Richard: 

I got your Saturday voicemails. 

We will produce the documents. 

We are mindful of the need to making discriminating decisions about which 
depositions to attend.? To date we have not attended, and/or do not plan to 
attend, depositions not noticed in the Farallon or Legg mason cases, 
depositions of other defendants concerning their production of documents to 
plaintiffs, and depositions of various NatWest witnesses relating to the 
contention of several NatWest entities that they are not subject to personal 
jurisdiction in California.? To date we have attended, or plan to attend, the 
depos of Busse, Nolan, and Schultes.? We have also attended the depo of Rich 
Goldstein of Oaktree and have been planning to attend depositions this week 
of Bruce Karsh and Michael Wachthorn, also Oaktree people.? Our decision to 
attend these depositions is a close call ( and we can reverse, if you 
disagree.)? Our thought is that, even though Oaktree is not suing Enron, the 
Oaktree depos give us insight into the process by which investors decided to 
invest in NSM and what facts they believed about NSM, and, since these depos 
are in LA, the cost of attending them is not nearly so high as some of the 
other depositions.

Concerning an indemnification of ECT by NSM, remember that there was no 
"underwriting agreement" between ECT and the other underwriters and/or NSM, 
so I question whether there is an express contractual indemnity.? I have 
never seen it.? There may well be an agreement between NSM and McDonald (and 
perhaps NatWest) that indemnifies those entities and such an agreement may 
provide a basis for an indemnity claim by ECT as well.? Should we try to find 
such a document?? Query, what difference does it make if NSM has an indemnity 
obligation to ECT--does NSM have any assets to pay unsecured creditors???

Steve 

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