New User Note Item and Form Change

Please see attached new user notes. See last sentence of item 3 applicable to contracts for certain physical trading product types.

Also see revised form change, 14(a) where we have added a safety net provision covering contracts that may allow any type of cherrypicking.

No change to Form of Collateral Annex.

Cordially,
Mary Cook
Enron North America Corp.
1400 Smith, 38th Floor, Legal
Houston, Texas 77002-7361
(713) 345-7732
(713) 646-3393 (fax)
mary.cook@enron.com