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Fotwaided by Terrance Bessey/Washit on OC/Kiikland-Elks on 04/09/200107-51 PM

  Arlik
tChris. Loehr@enron.com on 03/27/2001 11:40:20 AM
To: Terrance Bessey/Washington OC/Kirkland-Ell is o@K&E
cc: Anne Yaeger@enron.com

Subject: Re FW- LJM buyback calculation

  hey tarry,
  sorry 1 haven't been al•1? to call you back. out I think what Enron and I
have agreed to is SL3.2 million for the EPE portion and approximately
S650.000 for the pret shares. ho-aver. there a=e a couple of moving ptf•:es
• it: this analysis

  11 as you can see in the spreadsheet. 5129:8656 it: the exact amount on the
EPE portion as of )!15/01 for a 13% return to LJH. Enron uttered to build
it: a 'cushion' e c teaks the account S1`200•)(r. av+.id t_vin:_t the r•-turn
teisS exa '.ly lJl (COn't ask ne wt.yf This cushiern allr.wed us not to
  ... rdcalculatt` as of 3,27/011 howevet. Going forward for the 60 day periodd we
would want the S13 2 million to escalate by 53.900 per day fthus preserving
the cushion and thc• L3% return)
  3I.,agrirn in the spreadsheet. S6414b2 is the exac_ amount u- the pret stares
' As of 3/15/01 for a 25% return to LJH. recalcuiating as cl 3/27/0/. I Got
S646.537 (to be contirmeJ by Enronf Going forward for the 60 day period
these shares c;hou!d accrue dividends at 25!:. or 5347 per day (also to t--
conttrated by En.-or;

I will call as soon as 1.3ssible to discuss - I know it's pretty confusing.
but I hope this helps c

::hr is
713-853-3.392

tnrrnnco_bessnylildc. ki

17

CONFIDENTIAL TREATMENT REQUESTED

EXH026-00026



KE0026098

GOVERNMENT
EXHIBIT
  1292
  Crim. No. H-04-25 (S-2)