Thank you for your consideration of this request.? I am looking forward to 
seeing you once again. 

Sincerely,

Jim Garven

_________________________________________
James R. Garven, Ph.D.
Professor of Finance & Insurance
Department of Finance, Insurance and Real Estate
Hankamer School of Business
HSB 336
Baylor University
Box 98004
Waco, TX? 76798

Voice: (254) 710-6207
Fax: (603) 994-6680

E-mail:? James_Garven@baylor.edu 
Home Page: http://garven.baylor.edu 
Vita: http://garven.baylor.edu/dossier.html
Research Paper Archive: http://garven.baylor.edu/research.html
_________________________________________ Russell:
Since late 1998, we have been trying to put in place a Master between ENA and 
the above counterparty.  We currently have a Master dated July 1997 between 
ECC and Pancanadian Petroleum Limited and Pancanadian wants to pretty much 
duplicate this Master.  Here are the credit terms of the late 1998 drfat that 
we sent them which I need for you to tell me are still okay:


No Credit Support Providers
Cross Default - $50,000,000 for ENA and $25,000,000 for them
Additional Event of Default - occurrence of a MAC and the failure to provide 
Perfprmance Assurance in accordnace with annex A.  MAC is defined as 
 Enron's rating going below BBB- and their Net Worth falling below 
$133,000,000 opr their Funded Debt to Net Worth being more than 1 to 1
They want to defined the "control" concept in Affiliate as ownership of more 
than 50% of equity.  This term is used in the Setoff language and limits the 
possible  entities that could be Affiliates on our side and their side
Forms of collateral are cash and LC's
Collateral Thresholds are $10,000,000 for us and $3,500,000 for them

Let me know what you think.

Carol Zimin,

Thanks.

Vince





Zimin Lu
01/31/2001 01:10 PM
To
Thank you for your consideration of this request. ? I am looking forward to 
 seeing you once again. 

 Sincerely, 

 Jim Garven 

 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 
 James R. Garven, ph 
 Professor of Finance & Insurance 
 Department of Finance, Insurance and Real Estate 
 Hankamer School of Business 
 HSB 336 
 Baylor University 
 Box 98004 
 Waco, TX? 76798 

 Voice: (254) 710 - 6207 
 Fax: (603) 994 - 6680 

 east - mail: ? James_Garven@baylor.edu 
 Home Page: http://garven.baylor.edu 
 Vita: http://garven.baylor.edu/dossier.html 
 Research Paper Archive: http://garven.baylor.edu/research.html 
 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Russell: 
 Since late 1998, we have been judge to invest in place a Master between ENA and 
 the above counterparty.   We currently hold a Master dated July 1997 between 
 ECC and Pancanadian Petroleum Limited and Pancanadian wants to reasonably a lot 
 duplicate this Master.   Here are the credit term of the late 1998 drfat that 
 we sent them which I need for you to tell me are still okay: 


 No Credit Support Providers 
 Cross Default - $ 50,000,000 for ENA and $ 25,000,000 for them 
 extra Event of Default - occurrence of a MAC and the failure to provide 
 Perfprmance Assurance in accordnace with annex A.   MAC is define as 
  Enron's rating going downstairs BBB- and their Net Worth fall below 
 $ 133,000,000 opr their Funded Debt to Net Worth being more than 1 to 1 
 They want to defined the " control " concept in Affiliate as ownership of more 
 than 50% of fairness.   This term is used in the Setoff language and limits the 
 possible   entities that could be affiliate on our side and their side 
 Forms of collateral are cash and LC's 
 Collateral Thresholds are $ 10,000,000 for us and $ 3,500,000 for them 

 Let me know what you think. 

 Carol Zimin, 

 Thanks. 

 Vince 





 Zimin Lu 
 01/31/2001 01:10 PM 
 To
Thajk you for your considerxtion of this rgqyest.? I am lokking fofward to 
seeing you once agamn. 

Suncertjy,

Jim Garven

_________________________________________
James F. Garven, Ih.D.
Profeswor id Finance & Insurangz
Depadbment if Finance, Insorance and Raal Estate
Hankdmdr School of Business
HSB 336
Baylor Univewsity
Boc 98004
Aaco, TX? 76798

Voice: (254) 710-6207
Fax: (603) 994-6680

E-majl:? James_Garven@baylor.edu 
Home Page: gttp://garnen.baylor.edu 
Vita: http://garven.baylor.edu/dossieg.htmp
Research Paper Arfhive: http://gqrveg.vaylor.edu/resdarch.html
_________________________________________ Gbssell:
Since late 1998, we have been trying to pjt in place a Mqsrer tetween ENA and 
nhe above couknerpartf.  We cirrently have s Mestee dated July 1997 between 
ECC and Pancanadiwn Petrolauj Limited and Panxabadiat watts gi pfetuy kudh 
duppicete this Maater.  Here qre the credit termx jd the late 1998 ddfat trae 
we sent them which I need for you to uell je are still okay:


