Interest Rate Issue

FYI - Shari Stack is negotiating the brokerage agreement with Banc One and
there seems to be an issue over the interest rate. Needless to say, I have
never had any conversations with Banc One over this issue. SS
---------------------- Forwarded by Sara Shackleton/HOU/ECT on 02/25/2000
06:55 PM ---------------------------

Shari Stack
02/25/2000 06:52 PM
To: "James Naughton" <James_Naughton@em.fcnbd.com< @ ENRON
cc: Sara Shackleton/HOU/ECT@ECT
Subject: Interest Rate Issue

Just to let you know that I checked with Sara Shackleton and she said that no
interest rate has been agreed in her documents. In fact I was just copied on
some documents sent to her by Ken Fatur. I think they have been going back &
forth for some time over whose form to use.

Anyway, Sara is out of town on business all of next week. Even when she gets
back - I do not know when this doc. will get finalized.

If you would like to have the Brokerage Agreement signed in the near future,
I would suggest we agree to the Fed Funds O'night Rate in the Brokerage
Document and then replicate that in the document you (or Ken) will negotiate
with Sara to avoid the mismatch problem you mentioned on the phone. My
Credit Dep't was not too keen to use the "Call Money Rate". In most if not
all of our Brokerage Agreements - we use the Fed Funds O'night Rate.

If that is OK - pls let me know and I will arrange for the doc's to be
executed.

Kind regards,

Shari