Re: Revised Australian Services Agreement

David,

I am attaching my September 9, 1999 memo on the tax issues associated with
the financial trader in Sydney. It clearly summarizes not only our internal
discussions at that time but also the advice that PWC-Sydney gave regarding
using a mark-up. Please let me know when you and Heidi would be available to
discuss the mark-up in more detail so that we can quickly resolve this issue
and execute the agreement.

Best regards,
Susan

David Minns
04/18/2000 12:22 AM
To: Susan Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Shari Stack@ECT

Subject: Re: Revised Australian Services Agreement

I've checked my notes and spoken to Heidi and it appears the delay was
settling the mark up (107.5%) in the Agreement. Heidi believes that this
figure can be reduced to 100% (which is current practice). If everyone is
agreeable I will arrange execution.

David Minns
04/18/2000 02:35 PM
To: Susan Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Heidi Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT

Subject: Re: Revised Australian Services Agreement

Susan this is the latest version of the Services re ENA/EAPL. There is a note
on my file that the percentage uplift.

Shari Stack@ECT
09/18/99 06:32 AM
To: Susan Musch/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Alan Aronowitz@ECT, Gary Hickerson@ECT, Harry Arora@ECT, Colin
Jackson@ECT, Paul Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Barbara Lewis/HOU/ECT@ECT

Subject: Revised Australian Services Agreement

Attached please find my mark-up of the Australian Services Agreement. I have
attached a blacklined version for ease of reference.

Apart from changing the name from ECT to ENA, I have modified clause 1 in
Schedule 1 to more accurately reflect the intended products.

Please call me if any questions.

Many thanks,

Shari

---------------------- Forwarded by Shari Stack/HOU/ECT on 09/17/99 02:25 PM
---------------------------

Susan Musch@ENRON_DEVELOPMENT
09/15/99 07:30 PM
To: Shari Stack@ENRON_DEVELOPMENT, Alan Aronowitz@ECT, Gary Hickerson@ECT,
Harry Arora@ECT, Colin Jackson@ECT, Paul
Quilkey/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David
Minns/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Heidi
Mason/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc:
Subject: Draft of Australian Services Agreement

Attached is a draft of the services agreement for the financial trading
services to be provided by the Australian trading office for ECT-Houston.
Please review the agreement and let me know if you have any questions,
comments or revisions.

Best regards,
Susan