Document:

<PAGE>
                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                        PREFERRED EQUITY TRUST AGREEMENT

<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                             PAGE
<S>                                                                                                                          <C>
ARTICLE I          ESTABLISHMENT AND PURPOSE OF THE TRUST...................................................................  3

   1.1        Purpose of the Trust..........................................................................................  3

   1.2        Transfer of Property to Trustee...............................................................................  3

   1.3        Relationship to the Plan......................................................................................  3

   1.4        Title to Trust Assets.........................................................................................  3

   1.5        Rights of Holders of Preferred Equity Trust Interests.........................................................  4

   1.6        Ownership and Control of Trust Fund...........................................................................  5

   1.7        Funding of the Trust..........................................................................................  5

ARTICLE II         PREFERRED EQUITY TRUST INTERESTS.........................................................................  5

   2.1        Identification of Holders of Preferred Equity Trust Interests.................................................  5

   2.2        Conflicting Claims to Beneficial Interests....................................................................  6

   2.3        Non-Transferability of Preferred Equity Trust Interests.......................................................  6

ARTICLE III        AUTHORITY, LIMITATIONS, DISTRIBUTIONS AND DUTIES.........................................................  6

   3.1        (a) Periodic Distribution; Withholding........................................................................  6

   3.2        Reporting Duties of the Trustee...............................................................................  7

   3.3        Termination of Trust..........................................................................................  8

   3.4        Continuance of Trust for Winding Up...........................................................................  8

   3.5        General Powers of the Trustee.................................................................................  8

   3.6        Limitation of Trustee's Authority............................................................................. 10

   3.7        Books and Records............................................................................................. 11

   3.8        Additional Powers............................................................................................. 11

   3.9        Compliance with Laws.......................................................................................... 11

   3.10       Voting of Shares.............................................................................................. 11

ARTICLE IV         THE TRUSTEE.............................................................................................. 12

   4.1        Generally..................................................................................................... 12

   4.2        Liability of Trustee and Indemnification...................................................................... 12

   4.3        Reliance by Trustee........................................................................................... 13

   4.4        Investment Powers............................................................................................. 13

   4.5        Requirement of Adequate Resources............................................................................. 14

   4.6        Expense Reimbursement and Compensation........................................................................ 14

   4.7        No Bond....................................................................................................... 14
</TABLE>

                                       i
<PAGE>

                               TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                                             PAGE
<S>                                                                                                                          <C>
ARTICLE V          SUCCESSOR TRUSTEE........................................................................................ 14

   5.1        Removal....................................................................................................... 14

   5.2        Resignation................................................................................................... 14

   5.3        Simultaneous Removal and Resignation.......................................................................... 14

   5.4        Appointment of Successor Trustee.............................................................................. 15

ARTICLE VI         REPORTS TO BENEFICIARIES................................................................................. 15

   6.1        Reports....................................................................................................... 15

ARTICLE VII        AMENDMENT AND WAIVER..................................................................................... 15

   7.1        Amendment and Waiver.......................................................................................... 15

ARTICLE VIII       MISCELLANEOUS PROVISIONS................................................................................. 16

   8.1        Intention of Parties to Establish Trust....................................................................... 16

   8.2        Laws as to Construction/Jurisdiction.......................................................................... 16

   8.3        Severability.................................................................................................. 16

   8.4        Notices....................................................................................................... 16

   8.5        Fiscal Year................................................................................................... 17

   8.6        Prevailing Party.............................................................................................. 17

   8.7        Counterparts.................................................................................................. 17

   8.8        Entire Agreement.............................................................................................. 17

   8.9        Confidentiality............................................................................................... 17

   8.10       Headings...................................................................................................... 18
</TABLE>

                                       ii
<PAGE>

                        PREFERRED EQUITY TRUST AGREEMENT

            This Trust Agreement (the "Trust Agreement"), dated as of November
16, 2004, by and among Enron Corp. ("Enron"), Enron Metals & Commodity Corp.,
Enron North America Corp., Enron Power Marketing, Inc., PBOG Corp., Smith Street
Land Company, Enron Broadband Services, Inc., Enron Energy Services Operations,
Inc., Enron Energy Marketing Corp., Enron Energy Services, Inc., Enron Energy
Services, LLC, Enron Transportation Services, LLC, BAM Lease Company, ENA Asset
Holdings L.P., Enron Gas Liquids, Inc., Enron Global Markets LLC, Enron Net
Works LLC, Enron Industrial Markets LLC, Operational Energy Corp., Enron
Engineering & Construction Company, Enron Engineering & Operational Services
Company, Garden State Paper Company, LLC, Palm Beach Development Company,
L.L.C., Tenant Services, Inc., Enron Energy Information Solutions, Inc., EESO
Merchant Investments, Inc., Enron Federal Solutions, Inc., Enron Freight Markets
Corp., Enron Broadband Services, L.P., Enron Energy Services North America,
Inc., Enron LNG Marketing LLC, Calypso Pipeline, LLC, Enron Global LNG LLC,
Enron International Fuel Management Company, Enron Natural Gas Marketing Corp.,
ENA Upstream Company LLC, Enron Liquid Fuels, Inc., Enron LNG Shipping Company,
Enron Property & Services Corp., Enron Capital & Trade Resources International
Corp., Enron Communications Leasing Corp., Enron Wind Corp., Enron Wind Systems,
Inc., Enron Wind Energy Systems Corp., Enron Wind Maintenance Corp., Enron Wind
Constructors Corp., EREC Subsidiary I, LLC, EREC Subsidiary II, LLC, EREC
Subsidiary III, LLC, EREC Subsidiary IV, LLC, EREC Subsidiary V, LLC, Intratex
Gas Company, Enron Processing Properties, Inc., Enron Methanol Company, Enron
Ventures Corp., The New Energy Trading Company, EES Service Holdings, Inc.,
Enron Wind Development LLC, ZWHC LLC, Zond Pacific, LLC, Enron Reserve
Acquisition Corp., EPC Estates Services, Inc., f/k/a National Energy Production
Corporation, Enron Power & Industrial Construction Company, NEPCO Power
Procurement Company, NEPCO Services International, Inc., Caribe Verde (SJG)
Inc., f/k/a San Juan Gas Company, Inc., EBF LLC, Zond Minnesota Construction
Company LLC, Enron Fuels International, Inc., E Power Holdings Corp., EFS
Construction Management Services, Inc., Enron Management, Inc., Enron Expat
Services, Inc., Artemis Associates, LLC, Clinton Energy Management Services,
Inc., LINGTEC Constructors L.P., EGS New Ventures Corp., Louisiana Gas Marketing
Company, Louisiana Resources Company, LGMI, Inc., LRCI, Inc., Enron
Communications Group, Inc., EnRock Management, LLC, ECI-Texas, L.P., EnRock,
L.P., ECI-Nevada Corp., Enron Alligator Alley Pipeline Company, Enron Wind Storm
Lake I LLC, ECT Merchant Investments Corp., EnronOnLine, LLC, St. Charles
Development Company, L.L.C., Calcasieu Development Company, L.L.C., Calvert City
Power I, L.L.C., Enron ACS, Inc., LOA, Inc., Enron India LLC, Enron
International Inc., Enron International Holdings Corp., Enron Middle East LLC,
Enron WarpSpeed Services, Inc., Modulus Technologies, Inc., Enron
Telecommunications, Inc., DataSystems Group, Inc. Risk Management & Trading
Corp., Omicron Enterprises, Inc., EFS I, Inc., EFS II, Inc., EFS III, Inc., EFS
V, Inc., EFS VI, L.P., EFS VII, Inc., EFS IX, Inc., EFS X, Inc., EFS XI, Inc.,
EFS XII, Inc., EFS XV, Inc., EFS XVII, Inc., Jovinole Associates, EFS Holdings,
Inc., Enron Operations Services, LLC, Green Power Partners I LLC, TLS Investors,
L.L.C., ECT Securities Limited Partnership, ECT Securities LP Corp., ECT
Securities GP Corp., KUCC Cleburne, LLC, Enron International Asset Management
Corp., Enron Brazil Power Holdings XI Ltd., Enron Holding Company L.L.C., Enron
Development Management Ltd., Enron International Korea Holdings Corp., Enron
Caribe VI Holdings Ltd., Enron International Asia Corp., Enron Brazil Power
Investments XI Ltd., Paulista Electrical Distribution, L.L.C., Enron Pipeline
Construction

<PAGE>

Services Company, Enron Pipeline Services Company, Enron Trailblazer Pipeline
Company, Enron Liquid Services Corp., Enron Machine and Mechanical Services,
Inc., Enron Commercial Finance Ltd., Enron Permian Gathering Inc., Transwestern
Gathering Company, Enron Gathering Company, EGP Fuels Company, Enron Asset
Management Resources, Inc., Enron Brazil Power Holdings I Ltd., Enron do Brazil
Holdings Ltd., Enron Wind Storm Lake II LLC, Enron Renewable Energy Corp., Enron
Acquisition III Corp., Enron Wind Lake Benton LLC, Superior Construction
Company, EFS IV, Inc., EFS VIII, Inc., EFS XIII, Inc., Enron Credit Inc., Enron
Power Corp., Richmond Power Enterprise, L.P., ECT Strategic Value Corp., Enron
Development Funding Ltd., Atlantic Commercial Finance, Inc., The Protane
Corporation, Enron Asia Pacific/Africa/China LLC, Enron Development Corp., ET
Power 3 LLC, Nowa Sarzyna Holding B.V., Enron South America LLC, Enron Global
Power & Pipelines LLC, Cabazon Power Partners LLC, Cabazon Holdings LLC, Enron
Caribbean Basin LLC, Victory Garden Power Partners I LLC, Oswego Cogen Company,
LLC and Enron Equipment & Procurement Company (collectively with Enron, as
Debtors under the Plan (hereinafter defined), and, as applicable, the
Reorganized Debtors under the Plan, the "Debtors") and Stephen Forbes Cooper,
LLC as trustee (together with any successor trustee, the "Trustee").

                                   WITNESSETH

            WHEREAS, the Debtors' Supplemental Modified Fifth Amended Joint Plan
of Affiliated Debtors Pursuant to Chapter 11 of the Bankruptcy Code, including,
without limitation, the Plan Supplement and the exhibits and schedules thereto,
dated July 2, 2004 (as the same has been or may be amended, the "Plan") filed in
the United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court"), provides for the establishment of the Preferred Equity
Trust (as defined in the Plan) evidenced hereby (the "Trust") in accordance with
the Plan.

            WHEREAS, the Trust is created pursuant to, and to effectuate, the
Plan, and except with respect to the terms defined herein, all capitalized terms
contained herein shall have the meanings ascribed to them in the Plan;

            WHEREAS, the Trust is created on behalf of, and for the sole benefit
of, the holders of Allowed Enron Preferred Equity Interests in Class 383
(collectively, the "Beneficiaries");

            WHEREAS, the Plan provides that on the Effective Date the Enron
Preferred Equity Interests are to be canceled and the Debtors shall issue the
Exchanged Enron Preferred Stock (each class of which shall replace the
corresponding canceled Enron Preferred Equity Interests with the same relative
rights and priorities) to the Trust, to be held for the benefit of the
Beneficiaries, and such Persons shall receive beneficial Preferred Equity Trust
Interests, in the classes and in an aggregate number equal to the outstanding
shares of Exchanged Enron Preferred Stock, which shall be allocated pro rata
among the holders of the respective classes of the Allowed Enron Preferred
Equity Interests in Class 383;

            WHEREAS, the Exchanged Enron Preferred Stock and any distributions
to the Trust of Plan Currency and Trust Interests to be made under the Plan with
respect to the Exchanged Enron Preferred Stock (such Plan Currency and Trust
Interests referred to herein as

                                       2
<PAGE>

the "Preferred Proceeds") and any Cash amounts contributed to the Trust to pay
for Trust expenses shall collectively be referred to as the "Trust Assets" for
the purposes of this Trust Agreement; and

            WHEREAS, the Trust is intended to qualify as a liquidating trust
within the meaning of Treasury Regulation Section 301.7701-4(d);

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein and in the Plan, the Debtors and the
Trustee agree as follows:

                                   ARTICLE I

                     ESTABLISHMENT AND PURPOSE OF THE TRUST

      1.1   Purpose of the Trust. The Trust is established for the sole purpose
of holding the Exchanged Enron Preferred Stock and distributing the Preferred
Proceeds, in accordance with Treasury Regulation Section 301.7701-4(d), with no
objective to continue or engage in the conduct of a trade or business.
Accordingly, the Trustee shall, and hereby represents that it shall, in an
expeditious but orderly manner, make timely distributions of the Preferred
Proceeds and not unduly prolong the duration of the Trust. Nothing in this
Section 1.1 shall be deemed to permit the Trustee to sell, liquidate, distribute
or otherwise transfer the Exchanged Enron Preferred Stock.

