a discussion of how we might be able to work together. Best regards,