I have been working with my national sales representative from the Four Seasons Hotel to minimize our contract obligations from our cancellation of the New York Customer Holiday Event dated November 30 - December 2, 2001.

The contract states that if Enron should cancel the entire event within 90 days - 61 days prior to the scheduled commencement date of the event, Enron would be liable for 50% of the hotels liquidated damages, which is estimated at $28,218.

After numerous conversations with the hotel, they have agreed to accept our initial deposit of $15,000 as full payment for the cancellation of this event.  No additional costs will be charged to Enron.  I believe that this is a fair offer and hope that all parties involved find this acceptable.

In the meantime, I received a call from Laura Luce this morning and she is interested in continuing this event on a much reduced scale.  The Four Seasons is willing to hold our initial reservation, with no additional penalties, until we can confirm if we would like to proceed.

Please let me know if you have any questions.
Thanks.


Dorie Hitchcock
Event Manager
Enron
1400 Smith Street
Suite 3640a
Houston, TX  77002
Telephone:  (713) 853-6978
Fax:  (713) 646-5800
Cell:  (713) 594-7093
E-Mail:  dorie.hitchcock@enron.com