      1.2   Transfer of Property to Trustee. Pursuant to the Plan, the Debtors
and the Trustee hereby establish the Trust on behalf of the holders of Allowed
Enron Preferred Equity Interests (whether or not Allowed on or after the
Effective Date), and on the Effective Date, Enron shall issue and deliver to the
Trust, all of the Exchanged Enron Preferred Stock, free and clear of any Lien,
Claim, Equity Interest, encumbrance or other interest in such property of any
other Person or entity except as provided in the Plan. The Trustee agrees to
accept and hold the Trust Assets in trust for the holders of the Preferred
Equity Trust Interests, subject to the terms of this Trust Agreement.

      1.3   Relationship to the Plan. The principal purpose of this Trust
Agreement is to aid in the implementation of the Plan and therefore this Trust
Agreement incorporates the provisions of the Plan and the Confirmation Order
(which may amend or supplement the Plan). To that end, the Trustee shall have
full power and authority to take any action consistent with the purpose and
provisions of the Plan, the Confirmation Order and this Trust Agreement.
Additionally, the Trustee may seek any orders from the Bankruptcy Court, upon
notice and an opportunity for a hearing in furtherance of implementation of the
Plan, the Confirmation Order and this Trust Agreement. To the extent that there
is conflict between the provisions of this Trust Agreement, the provisions of
the Plan, or the Confirmation Order, each document shall have controlling effect
in the following rank order: (1) the Confirmation Order; (2) the Plan; and (3)
this Trust Agreement.

      1.4   Title to Trust Assets.

            (a)   The transfer of the Trust Assets to the Trust shall be made by
the Debtors for the benefit and on behalf of the holders of Allowed Enron
Preferred Equity Interests (whether

                                       3
<PAGE>

or not Allowed on or after the Effective Date). Upon the issuance of the
Exchanged Enron Preferred Stock, the Trustee shall have all right, title and
interest in the Exchanged Enron Preferred Stock.

            (b)   For all federal income taxes purposes (e.g. IRC Sections
61(a)(12), 483, 1001, 1012 and 1274), all parties (including, without
limitation, the Debtors, the Trustee, and the holders of the Preferred Equity
Trust Interests) shall treat the issuance of the Exchanged Enron Preferred Stock
to the Trust in accordance with the terms of the Plan as an issuance to holders
of Allowed Enron Preferred Equity Interests in Class 383 followed by a transfer
by such holders to the Trust and the holders of Preferred Equity Trust Interests
shall be treated as the grantors and owners thereof.

            (c)   As of the date hereof, the Debtors hereby transfer, assign and
deliver to the Trustee all of their right, title and interest in and to any
attorney-client privilege, work-product privilege, or other privilege or
immunity attaching to any documents or communications (whether written or oral)
associated with the Trust Assets (collectively, "Privileges"), which shall vest
in the Trustee and its representatives.

            (d)   On or after the date hereof, the Debtors shall (i) deliver or
cause to be delivered to the Trustee any and all documents in connection with
the Trust Assets (including those maintained in electronic format and original
documents) whether held by the Debtors and each of their respective employees,
agents, advisors, attorneys, accountants or any other professionals hired by the
Debtors, and (ii) provide access to such employees of the Debtors and each of
their respective agents, advisors, attorneys, accountants or any other
professionals hired by the Debtors with knowledge of matters relevant to the
Trust Assets. Upon the reasonable request of the Trustee, the Debtors shall
provide the Trustee with a list of all documents in connection with the Trust
Assets known to it but not held by it or any of its employees, agents, advisors,
attorneys, accountants or any other professionals. Such list shall contain a
description of each document, to the extent feasible, as well as the name of the
Entity or Person holding such document.

            (e)   At any time and from time to time on and after the date
hereof, the Debtors agree (i) at the reasonable request of the Trustee to
execute or deliver any instruments, documents, books, and records (including
those maintained in electronic format and original documents as may be needed),
and (ii) to take, or cause to be taken, all such further actions as the Trustee
may reasonably request in order to evidence or effectuate the transfer of the
Trust Assets and the Privileges to the Trust and the consummation of the
transactions contemplated hereby, by the Plan and by the Confirmation Order and
to otherwise carry out the intent of the parties hereunder and under the Plan
and the Confirmation Order.

      1.5   Rights of Holders of Preferred Equity Trust Interests. The holders
of the Preferred Equity Trust Interests shall be the beneficial owners of the
Trust created by this Trust Agreement and the Trustee shall retain only such
incidents of ownership as are necessary to undertake the actions and
transactions authorized herein. Each holder of Preferred Equity Trust Interests
shall be entitled to participation in the rights and benefits due to a
beneficiary according to his or her Preferred Equity Trust Interests, and each
holder of Preferred Equity Trust Interests

                                       4
<PAGE>

shall take and hold his or her Preferred Equity Trust Interests subject to all
of the terms and provisions of this Trust Agreement, the Plan and the
Confirmation Order.

      1.6   Ownership and Control of Trust Fund. Except as is hereinafter
expressly provided, no holder of Preferred Equity Trust Interests shall have any
title or right to, or possession, management or control of the Trust Assets, or
any right to call for a partition, division or accounting of the Trust Assets,
and no widower, widow, heir or devisee of any individual who may be a holder of
Preferred Equity Trust Interests, or bankruptcy trustee, receiver or similar
person of any holder of Preferred Equity Trust Interests shall have any right,
statutory or otherwise (including any right of dower, homestead or inheritance,
or of partition, as applicable), in any property forming a part of the Trust
Assets, but the whole title to all of the Trust Assets shall be vested in the
Trustee and the sole interest of the holders of Preferred Equity Trust Interests
shall be the rights and benefits given to such persons under this Trust
Agreement.

      1.7   Funding of the Trust. To the extent that the Cash and Cash
Equivalents of the Trust are insufficient to satisfy expenses incurred by the
Trust, the Trustee may request that the Debtors advance sufficient funds to the
Trust to satisfy such expenses, which decision to provide such funds shall be in
the sole discretion of the Debtors.

                                   ARTICLE II

                        PREFERRED EQUITY TRUST INTERESTS

      2.1   Identification of Holders of Preferred Equity Trust Interests. The
record holders of Preferred Equity Trust Interests shall be recorded and set
forth in a register maintained by the Trustee expressly for such purpose. The
initial list of record holders of, and the allocation of the various classes of,
Preferred Equity Trust Interests, as described below, shall be based on, and
correspond to, the list of holders of the various classes of Allowed Enron
Preferred Equity Interests in Class 383 as maintained by the Reorganized Debtor
Plan Administrator pursuant to Section 18.1 of the Plan. All references in this
Trust Agreement to holders shall be read to mean holders of record as set forth
in the official register maintained by the Trustee and shall not mean any
beneficial owner not recorded on such official register. Unless expressly
provided herein, the Trustee may establish a record date, which he deems
practicable for determining the holders for a particular purpose.
Notwithstanding anything contained herein to the contrary, there shall be
separate classes of Preferred Equity Trust Interests that (a) separately reflect
the distributions and other economic entitlements and (b) maintain the following
order of priority with respect to the separate classes of Exchanged Preferred
Equity Interests contributed: (1) Series 1 Exchanged Preferred Stock and Series
2 Exchanged Preferred Stock on a pari passu per share basis; (2) then Series 3
Exchanged Preferred Stock; and (3) then Series 4 Exchanged Preferred Stock so
that (a) the Series 1 Preferred Equity Trust Interests separately reflect the
distributions and other economic entitlements of the Series 1 Exchanged
Preferred Stock; (b) the Series 2 Preferred Equity Trust Interests separately
reflect the distributions and other economic entitlements of the Series 2
Exchanged Preferred Stock; (c) the Series 3 Preferred Equity Trust Interests
separately reflect the distributions and other economic entitlements of the
Series 3 Exchanged Preferred Stock; (d) the Series 4 Preferred Equity Trust
Interests separately reflect the distributions and other economic entitlements
of the Series 4 Exchanged Preferred Stock.

                                       5
<PAGE>

      2.2   Conflicting Claims to Beneficial Interests. If any conflicting
claims or demands are made or asserted with respect to the ownership or control
of the Preferred Equity Trust Interests of any holder thereof, or if there is
any disagreement among persons claiming to be permitted successors of any
Preferred Equity Trust Interests resulting in adverse claims or demands being
made in connection with such Preferred Equity Trust Interests (an "Ownership
Dispute"), then, in any of such events, the Trustee shall be entitled to refuse
to comply with any demand or direction made by any party to such Ownership
Dispute. In so refusing, the Trustee may elect to make no payment or
distribution with respect to the Preferred Equity Trust Interests relating to
the Ownership Dispute, or any part thereof, and to refer such Ownership Dispute
to the Bankruptcy Court, which shall have exclusive jurisdiction over resolution
of such Ownership Dispute. In so doing, the Trustee shall not be or become
liable to any of such parties for its refusal to comply with any demand or
direction made by them, nor shall the Trustee be liable for interest on any
funds which it may so withhold. The Trustee shall be entitled to refuse to act
until either (i) the rights of the adverse claimants have been adjudicated by a
final judgment of the Bankruptcy Court or (ii) all differences have been
resolved by a valid written agreement among all of such parties and the Trustee,
which agreement shall include a complete release of the Trustee.

      2.3   Non-Transferability of Preferred Equity Trust Interests. The
Preferred Equity Trust Interests shall not be certificated and shall not be
transferable, assignable, pledged or hypothecated, in whole or in part, except
with respect to a transfer by will or under the laws of descent and
distribution. Any such transfer, however, shall not be effective until and
unless the Trustee receives written notice of such transfer and has been
provided with evidence satisfactory to it of the legal right of such transferee
to such Preferred Equity Trust Interest.

                                  ARTICLE III

                AUTHORITY, LIMITATIONS, DISTRIBUTIONS AND DUTIES

      3.1   (a)   Periodic Distribution; Withholding. The Trustee shall
distribute at least annually to the holders of Preferred Equity Trust Interests
all Preferred Proceeds; provided however, that prior to making any distribution
to holders of Preferred Equity Trust Interests, the Trust may retain such
amounts (i) as are reasonably necessary to meet contingent liabilities and to
maintain the value of the Trust Assets during liquidation, (ii) to pay
reasonable administrative expenses (including the reasonable fees, costs and
expenses of the Trustee and all professionals it retains and any taxes imposed
on the Trust or in respect of the Trust Assets), and (iii) to satisfy other
liabilities incurred or assumed by the Trust (or to which the Trust Assets are
otherwise subject) in accordance with the Plan or this Trust Agreement. All such
distributions shall be pro rata based on the number of Preferred Equity Trust
Interests held by a holder compared with the aggregate number of Preferred
Equity Trust Interests outstanding, subject to the terms of the Plan and this
Trust Agreement. The Trustee may withhold from amounts distributable to any
Person any and all amounts, determined in the Trustee's reasonable sole
discretion, to be required by any law, regulation, rule, ruling, directive or
other governmental requirement. Notwithstanding the foregoing, any distributions
to be made on account of the separate classes of Preferred Equity Trust
Interests shall be made in the following order of priority with respect to the
separate classes of Exchanged Preferred Equity Interests contributed: (1) Series
1 Exchange Preferred Stock and Series 2 Exchange Preferred Stock on a pari passu
basis; (2) then Series 3 Exchange Preferred

                                       6
<PAGE>

Stock; and (3) then Series 4 Exchange Preferred Stock. Notwithstanding the
forgoing, in no event shall any holder of Preferred Equity Trust Interests
receive a distribution of Exchanged Enron Preferred Stock.

            (a)   Manner of Payment or Distribution. All distributions made by
the Trustee to holders of Preferred Equity Trust Interests shall be payable to
the holders of the Preferred Equity Trust Interests of record as of the
fifteenth (15th) day prior to the date scheduled for the distribution, unless
such day is not a Business Day, in which case such day shall be the following
Business Day. If the distribution shall be in Cash the Trustee shall distribute
such Cash by wire, check or such other method as the Trustee deems appropriate
under the circumstances.

            (b)   Delivery of Trust Distributions. All distributions under this
Trust Agreement to any holder of Preferred Equity Trust Interests shall be made
at the address of such holder as set forth in the register or at such other
address as such holder of Preferred Equity Trust Interests shall have specified
for payment purposes in a written notice to the Trustee at least twenty (20)
days prior to such distribution date. In the event that any distribution to any
holder is returned as undeliverable, the Trustee shall use reasonable efforts to
determine the current address of such holder, but no distribution to such holder
shall be made unless and until the Trustee has determined the then current
address of such holder, at which time such distribution shall be made to such
holder without interest; provided, however, that such undeliverable or unclaimed
distributions shall be deemed unclaimed property at the expiration of one year
from the date of distribution. The Trustee shall reallocate all undeliverable
and unclaimed distributions for the benefit of all other Beneficiaries.

