Subject: Revised Online Collateral Arrangement Language
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Mon, 11 Oct 1999 09:58:00 -0700 (PDT)

Edmund,

Could you please confirm this wording is OK for Europe and amend the 
w/collateral GTC's to incorporate the revision?

The primary purpose of this change is to create a default event in the event 
that the credit support defaults.

Note: I have changed the last word in the clause from Transaction to GTC, 
with Mark Taylor's approval.

Thanks,

Dave
---------------------- Forwarded by David Forster/LON/ECT on 11/10/99 16:36 
---------------------------
   
	Enron Capital & Trade Resources Corp.
	
	From:  Tana Jones                           04/10/99 16:55

To: David Forster/LON/ECT@ECT, Debbie R Brackett/HOU/ECT@ECT
cc: Mark E Taylor/HOU/ECT@ECT 
Subject: Revised Online Collateral Arrangement Language

At Mark's request, I am transmitting proposed changes to the collateral 
arrangement language in the Online GTC's.  Please let me know if it meets 
with your approval.

8.  Collateral Arrangements.  Counterparty shall (at Enron,s request) from 
time to time and at Enron,s option either:  (i) within one Business Day of 
such request by Enron, provide to Enron a letter of credit in respect of 
Counterparty's obligations under any Transaction, in such form and for such 
amount and from such issuer, as is acceptable to Enron in its absolute 
discretion; or (ii) within such period as is specified by Enron, provide for 
the benefit of Enron a guaranty from a party, in such form and for such 
amount as is acceptable to Enron in its absolute discretion.  Failure so to 
provide such letter of credit or guaranty or any default under such letter of 
credit or guaranty shall constitute a default hereunder giving rise to the 
immediate right of termination by Enron under this GTC.