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  Harris Bretall Sullivan & Smith, Inc.



May 16, 2000



Mr, and Mrs. Kenneth Lay



Houston, TX 77019



Dear Linda and Kenneth:



Thank you for selecting Harris Bretall Sullivan & Smith -L.C. to manage your technology

portfolio. Please find, for your files, a fully executed copy of the Investment Advisory

Agreement between KLL & LPL Investments Ltd and Harris Bretall, in addition to a

copy of our ADV form.



As you know, Harris Bretall takes a team approach to the investment decision-making

process and to managing our clients' portfolios. Joe Hladlick and Peggy Lee, will assist

me in the administration of this portfolio. Should any questions or concerns arise please

feel free to contact any one of us at any time.



I look forward to a long-term relationship with you. If you should ever like to discuss the

portfolio in person, I welcome the opportunity to meet. In the meantime, as always, if you

have any questions please feel free to contact me at (415) 391-8040 or via e-mail at

patricks@hbss.com. Thank you again for your confidence in Harris Bretall.



Sincerely,

Patrick J. Sullivan, CFA

Portfolio Manager



Enclosures



One Sansome Street, Suite 3300 • San Francisco, CA 94104

Tel: 800/685-4277 or 415/765-8300 • Fax 415/765-8397



=001-00874



LAY-G20 0767



r GOVERNMENT

EXHIBIT

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