Margin leverage and Enron Guarantee

Hi, Clem! Please see below message from Sheila Glover. I believe that in
the past ENE has only issued a guaranty to Paribas, ED&F Mann and Bank One in
connection with ENA's futures/special margin arrangements. I'll be speaking
with Paul Radous in credit. Do you see any issues here? Sara
----- Forwarded by Sara Shackleton/HOU/ECT on 07/31/2000 08:08 AM -----

William S Bradford
07/28/2000 07:31 PM

To: Paul Radous/Corp/Enron@ENRON
cc: Sara Shackleton/HOU/ECT@ECT
Subject: Margin leverage and Enron Guarantee

Paul,

Can you work with Sara on this?

Bill

---------------------- Forwarded by William S Bradford/HOU/ECT on 07/28/2000
07:31 PM ---------------------------

From: Sheila Glover 07/28/2000 01:23 PM

To: William S Bradford/HOU/ECT@ECT, Sara Shackleton/HOU/ECT@ECT
cc: Jeff Kinneman/HOU/ECT@ECT, John Greene/HOU/ECT@ECT, Gary
Hickerson/HOU/ECT@ECT
Subject: Margin leverage and Enron Guarantee

Bill and Sara,
We have been talking with Goldman Sachs, one of ECT Investment's prime
brokers, about ways to reduce our margin requirement and gain greater
leverage. Goldman suggested that we may want to consider putting an Enron
Guaranttee in place.

We also have a prime broker agreement with Morgan Stanley. Per the
documentation that I have... I do not see a guarantte with Morgan Stanley.

1) Can you confirm that no guarantee exists with either Goldman or Morgan?
2) Any comments regarding a Goldman guarantee by Enron Corp for ECT
Investments Inc.?

Thanks, Sheila