      3.2   Reporting Duties of the Trustee.

            (a)   Subject to definitive guidance from the IRS or a court of
competent jurisdiction to the contrary (including the receipt by the Trustee of
a private letter ruling if the Trustee (or the Debtors) so requests one, or the
receipt of an adverse determination by the IRS upon audit if not contested by
the Trustee), the Trustee shall file returns for the Trust as a grantor trust
(consisting of separate shares for each class of Exchanged Enron Preferred Stock
owned by the Trust) pursuant to Treasury Regulation Section 1.671-4(a) and in
accordance with Section 27.7(a) of the Plan. The Trustee shall also annually
send to each record holder of Preferred Equity Trust Interests a separate
statement setting forth the holder's share of items of income, gain, loss,
deduction, or credit and shall instruct all such holders to report such items on
their federal income tax returns or to forward the appropriate information to
the holders of Preferred Equity Trust Interests with instructions to report such
items on their federal income tax returns.

            (b)   Allocations of Trust taxable income shall be determined by
reference to the manner in which an amount of cash equal to such taxable income
would be distributed (without regard to any restrictions on distributions
described herein) if, immediately prior to such deemed distribution, the Trust
had distributed all of its other assets (valued for this purpose at their tax
book value) to the holders of the Preferred Equity Trust Interests (treating any
holder of a Disputed Equity Interest, for this purpose, as a current holder of a
Preferred Equity Trust Interest entitled to distributions), taking into account
all prior and concurrent distributions from the Trust (including all
distributions held in escrow pending the resolution of Ownership Disputes and
Disputed Claims). Similarly, taxable loss of the Trust shall be allocated by

                                       7
<PAGE>

reference to the manner in which an economic loss would be borne immediately
after a liquidating distribution of the remaining Trust Assets. The tax book
value of the Trust Assets for this purpose shall equal their fair market value
on the date the Trust was created or, if later, the date such assets were
acquired by the Trust, adjusted in either case in accordance with tax accounting
principles prescribed by the IRC, the Treasury Regulations and other applicable
administrative and judicial authorities and pronouncements.

            (c)   The Trustee shall file (or cause to be filed) any other
statements, returns or disclosures relating to the Trust that are required by
any governmental unit.

      3.3   Termination of Trust. The Trust shall terminate on the earlier of:
(i) thirty (30) days after the final distribution of all of the Preferred
Proceeds in accordance with the terms of this Trust Agreement, the Plan and the
Confirmation Order and the cancellation of the Exchanged Enron Preferred Stock
and (ii) the third (3rd) anniversary of the Confirmation Date; provided,
however, that, on or prior to the date three (3) months prior to such
termination, the Bankruptcy Court, upon motion by a party in interest on notice
with an opportunity for a hearing, may extend the maximum term of the Trust set
forth in this clause (ii) if it is necessary to the liquidation of the assets of
the Trust. Notwithstanding the foregoing, multiple extensions of the maximum
term of the trust set forth in clause (ii) of this Section can be obtained so
long as Bankruptcy Court approval is obtained (in accordance with the procedures
set forth in the preceding sentence) at least three (3) months prior to the
expiration of each extended term; provided, however, that the aggregate of all
such extensions shall not exceed three (3) years from and after the third (3rd)
anniversary of the Confirmation Date. In any event, upon the termination of the
Trust all of the Exchanged Enron Preferred Stock shall be canceled and otherwise
void.

      3.4   Continuance of Trust for Winding Up. After the termination of the
Trust and solely for the purpose of liquidating and winding up the affairs of
the Trust, the Trustee shall continue to act as such until its duties have been
fully performed. At such time, to the extent that any funds remain in the Trust
that were provided to the Trustee by the Debtors to cover trust expenses, such
funds shall be transferred to the Reorganized Debtor Plan Administrator for the
purpose of distributing such funds to the Debtors in accordance with the Plan.
Upon distribution of all Trust Assets, which shall not include a distribution of
the Exchanged Enron Preferred Stock to the holders of Preferred Equity Trust
Interests, the Trustee shall retain the books, beneficiary lists, registers,
records and files which shall have been delivered to or created by the Trustee.
At the Trustee's discretion, all of such records and documents may be destroyed
in accordance with Section 3.7. Except as otherwise specifically provided
herein, upon the distribution of all Trust Assets, the Trustee shall have no
further duties or obligations hereunder except the obligations under Section 3.7
hereof.

      3.5   General Powers of the Trustee. In connection with the administration
of the Trust, except as set forth in this Trust Agreement, the Trustee is
authorized to perform any and all acts necessary or desirable to accomplish the
purposes of the Trust. Without limiting, but subject to, the foregoing and to
Section 3.6 hereof, the Trustee shall be expressly authorized to:

            (a)   hold legal title to any and all rights of the holders of the
Preferred Equity Trust Interests in or arising from the Trust Assets, including,
but not limited to, voting the

                                       8
<PAGE>

Exchanged Enron Preferred Stock (subject to Section 3.10), collecting any and
all money and other property belonging to the Trust, and voting any claim or
interest in a case under the Bankruptcy Code and receiving any distribution
therein;

            (b)   perform the duties, exercise the powers, and assert the rights
of a trustee under sections 704 and 1106 of the Bankruptcy Code;

            (c)   protect and enforce the rights to the Trust Assets by any
method deemed appropriate including, without limitation, by judicial proceedings
or pursuant to any applicable bankruptcy, insolvency, moratorium, or similar law
and general principles of equity;

            (d)   compromise, adjust, arbitrate, sue on or defend, pursue,
prosecute abandon, or otherwise deal with and settle any cause of action or
Ownership Dispute in favor of or against the Trust as the Trustee shall deem
advisable;

            (e)   determine and satisfy any and all liabilities created,
incurred or assumed by the Trust;

            (f)   file, if necessary, any and all tax and information returns
with respect to the Trust and pay taxes properly payable by the Trust, if any;

            (g)   execute offsets against claims as provided for in the Plan;

            (h)   assert or waive any Privileges or defense on behalf of the
Trust;

            (i)   pay all expenses and make all other payments relating to the
Trust Assets;

            (j)   retain and pay such independent law firms as counsel to the
Trust as the Trustee may select to aid in the prosecution of any claims that
constitute the Trust Assets, and to perform such other functions as may be
appropriate. The Trustee may commit the Trust to and shall pay such independent
law firms reasonable compensation for services rendered and reasonable and
documented out-of-pocket expenses incurred. The Trustee may retain counsel on a
nunc pro tunc basis, to a date prior to the Effective Date. A law firm shall not
be disqualified from serving as independent counsel to the Trust solely because
of its prior retention by the Debtors, the Creditors' Committee, or a member of
the Creditors' Committee;

            (k)   retain and pay an independent public accounting firm to
perform such reviews and/or audits of the financial books and records of the
Trust as may be appropriate and to prepare and file any tax returns or
informational returns for the Trust as may be required. The Trustee may retain
an independent accounting firm on a nunc pro tunc basis, to a date prior to the
Effective Date. The Trustee may commit the Trust to and shall pay such
independent public accounting firm reasonable compensation for services rendered
and reasonable and documented out-of-pocket expenses incurred. An independent
public accounting firm shall not be disqualified from serving as independent
counsel to the Trust solely because of its prior retention by the Debtors, the
Creditors' Committee, or a member of the Creditors' Committee;

            (l)   retain and pay such third parties as the Trustee may deem
necessary or appropriate to assist the Trustee in carrying out its powers and
duties under this Trust

                                       9
<PAGE>

Agreement. The Trustee may commit the Trust to and shall pay all such persons or
entities reasonable compensation for services rendered and reasonable and
documented out-of-pocket expenses incurred, as well as commit the Trust to
indemnify any such parties in connection with the performance of services, on a
nunc pro tunc basis, to a date prior to the Effective Date;

            (m)   invest any moneys held as part of the Trust in accordance with
the terms of Section 4.4 hereof, limited, however, to such investments that are
consistent with the Trust's status as a liquidating trust within the meaning of
Treasury Regulation Section 301.7701-4(d) and in accordance with Rev. Proc.
94-45, 1994-2 C.B. 684;

            (n)   request any appropriate tax determination with respect to the
Trust, including, without limitation, a determination pursuant to section 505 of
the Bankruptcy Code;

            (o)   establish and maintain a web site for the purpose of providing
notice of Trust activities in lieu of sending written notice to holders of
Preferred Equity Trust Interests, subject to providing notice to those holders
referred to in Section 7.4 hereof;

            (p)   seek the examination of any entity under, and subject to, the
provisions of Bankruptcy Rule 2004; and

            (q)   take or refrain from taking any and all actions the Trustee
reasonably deems necessary for the continuation, protection, and maximization of
the Trust Assets consistent with the purposes hereof.

      3.6   Limitation of Trustee's Authority.

            (a)   Notwithstanding anything herein to the contrary, the Trustee
shall not and shall not be authorized to engage in any trade or business or
sell, liquidate or otherwise transfer any Trust Assets, other than to distribute
Preferred Proceeds and perform such other activities pursuant to this Trust
Agreement. Notwithstanding any other authority granted by Sections 3.1, 3.5 and
4.4 hereof, the Trustee is not authorized to engage in any investments or
activities inconsistent with the treatment of the Trust as a liquidating trust
within the meaning of Treasury Regulation Section 301.7701-4(d) and in
accordance with Rev. Proc. 94-45, 1994-2 C.B. 684.

            (b)   The Trustee shall be restricted to receiving the Exchanged
Enron Preferred Stock, administering the Exchanged Enron Preferred Stock as
provided in Section 1.2, receiving the Preferred Proceeds, and investing and
reinvesting the Preferred Proceeds subject to the limitations provided in
Section 4.4, collecting income from the Trust Assets, and effecting the
distributions specified in Section 3.1 and specified elsewhere in this Trust
Agreement for the purposes of carrying out the terms of this Trust Agreement.

            (c)   Neither the Trustee nor any of its agents shall sell,
distribute or otherwise transfer the Exchanged Enron Preferred Stock.

      3.7   Books and Records.

            (a)   The Trustee shall maintain in respect of the Trust and the
holders of Preferred Equity Trust Interests books and records relating to the
Trust Assets and income of the

                                       10
<PAGE>

Trust and the payment of expenses of, and liabilities of claims against or
assumed by, the Trust in such detail and for such period of time as may be
necessary to enable it to make full and proper accounting in respect thereof.
Such books and records shall be maintained as reasonably necessary to facilitate
compliance with the tax reporting requirements of the Trust. Nothing in this
Trust Agreement requires the Trustee to file any accounting with respect to the
administration of the Trust, or as a condition for managing any payment or
distribution out of the Trust Assets. Holders of the Preferred Equity Trust
Interests shall have the right upon five (5) Business Days' prior written notice
delivered to the Trustee to inspect such books and records (including financial
statements), provided that the Trustee, in a reasonable effort to preserve
Privileges or confidential information or protect litigation or other
strategies, may require such holder or such holder's authorized representatives
to enter into a confidentiality agreement satisfactory in form and substance to
the Trustee. Any books and records determined by the Trustee, in its sole
discretion, not to be reasonably necessary for administering the Trust or for
the Trustee's compliance with the provisions of this Trust Agreement may, to the
extent not prohibited by applicable law or order, be destroyed.

            (b)   Nothing contained in this Trust Agreement shall preclude the
Trustee from seeking a judicial settlement of its accounts.

      3.8   Additional Powers. Except as otherwise set forth in this Trust
Agreement or in the Plan, and subject to the Treasury Regulations governing
Trusts and the retained jurisdiction of the Bankruptcy Court as provided for in
the Plan, but without prior or further authorization, the Trustee may control
and exercise authority over the Trust Assets and over the protection,
conservation and disposition thereof. No Person dealing with the Trust shall be
obligated to inquire into the authority of the Trustee in connection with the
protection, conservation or disposition of the Trust Assets.

      3.9   Compliance with Laws. Any and all distributions of Preferred
Proceeds shall be in compliance with applicable laws, including, but not limited
to, applicable federal and state securities laws.

      3.10  Voting of Shares. The Trustee shall vote the shares of the Exchanged
Enron Preferred Stock, (i) with regard to the removal of any director of Enron,
only as unanimously recommended by the other directors of Enron, and (ii) with
regard to all other matters, only as recommended by the Board of Directors of
Enron in a resolution passed in accordance with Enron's bylaws. No holder of
Preferred Equity Trust Interests shall be entitled to exercise any voting rights
associated with the Enron Exchanged Preferred Stock whatsoever (whether related
to the election of board members or otherwise), and all such rights shall be
vested in the Trustee. Notwithstanding anything to the contrary, the provisions
set forth in this Section 3.10 are irrevocable and may not be modified, amended,
or revoked by any holder of Preferred Equity Trust Interests or any other
Person.

