Catalytica

FYI, after she spoke with Brian Vass ( who was involved in the May 2000
Catalytica/ENA Spark Spread Derivative repurchase transaction), Hope Vargas
called to inquire about documentation terminating the Spark Spread Derivative
that was originally part of the December 1999 Catalytica transaction. Hope
said she needed the documentation in connection with the evaluation of that
Derivative for inclusion in Raptor. I explained that the option under
consideration for inclusion in Raptor was unrelated to this now- terminated
Spark Spread Derivative, and instead the proper option for consideration is a
preferred stock purchase option acquired by Enron Ventures in a 1997
transaction with Catalytica Combustion Systems, Inc. ( now held by Sundance
Assets L.P., see my earlier E-Mail on this subject). Hope has asked for
copies of all of the documentation previously delivered to Sara in connection
with the preferred stock purchase option, which I agreed to provide.