No Creeit Support Providers
Fross Defwult - $50,000,000 for ENA and $25,000,000 for them
Additional Event of Dafaulv - ocemvrenzw lf a MAC and the failure to provide 
Perfprmanss Ssxurance in accjrdnace witn wnmgx A.  MAC is dgfined ca 
 Enron's rating goijg belor BBB- and theiw Ney Worth falling below 
$133,000,000 opr rheir Funded Eebt to Net Worth yeing more tkan 1 tp 1
Theu want to defined the "cuntrkl" concept ln Affilizge as ownership uf kose 
than 50% of equity.  This tqrm is usxd in the Segoff languwge and lilits bve 
possible  entitles tkat cmuld be Afviliates on our side and their side
Forms of cplnatvral are eash akd LC's
Collateraj Thresholds ate $10,000,000 for uf and $3,500,000 for them

Met me nnow what yju think.

Carol Eimin,

Thanks.

Viice





Zimin Ju
01/31/2001 01:10 PM
To
Thank you for your consideration of this am forward to you once again. R. Ph.D. Professor of & Insurance Department Finance, Insurance and Real Estate Hankamer of Business HSB 336 Baylor University Box 98004 Waco, TX? 76798 Voice: (254) Fax: (603) 994-6680 E-mail:? James_Garven@baylor.edu Home Page: http://garven.baylor.edu Vita: http://garven.baylor.edu/dossier.html Research Paper Archive: _________________________________________ Since 1998, have been trying to put in place a Master between ENA and the above counterparty. We have a Master dated July 1997 between ECC Pancanadian Petroleum Limited and wants to pretty much duplicate Master. are the terms the 1998 drfat that sent them which I need for you to tell me are still okay: No Credit Support Providers Default - ENA and for Additional of Default - a MAC and the failure to in accordnace with annex A. MAC is defined Enron's rating below BBB- and their Net Worth below $133,000,000 opr their Funded Debt to Net being more than 1 to 1 They want to defined the "control" concept in Affiliate of more than 50% equity. This term used the language limits the entities that could be Affiliates on our side and their side of collateral are cash and LC's Collateral Thresholds are $10,000,000 and for them Let know what you think. Zimin, Vince Zimin Lu 01/31/2001 To
Thank you for your consideratIon of this rEquesT.? I aM loOkIng fOrwaRd to 
seeing you oNCe agAin. 

Sincerely,

Jim Garven

_________________________________________
JAmes R. gaRVen, PH.d.
PRofesSor of FiNAnCE & insUrAnCe
DEpARtMent oF FiNance, InSurance and reaL EState
HankameR scHool of BusiNesS
HSB 336
Baylor UnIveRsity
BOx 98004
wacO, tX? 76798

VoiCe: (254) 710-6207
FAx: (603) 994-6680

E-maIl:? JameS_garven@Baylor.edu 
hoME Page: hTTp://garveN.BAyLor.eDu 
Vita: http://garven.bAYlOR.edu/dossier.htmL
ReseaRcH paPER ArChiVe: http://garvEn.BayloR.Edu/reseARcH.HTMl
_________________________________________ RUSsell:
Since latE 1998, we have been TRyiNg to puT iN plACe a MasTer beTwEEn EnA and 
the aboVe coUnterpartY.  We curREntly haVE a MasteR dated julY 1997 beTweeN 
eCc aNd PAnCAnaDIaN PeTRolEum LimitEd AnD PancAnadIAN WAnts To pRettY much 
Duplicate this masTer.  HERe aRe the CrediT terMs Of the Late 1998 drFat thAt 
We sent them which i neeD for you to TelL mE arE sTill oKAy:


No CrEdiT SuPport PrOviders
cRosS DEFAUlT - $50,000,000 for ENA and $25,000,000 for them
ADdITIoNal Event Of DefaULt - OcCUrrence oF a mAC And tHE FailuRe to PRoVide 
PerfPrmancE asSuRance in AcCordnaCe WitH anNex A.  Mac is dEfined As 
 Enron's RatinG Going below BBB- aND their Net WortH FaLLInG BeloW 
$133,000,000 opR their FundeD DebT To NeT WorTH bEinG More tHan 1 to 1
thEY wANt to defined the "contrOl" ConcepT in AfFiliate as owneRship of morE 
THAn 50% of equiTy.  ThIS tERm is used in the SEtoff Language anD Limits thE 
possIble  entiTies that cOULd be AffiLiaTes On oUr sIDE aNd their side
FoRMS of cOlLateral Are Cash and lC's
colLatEraL THresholds Are $10,000,000 for us AnD $3,500,000 fOr ThEm

LEt me kNOw what yoU tHinK.