                                       11
<PAGE>

                                   ARTICLE IV

                                   THE TRUSTEE

      4.1   Generally. The Trustee's powers are exercisable solely in a
fiduciary capacity consistent with, and in furtherance of, the purposes of this
Trust and the Plan, except that the Trustee may deal with the Trust Assets
consisting solely of cash for its own account as permitted by Section 4.6
hereof.

      4.2   Liability of Trustee and Indemnification.

            (a)   Indemnification of Trustee. To the fullest extent provided by
applicable law, the Trustee shall be indemnified by and receive reimbursement
from the Trust against and from any and all loss, liability, damage or
reasonable and documented out-of-pocket expense that the Trustee may incur or
sustain in the good faith exercise and performance of any of the powers and
duties of the Trustee under this Trust Agreement, except for that which results
from its own recklessness, gross negligence, willful misconduct, breach of
fiduciary duty or knowing violation of the law. The Trustee may receive advance
payments in connection with indemnification under this Section, provided that
prior to receiving any such advance, the Trustee shall first have given a
written undertaking to repay any amount advanced to it and to reimburse the
Trust in the event it is subsequently determined that it is not entitled to such
indemnification. The rights accruing to the Trustee by reason of the foregoing
shall not be deemed to exclude any other right to which it may legally be
entitled, nor shall anything else contained herein restrict the right of the
Trustee to contribution under applicable law.

            (b)   Indemnification for Taxes. To the fullest extent provided by
applicable law, the Trust shall indemnify the Trustee against and hold the
Trustee harmless from any and all liability for taxes assessable against the
Trust that have been assessed against the Trustee personally for the Trust
taxable year to which the return or audit or proceeding relates and for all
losses, costs, and reasonable and documented out-of-pocket expenses (including
reasonable and documented out-of-pocket legal and accounting fees and expenses)
incurred by the Trustee in defending against any assessment of taxes for such
year, except for that which results from its own recklessness, gross negligence,
willful misconduct, breach of fiduciary duty or knowing violation of law. The
Trust's obligations pursuant to this Section shall survive until the expiry of
the applicable statute of limitations. Nothing in this Section shall limit the
Trustee's entitlement to the benefit of the Trust Agreement's general reliance,
standard of care, exculpation, and indemnification provisions with respect to
taxes. All losses, claims, costs, reasonable and documented out-of-pocket
expenses and liabilities (including reasonable legal and accounting fees and
documented and out-of-pocket expenses) to be paid to the Trustee under this
Section shall be paid in accordance with, and subject to the limitations set
forth in, subsection (a) of this Section 4.2.

            (c)   Liability to Third Persons. The Debtors shall not be subject
to any personal liability whatsoever, in tort, contract or otherwise, to any
person in connection with the Trust or the affairs of the Trust, and no Trustee
or agent of the Trust shall be subject to any personal liability whatsoever, in
tort, contract or otherwise, to any person in connection with the Trust or the
affairs of this Trust, for actions or omissions taken or made in good faith, and

                                       12
<PAGE>

without such Person's own recklessness, gross negligence, willful misconduct,
breach of fiduciary duty or knowing violation of law; and except as otherwise
provided in this Trust Agreement, all such Persons shall look solely to the
Trust Assets consisting solely of Cash or Cash Equivalents for satisfaction of
claims of any nature arising in connection with affairs of the Trust.

            (d)   Nonliability of Trustee for Acts of Predecessors. Any
successor Trustee may accept and rely upon any accounting made by or on behalf
of any predecessor Trustee hereunder, and any statement or representation made
as to Trust Assets or as to any other fact bearing upon the prior administration
of the Trust, unless the successor Trustee believes such accounting, statement
or representation to be untrue. A Trustee shall not be liable for having
accepted and relied upon such accounting, statement or representation if it is
later proved to be incomplete, inaccurate or untrue. A Trustee or successor
Trustee shall not be liable for any act or omission of any predecessor Trustee,
nor have a duty to enforce any claims against any predecessor Trustee on account
of any such act or omission.

            (e)   Nonliability of Trustee for Acts of Others. Nothing contained
in this Trust Agreement shall be deemed to be an assumption by the Trustee of
any of the liabilities, obligations or duties of the Debtors, and shall not be
deemed to be or contain a covenant or agreement by the Trustee to assume or
accept any such liability, obligation or duty.

      4.3   Reliance by Trustee. Except as otherwise provided in Section 4.2
hereof:

            (a)   the Trustee may rely, and shall be protected in acting upon,
any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties; and

            (b)   Persons dealing with the Trustee shall look only to the Trust
Assets consisting solely of Cash or Cash Equivalents to satisfy any liability
incurred by the Trustee to such person in carrying out the terms of this Trust
Agreement, and the Trustee shall have no personal obligation to satisfy any such
liability. Nothing in this subsection (b) of Section 4.3 shall be deemed to
permit the use of the Exchanged Enron Preferred Stock to satisfy such
liabilities.

      4.4   Investment Powers. The right and power of the Trustee to invest
Trust Assets, the proceeds thereof, or any income earned by the Trust, shall be
limited to the right and power to invest such assets (pending periodic
distributions in accordance with Section 3.1) in Cash Equivalents; provided,
however, that the scope of any such permissible investments shall be limited to
include only those investments, or shall be expanded to include any additional
investments as the case may be, that a liquidating trust, within the meaning of
Treasury Regulation Section 301.7701-4(d) may be permitted to hold, pursuant to
the Treasury Regulations or any modification in the IRS guidelines, whether set
forth in IRS rulings, other IRS pronouncements or otherwise and provided,
further, that, under no circumstances shall the Trust segregate the Trust Assets
on the basis of classification of the holders of Preferred Equity Trust
Interests, other than with respect to distributions to be made on account of
Disputed Claims

                                       13
<PAGE>

and Disputed Equity Interests in accordance with the provisions of the Plan or
with respect to the separate classes of interests in the Trust referred to in
Section 2.1.

      4.5   Requirement of Adequate Resources. Notwithstanding any other
provision of this Trust Agreement the Trustee shall not be required to take any
action or enter into or maintain any claim, demand, action or proceeding
relating to the Trust unless the Trustee shall have sufficient funds on hand for
that purpose.

      4.6   Expense Reimbursement and Compensation.

            (a)   The Trustee may retain as much or all of the Trust Assets
consisting solely of Cash or Cash Equivalents including, without limitation,
Preferred Proceeds that would otherwise be payable to holders of Preferred
Equity Trust Interests pursuant to Section 3.1, as a reserve for the payment of
reasonable and documented out-of-pocket expenses (except those resulting from
its own gross negligence, recklessness, willful misconduct, breach of fiduciary
duty or knowing violation of law) incurred by the Trustee as a result of the
execution of its duties hereunder, including, but not limited to, reasonable and
documented out-of-pocket legal and accounting expenses, reasonable expenses
incurred or anticipated as a result of disbursements and payments made or to be
made by the Trustee, and reasonable compensation for agents, counsel or other
services rendered to the Trustee by third parties, and reasonable documented and
out-of-pocket expenses incident thereto, including taxes of any kind whatsoever,
and related interest and penalties, that may be levied or assessed under
existing or future laws of any jurisdiction upon or in respect of the Trust or
the Trust Assets.

      4.7   No Bond. Neither the Trustee nor any successor Trustee shall be
obliged to file or furnish any bond or surety for the performance of its duties,
unless otherwise ordered by a court of competent jurisdiction, and, if so
ordered, all costs and expenses of providing such bond or surety shall be paid
or reimbursed pursuant to Section 4.6 hereof.

                                   ARTICLE V

                                SUCCESSOR TRUSTEE

      5.1   Removal. The Trustee may be removed by the Bankruptcy Court. Such
removal shall become effective on the date such action is taken by the
Bankruptcy Court.

      5.2   Resignation. The Trustee may resign by giving not less than ninety
(90) days' prior written notice thereof to the Bankruptcy Court. Such
resignation shall become effective on the later to occur of: (i) the day
specified in such notice; or (ii) the appointment of a successor by the
Bankruptcy Court and the acceptance by such successor of such appointment.

      5.3   Simultaneous Removal and Resignation. To the extent that the Trustee
is removed pursuant to the terms specified in Section 5.1 above (a "Removal") or
the Trustee resigns pursuant to the terms specified in Section 5.2 above (a
"Resignation"), and the Trustee is then serving in any other capacity for or on
behalf of any of the Reorganized Debtors or any of their Affiliates or is
serving as Reorganized Debtor Plan Administrator, Disbursing Agent or as trustee
of any other trust formed pursuant to the Plan (service by the Reorganized
Debtor Plan Administrator in each such additional capacity, a "Responsibility"
and collectively, the

                                       14
<PAGE>

"Responsibilities"), the Trustee shall be deemed to be terminated (for all
purposes and without any further action) from each of its other Responsibilities
upon its Removal or Resignation.

      5.4   Appointment of Successor Trustee. In the event of the death (in the
case of a Trustee that is a natural person), dissolution (in the case of a
Trustee that is not a natural person), resignation pursuant to Section 5.2
hereof, incompetency, or removal of the Trustee pursuant to Section 5.1 hereof,
a successor trustee shall be appointed by Enron with the approval of the
Bankruptcy Court upon entry of an order after an opportunity for hearing. Such
appointment shall specify the date on which such appointment shall be effective.
Every successor Trustee appointed hereunder shall execute, acknowledge, and
deliver to the Bankruptcy Court and to the retiring Trustee an instrument
accepting the appointment under this Trust Agreement and agreeing to be bound
thereto, and thereupon the successor Trustee, without any further act, deed, or
conveyance, shall become vested with all rights, powers, trusts, and duties of
the retiring Trustee; provided, however, that a removed or resigning Trustee
shall, nevertheless, when requested in writing by the successor Trustee, execute
and deliver an instrument or instruments conveying and transferring to such
successor Trustee under the Trust all the estates, properties, rights, powers,
and trusts of such predecessor Trustee.

                                   ARTICLE VI

                            REPORTS TO BENEFICIARIES

      6.1   Reports. As soon as practicable, the Trustee shall post on a website
to which the Beneficiaries have access, and, while the Debtors' bankruptcy cases
remain open, file with the Bankruptcy Court, reports setting forth in reasonable
detail any material event or change that occurs with respect to the Trust,
which, to the knowledge of the Trustee, affects the Beneficiaries hereunder,
which reports shall not be required to be audited or in compliance with
generally accepted accounting principles.

                                  ARTICLE VII

                              AMENDMENT AND WAIVER

      7.1   Amendment and Waiver. Any substantive provision of this Trust
Agreement may be amended or waived by the Trustee, upon notice to those holders
referred to in Section 8.4 hereof, with the approval of the Bankruptcy Court
upon notice and an opportunity for a hearing; provided, however, technical
amendments to this Trust Agreement may be made, as necessary to clarify this
Trust Agreement or enable the Trustee to effectuate the terms of this Trust
Agreement, by the Trustee without Bankruptcy Court approval and without notice
to the Beneficiaries so long as notice has been filed with the Bankruptcy Court
with such technical amendment attached thereto. Notwithstanding this Section
7.1, any waiver or amendments to this Trust Agreement shall not: (i) be
inconsistent with the purpose and intention of the Trust to liquidate in an
expeditious but orderly manner the Trust Assets in accordance with Treasury
Regulation Section 301.7701-4(d); (ii) permit any distribution or other transfer
by the Trust of the Exchanged Enron Preferred Stock; (iii) permit any transfer
of the Preferred Equity Trust Interests other than in accordance with Section
2.3 hereof; or (iv) permit any amendment or waiver of this Section 7.1.
Additionally, no change may be made to this Trust Agreement that

                                       15
<PAGE>

would be inconsistent with the purpose and intention of the Trust as specified
herein and in the Plan, adversely affect the distributions to be made under this
Trust Agreement to any of the Beneficiaries, adversely affect the U.S. Federal
income tax status of the Trust as a "liquidating trust" or adversely affect the
rights of the Creditors' Committee or the ENA Examiner under the Plan or this
Trust Agreement.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

      8.1   Intention of Parties to Establish Trust. This Trust Agreement is
intended to create a trust for federal income tax purposes and, to the extent
provided by law, shall be governed and construed in all respects as such a trust
and any ambiguity herein shall be construed consistent herewith and, if
necessary, this Trust Agreement may be amended to comply with such federal
income tax laws, which amendments may apply retroactively.

