Paul:

  With respect to Valentis:

 (a)  Does the MAC apply to both S&P and Moody's?  (not clear from worksheet)
 (b)  Are the financial covenants Events of Default or Termination Events?  
(looks like these were Termination Events in AIG)
 (c)  Is this deal two-way margining?  You have set 0 Thresholds but 
indicated Return/Delivery for both parties.  Our discussion of last week may 
have changed (we discussed one-way margining for CP only).

I'll have the same questions for CD Holdings.


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