Accou for August St 31, 2001 Your Financial Mvisor: ROCKY EMERY - EMERY ANANCLAL GROUP OF FIRST INON SECURITIES, INC 909 FANNIN STE 2100 HOUSTON, IX 77010 713-853-2401 /866-753-9556 At a Glance If ~ou ha~ nore than one axount with us, why n —~ ContactYourFinancial Advisor today. A~unts = 0 Investment Accoum j Total 8 I~ Q 'NJ ~ :>- ~ <0 •LL ~ First Unbn SI (FCC), Memb ~4~? 2442?~538243 ~4N~ NNNt~N ~NNNNNN OXL~C1 Your Financial Mvisor: EMERY ANANCLAL GROUP OF FIRST INON SECURITIES, INC 909 FANNIN STE 2100 8 <0 (FCC), Memb ~4~? 2442?~538243 ~4N~ NNNt~N ~NNNNNN OXL~C1 <> <> 3.702 Regulatory Disclosure Estimated portfolio value. Your porIfoho value is an estimate. The prices First Clearing Corporation uses to value certain securities are provided by ou1~ld~ services arid do not always represent the exact mwk~t price. Pricing method Prices for listed end NASDAQ securities ate as of the close of business on the last day of the period. Corporate and municipal bonds and other fixed mourns securities are priced by a computerized pricing service or, for less actively traded securities, by utilizing a yield-based matrix system to arrive at an estimated rrtarket value. For current prices, call Your Financial Advisor. Effective September 30,2001, long-term certificates of deposit will be priced using a market value pricing model. The price shown may be ditterent than the price received if the GD is held to maturity. SIPC prot.ctlon Coverage for cash and securities in protected client accounts is provideo from two sources. The Securities Investor Protection Corporation (SIPC) protects up to $500,000, of whIch $100000 may be cash. First Uniori has obtained additional protection, at no cost to you, for the remaining net equity balance, it any, of the cash and securities in your eccounts. This coverage does not protect against losses from any change in market values of Investments. Margin account II you nave a 'nargin account. Ins a combined statement of your genera account and the Special Memorandum Account main tainea for you under Section 220.5 of Regulation 1, issued by th~ Board of Governors of the Fecteral Reserve system. The permanent record of the separate account Is evailable for your insp9ciion. Option InformatIon lnfouratiait on ~omrrir~sions and other charges associated with Option transactions has been sent to you separately in trarsaction contirmationS. Copies we availaole upon request. Finenclal statements Twice a year, First Clearing Corporation will update and have available, on-line, a statement of the firm's financial condition at www.1lrstclearIngCorp.COm. The moat recent printed statement is available upon requesL Fr.. credit balance Free credit balances and fully-paid securities are avalable to clients upon request. Free credit balances are riot segregated and may be used by iFte fIrm, but only to the extent perMited by federal regulations (Rule 15c3 on customer protection). Tax reporting If you are subject to 1099 reportIng, we will provide you with any applicable 1C99 forms. Cost basis and unrealized gain/loss are provided for informational purposes only and should not be used for tax preparation without assistance from your tax advisor. In addition, separate purchases of the earns security may have been combined. To update your cost data or provide costs that are missing, contact Your Financial Advisor. 111111111 U I N 11111111111 I NIOI 11111111111 NI I GJ 05253 Confidential Treatment Requested by K & L FInancIal sItuatIon You must ritorrn Your Financial Advisor promptly of any material change in your investment objective or fInancial situation so that they can meet your needs. Questions about your statement It you do not object to the mtomiatlofl reported on this statement within 10 days, we consider it conciuslve. Inquiries concerning the positions atid balances rn your ~count may be ~rected to: FCC Cient Services Department. P.O. Box 6600, Glen Alien, VA 23508. M offer inquiries regarding your account or the activities therein shouid be dwected to the Branch Manager for the office listed on the front ot this statement. <> <> 3,703 kcuunt Statement for KENNETh 1. LAY & LINDAP. LAY Ac~unt?