      8.2   Laws as to Construction/Jurisdiction. This Trust Agreement shall be
governed and construed in accordance with the laws of the State of New York,
without giving effect to rules governing the conflict of laws. Without limiting
any Person or Entity's right to appeal any order of the Bankruptcy Court or to
seek withdrawal of the reference with regard to any matter, (i) the Bankruptcy
Court shall retain exclusive jurisdiction to enforce the terms of this Trust
Agreement and to decide any claims or disputes which may arise or result from,
or be connected with, this Trust Agreement, any breach or default hereunder, or
the transactions contemplated hereby, and (ii) any and all actions related to
the foregoing shall be filed and maintained only in the Bankruptcy Court, and
the parties, including the members of the Creditors' Committee, hereby consent
to and submit to the exclusive jurisdiction and venue of the Bankruptcy Court.

      8.3   Severability. If any provision of this Trust Agreement or the
application thereof to any Person or circumstance shall be finally determined by
a court of competent jurisdiction to be invalid or unenforceable to any extent,
the remainder of this Trust Agreement, or the application of such provision to
Persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and such provision of this Trust
Agreement shall be valid and enforced to the fullest extent permitted by law.

      8.4   Notices. Any notice or other communication hereunder shall be in
writing and shall be deemed to have been sufficiently given, for all purposes,
if personally delivered or sent by mail, postage prepaid, or by telecopy
addressed to the person for whom such notice is intended as follows (or such
other address as may be designated by notice given in accordance with this
Section):

            If to the Trustee:       Stephen Forbes Cooper, LLC
                                     900 Third Avenue
                                     New York, New York 10022
                                     Telephone: (212) 213-5555
                                     Telecopier: (212) 213-1749
                                     Attn:  Stephen F. Cooper

                                       16
<PAGE>

            with copies to:          Kroll Zolfo Cooper LLC
                                     900 Third Avenue
                                     New York, New York 10022
                                     Telephone: (212) 213-5555
                                     Telecopier: (212) 213-1749

            If to the Debtors:       c/o Enron Corp.
                                     1221 Lamar, Suite 1600
                                     Houston, Texas 77010-1221
                                     Attn: Reorganized Debtor Plan Administrator
                                     Telephone: (713)853-6161
                                     Telecopier: (713) 853-3129

            If to a holder of Preferred Equity Trust Interests:

                        To the name and address set forth on the registry
                        maintained by the Trustee.

      8.5   Fiscal Year. The fiscal year of the Trust will begin on the first
day of January and end on the last day of December of each year.

      8.6   Prevailing Party. If the Trustee or the Trust, as the case may be,
is the prevailing party in a dispute regarding the provisions of this Trust
Agreement or the enforcement thereof, the Trustee or the Trust, as the case may
be, shall be entitled to collect any and all costs, reasonable and documented
out-of-pocket expenses and fees, including attorneys' fees, from the
non-prevailing party incurred in connection with such dispute or enforcement
action. To the extent that the Trust has advanced such amounts, the Trust may
recover such amounts from the non-prevailing party.

      8.7   Counterparts. This Trust Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original instrument, but
all together shall constitute one agreement.

      8.8   Entire Agreement. This Trust Agreement (including the recitals), the
Plan, and the Confirmation Order constitute the entire agreement by and among
the parties hereto regarding the subject matter hereof and there are no
representations, warranties, covenants or obligations regarding the subject
matter hereof except as set forth herein or therein. This Trust Agreement, the
Plan and the Confirmation Order supersede all prior and contemporaneous
agreements, understandings, negotiations, discussions, written or oral, of the
parties hereto, relating to any transaction contemplated hereunder. Except as
otherwise specifically provided herein, in the Plan or in the Confirmation
Order, nothing in this Trust Agreement is intended or shall be construed to
confer upon or to give any person other than the parties thereto and their
respective heirs, administrators, executors, successors, or assigns any right to
remedies under or by reason of this Trust Agreement.

      8.9   Confidentiality. Each predecessor Trustee and its representatives
and the representatives of the Trustee (each a "Covered Person") shall, during
the period that they serve in such capacity under this Trust Agreement and
following either the termination of this Trust

                                       17
<PAGE>

Agreement or such Covered Person's removal, incapacity, or resignation
hereunder, hold strictly confidential and not use for personal gain any
material, non-public information of or pertaining to any entity to which any of
the Trust Assets relates or of which it has become aware in its capacity (the
"Information"), except to the extent disclosure is required by applicable law,
order, regulation or legal process. In the event that any Covered Person is
requested or required (by oral questions, interrogatories, requests for
information or documents, subpoena, civil investigation, demand or similar legal
process) to disclose any Information, such Covered Person shall notify the
Trustee reasonably promptly (unless prohibited by law) so that the Trustee may
seek an appropriate protective order or other appropriate remedy or, in its
discretion, waive compliance with the terms of this Section (and if the Trustee
seeks such an order, the relevant Covered Person will provide cooperation as the
Trustee shall reasonably request). In the event that no such protective order or
other remedy is obtained, or that the Trustee waives compliance with the terms
of this Section and that any Covered Person is nonetheless legally compelled to
disclose the Information, the Covered Person will furnish only that portion of
the Information, which the Covered Person, advised by counsel, is legally
required and will give the Trustee written notice (unless prohibited by law) of
the Information to be disclosed as far in advance as practicable and exercise
all reasonable efforts to obtain reliable assurance that confidential treatment
will be accorded the Information.

      8.10  Headings. The section headings contained in this Trust Agreement are
solely for convenience of reference and shall not affect the meaning or
interpretation of this Trust Agreement or of any term or provision hereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       18
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have either executed and
acknowledged this Trust Agreement, or caused it to be executed and acknowledged
on their behalf by their duly authorized officers all as of the date first above
written.

                                   Enron Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Managing Director and Assistant
                                                              General Counsel

                                   Enron Metals & Commodity Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron North America Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Power Marketing, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       19
<PAGE>

                                   PBOG Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Smith Street Land Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Broadband Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Energy Services Operations, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Energy Marketing Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       20
<PAGE>

                                   Enron Energy Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Energy Services, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Transportation Services, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   BAM Lease Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       21
<PAGE>

                                   ENA Asset Holdings L.P.
                                   By:  Blue Heron I LLC, General Partner
                                          By: Whitewing Associates L.P., Sole
                                              Member
                                              By: Egret I LLC, Managing Member

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Gas Liquids, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Global Markets LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Net Works LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Industrial Markets LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       22
<PAGE>

                                   Operational Energy Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Engineering & Construction Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Engineering & Operational Services
                                   Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Garden State Paper Company, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Palm Beach Development Company, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       23
<PAGE>

                                   Tenant Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Energy Information Solutions, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EESO Merchant Investments, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Federal Solutions, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Freight Markets Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       24
<PAGE>

                                   Enron Broadband Services, L.P.
                                       By: Enron Broadband Services, Inc.,
                                                 General Partner

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Energy Services North America, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron LNG Marketing LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Calypso Pipeline, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Global LNG LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       25
<PAGE>

                                   Enron International Fuel Management Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Natural Gas Marketing Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ENA Upstream Company LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Liquid Fuels, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron LNG Shipping Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                       26
<PAGE>

                                   Enron Property & Services Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Capital & Trade Resources International
                                   Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Communications Leasing Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EnronWind Systems, LLC, f/k/a EREC
                                       Subsidiary I, LLC and successor to
                                       Enron Wind Systems Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EnronWind Constructors LLC, f/k/a
                                       EREC Subsidiary II, LLC and successor to
                                       Enron Wind Constructors Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       27
<PAGE>

                                   Enron Wind Energy Systems LLC, f/k/a
                                       EREC Subsidiary III, LLC and successor to
                                       Enron Wind Energy Systems Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EnronWind Maintenance LLC, f/k/a
                                       EREC Subsidiary IV, LLC and successor to
                                       Enron Wind Maintenance Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Wind LLC, f/k/a
                                       EREC Subsidiary V, LLC and successor to
                                       Enron Wind Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Intratex Gas Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       28
<PAGE>

                                   Enron Processing Properties, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Methanol Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Ventures Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   The New Energy Trading Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EES Service Holdings, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       29
<PAGE>

                                   Enron Wind Development LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ZWHC LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Zond Pacific, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Reserve Acquisition Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EPC Estates Services, Inc., f/k/a
                                       National Energy Production Corporation

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       30
<PAGE>

                                   Enron Power & Industrial Construction Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   NEPCO Power Procurement Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   NEPCO Services International, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Caribe Verde (SJG) Inc., f/k/a
                                       San Juan Gas Company, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EBF LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       31
<PAGE>

                                   Zond Minnesota Construction Company LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Fuels International, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   E Power Holdings Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   EFS Construction Management Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Management, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                       32
<PAGE>

                                   Enron Expat Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Artemis Associates, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Clinton Energy Management Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   LINGTEC Constructors L.P.
                                       By: Enron Power Construction Company,
                                                   General Partner

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  Stephen D. Dowd
                                       Title: President and Chief Executive
                                              Officer

                                   EGS New Ventures Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       33
<PAGE>

                                   Louisiana Gas Marketing Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Louisiana Resources Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   LGMI, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   LRCI, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Communications Group, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       34
<PAGE>

                                   EnRock Management, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ECI-Texas, L.P.
                                       By: Enron Broadband Services, Inc.,
                                                    General Partner

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EnRock, L.P.
                                   By: Enrock Management, LLC, General Partner

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ECI-Nevada Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Alligator Alley Pipeline Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                       35
<PAGE>

                                   Enron Wind Storm Lake ILLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ECT Merchant Investments Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EnronOnLine, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   St. Charles Development Company, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Calcasieu Development Company, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       36
<PAGE>

                                   Calvert City Power I, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron ACS, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   LOA, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron India LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron International Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                       37
<PAGE>

                                   Enron International Holdings Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Middle East LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron WarpSpeed Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Modulus Technologies, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Telecommunications, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       38
<PAGE>

                                   DataSystems Group, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Risk Management & Trading Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Omicron Enterprises, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS I, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS II, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       39
<PAGE>

                                   EFS III, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS V, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS VI, L.P.

                                       By:  EFS IV, Inc., General Partner

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS VII, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS IX, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       40
<PAGE>

                                   EFS X, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS XI, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS XII, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS XV, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS XVII, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       41
<PAGE>

                                   Jovinole Associates
                                   By:  EFS I, Inc. and EFS XIII, Inc., it's
                                                    Partners

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS Holdings, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Operations Services LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Green Power Partners I LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   TLS Investors, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       42
<PAGE>

                                   ECT Securities Limited Partnership
                                       By: ECT Securities GP Corp., General
                                           Partner

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ECT Securities LP Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   ECT Securities GP Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   KUCC Cleburne, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron International Asset Management Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                       43
<PAGE>

                                   Enron Brazil Power Holdings XI Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                   Enron Holding Company L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Development Management Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                   Enron International Korea Holdings Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Caribe VI Holdings Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                       44
<PAGE>

                                   Enron International Asia Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Brazil Power Investments XI Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                   Paulista Electrical Distribution, L.L.C.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Pipeline Construction Services Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Pipeline Services Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       45
<PAGE>

                                   Enron Trailblazer Pipeline Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Liquid Services Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Machine and Mechanical Services, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Commercial Finance Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                   Enron Permian Gathering Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       46
<PAGE>

                                   Transwestern Gathering Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Gathering Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EGP Fuels Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Asset Management Resources, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Brazil Power Holdings I Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                       47
<PAGE>

                                   Enron do Brazil Holdings Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                   Enron Wind Storm Lake II LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Renewable Energy Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Acquisition III Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Wind Lake Benton LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       48
<PAGE>

                                   Superior Construction Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS IV, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS VIII, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   EFS XIII, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Credit Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                       49
<PAGE>

                                   Enron Power Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Richmond Power Enterprise, L.P.
                                        By: Enron-Richmond Power Corp. and
                                            Richmond Power Holdings, Inc.,
                                                     General Partners

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  Charles E. Schneider
                                       Title: President and Chief Executive
                                                                    Officer

                                   ECT Strategic Value Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Development Funding Ltd.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Chairman

                                   Atlantic Commercial Finance, Inc.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                       50
<PAGE>

                                   The Protane Corporation

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Asia Pacific/Africa/China LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Development Corp.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   ET Power 3 LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Nowa Sarzyna Holding B.V.

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Authorized Representative

                                       51
<PAGE>

                                   Enron South America LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Enron Global Power & Pipelines LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                   Cabazon Power Partners LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Cabazon Holdings LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Caribbean Basin LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: President

                                       52
<PAGE>

                                   Victory Garden Power Partners ILLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Oswego Cogen Company, LLC

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Enron Equipment & Procurement Company

                                   By: /s/ K.Wade Cline
                                       ---------------------------------------
                                       Name:  K. Wade Cline
                                       Title: Vice President

                                   Stephen Forbes Cooper, LLC, as Trustee

                                   By: /s/ Stephen Forbes Copper
                                       ---------------------------------------
                                       Name:  Stephen Forbes Cooper
                                       Title: Manager

                                       53<PAGE>
                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

                               REORGANIZED DEBTOR
                          PLAN ADMINISTRATION AGREEMENT

            This REORGANIZED DEBTOR PLAN ADMINISTRATION AGREEMENT (this
"Agreement"), dated as of November 17, 2004, between Enron Corp., an Oregon
corporation ("Enron"), each of the other Debtors that are signatories hereto and
Stephen Forbes Cooper, LLC (the "SFC").