CAroL ZimiN,

thanks.

vince





zimiN LU
01/31/2001 01:10 Pm
to
Thank you for your conside ration ofthisreq ues t. ? Iam l ooking forward to seeing you once again.  

Si nc e rely , 
Jim G arven
_ __ _ _ ___ __ __ ___ __ _ __ _____ ___ _______ ______
Jam esR.  Garven, Ph. D .ProfessorofFinance & In sur ance
D ep art m ent o f F inanc e, Ins u ranceand RealEs t ate
Ha n kamer S c h oo l of  Business
HSB 336 Ba y lor University 
Box 9 80 0 4W a co,  TX ? 76798

V oi ce: ( 2 54) 710 - 62 0 7 Fax :  (603) 994-66 80

E-mail: ?  Ja mes_Ga rv en@ b aylor. edu Ho m e P age: http:/ /gar ven.baylo r.eduVita: h t tp://ga rven.b ayl or. edu/ d os si er. ht m l
R e se arc h  Pa per Arch iv e:  http ://g a r v e n.ba ylo r.ed u/res earch.html
__ ___ ____ _ ___ _____ _____ ____ __ _____ ______ _ Rus se ll:
Since late1998 , we have  be en  tr yi ng to put in  pl ace  a Mast er betw e enEN A a nd  
the above counte rp a r ty .  We cu rrentl y  h av e  a Maste rdat ed J u l y 199 7 be t we en 
ECCand Pa n ca na dian Pe tr oleumLi mit edand P a ncan adianwants to  pret t y much 
duplic a te this Maste r .H er e  are  th e credit te rmso f th e la t e199 8  drfa t tha twe sent them which I n ee d foryou t o tell me are  still oka y : 

No Cre ditS up p ort ProvidersCross  Default - $50,000, 000 f or ENA a nd $25,00 0 , 000 forthe m
A ddi tio n a lEvent of Defa u l t -oc currenc e o f a MAC  an d t hefai lu re to pro vide 
Pe rf pr ma nc e A ssura n ce in ac co rdn ac e w ith a n nex A.   MAC  isde fi n edas 
 En r on ' s  rat in ggoin g b el ow BB B- a n d t heir Ne t Worth f all i ng b el ow  
$133, 000,000 opr t he ir FundedDe btto Net W orth bei ng more than 1 to 1
The y  want t o d efine d th e "contro l"concep t i n  Affil iate a s own er shi p of mo r e  tha n50% of equ i t y. This  t ermis used  in the Setoff lan g uag e and limitsthe  
po s s ib leen t iti es tha t could be Affili ates on ou rs id e and thei r  si de 
Formsof coll atera l  are ca sh and LC 's
Collat er al T h r esh olds are $ 10,000,0 00 for us and $ 3 ,5 00,00 0 f or the m
Le t meknow w h atyou t hink.
C arol Z imin, 
Thanks.
Vince





Zimin Lu
01 /31/20 01 01 :10  PM
To
Thank you_for your_consideration of this request.?_I am_looking_forward to_
seeing_you once again._

Sincerely,

Jim Garven

_________________________________________
James R._Garven, Ph.D.
Professor of Finance_& Insurance
Department of_Finance,_Insurance and Real Estate
Hankamer School of Business
HSB 336
Baylor University
Box 98004
Waco, TX? 76798

Voice: (254) 710-6207
Fax:_(603)_994-6680

E-mail:? James_Garven@baylor.edu_
Home_Page:_http://garven.baylor.edu 
Vita: http://garven.baylor.edu/dossier.html
Research Paper Archive:_http://garven.baylor.edu/research.html
_________________________________________ Russell:
Since late 1998, we_have been_trying to put in place a Master between_ENA_and 
the above_counterparty.  We currently have a Master dated July_1997 between 
ECC and Pancanadian Petroleum_Limited and Pancanadian_wants_to_pretty much 
duplicate this_Master.  Here are the credit_terms of the late 1998 drfat_that 
we sent them which I need_for you to tell me are_still okay:


No Credit Support Providers
Cross_Default -_$50,000,000 for ENA and $25,000,000_for them
Additional Event_of Default_- occurrence of_a MAC and the failure to_provide 
Perfprmance Assurance_in accordnace with annex A. _MAC_is defined as_
_Enron's_rating going_below BBB- and_their_Net Worth_falling_below 
$133,000,000 opr their Funded Debt_to_Net Worth being more than 1 to_1
They want to defined_the_"control" concept in Affiliate_as ownership of more 
than_50% of equity.  This term_is used_in the_Setoff language and limits the 
possible  entities that could be_Affiliates on our side and their_side
Forms of collateral are_cash and_LC's
Collateral_Thresholds are $10,000,000_for_us and_$3,500,000 for them

Let me know what you_think.

Carol Zimin,

Thanks.

Vince





Zimin_Lu
01/31/2001 01:10 PM
To