Re: Alcoa and EWEB

RE: Alcoa - it's a one-month deal. The issue is no netting absent a SINGLE
agreement governing ALL trades.

Please respond about ALCOA and EWEB. I'll be out Thursday and Friday.

Sara

Edward Sacks@ENRON
12/06/2000 07:45 AM

To: Sara Shackleton/HOU/ECT@ECT
cc:
Subject: Re: Alcoa and EWEB

Sara,

I will be out most of today as I am taking a Power Marketing course. With
respect to (1) below, the terms of the Alcoa agreement would probably be
fine, so long as we get a guaranty from Alcoa, Inc. (2) How does this
differ from the standard and/or is it material?

Rgds,

Ed Sacks

From: Sara Shackleton@ECT on 12/05/2000 02:31 PM
To: Edward Sacks/Corp/Enron@Enron
cc:

Subject: Alcoa and EWEB

ED:

(1) The Alcoa lawyer wants to adopt the terms of the ENA/Alcoa Inc. master
for purposes of the December deal.

(2) EWEB has requested the following provision:

DEFAULT RATE shall mean the lesser of (a) the per annum rate of interest
equal to the prime lending rate as may from time to time be published in "the
Wall Street Journal" under "Money Rates" on such day (or if not published on
such day the most recent preceding day on which published), plus two percent
(2%) but not to exceed in total fourteen percent (14%) annually, and (b) the
maximum rate permitted by applicable law.

Please let me hear from you.

Sara