============= Page 1 of 12 ============= Ken and Linda Lay Balance Sheet Comparison May 31, 2001 Current Assets Marketable Investments Com & Pref Stocks ENE $ 58.1000 $ CPQ $ 18.2000 $ 4/30/01 11,540,415 147,475,642 Executive Stock Options 112,337,387 52.9100 15.9900 5/31/01 6,811,938 Variance (4,728,477) KLL & LPL Investments A/R-paid $450,000; Mark, David & Beau pd off house notes- approx $3.8M; Harris Bretall acct. liquidated 122,125,910 (25,349,732) $8,000,000 ENE stock used to pay off ENE LOC 78,241,368 (34,096,019) 55,000 ENE stock opt exec under plan Bonds 874,440 649,440 (225,000) $300,000 Evelocity notes converted New $75,000 note to Flashfind Mutual Funds 5,621,311 5,586,557 (34,754) Partnerships (Family)* 26,430,582 21,078,350 (5,352,232) Long Term Investments 54,078,789 54,513,450 434,661 Chase Cap Pts., SRE Properties; 2000 Sch K-1 s recorded and carried forward Retirement/Deferred Assets 55,489,519 49,461,390 (6,028,129) Personal Non Earning Assets 3,492,543 3,499,009 6,466 Current Liabilities (73,319,616) (61,258,765) 12,060,851 $8M paydown from sale of ENE to ENE, proceeds from stock option exercise & repay of notes pd debt Long Term Liabilities (99,309,489) (78,401,004) 20,908,485 Increase in Def. Tax Liability Business Liabilities (321,165) (334,413) (13,248) NET WORTH $ 244,390,358 $ 201,973,230 (42,417,128) Value based on FMV of partnership assets. No discount for partnership interest is shown. NOTE: Net Worth of $201,973,230 does not reflect 1,523,300 unvested Enron stock options and 151,948 restricted shares of Enron Corp. Based on a FMV of $52.91/share as of 5131/01, these options are valued at $17,016,751 and the restricted shares are valued at $8,039,569 totaling $25,056,320. The total value less deferred tax liability of 40% would add approximately $15,033,792 to the net worth. LAY-G32 1312 -BF002-00803 GOVERNMENT EXHIBIT 227 Crim. No. H-04-25 (S-2) ============= Page 2 of 12 ============= Ken and Linda Lay Balance Sheet Comparison May 31, 2001 Ken and Linda have guaranteed a mortgage in the amount of $900,000 maturing on January 1, 2014 with an interest rate of 6.88% at Bank of America for their daughter, Robyn Vermeil. This loan is collateralized by property appraised at $965,000 as of December 9, 1998. Ken has guaranteed three secured notes in the amounts of $250,000 and $275,000 maturing on October 23, 2001 and a construction loan in the amount of $1,230,000 maturing on January 17, 2003 for his sister, Sharon Lay. These loans all have an interest rate of 30-Day LIBOR + 1.5% and are collaterized by residential real estate. He has also guaranteed an unsecured note in the amount of $50,000 for Sharon Lay Productions, Inc. which matures 2/21/02. Linda has guaranteed a note secured by a 2000 Toyota Avalon in the amount of $26,949 and a note secured by a 2001 Toyota in the amount of $19,381. Linda has guaranteed a note in the amount of $130,000 maturing November 28, 2005 with an interest rate of 8.15% for Randy Gray. This loan is secured by residential real estate in Galveston. Ken and Linda have guaranteed an unsecured $5,000,000 line of credit for MILAND Investments, L.L.C. at Bank of America. The line of credit matures on April 5, 2002 with a floating interest rate of 30-Day LIBOR plus 1.25%. The amount currently funded on the line of credit is $772,142. The outstanding commitments for various investments total $ 18,827,657 LAY-G32 1313 _BF002-00804 ============= Page 3 of 12 ============= List of Outstanding Commitments For May 31, 2001 Total Outstanding PERSONAL Commitment Total Invested Commitment Capricorn Investors II LP Capricorn Investors III LP Carson Private European Fund Chase Cap Ptrs Private Eq Fund Corporate Opportunities Funds Environmental Opportunities Fund Environmental Opportunities II Fund Genesis Park LP Lazard Technology Partners II LP Murphree Venture Partners V, LP SRE Properties Partnership No. 1, L.P. Sterling Group Partners I, L.P. Vanguard VII LP Westbridge Ventures, L.P. SUBTOTAL List of Scheduled Commitments: Houston NFL Holdings (Offset by Credit Facility at Bank of Am) TOTAL 500,000 500,000 - 750,000 402,811 347,189 1,625,000 1,137, 500 487,500 5,000,000 2,164,364 2,835,636 750,000 375,000 375,000 500,000 475,000 25,000 400,000 168,000 232,000 500,000 104,544 395,456 1,000,000 389,365 610,635 500,000 100,000 400,000 2,500,000 1,673,342 826,658 2,500,000 32,500 2,467,500 3,000,000 600,000 2,400,000 1,000,000 249,917 750,083 $ 20,525,000 $ 8,372,343 $ 12,152,657 11,675,000 5,000,000 6,675,000 $ 32,200,000 $ 13,372,343 $ 18,827,657 LAY-G32 1314 _BF002-00805 ============= Page 4 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: May 31, 2001 ASSETS CURRENT ASSETS Cash on Hand: CASH ON HAND/SK CASH ON HAND/PSTOKES CASH ON HAND/MSTURGIS CASH ON HAND/LEONA CASH ON HAND/PRAKER CASH ON HAND/BVLILT Total Cash on Hand: Checking Accounts: BANK OF AMERICA 0707 BANK OF AMER/LPL PROP BANK OF AMER/STOKES CHASE BANK CHECKING VECTRA BANK UNITY 109-900 Total Checking Accounts: Money Market Accounts: DIVIDEND RECVBLE ACCT WASHINGTON DC ACCT Total Money Market Accounts: Brokerage Accounts: CHARLES SCH-CAPROCK/SCH-CR GOLDMAN SACHS/GS-61 GOLDMAN SACHS/GS-42 PANE WEBBER MMA/PW-22 PAINE WEBBER CYPRES S/PW-43 PAINE WEBBER EGA/PW-11 PAINE WEBBER CAP/PW-46 PAINE WEBBER TCW CE/PW-71 PAINE WEBBER TCW MC/PW-72 Total Brokerage Accounts: Savings Accounts: ENRON CREDIT UNION/KLL Total Savings Accounts: Treasury Bills: SAVINGS BONDS Total Treasury Bills: Page 1 Balance 83.32 597.46 200.00 381.63 219.33 1,889.14 3,370.88 63,621.84 17,647.98 4,927.51 1,578.35 -196.56 4,221.11 91,800.23 10.00 90,000.00 90,010.00 523.72 499.50 116.35 338,816.53 7,818.74 -1,656.73 106,061.97 18,789.49 27,304.09 498,273.66 45.73 45.73 600.00 600.00 June 16, 2001 LAY-G32 1315 _BF002-00806 ============= Page 5 of 12 ============= 'Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: May 31, 2001 Balance Short-term Receivables: ACCT RECV-KLL & LPL INVEST 1,403,500.00 ACCT RECV-TDH 500,000.00 ACCT RECV-MKL 150,000.00 ACCT RECV-RENT DEP (#1000) 2,102.08 ACCT RECV-RENT DEP (#811) 1,058.33 ACCT RECV-S. HOBBS 75,000.00 ACCT RECV-D. HOBBS 75,000.00 ACCT RECV-RRH 20,000.00 ACCT RECV-RRH (DICKEY) 135,000.00 ACCT RECV-BJONES 103,773.45 ACCT RECV-RV 84,643.00 ACCT RECV-ELV(FL) 580,000.00 ACCT RECV-ELV(TX) 790,242.27 ACCT RECV-G KINNEAR 625,000.00 ACCT RECV-JANE TRAN 25,000.00 ACCT RECV-E MCELROY 1,550.00 ACCT RECV=MISC 2,282.27 ACCT RECV-RANDY GRAY 1,900.00 ACCT RECV-S. ADARO 6,900-;00 ACCT RECV-A. PHILLIPS 37,000-00 ACCT RECV-JIM EMERSON 18,000.00 ACCT RECV-P TERRAZAS 14,000.00 ACCT RECV-T. ZILBERFARB 15,000.00 ACCT RECV-HUGUES HEYMAN 1,198.12 ACCT RECV-LEONA ARMSTRONG 900.00 Total Short-term Receivables: 4,669,049.52 Notes Receivable: FAM PTRNS ANNUITY-2/KLL 730,081.17 FAM PTRNS ANNUITY-2/LPL 728,707.10 Total Notes Receivable: 1,458,788.27 TOTAL CURRENT ASSETS 6,811,938.29 Page 2 June 16, 2001 LAY-G32 1316 3F002-00807 ============= Page 6 of 12 ============= -Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: May 31, 2001 Balance MARKETABLE INVESTMENTS Enron Corp. 3 87,13 9,859.95 Common Stock 8,287,466.80 Fayez-Sarofim Mgmt.-Corn 3,094,095.49 Sanders Morris Mundy-Com 350,238.92 Cypress Asset Mgmt.-Com. 3,367,151.50 Caprock Capital Advisors 680,791.05 PaineWebber Core Hold. 3,253,702.00 TCW Core Equity 640,195.70 TCW Mid Cap Equity 1,573,795.42 Privately-Held Stock 13.738.613.91 Vested Exec Stock Options: CPQ ESO 4-97 4370SH 34,828.90 CPQ ESO 4-98 2,424 SHS 3,757.20 CPQ ESO 4-99 2,953 SHS 12,225.42 CPQ ESO 4-00 2,666SHS 2,639.34 ENE ESO 12-95 113,632 SHS 3,846,443.20 ENE ESO 12-96 118,620 SHS 3,718,737.00 ENE ESO 1-97 113,090 SHS 3,467,339.40 ENE ESO 1-97 1,275,000 SHS 39,805,500.00 ENE ESO 1-98 127,184 SHS 4,177,994.40 ENE ESO 12-98 442,988 SHS 10,800,047.44 ENE ESO 12-99 650,000SHS 10,218,000.00 ENEESO 1-00 384,617 SHS 2,153,855.20 Page 3 June 16, 2001 LAY-G32 1317 F002-00808 ============= Page 7 of 12 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: May 31, 2001 Balance Total Vested Exec Stock Options: 78,241,36 7.50 Corporate Bond- Convertibl: LAKEWOOD SPORT CONV/SMH-JT 52,250.00 LAKEWOOD SPORT-1/SMH-JT 52,250.00 LAKEWOOD SPRT CONV2/SMH-JT 30,041.00 EARTHCARE CO DEB/SMH-JT 100,000.00 EARTHCARE CO 1534SHJSMH-JT 1,534.00 EARTHCARE CO 25 3 1 S H/SMH- JT 2,531.00 EARTHCARE CO 2594SH/SMH-JT 2,594.00 EARTHCARE CO 2688SHJSMH-JT 2,688.00 EARTHCARE CO 2756SH/SMH-JT 2,756.00 EARTHCARE CO 1SH/SMH-JT 1.00 EARTHCARE CO 2794SHJSMH-JT 2,794.00 EARTHCARE CO 1 SH-2/SMH-JT 1.00 FLASHFIND CORPORATION 250,000.00 FLASHFIND CORP NOTE3/01 75,000.00 FLASHFIND CORD NOTE 5/01 75,000.00 Total Corporate Bond-Convertibl: 649,440.00 Mutual Funds: GS 1999 EXCH FND/GS-61 5,586,556.84 Total Mutual Funds: 5,586,556.84 Partnerships-other. KLL & LPL INVESTMENT PTRNS 19,914,908.00 KLL & LPL FAMILYPTRNS 1,163,442.00 Total Partnerships-other. 