RE: enhanced stock loan

How about 9 am Houston (10 am New York)? Why don't you call me? It might
be helpful for Scott to be available (we could conference him in if
necessary). Let me know if this works. SS

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas 77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com

"Chernick, Sharon Confidential Memo-Counsel (Exchange)" <schernick@bear.com<
02/07/2001 05:34 PM

To: "'Sara.Shackleton@enron.com'" <Sara.Shackleton@enron.com<
cc:
Subject: RE: enhanced stock loan

I will call you in the am. I am free until 11:30 NYT. What works for you?
Do you want a business person like Scott Talento on the line with us?

< -----Original Message-----
< From: Sara.Shackleton@enron.com [SMTP:Sara.Shackleton@enron.com]
< Sent: Wednesday, February 07, 2001 2:44 PM
< To: schernick@bear.com
< Subject: Re: enhanced stock loan
<
<
< Sharon:
<
< I'm on my way out of the office for an appointment but will be back around
< 4 or 4:30 Houston time. I'd like a quick chat this evening or tomorrow
< morning (before 11 am Houston, if possible). I understand that the
< dynamics of this deal were discussed by Russ and Jeff Kinneman/Sheila
< Glover. The Enron party is Enron North America Corp. ("ENA", formerly
< named "ECT") and the $25million Enron Corp. guaranty is for the purpose of
< securing payment of the 20%plus margin requirement for illiquid
< securities
< held by ENA in its Bear account ("stock loan account"). I'm not sure if
< other agreements are necessary and I was hoping that we could discuss.
<
< Feel free to email or call. Thanks for your help.
<
< Sara Shackleton
< Enron North America Corp.
< 1400 Smith Street, EB 3801a
< Houston, Texas 77002
< 713-853-5620 (phone)
< 713-646-3490 (fax)
< sara.shackleton@enron.com
<
<
<
<
< "Chernick,
<
< Sharon To:
< "'sara.shackleton@enron.com'" <sara.shackleton@enron.com<
< Confidential cc: "Talento, Scott
< (Exchange)" <STALENTO@bear.com<, "Miron, Russel
< Memo-Counsel (Exchange)" <rmiron@bear.com<
<
< (Exchange)" Subject: enhanced stock loan
<
< <schernick@be
<
< ar.com<
<
<
<
< 02/07/2001
<
< 01:17 PM
<
<
<
<
<
<
<
<
<
< Sara:
<
< I have made some inquiry and verified that the Bear Stearns Stock Loan
< enhanced leveraged product is indeed what is under consideration.
<
< As promised, I have a brief step-by-step explanation of such a stock loan
< transaction, which is appended to this message. There are actually two
< possible scenarios: one where cash collateral is used for the stock loan,
< the other where actual securities are used as collateral. We understand
< that, at least initially, you will be using bonds as collateral.
<
< The Stock Loan Agreement is used in connection with our current form of
< Institutional Account Agreement which ECT may not have signed. I
< therefore
< also append that agreement to this message.
<
< I expect you waill wnat to review these attachments before we speak again.
< Again, as a reminder, I will be on vacation from Friday the 16th through
< the
< following week. If you would like to speak before hand, or if you have
< any
< questions regarding any of the documents, please let me know.
<
< Regards,
<
< Sharon
<
< <<Enhanced Stock Loan-explained.doc<<
<
< <<IAA_ 9-8-00rev_clean.doc<<
<
< (See attached file: Enhanced Stock Loan-explained.doc)
< (See attached file: IAA_ 9-8-00rev_clean.doc)
< ***********************************************************************
< Bear Stearns is not responsible for any recommendation, solicitation,
< offer or agreement or any information about any transaction, customer
< account or account activity contained in this communication.
< ***********************************************************************
<
< << File: Enhanced Stock Loan-explained.doc << << File: IAA_
< 9-8-00rev_clean.doc <<

***********************************************************************
Bear Stearns is not responsible for any recommendation, solicitation,
offer or agreement or any information about any transaction, customer
account or account activity contained in this communication.
***********************************************************************