                                   WITNESSETH:

            WHEREAS, commencing on December 2, 2001, Enron and certain of its
subsidiaries filed voluntary petitions for relief under chapter 11 of the
Bankruptcy Code (as defined in the Plan); and

            WHEREAS, by order, dated July 15, 2004, the Bankruptcy Court
confirmed the Supplemental Modified Fifth Amended Joint Plan of Affiliated
Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code, dated July
2, 2004, including, without limitation, the Plan Supplement and all schedules
and exhibits thereto (as the same has been or may be amended, the "Plan"); and

            WHEREAS, in accordance with Article XXXVI of the Plan, certain
duties and responsibilities shall be borne by the Reorganized Debtor Plan
Administrator; and

            WHEREAS, effective upon the Effective Date of the Plan, Enron
desires to appoint SFC to serve as Reorganized Debtor Plan Administrator under
the Plan, and SFC is willing to serve in such capacity, in each case upon the
terms set forth herein and pursuant to the Plan;

            NOW, THEREFORE, the parties hereby agree as follows.

      1.    Definitions. Capitalized terms used herein without definition shall
have the respective meanings assigned to such terms in the Plan.

      2.    Appointment. Enron hereby appoints SFC to serve as Reorganized
Debtor Plan Administrator under the Plan, and SFC hereby accepts such
appointment and agrees to serve in such capacity, in each case effective upon
the Effective Date of the Plan. On the Effective Date, compliance with the
provisions of the Plan shall become the general responsibility of the
Reorganized Debtor Plan Administrator, as an employee of the Reorganized
Debtors, (subject to the supervision of the Board of Directors of the
Reorganized Debtors) pursuant to and in accordance with the provisions of the
Plan and this Agreement.

      3.    Responsibilities. The responsibilities of the Reorganized Debtor
Plan Administrator shall include (a) facilitating the Reorganized Debtors'
prosecution or settlement of objections to and estimations of Claims, (b)
prosecution or settlement of claims and causes of action held by the Debtors and
Debtors in Possession, (c) assisting

<PAGE>

the Litigation Trustee and the Special Litigation Trustee in performing their
respective duties, (d) calculating and assisting the Disbursing Agent in
implementing all distributions in accordance with the Plan, (e) causing to be
filed all required tax returns and paying taxes and all other obligations on
behalf of the Reorganized Debtors from funds held by the Reorganized Debtors,
(f) quarterly reporting (in a manner determined by the Reorganized ENE Board or
as otherwise required by the Bankruptcy Code, the Plan or by the Bankruptcy
Court) to the Bankruptcy Court of the status of the Claims resolution process,
distributions on Allowed Claims and prosecution of causes of action, (g)
liquidating the Remaining Assets and providing for the distribution of the net
proceeds thereof in accordance with the provisions of the Plan, (h) consulting
with, and providing information to, the DCR Overseers in connection with the
voting or sale of the Plan Securities to be deposited into the Disputed Claims
reserve to be created in accordance with Section 21.3 of the Plan, and (i) such
other responsibilities as may be vested in this Agreement pursuant to the Plan,
this Agreement or Bankruptcy Court order or as may be necessary and proper to
carry out the provisions of the Plan. Notwithstanding anything to the contrary
the Plan Administrator shall report to, and follow, as if it were an officer of
each of the Reorganized Debtors, the direction, guidance and oversight of the
Board of Directors of Reorganized ENE.

      4.    Powers. The powers of the Reorganized Debtor Plan Administrator
shall, without any further Bankruptcy Court approval in each of the following
cases, include (a) the power to invest funds in, and withdraw, make
distributions and pay taxes and other obligations owed by the Reorganized
Debtors from funds held by the Reorganized Debtor Plan Administrator and/or the
Reorganized Debtors in accordance with the Plan, (b) the power to compromise and
settle claims and causes of action on behalf of or against the Reorganized
Debtors, other than Litigation Trust Claims, Special Litigation Trust Claims and
claims and causes of action which are the subject of the Severance Settlement
Fund Litigation, and (c) such other powers as may be vested in or assumed by the
Reorganized Debtor Plan Administrator pursuant to the Plan, this Agreement or as
may be deemed necessary and proper to carry out the provisions of the Plan.

      5.    Certain Limitations on Powers. Notwithstanding anything to the
contrary contained herein or in the Plan, prior to taking the following actions,
the Plan Administrator shall be required to obtain approval of the board of
directors of Reorganized ENE and, if requested by the board of directors, the
Bankruptcy Court:

            (a)   Allowance of Claims. Compromise or settle any Claim to the
extent such resolution (i) provides for the allowance of a Claim against a
Debtor that exceeds one hundred million dollars ($100,000,000), (ii) provides
for the allowance of a Claim against a Debtor that exceeds one million dollars
($1,000,000) and constitutes more than twenty percent (20%) of such Debtor's
Book Value (hereinafter defined) of Claims, (iii) provides for the allowance of
a Claim that exceeds twenty million dollars ($20,000,000) and constitutes more
than one hundred five percent (105%) of such Claim's Book Value and (iv)
provides for the allowance of a Claim of a current or former employee or insider
of the Debtors that exceeds one hundred thousand dollars ($100,000).

                                       2
<PAGE>

            (b)   Disposition of Assets. Enter into definitive documentation
concerning any sale, transfer or other disposition (a "Sale") of any Asset that
has a Book Value greater than two million dollars ($2,000,000) unless (i) the
aggregate proceeds to be received from such Sale are exclusively Cash or Cash
Equivalents, (ii) the aggregate proceeds from such Sale exceed ninety-five
percent (95%) of the Book Value of such Asset and (iii) the documentation for
the Sale specifies that the transaction is on an "as is, where is" basis, with
no indemnification obligations of the Reorganized Debtors and no survival of
representations, warranties or covenants made by the Reorganized Debtors.

            (c)   Causes of Action. Compromise or settle any claim or cause of
action that constitutes an Asset for which the initial amount demanded exceeds
two million dollars ($2,000,000).

            As used in this section, "Book Value" shall mean the value
attributed to an Asset or Claim in Appendix C to the Disclosure Statement and/or
in any supporting documentation and information upon which Appendix C is based.

      6.    Other Activities. The Reorganized Debtor Plan Administrator shall be
entitled to perform services for and be employed by third parties, provided that
such performance or employment affords the Reorganized Debtor Plan Administrator
sufficient time to carry out its responsibilities as Reorganized Debtor Plan
Administrator.

      7.    Representatives.

            (a)   To satisfy its obligations under the Agreement to provide
services to the Reorganized Debtors, SFC may utilize (i) the Associate Directors
of Restructuring (each an "Associate Director") approved by Enron's Board of
Directors and/or the Bankruptcy Court prior to the Effective Date to provide
services to the Debtors on behalf of SFC, and (ii) each Associate Director
designated by SFC after the Effective Date (A) in a written notice given to
Enron's Board of Directors or (B) in a verbal notice given to Enron's Board of
Directors as reflected in the Minutes of a meeting of such Board of Directors,
to provide services to the Reorganized Debtors pursuant to this Agreement (each
a "Post Effective Date Appointed Associate Director"), provided, that, (X) if
Enron's Board of Directors objects to the use of any Post Effective Date
Appointed Associate Director by SFC for such services, SFC shall obtain the
approval of the Bankruptcy Court, after notice and an opportunity for hearing,
and (Y) if Enron's Board of Directors approves of the use of a Post Effective
Date Appointed Associate Director by SFC for such services, SFC shall follow and
satisfy the notice procedures with regard to such Post Effective Date Appointed
Associate Director set forth in Schedule 2, in each case prior to utilizing such
Post Effective Date Appointed Associate Director.

            (b)   In the event that the Board of Directors of Enron requests
that SFC reduce the number of Associate Directors utilized to provide the
services set forth herein, and SFC refuses to make such a reduction, such Board
of Directors may request the Bankruptcy Court to reduce the number of Associate
Directors authorized to provide such services. If the Bankruptcy Court grants
such request, the Associate Directors authorized

                                       3
<PAGE>

to provide such services pursuant to clause (a) above shall be adjusted as set
forth in the applicable order of the Bankruptcy Court.

            (c)   Prior to the Effective Date, SFC shall cause Stephen F. Cooper
("Cooper") and each of SFC's other employees and principals that will provide
services on behalf of the Reorganized Debtors (collectively with Cooper, the
"Representatives") pursuant to this Agreement to enter into an agreement in the
form attached hereto as Exhibit A, and shall undertake diligent efforts to cause
each Representative to comply with the terms and conditions of such agreement.

      8.    Compensation and Reimbursement of SFC.

            (a)   SFC's compensation shall consist of the following:

                  (i)   an annual payment of $1,320,000, payable monthly in the
amount of $110,000 in immediately available funds throughout the term hereof for
the services of SFC. The initial monthly payment under this Agreement shall be
on the Effective Date in a prorated amount based upon the remaining days
following the Effective Date in the month of the Effective Date. The monthly
payment for each subsequent month shall be on the first day of each calendar
month for which the services are being provided.

                  (ii)  an annual payment of $864,000 for each Associate
Director permitted to provide services to the Reorganized Debtors pursuant to
Section 7(a) on the basis of 160 hours per month as a full time equivalent
("FTE") for an Associate Director, such fee to be payable monthly in the amount
of $72,000 in immediately available funds. The initial monthly payment under
this Agreement shall be on the Effective Date in a prorated amount based upon
the remaining days following the Effective Date in the month of the Effective
Date. The monthly payment for each subsequent month shall be on the first day of
each calendar month and will be determined as set forth in Section 8(c).
Additionally, a quarterly adjustment to the amounts paid monthly pursuant to
Sections 8(a) and 8(b) shall be made beginning with the first calendar quarter
ending after the Effective Date, in accordance with Section 8(c).

                  (iii) a fee requested by SFC of, and subject to the approval
of, Enron's Board of Directors and the Bankruptcy Court, which shall be
reasonable under the circumstances, to be fixed and paid promptly after the
earlier of either (i) termination of this Agreement other than for Cause
(hereinafter defined)(in addition to any fee payable to Section 12(d)), or (ii)
liquidation of substantially all of the Reorganized Debtors' material assets, in
an amount to take into account, among other things, SFC's dedication to
Reorganized Debtors after the effectiveness of the Plan to the exclusion of
other business, comparable fees, results achieved, value maximization, and
diligent progress and efforts towards the liquidation of the Reorganized Debtors
and their affiliates; provided, however, if Enron's Board of Directors does not
approve such fee requested by SFC, SFC may request approval of such fee by the
Bankruptcy Court, in

                                       4
<PAGE>

which case such fee shall be payable as approved by the Bankruptcy Court without
approval of Enron's Board of Directors.

            (b)   The Reorganized Debtors shall reimburse SFC for all reasonable
out-of-pocket expenses incurred and billed consistent with practices used prior
to the Effective Date, including, but not limited to, reasonable costs of
travel, reproduction, typing, computer usage, reasonable fees of legal counsel
(including legal counsel to draft and enforce this Agreement) and other similar
direct expenses and any and all taxes (other than state, local and federal
income taxes) on any of the foregoing.

            (c)   The Reorganized Debtors shall pay to SFC the compensation set
forth in Section 8(a) and shall reimburse expenses in accordance with Section
8(b) based upon the submission of monthly invoices by SFC setting forth the
number of Associate Directors for the prior calendar month, a general
description of the services provided and a detailed listing of the expenses
sought to be reimbursed. SFC shall make a retroactive upward or downward
adjustment on a quarterly basis to the fee calculated pursuant to Sections
8(a)(i) and 8(a)(ii) hereof based on the actual level of efforts (i.e., the
FTE's actually worked during the quarter) and experience (as indicated on
Schedule 1 by the normal billing rate for similar engagements) of the
individuals providing services. Any hourly rate increases shall only be
effective to the extent they are generally effective for other similar clients
of SFC or Kroll Zolfo Cooper LLC. Such retroactive adjustment shall be reported
to the Board of Directors of Enron and shall be binding upon the Reorganized
Debtors, unless the Board of Directors of Enron affirmatively objects to the
calculation of such adjustment and gives written notice of such objection to SFC
within ten (10) days after date such adjustment is reported to the Board of
Directors. In the event of such objection SFC may seek approval of such
adjustment from the Bankruptcy Court, in which case such adjustment shall be
binding upon the Reorganized Debtors only upon its approval by the Bankruptcy
Court.