21,078,350.00 TOTAL MARKETABLE INVESTMENTS 227,681,625.08 LONG-TERM INVESTMENTS Residence: REAL ESTATE/HUNTINGDON Total Residence: Real Estate Other Homes: REAL ESTATEIASPENI REAL ESTATE/ASPEN2 REAL ESTATE/ASPEN3 PIRATES' COVE LOTS REAL ESTATE/B-3431 REAL ESTATES-3429 REAL ESTATE/B-3433 REAL ESTATE/REBA REAL ESTATE/ASPEN4 Page 4 10,117,049.07 10,117,049.07 2,878,481.52 5,647,481.97 6,255,514.11 299,742.66 528,552.77 741, 843.05 865,265.62 492,639.61 1,746,505.14 June 16, 2001 LAY-G32 1318 3F002-00809 ============= Page 8 of 12 ============= Kenneth L. & Linda P. Lay _ BALANCE SHEET ANALYSIS As of: May 31, 2001 - Balance REAL ESTATE/WESTGATE 284,873.38 REAL ESTATE/2514 AVALON 288,433.94 Total Real Estate Other Homes: 20,029,333.77 Real Estate Active Rental: REAL ESTATE/1741SR 147,309.00 REAL ESTATEJ1852MAR 104,044.97 REAL ESTATE/1856MAR 173,048.67 REAL ESTATE/ 1918SR 243,875.17 REAL ESTATE/KINGS 190,000.00 REAL ESTATE/VIKING 60,000.00 REAL ESTATE/MEXICO MO 240,026.00 REAL ESTATEJ2403AVALON 944,179.00 Total Real Estate Active Rental: 2,102,482.81 Real Estate Passive: June 16, 2001 BLENHEIM APARTS, LTD. 175,412.00 CREEKSTONE SOUTH RICE PTRS 266,115.00 CREEKSTONE WALNUT LP 748,409.00 DYMAXION APARTMENTS, LTD 21,943.00 HAINES APARTMENTS, LTD. 100,000.00 JESTERAPTS PARTNERS,LTD 472,654.00 J.T.FAM,SR.INVEST., LTD. 455,370.00 LAKE CHARLES APTS., LTD. 176,023.00 MILAND INVESTMENTS LLC 1,026,132.00 NOLANA, LTD. 186,000.00 RESACA DE LAS PALMAS 240,000.00 SRE PROPERTIES PTR NO. 1 1,673,342.33 TRAILSIDE APTS, LTD. 486,208.00 W.E. TRADE INVESTMENTS LTD 239,443.00 W.A.REHAUSENLOT INV LTD 102,788.00 Total Real Estate Passive: 6,369,839.33 Farming Interests: 11 ACRES ILLINOIS 4,500.00 Total Farming Interests: 4,500.00 Other Investments: BROADWING, LLC CAPRICORN INVESTORS II LP CAPRICORN INVESTORS III CARSON PRIV CAP EUROPE LP CHASE CAP PTRS PRV FUND CORPORATE OPPT FUND/SMH-JT CHAMPION L.L.C/SMH-JT 114,331.00 510,441.00 378,855.00 1,091,712.00 2,256,903.24 339,000.00 96,812.00 Page 5 LAY-G22 1319 -BF002-00810 ============= Page 9 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSI S As of: May 31, 2001 Balance CON-EQUIP LLC/SMH-JT 66,670.68 CON-EQUIP II LLC/SMH-IT 21,800.00 ENVIR OPP 500,000SH/SMH-JT 23 5,500.00 ENVIRON OPP FUND II/SMH-JT 74,800.00 GENESIS PARK LP 104, 544.00 HOUSTON NFL HOLDINGS 2.5% 5,000,000.00 SMH INDX LLC/SMH-JT 10,928.60 LAZARD TECH PTRS U LP 392,833.00 LOMBARDI LLC/SMH-JT 40,832.50 MURPHREE VENTURE PTRS LP 90,610.00 MV PTRNS-CYBER DIALOGUE 346,478.00 NfV PARTNERS 250,000.00 SANDERS OPPORT FUND/SMH-JT 925,250.94 STERLING GROUP I LP 32,500.00 TACONIC CAPITAL PTRS LP 2,712,956.00 TCW WESTBRIDGE VENTURES 242,549.00 VANGUARD VII LP 553,938.00 Total Other Investments: 15,890,244.96 TOTAL LONG-TERM INVESTMENTS 54,513,449.94 RETIREMENT/DEFERRED ASSETS IRA PAINE WEBBER-IRA/KLL-PW 46,728.87 Total IRA: 46,72 8.87 IRA/Spouse: PAINE WEBBER-IRAILPL-PW 46,760.02 Total IRA/Spouse: 46,760.02 Retirement Plan: ENRON-RETIREMENT 4,220,212.93 ENRON SAVINGS RO/PW401K 4,318,355.47 ENRON SAV RO MMA/PW401 K 63,963.29 KEOGH MMA/PW-18 2,308.48 KEOGH MUNDER TECHIPW-18 170,306.95 ENRON SAVINGS 401(K) 982,799.55 ENRON ESOP 6,420.10 FID GROWTH CO 401(K)/KLL 20,640.00 FID OTC 401(K)/KLL 11,177.00 FID OVERSEAS 401(K)/KLL 22,156.00 FID MAGELLAN 401(K)/KLL 58,592.99 MANULIFE ANN KLL/PW-R 3,304,897.95 MANULIFE ANN LPL/PW-R 2,865,270.14 Total Retirement Plan: 16,047,100.85 June 16, 2001 Page 6 LAY-G32 1320 3F002-00811 ============= Page 10 of 12 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: