RE: Slater Steel

Sharon,

Per the email below, I looked in the financial trading agreement database and
saw that Stephanie Panus, a paralegal in our group prepared an Annex B for
this counterparty in January of this year. I would just confirm that the
credit is the same and then use the same Annex B as before. I am going to
fax the credit worksheet that Credit send Stephanie in January so you can
check the credit. Below is the Annex B Stephanie prepared.

----- Forwarded by Tana Jones/HOU/ECT on 03/23/2001 03:26 PM -----

Russell Diamond/ENRON@enronXgate
03/23/2001 03:15 PM

To: Sharon Crawford/CAL/ECT@ECT
cc: Tana Jones/HOU/ECT@ECT
Subject: RE: Slater Steel

Sharon,
As Canada is now executing these confirms, please get with Tana, or someone
in her group, for an explanation of your questions. Your questions all apply
to standard procedures that the Legal group in Houston handles. I did,
though, make a mistake on Cash Collateral, you are correct there is no cash
collateral in Canada. Please disregard that 'X' for both counterparty's. In
regards to the complete name of Slater Steel, as I explain in the comments of
the worksheet, a previous transaction was executed with a credit annex
attached to the confirm. Once again, Tana or someone in legal, can explain
to you the database they have that would give you all this information.

Thanks,
Russell

-----Original Message-----
From: Crawford, Sharon
Sent: Friday, March 23, 2001 3:12 PM
To: Russell Diamond/HOU/ECT@ENRON
Subject: Slater Steel

Russell, sorry, I should have reviewed the entire credit sheet before
e-mailing you earlier, but I have a few more questions:

1. What is the complete name of Slater Steel?
2. Who is their guarantor?
3. What does "NW" before the C$188MM under "Guarantor") mean?
4. Cash Collateral??
5. What are the 3rd Party debt threshold amounts (Events of Default) for each
of Slater's Guarantor and Enron Corp.?
6. Is Enron Corp.'s MAC debt rating BBB-?
7. Why is the Counterparty "X'd" under the MAC if there is a guarantor?

I think that are all of the questions I have for now. Please advise.

Please note, however, that I will be away from the office next week. Please
forward your comments to Linda Sietzema if you don't get them to me by today.

Thanks,
Sharon