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.
***********************************************************************