ISDA Schedule to Master Agreement and Credit Support Annex

Irene: Due to the lateness of discussions at Enron Capital & Trade
Resources Corp., I did not send any documents to you this evening. However,
I do have two different sets of drafts to send to you in the morning. I have
an ISDA without an annex (collateral built into the Schedule) and an ISDA
with an annex. We have had discussions regarding the use of Letters of
Credit and Surety Bonds as acceptable forms of collateral and I may need some
additional time to resolve the issues.

I will contact you early tomorrow to deliver docs and establish a timeline
(if possible). Thanks. Sara