Once considered the most complex solution, we are now driven by the need to simplify the issues at hand, the sheer complexity is such that 1. Our ability to provide accurate pricing and risk assessments is being compromised by our lack of ability to explain or track exceptions to our approach, or our inability to articulate our approach to new audiences. 2. Enron of the past will be hard for us to reconcile with Enron of the future. 3. It will take us a long time to develop a new approach that is not based on yesterday's model but instead reflects the market, the new economy environment. I'd appreciate your help with the above so that I can pass it on to Rick, Jeff and Joe. Best regards AI (See attached file: Commodity Option Class--option on physicals.doc) Angela D. Davis Enron North America Corp. 1400 Smith, Suite 3842 Houston, Texas 77002 Tele. (713) 345-8347 Fax: (713) 646-3393 e-mail: angela.davis@enron.com www.adavis.com (See attached file: Commodity Option Class--option on physicals.doc) ********************************************************************** This e-mail is the property of Enron Corp. and/or its relevant affiliate and may contain confidential and privileged material for the sole use of the intended recipient (s). Any review, use, distribution or disclosure by others is strictly prohibited. If you are not the intended recipient (or authorized to receive for the recipient), please contact the sender or reply to Enron Corp. at enron.messaging.administration@enron.com and delete all copies of the message. This e-mail (and any attachments hereto) are not intended to be an offer (or an acceptance) and do not create or evidence a binding and enforceable contract between Enron Corp. (or any of its affiliates) and the intended recipient or any other party, and may not be relied on by anyone as the basis of a contract by estoppel or otherwise. Thank you. ********************************************************************** - Commodity Option