& 1326 August 2001 Page 1 ot9 Investment Account for KENNETH L. LAY & LINDA P. LAY TEN IN COMM FAYEZ MANAGED July 25 - August 31, 2001 Current Investment ObjectIve: Growth & Income + Moderate Portfolio Summary Value on June30 Value on Aug31 Total portlollo value $0.00 $2,863,237.91 ~ This period Change in value $2,863,237.91 Portfolio assets Message from First Union Securities PLANMNG FOR A CHILD'S OR GRANDCIIILDS EDUCATION? A529 PLAJI IS NOW A BEUE~ WAY TO FUND EDUCATION THAN EVER BEFORE. READ INVESTORS SPECTRUM TO LEARN MORE TI-lEN CONTACT YOLR FINANCIAL ADVISOR TO ~DENTJFY THE STRATEGIES ThAN CAN WORK BEST FOR YOU. Cash and money market funds Stocks and options Total aseots Outstanding r~rgin balance Total portfolio value Value on June 30 $0.00 $0.00 $0.00 $0.00 $0.00 Value on Aug 31 Percent of total assets $22,084.52 0.77 $2,840,409.39 99.23 $2,862,493.91 100% $744.00 $2,863,237.91 E'El~xz fJ.x~41, 244?~5338243 ~.NI1M NN!~r.N NNNNP*II~N orxxy~2 'I- GJ 05254 COn fsdentiai T;eafrnen, <> <> 3.704 Pccount Statement for KENNETH L LAY & UNDAP. LAY 1326 August 2001 Activity Summary This Period Year to Date Total cash and money market funds on Jun.30 $0.00 Additions to cash Deposits $1,718,190.36 $1,718,190.36 Total Additions to cash $1,718,190.36 $1,718,190.36 Subtractions from cash Checks and Olhr Withdrawals - $1,690,934.92 - $1,690,934.92 Other subtractions . $4,426.92 - $4,426.92 Total Subtractions from cash - $1,695,361.84 • $1,695,361.84 Total cash and money market lunds on Aug 31 $22,828.52 Money Market Summary Total money market funds on June 30 $0.00 Additions to money market $26,511.44 Subtractions from money market Total money market funds on Aug 31 • $4,426.92 — $22,084.52 111111111 III 1111111 III~ liii 111111111111 II Ill IIIU I GJ 05255 Confidential Treatment Requested by K & I PaQe2 019 <> <> 3,105 Portfolio Assets kcount Statement for KENNETh L LAY & LINDA P. LAY 4326 August 2001 Page 3 of 9 Cash and money market funds Eel current Descriphon Current market value Eel. ann. income yield(%) EVERGREEN CR1 MONEY $22,084.52 $633.82 2.87 MARKET PORTFOLIO Interest Period 07/16/01 - 08/15/01 Total cash and money market funds $22,084.52 Outstanding mgin balance $744.00 1,000 2,600 2,400 2,500 1,200 1,562 600 700 $1,100.00 N/A $1,536.00 $1,800.00 $864.00 $199.93 N/A $1,071.00 GJ 05256 Confidential Treatment Requested by K & I 1.95 N/A 1.39 1.47 1.32 0.74 N/A 2.85 - Stocks and options Stocks ~Curreni Current Est. ann. Eel. ann. Description Symbol t ~( siares si'rare puce market value Income yIeld (%) ABBOTt LABORATORIES ABT 1,400 $497000 $69,580.00 $1,176.00 1.69 AGILENT TECH INC A 228 $265000 $6,042.00 N/A N/A AMERICAN EXPRESS COMPANY AXP 900 $364200 $32,778.00 $288.00 0.87 BELLSOUTH CORP BLS 1,500 $373000 $55,950.00 $1,140.00 2.03 BERKSHIRE HATHAWAY INC BRK/A 1 $69,400.0000 $69,400.00 N/A N/A CI. A BRISTOL MYERS SQUIBB CO BMY CISCO SYSTEMS INC CSCO CITIGROUP INC C COCA-COLA COMPANY KO COLGATE-PALMOLIVE CO CL DOLLAR GENERAL COF~P OG EMCCORP\4A55 EWC MLHSO\~.LCT!-lCCO E~P~Ji ~XJu4r( .~~uu24.r 'Tr,NNN NNIJ'IN NrJNNNNNN OCXXY:3 <> <> keount Statement for KEIU4E1H L LAY & Page 4 of 9 UNDAP. LAY 4326 August 2001 Stocks and options - Stocks (conUnued) Current Current Est. arm. Esi. am. Descnpflon Symbol # Of shares srrare p11cc markel vaIt~e Income 1,letd (%) E~(ON MOBIL CORP XOM 3800 $401500 $152,570.00 $3,496.00 2.29 FANNIEMAE FNM 1,200 $762100 $91,452.00 $1,440.00 1.57 ASSN FEDERAL HOME LOAN M~G FRE 900 $628800 $56,592.00 $720.00 1.27 CORP FORD MIR CO DEL - F 2097 $198700 $41,667.39 $2,516.40 6.03 COM PAR $0.01 FOX ENTERTAINMENT GROUP FOX 1500 $245200 S36.780.00 N/A N/A INC CLA GENERALELECTRICCOMp GE 3,300 $409800 $135234.00 - $2,112.00 1.56 GOLCMANSAC-ISGROJPINC CS 1,200 $801000 $96,120.00 $576.00 0.59 HEWLETT-PACKARD COMPANY HWP 1,200 $232100 $27.852.00 $384.00 1.37 HONEYWELL INTERNATIONAL HON 1000 $372600 $37,260.00 $750.00 2.01 INC INTEL CORP INTC 5,200 $27.9600 $145,392.00 $416.00 0.28 INTERNATIONAL BUSINESS IBM 550 $999500 $54.972.50 $308.00 0.56 MACHINE CORP J.P.MORGAN&CI-4ASECO JPM 1,500 $394000 $59,100.00 $2,040.00 3.45 JOHNSON&JOHNJSON JNJ 2,200 $527100 $115,962.00 $1,584.00 1.36 MARSH AND MC LENNAN MMC 800 $929000 $74,320.00 $1,696.00 2.28 COMPANIES INC MCDONALDSCORP MCD 1,200 $300300 $36,036.00 $258.00 0.71 MCGRAW-HILLCOMPANIES MHP 1,000 $592500 $59,250.00 $980.00 1.65 (NC MERCK&COINC — MRK 1300 — .- — - $651000 $84,630.00 $1,820.00 2.15 MICROSOFT CORP MSFT 1,300 $570500 $74165.00 N/A N/A ~ ~ ~ II ~ 1111111 II ~ i liii GJ 05257 III I 11111 II liii 111111 II U I III ConfidenhialT Requesf~~ by K & I