does this mean that on a volatility basis he thinks the options are attractively priced?  if so, i don't want him having any input to their pricing.  

-----Original Message----- 
From: Lavorato, John 
Sent: Mon 7/30/2001 10:45 AM 
To: Whalley, Greg 
Cc: 
Subject: FW: How are we doing on the contracts?




Greg 
I you want a laugh read the Motley section about gamma trading. 
 -----Original Message----- 
From:   Belden, Tim  
Sent:   Thursday, July 26, 2001 2:02 PM 
To:     Kitchen, Louise 
Cc:     Lavorato, John; Fitzpatrick, Amy 
Subject:        RE: How are we doing on the contracts? 

Crandall done 
Badeer done 
Swerzbin submitted comments on Monday;  feedback will be given to him today - some met some not;  Mike's comments on our feedback due on Monday;  should be in a position to execute next week. 
Heizenrader is good on numbers and still talking language.  Final issues relate to language about breaking laws or regulations and all of the accusations that are out there about Enron and it's employees breaking laws and regulations.  Michele Cash has talked to Sanders and Haedicke about this stuff.  Tim H., Michele, Amy Fitzpatrick (HR Generalist in PDX) and I met today.  We think that we have arrived at language that will work for everyone.  Ball is in Michele's court to turn another draft around to us. 
Belden - I am good on the numbers.  I have have concerns about indemnity against California and West Power related lawsuits.  I also want to formalize the arrangement that I have with Haedicke with respect to Enron covering my legal fees associated with the west power investigations.  Michele is going to take a cut at some language.  She also needs to convince me that I am covered by the Directors and Officers indemnifications which are part of Enron's bylaws and Delaware law. 
Richter - he's been lame about giving me his comments.  I've been lame about riding him on it.  I will do that today. 
Wolfe - Greg currently is considering offers from Calpine, AEP, and Enron.  AEP is offering significantly more money.  Greg needs to decide where he wants to work and who he wants to work with.  There is a very real chance that we lose him.  However, we've shown his a great bid, so we will just have to get by if he leaves for a lot of money.  When I say a lot, he is talking about guaranteed 600k per year, roughly. 
Motley - has declined our offer.  The total numbers looked good, but he doesn't like Enron options.  If we took his Option value and put it into cash or restricted stock he would be done.  I mentioned it to John and he didn't want to do that.  On the one hand, if that will get him done I think that it's a great outcome.  On the other, we showed him some good numbers and I respect the fact that John wants to keep things consistent.  Tough call.  He did mention that if Enron's Treasury department would let him gamma trade his options withodd lots and no margin requirement that he would take the options.  He has a legitimate point that he has no way of assuring that he can achieve the value of the options.  It's also very hard to argue with an options trader on this point. 


 -----Original Message----- 
From:   Kitchen, Louise  
Sent:   Thursday, July 26, 2001 11:23 AM 
To:     Belden, Tim 
Subject:        How are we doing on the contracts? 

Keep hearing silence.............................