Steve - 

As we discussed in our meeting with Jim Fallon early in the week, our office is proceeding to exercise early lease termination rights on 13 floors of Three Allen Center.  A check request for the termination fee (in the amount of $1,867,757) will be processed to ensure payment is in hand immediately prior to the Nov. 30th due date.

Exercising early termination yields a NPV savings of $10,814,500 (per attached) and eliminates 3 years of rent on 13 floors (lease does not allow us to realize any gain if we were to sublease to 3rd party).  Three Allen Center early lease termination has always been a part of our Enron Center Campus strategy.  Enron's current space needs further support proceeding with the buy out.

Some good news.  We close tomorrow on $900,000 sale of our surplus corporate hanger to Waste Management.  Total cost when acquired last Dec. was $415,000.   

- Bill