Contract Numbers

I am making good progress. I have met with Mike, Matt, Bob, and Jeff. It =
sounds like Mike is done, the rest are close. I told each of them that thi=
s is a "fill or kill" bid. If they like it then we'll get done, if not the=
n we can revisit at the end of their existing contracts. I also told each =
of them that if the market changes between now and then that it's their ris=
k. I also said that if they value keeping their options open that they bet=
ter figure out some way to monetize their theta as Enron would not be in a =
position to make them whole for what they would have been paid had they cho=
sen not to keep their options open.

I still have a couple of issues. One is Greg Wolfe. I am thinking that hi=
s package should look quite similar to Motley's. I need to show him number=
s today and would like to talk with one or both of you about it before I ta=
lk to Greg. I want to show him numbers for a two-year and a three-year con=
tract. He is currently talking to AEP, Calpine, and Arizona Public Service=
. He is asking for a lot of money to stay: Base of 200, signing of 100, a=
nnual retention of 100 plus equity of 600 with a two year vest. He would a=
lso do a 3 year deal with equity of 800 with a three year vest. I have tal=
ked a little bit with Mike S. about how important Wolfe is to the Northwest=
Middle Market effort. The answer was that he is really important because =
he knows all of the customers, he knows Enron's internal process, and he is=
very good at working with Mike to get deals executed and papered properly.=
Having said that, Mike said that he supports whatever decision I come up =
with in terms of retaining Wolfe -- in other words, if he leaves then he le=
aves and Mike is ok with that.

I'd like to talk to one of you this afternoon to hear your thoughts and ide=
as on this. I'll give you a call.