            (d)   Notwithstanding anything to the contrary, the fees and
expenses payable to SFC pursuant to the terms of this Agreement shall serve as
sole compensation and reimbursement for all services rendered by SFC or any of
its employees or affiliates to the Reorganized Debtors or any of the Reorganized
Debtors' Affiliates as Plan Administrator, Disbursing Agent or trustee of any
trust formed pursuant to the Plan (the "Services"). No other fees or expenses
shall be paid on account of the rendering of such Services.

            (e)   Each time that SFC adjusts the hourly rates charged for its
Associate Directors, it shall provide a notice setting forth such rates to
Enron's Board of Directors as promptly as practicable after such rates are
determined.

      9.    Confidentiality.

            (a)   The Reorganized Debtors and their Boards of Directors shall
treat any information received from SFC or any Representative as confidential,
and, except as specified in this Section 9(a), will not publish, distribute or
otherwise disclose in any

                                       5
<PAGE>

manner any information developed by or received from SFC or any Representative
without SFC's or such Representative's prior approval. Such approval shall not
be required if (i) the information sought is required to be disclosed by an
order binding on the Reorganized Debtor and issued by a court having competent
jurisdiction over such Reorganized Debtor and such information is disclosed only
pursuant to the terms of such order, (ii) such information is required to be
disclosed by applicable law based on the advice of legal counsel, (iii) the
information is otherwise publicly available other than, to the knowledge of such
disclosing Person, through disclosure by a party in breach of a confidentiality
obligation with respect thereto, or (iv) any of such Boards of Directors
determines that it is required to disclose such information to satisfy its
fiduciary duties and such Board of Directors obtains (A) approval of the
Bankruptcy Court to make such disclosure, or (B) an opinion of counsel affirming
that such disclosure is required.

            (b)   SFC agrees, and shall cause each Representative, to treat any
information received from the Reorganized Debtors or their representatives as
confidential, and, except as specified in this Section 9(b), will not publish,
distribute or otherwise disclose in any manner any information developed by or
received from the Reorganized Debtors or their representatives without the
Enron's prior approval. Such approval shall not be required if (i) the
information sought is required to be disclosed by an order binding on SFC or
such Representative, as the case may be, and issued by a court having competent
jurisdiction over SFC or such Representative, as the case may be, and such
information is disclosed only pursuant to the terms of such order, (ii) such
information is required to be disclosed by applicable law based on the advice of
legal counsel or (iii) the information is otherwise publicly available other
than, to the knowledge of such disclosing Person, through disclosure by a party
in breach of a confidentiality obligation with respect thereto.

      10.   Exculpation; Indemnification.

            (a)   None of the Reorganized Debtor Plan Administrator nor any
Representative shall be liable to any Persons or Entities, including, without
limitation, holders of Claims or Equity Interests or other parties in interest,
for any claim, cause of action and other assertion of liability arising out of
the discharge of the powers and duties conferred upon the Reorganized Debtor
Plan Administrator by the Plan or any order of the Bankruptcy Court entered
pursuant to or in furtherance of the Plan, or applicable law, except for actions
or omissions to act arising out of recklessness, gross negligence, willful
misconduct, breach of fiduciary duty or knowing violation of law of Reorganized
Debtor Plan Administrator or such Representative. No holder of a Claim or Equity
Interest or other party in interest will have any claim or cause of action
against the Reorganized Debtor Plan Administrator or any Representative for
making payments in accordance with the Plan or for implementing the provisions
of the Plan, except for actions or omissions to act arising out of recklessness,
gross negligence, willful misconduct, breach of fiduciary duty or knowing
violation of law.

            (b)   The Reorganized Debtors shall indemnify and hold harmless the
Reorganized Debtor Plan Administrator and each Representative to the fullest
extent

                                       6
<PAGE>

permitted under (i) the Articles of Incorporation and by-laws of the Reorganized
Debtors, (ii) the laws of the jurisdiction in which the applicable Reorganized
Debtor is organized applicable to an officer of a corporation.

      11.   Term. This Agreement shall terminate on the earlier of: (a) the
termination of the Reorganized Debtors Plan Administrator by the board of
directors of Reorganized ENE with or without Cause or the effectiveness of its
resignation pursuant to Section 12 and (b) thirty (30) days following the
closing of the bankruptcy cases of the Reorganized Debtors. Notwithstanding the
foregoing, the Bankruptcy Court, upon motion by the board of directors of
Reorganized ENE on notice with an opportunity for a hearing at least three (3)
months before the expiration of the original term or an extended term, may
extend, for a fixed period, the term of this Agreement if it is necessary to
facilitate or complete the transactions contemplated herein and by the Plan. The
Bankruptcy Court may approve multiple extensions of the term of this Agreement.

      12.   Removal & Resignation of Reorganized Debtor Plan Administrator.

            (a)   Removal. The Reorganized Debtor Plan Administrator may be
removed with or without Cause by resolution of the board of directors of
Reorganized ENE, a copy of which shall be delivered to the removed Reorganized
Debtor Plan Administrator, and, in the case of a Section 12(a)(v) removal, such
notice shall be provided not less than ten (10) days prior to the effectiveness
of such removal. For purposes of this Agreement, "Cause" shall be defined as:
(i) the Reorganized Debtor Plan Administrator's theft or embezzlement or
attempted theft or embezzlement of money or tangible or intangible assets or
property; (ii) the Reorganized Debtor Plan Administrator's violation of any law
(whether foreign or domestic), which results in a felony indictment or similar
judicial proceeding; (iii) the Reorganized Debtor Plan Administrator's
recklessness, gross negligence, willful misconduct, breach of fiduciary duty or
knowing violation of law, in the performance of its duties; (iv) the Reorganized
Debtor Plan Administrator's failure to perform any of its other material duties
under this Agreement; or (v) the Reorganized Debtor Plan Administrator's failure
to follow any lawful direction of the board of directors of Reorganized ENE with
respect to the responsibility of the Reorganized Debtor Plan Administrator as
specified in Sections 3, 4 and 5 above; provided, however, the Reorganized
Debtor Plan Administrator has been given (A) a reasonable period to cure any
alleged Cause under clauses (iii) (other than willful misconduct) and (iv) and
(B) ten (10) days to cure any alleged Cause under clause (v).

            (b)   Simultaneous Removal and Resignation. To the extent that the
Reorganized Debtor Plan Administrator is removed pursuant to the terms specified
in Section 12(a) above (a "Removal") or the Reorganized Debtor Plan
Administrator resigns pursuant to the terms specified in Section 12(c) below (a
"Resignation"), and such Reorganized Debtor Plan Administrator is then serving
in any other capacity for or on behalf of any of the Reorganized Debtors or any
of their Affiliates or is serving as Disbursing Agent or as trustee of any trust
formed pursuant to the Plan (service by the Reorganized Debtor Plan
Administrator in each such additional capacity, a "Duty" and

                                       7
<PAGE>

collectively, the "Duties"), the Reorganized Debtor Plan Administrator shall be
deemed to be terminated (for all purposes and without any further action) from
each of its other Duties upon its Removal or Resignation.

            (c)   Resignation. SFC may resign as Reorganized Debtor Plan
Administrator hereunder upon delivery of forty five (45) days' written notice to
the board of directors of Reorganized ENE. If a successor Reorganized Debtor
Plan Administrator has not been appointed by the end of such forty five (45) day
period, the Reorganized Debtor Plan Administrator shall continue as Reorganized
Debtor Plan Administrator for up to an additional forty five (45) days if so
requested by the board of directors of Reorganized ENE pursuant to the terms
specified herein.

            (d)   Termination Fee. In the event of a termination of the
Reorganized Debtor Plan Administrator without Cause, the Reorganized Plan
Administrator shall be paid a fee of $2,900,000. This fee represents liquidated
damages intended by the parties to compensate SFC for the lost opportunity costs
and reallocation of resources upon termination without Cause.

            (e)   Expiration of Rights and Obligations. The duties,
responsibilities and powers of the Reorganized Debtor Plan Administrator and the
Reorganized Debtors will terminate upon the termination of this Agreement.

      13.   Notices. Any notices or other communications required or permitted
hereunder shall be sufficiently given if in writing and personally delivered or
sent by registered or certified mail, postage prepaid, return receipt requested,
or sent by facsimile, addressed as follows or to such other address as any party
shall have given notice of pursuant hereto:

            In the case of the Reorganized Debtor Plan Administrator:

                  Stephen Forbes Cooper LLC
                  900 Third Avenue
                  New York, New York 10022
                  Telephone: (212) 213-5555
                  Telecopier: (212) 213-1749
                  Attn: Stephen F. Cooper

            with a copy to:

                  Stephen Forbes Cooper LLC
                  101 Eisenhower Parkway, 3rd Floor
                  Roseland, New Jersey 07068
                  Telephone: (973) 618-5100
                  Telecopier: (973) 618-9430
                  Attn: Elizabeth S. Kardos,
                          General Counsel

                                       8
<PAGE>

            In the case of Enron or any other Debtor:

                  Enron Corp.
                  1221 Lamar, Suite 1600
                  Houston, Texas  77010-1221
                  Attention:  General Counsel
                  Telephone: (713) 853-6161
                  Telecopier: (713) 853-3129

            with a copy to:

                  Weil, Gotshal & Manges LLP
                  767 Fifth Avenue
                  New York, New York 10153
                  Attention:  Brian S. Rosen, Esq.
                  Telephone: (212) 310-8000
                  Telecopier:  (212) 310-8007

      14.   Jurisdiction. The Bankruptcy Court shall have the continuing and
exclusive jurisdiction to interpret and enforce this Agreement and to determine
all disputes arising hereunder.

      15.   Governing Law; Jurisdiction; Board Standing.

            (a)   This Agreement shall be governed and construed in accordance
with the laws of the State of New York, without giving effect to rules governing
the conflict of laws. Without limiting any Person or Entity's right to appeal
any order of the Bankruptcy Court, (i) the Bankruptcy Court shall retain
exclusive jurisdiction to enforce the terms of this Agreement and to decide any
claims or disputes which may arise or result from, or be connected with, this
Agreement, any breach or default hereunder, or the transactions contemplated
hereby, and (ii) any and all actions related to the foregoing shall be filed and
maintained only in the Bankruptcy Court, and the parties hereby consent to and
submit to the exclusive jurisdiction and venue of the Bankruptcy Court.

            (b)   In the event that (i) SFC makes a request of the Bankruptcy
Court with regard to any matter arising out of this Agreement, and any Board of
Directors of the Reorganized Debtors desires to object to the granting of such
request, or (ii) any Board of Directors of the Reorganized Debtors is required,
or desires, to obtain approval, or an order, of the Bankruptcy Court pursuant to
this Agreement, such Board of Directors may retain counsel or other advisors at
the reasonable expense of the Reorganized Debtor to advise or otherwise
represent such Board of Directors in connection with the matters specified in
(i) and (ii) of the clause (b), including, without limitation, to object to,
seek approval or an order with regard to, and/or appear at the hearing
regarding, such matters. Nothing in this clause (b) shall be deemed to require
the approval of any Board of Directors of the Reorganized Debtors for the
granting of any request by SFC of the Bankruptcy Court.

                                       9
<PAGE>

      16.   Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be an original, and which together shall
constitute a single instrument.

      17.   Entire Agreement. This Reorganized Debtor Plan Administrator
Agreement constitutes the entire agreement by and among the parties hereto
regarding the subject matter hereof. This Reorganized Debtor Plan Administrator
Agreement supersedes all prior and contemporaneous agreements, understandings,
negotiations, discussions, written or oral, of the parties hereto, relating to
any transaction contemplated hereunder, including without limitation the [set
forth all prior SFC Engagement Letters]; provided, however, this Agreement shall
not limit any compensation due to SFC for services provided prior to the
Effective Date pursuant to any other agreement or order of the Bankruptcy Court.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first above written.

