Settlement

----- Forwarded by Richard B Sanders/HOU/ECT on 06/05/2001 05:40 AM -----

showard@agsk.com 06/01/2001 08:53 PM To: Richard.B.Sanders@enron.com cc: wcp@quinnemanuel.com Subject: Settlement

Natwest, McDonald, and PaineWebber have collectively offered the
Farallon/Oaktree plaintiffs (and maybe Legg Mason, I am not sure) $13 million
to settle. It is clear that this group hopes to persuade SDI and Enron to
contribute something to such a settlement, but they told Hennegan that they
would fund the full $13 million themselves if necessary. Hennegan is asking
for something in the "high $20s" I am advised that the settlement group is
prepared to go to the high teens, but it is not clear how much further.

I do not know the allocation of the $13 million among Natwest and McDonald,
except that I believe that Natwest is NOT paying the lion's share, as one
might expect.

If the bargaining proceeds, I am sure that someone will ask Enron to
contribute.
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