ESA Option Execution

Hi Sheila,

I'm not up on this part of the deal.

ckm
---------------------- Forwarded by Kay Mann/Corp/Enron on 12/11/2000 04:43
PM ---------------------------

From: Rebecca Walker 12/11/2000 04:40 PM

To: Kay Mann/Corp/Enron@Enron
cc: Ben Jacoby/HOU/ECT@ECT, Catherine Clark/HOU/ECT@ECT

Subject: ESA Option Execution

Kay

For ESA to exercise its LM 6000 purchase option, it must pay the Option
Exercise Price of $101,249,431 (per section 3A of the Option Agreement) plus
an additional charge of $21,500 per day for each day after November 22d (per
section 3B of the Option Agreement). If the option is exercised on December
13th, the total amount to be paid would be:

Option Exercise Price $101,249,431
Plus: Additional Costs: $21,500 per day x 21 days = $ 451,500
Option Exercise Price plus Additional Costs $101,700,931

Please let me know if the execution date changes because this will also
change the total dollar amount.

Thanks,
Rebecca
x57968