                                  Enron Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Managing Director and
                                              Assistant General Counsel

                                  Enron Metals & Commodity Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron North America Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Power Marketing, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  PBOG Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                     11
<PAGE>

                                  Smith Street Land Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Broadband Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Energy Services Operations, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Energy Marketing Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Energy Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     12
<PAGE>

                                  Enron Energy Services, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Transportation Services, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  BAM Lease Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ENA Asset Holdings L.P.
                                  By: Blue Heron I LLC, General Partner

                                        By: Whitewing Associates L.P., Sole
                                            Member
                                            By: Egret I LLC, Managing
                                            Member

                                  By:/s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Gas Liquids, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:   K. Wade Cline
                                      Title:  Vice President

                                     13
<PAGE>

                                  Enron Global Markets LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Net Works LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Industrial Markets LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Operational Energy Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Engineering & Construction Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     14
<PAGE>

                                  Enron Engineering & Operational Services
                                  Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Garden State Paper Company, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Palm Beach Development Company, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Tenant Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Energy Information Solutions, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     15
<PAGE>

                                  EESO Merchant Investments, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Federal Solutions, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Freight Markets Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Broadband Services, L.P.
                                       By:  Enron Broadband Services, Inc.,
                                                General Partner

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Energy Services North America, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     16
<PAGE>

                                  Enron LNG Marketing LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Calypso Pipeline, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Global LNG LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron International Fuel Management Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Natural Gas Marketing Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     17
<PAGE>

                                  ENA Upstream Company LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Liquid Fuels, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron LNG Shipping Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron Property & Services Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Capital & Trade Resources
                                  International Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     18
<PAGE>

                                  Enron Communications Leasing Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Wind Systems, LLC, f/k/a
                                       EREC Subsidiary I, LLC and successor to
                                       Enron Wind Systems Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Wind Constructors LLC, f/k/a
                                      EREC Subsidiary II, LLC and successor to
                                      Enron Wind Constructors Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EnronWind Energy Systems LLC, f/k/a
                                      EREC Subsidiary III, LLC and successor to
                                      Enron Wind Energy Systems Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     19
<PAGE>

                                  EnronWind Maintenance LLC, f/k/a
                                      EREC Subsidiary IV, LLC and
                                      successor to Enron Wind Maintenance Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EnronWind LLC, f/k/a
                                       EREC Subsidiary V,
                                       LLC and successor to Enron Wind Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Intratex Gas Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Processing Properties, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Methanol Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     20
<PAGE>

                                  Enron Ventures Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  The New Energy Trading Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EES Service Holdings, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Wind Development LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ZWHC LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     21
<PAGE>

                                  Zond Pacific, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Reserve Acquisition Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EPC Estates Services, Inc., f/k/a
                                       National Energy Production Corporation

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Power & Industrial Construction Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  NEPCO Power Procurement Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     22
<PAGE>

                                  NEPCO Services International, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Caribe Verde (SJG) Inc., f/k/a
                                       San Juan Gas Company, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EBF LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Zond Minnesota Construction Company LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Fuels International, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     23
<PAGE>

                                  E Power Holdings Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  EFS Construction Management Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Management, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Expat Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Artemis Associates, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     24
<PAGE>

                                  Clinton Energy Management Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  LINGTEC Constructors L.P.
                                       By:  Enron Power Construction
                                               Company, General Partner

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  Stephen D. Dowd
                                      Title: President and Chief
                                             Executive Officer

                                  EGS New Ventures Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Louisiana Gas Marketing Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Louisiana Resources Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     25
<PAGE>

                                  LGMI, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  LRCI, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Communications Group, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EnRock Management, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ECI-Texas, L.P.
                                      By: Enron Broadband Services, Inc.,
                                          General Partner

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     26
<PAGE>

                                  EnRock, L.P.
                                  By: Enrock Management, LLC,
                                      General Partner

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ECI-Nevada Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Alligator Alley Pipeline Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Wind Storm Lake I LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ECT Merchant Investments Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     27
<PAGE>

                                  EnronOnLine, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  St. Charles Development Company, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Calcasieu Development Company, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Calvert City Power I, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron ACS, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     28
<PAGE>

                                  LOA, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron India LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron International Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron International Holdings Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Middle East LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                     29
<PAGE>

                                  Enron WarpSpeed Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Modulus Technologies, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Telecommunications, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  DataSystems Group, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Risk Management & Trading Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     30
<PAGE>

                                  Omicron Enterprises, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS I, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS II, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS III, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS V, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     31
<PAGE>

                                  EFS VI, L.P.
                                      By:  EFS IV, Inc., General Partner

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS VII, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS IX, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS X, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS XI, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     32
<PAGE>

                                  EFS XII, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS XV, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS XVII, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Jovinole Associates
                                      By:  EFS I, Inc. and EFS XIII, Inc., it's
                                  Partners

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS Holdings, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     33
<PAGE>

                                  Enron Operations Services LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Green Power Partners I LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  TLS Investors, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ECT Securities Limited Partnership
                                       By:  ECT Securities GP Corp., General
                                               Partner

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  ECT Securities LP Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     34
<PAGE>

                                  ECT Securities GP Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  KUCC Cleburne, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron International Asset Management Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Brazil Power Holdings XI Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron Holding Company L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                     35
<PAGE>

                                  Enron Development Management Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron International Korea Holdings Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Caribe VI Holdings Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron International Asia Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Brazil Power Investments XI Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                     36
<PAGE>

                                  Paulista Electrical Distribution, L.L.C.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Pipeline Construction Services Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Pipeline Services Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Trailblazer Pipeline Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Liquid Services Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     37
<PAGE>

                                  Enron Machine and Mechanical Services, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Commercial Finance Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron Permian Gathering Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Transwestern Gathering Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Gathering Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     38
<PAGE>

                                  EGP Fuels Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Asset Management Resources, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Brazil Power Holdings I Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron do Brazil Holdings Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Enron Wind Storm Lake II LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     39
<PAGE>

                                  Enron Renewable Energy Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Acquisition III Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Wind Lake Benton LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Superior Construction Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS IV, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     40
<PAGE>

                                  EFS VIII, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  EFS XIII, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Credit Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Power Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Richmond Power Enterprise, L.P.
                                      By: Enron-Richmond Power Corp. and
                                          Richmond Power Holdings, Inc.,
                                          General Partners

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  Charles E. Schneider
                                      Title: President and Chief
                                             Executive Officer

                                     41
<PAGE>

                                  ECT Strategic Value Corp.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Development Funding Ltd.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Chairman

                                  Atlantic Commercial Finance, Inc.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  The Protane Corporation

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Asia Pacific/Africa/China LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                     42
<PAGE>

                                  Enron Development Corp.

                                  By: /s/ K.Wade Cline
                                      Name:  K. Wade Cline
                                      Title: President

                                  ET Power 3 LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Nowa Sarzyna Holding B.V.

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Authorized Representative

                                  Enron South America LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Enron Global Power & Pipelines LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                     43
<PAGE>

                                  Cabazon Power Partners LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Cabazon Holdings LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Caribbean Basin LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: President

                                  Victory Garden Power Partners I LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Oswego Cogen Company, LLC

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                  Enron Equipment & Procurement Company

                                  By: /s/ K.Wade Cline
                                      ---------------------------------------
                                      Name:  K. Wade Cline
                                      Title: Vice President

                                     44
<PAGE>

                                  Stephen Forbes Cooper, LLC, as Trustee

                                  By: /s/ Stephen Forbes Copper
                                      ---------------------------------------
                                      Name:  Stephen Forbes Cooper
                                      Title: Manager

                                       45
<PAGE>
                                   SCHEDULE 1

                                      RATES

                                 [SEE ATTACHED]
<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------------------
                                                             CURRENT
                                              AGE/YRS      BILLING RATE     HOURS/
       EMPLOYEE               POSITION      EXPERIENCE       ($/HR)*        WEEK                         ROLE
-----------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>           <C>            <C>              <C>      <C>
    Steve Cooper               Partner        55/30+           $760           40+    Overall management of the reorganization
                                                                                     process.
-----------------------------------------------------------------------------------------------------------------------------------
1.  Scott Winn                 Partner         45/20           $670           50+    Day to day management of various chapter 11
                                                                                     issues.
-----------------------------------------------------------------------------------------------------------------------------------
2.  Eva Anderson              Director         39/15           $545           50+    Overhead analysis/SPE analysis/bank
                                                                                     communications.
-----------------------------------------------------------------------------------------------------------------------------------
3.  Jerry Barbanel             Senior          39/18           $575           50+    Litigation/forensic coordination.
                              Director                                          -
-----------------------------------------------------------------------------------------------------------------------------------
4.  Robert Bingham            Director         53/25           $545           50+    Liquidity management/reporting/supervision.
-----------------------------------------------------------------------------------------------------------------------------------
5.  Robert Semple             Director         56/30           $520           50+    Business planning/asset disposition/special
                                                                                     projects.
-----------------------------------------------------------------------------------------------------------------------------------
6.  James Moffett             Director         57/35           $500           50+    Litigation support/coordination.
                                                                                -
-----------------------------------------------------------------------------------------------------------------------------------
7.  Mick Holtzleiter          Director         50/28           $495           50+    Manage liquidation/asset disposition/claims
                                                                                     resolution/litigation management/reporting
                                                                                     requirements of non-core businesses.
-----------------------------------------------------------------------------------------------------------------------------------
8.  J. Robert Cotton          Director         53/25           $545           50+    Business planning for reorganized platform and
                                                                                     special projects.
-----------------------------------------------------------------------------------------------------------------------------------
9.  Bret Fernandes             Manager         33/10           $465           50+    Liquidity management/reporting/special
                                                                                     projects.
-----------------------------------------------------------------------------------------------------------------------------------
10. Matthew Sandoval           Manager          37/5           $465           50+    Project management support of the chapter 11
                                                                                     plan.
-----------------------------------------------------------------------------------------------------------------------------------
11. Kevin Townsend             Manager         53/20           $450           50+    Project management support of the chapter 11
                                                                                     plan.
-----------------------------------------------------------------------------------------------------------------------------------
12. Molly McCallum            Associate         33/9           $385           50+    Day to day support.
-----------------------------------------------------------------------------------------------------------------------------------
13. Regina Lee                Associate         27/5           $400           50+    Litigation/preference and fraudulent
                                                                                     conveyance analyses.
-----------------------------------------------------------------------------------------------------------------------------------
14. Michael Stanton           Director         50/27           $495           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
15. Ivette Morales             Manager         45/20           $475           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
16. Xavier Oustalniol          Manager         34/12           $500           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
17. Lorraine Ciechanowicz      Manager         37/12           $425           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
18. James Agar                 Manager          31/9           $450           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
19. Erik Ringoen               Manager          34/8           $400           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
20. Paul Donato               Associate         25/1           $325           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
21. Ryan Tomme                Associate         25/3           $350           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
22. Russell Kemp               Manager         53/26           $450           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
23. Bassem Marcos              Manager         39/14           $450           55+    Litigation support.
-----------------------------------------------------------------------------------------------------------------------------------
24. Stan Wilson               Associate        30/10           $500           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
25. Jeffrey E. Tuley          Associate         24/5           $450           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
26. Bryan Thornton            Associate         28/6           $475           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
27. J. Luke Tenery            Associate         23/2           $425           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
28. D. Lance Fielder          Associate        35/13           $450           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
29. Andy Bass                 Associate         32/4           $425           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
30. Gabriel Kraft             Associate         26/3           $400           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
31. James Yerges              Associate        46/23           $350           55+    Asset location and investigative services.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
32. David Shapiro             Associate        45/16           $425           55+    Litigation Support
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
33. Richard Fogarty           Associate        39/11           $250           55+    Asset location and investigative services.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
34. Marsha Shulman            Associate        54/30           $250           55+    Asset location and investigative services.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
35. Cory Martin               Associate         24/3           $350           55+    Specialized technical litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
36. Gregg Gardiner            Associate        43/12           $520           55+    Litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
37. Ken Bara                  Associate        34/12           $390           55+    Litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
38. Mark Cervi                Associate         28/7           $390           55+    Litigation support.
                              Director
-----------------------------------------------------------------------------------------------------------------------------------
</Table>

* Billing rates have been revised to reflect rates effective July 1, 2004.

<PAGE>

                                                                  EXECUTION COPY

                                   SCHEDULE 2

                POST EFFECTIVE DATE APPOINTED ASSOCIATE DIRECTOR

SFC will file a Notice of Proposed Employment of Approved Professional (the
"Notice") with the Bankruptcy Court listing which Post Effective Date Appointed
Associate Director(s) it would like to deploy. Such deployment may be to replace
departing employees of the Reorganized Debtors or to handle workload that the
existing employees of Reorganized Debtors are unable to handle.

If such deployment is to replace departing employees of the Reorganized Debtors,
the Notice shall provide certain comparable statistics between the additional
Post Effective Date Appointed Associate Director(s) and the Reorganized Debtor
employee(s) that the Post Effective Date Appointed Associate Director(s) are
intended to replace. In particular, the Notice shall state the age, salary,
experience and education of both the additional Post Effective Date Appointed
Associate Director(s) and the Reorganized Debtor employee(s) being replaced. In
the event that a Post Effective Date Appointed Associate Director is being
deployed to work on additional work, as opposed to replacing a departing
Reorganized Debtor employee, the Notice shall make a statement to that effect
and set forth the name, age, salary, experience, education and reason for
deployment of such Post Effective Date Appointed Associate Director.

If no party in interest objects to the Notice within 10 days of the Notice being
filed, the deployment of the approved Post Effective Date Appointed Associate
Director(s) listed in the notice shall be deemed approved without further order
of the Bankruptcy Court.

If a party in interest objects to a Post Effective Date Appointed Associate
Director listed in the Notice within 10 days of the Notice being filed and the
objection cannot be consensually resolved, the employment of the such Post
Effective Date Appointed Associate Director(s) shall be subject to the entry of
an order by the Bankruptcy Court following a noticed hearing.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]