Enron Corp. equity derivatives transactions on Enron Corp. stock

Bill: I have previously discussed this issue with Rod. I would like to
revisit once again. These transactions include swaps/options/forwards on ENE
stock. There is a renewed effort coming from Treasury to use these tools
more frequently than in the past. I am in touch with Rex Rogers (Enron Corp.
securities lawyer) as registration rights issues on ENE stock are definitely
involved. Our counterparties are telling us that they prefer to look to
Enron Corp. since it is Enron Corp.'s stock that is involved. At a minimun,
even if ENA were the trading counterparty (with an Enron Corp. guaranty
capped at an appropriate level), Enron Corp. would probably have to sign each
confirmation as ISSUER OF THE STOCK (and ENA cannot make those agreements on
behalf of Enron Corp.).

I would like to discuss ASAP as we are in the midst of negotiations with CSFB
International, UBS AG, Morgan Stanley Capital Services, Inc. and Lehman
Brothers Finance S.A.