May 31, 2001 Deferred Compensat'n Plan: HNG PLAN-85 ENRON DEFERRED COMP-85 ENRON DEFERRED COMP-94 ENRON PHANTOM STOCK DEF ELI LILLY DEFERRED COMP TCW DEFERRED COMP Total Deferred Compensat'n Plan: TOTAL RETIREMENT/DEFERRED ASSETS Balance 83,604.00 3,737,057.12 1,298,757.00 26,657,514.88 1,517,306.99 26,560.25 33,320,800.24 49,461,389.98 .Tune 16, 2001 PERS ONAL/NON-EARNING ASSET Automobile(s): 90 JEEP WRANGLER 5,700.00 92 4WD JEEP CHEROKEE 7,400.00 93 MERCEDES 600SL 40,000.00 95 LT SUBURBAN CHEVY 13,000.00 96 RANGE ROVER 30,000.00 99 MERCEDES ML430 39,000.00 97 SUBURBAN CHEVY 15,000.00 00 MERCEDES M155 73,348.19 00 MERCEDES G500 LWB 149,176.18 00 YELLOW JEEP WRANGLER 20,400.00 00 SILVER JEEP WRANGLER 20,400.00 00 RED JEEP WRANGLER 20,400.00 01 GMC DENALI 47,272.40 01 GMC YUKON 1,000.00 01 GRAND CHEROKEE 37,801.28 Total Automobile(s): 519,898.05 Home Furnishings: HOME FURNISHINGS/HUNT 2,107,147.62 HOME FURNISHINGS/ASPENI 13 8,984.11 HOME FURNISHINGS/B-3431 166,950 25 HOME FURNISHINGS/B-3429 80,833.15 HOME FURNISHINGS/B-3433 103,872.74 HOME FURNISHINGS/ASPEN2 23 6,641.69 HOME FURNISHINGS/ASPEN3 553.86 Total Home Furnishings: 2,834,983.42 Other Vehicles & Equip: BW 21' OUTRAGE BOAT 49,327.00 DUFFY 18'-I 19,098.00 DUFFY 18'-1I 19,098.00 HURRICANE 19' 22,695.14 SPIRIT CANOE 406.43 Page 7 I,AY-G3 2 1321 BF002-00812 ============= Page 11 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: May 31, 2001 Balance SUPER SPORT BOAT 1997 33,502.74 Total Other Vehicles & Equip: 144,127.31 TOTAL PERS ONAL/NON-EARNING ASSET 3,499,008.78 TOTAL ASSETS 341,967,412.07 LIABILITIES CURRENT LIABILITIES Notes Payable: CHASE BANK LOC COMPASS BANK LOC BANK OF AMER $40M NON PAINE WEBBER-LOC/PW-42 ACCT PAYABLE (ST)-ENRON Total Notes Payable: Security Deposits: SEC DEPO SIT/Z- 1918SR SEC DEPOSIT/Z-1856MAR SEC DEPOSIT/Z-MCDUF Total Security Deposits: Margin Acct Liability: PAINS WEBBERMARGIN/PW-44 PANE WEBBER MARGIN/PW-33 Total Margin Acct Liability: TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Home Mortgage: BANK OF AMER/HUNTINGDON BANK OF AMER/HUNT #2 LIEN BANK OF AMER/HUNT #3 LIEN Total Home Mortgage: Other Real Estate Mtge: BANK OF AMER/ASPENI CITICORP MORTGAGE/B-3431 BANK OF AMER/B-3429 BANK OF AMER/B-3433 BANK OF AMER/REB A BANK OF AMER/2514 AVALON BANK OF AM/ASPEN2 BANK OF AM/ASPEN3 BANK OF AMER/ASPEN4 Page 8 7,042,000.00 3,489,871.12 15,344,391.70 27,271,343.14 23 9,140.03 53,386,745.99 850.20 125.00 400.00 1,375.20 1,654,647.36 6,215,996.04 7,870,643.40 61,258,764.59 4,345,477.76 488,018,92 489,222.13 5,322,718.81 1,500,356.03 185,894.34 23 7,43 4.81 522,675.62 317,279.18 225,000.00 4,261,518.24 5,491,43 0.50 1,200,000.00 June 16. 2001 LAY-G32 1322 3F002-00813 ============= Page 12 of 12 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: May 31, 2001 Balance BANK OF AMER/2403AVALON 839,320.72 Total Other Real Estate Mtge: 14,780,909.44 Investment Liabilities: BANK OF AMER/GALV LOTS 93,498.49 BANK OF AMER/WESTGATE LOT 191,250.00 BK OF AM/CREDIT FACILITY 5,000,000.00 Total Investment Liabilities: 5,284,748.49 Deferred Tax Liabilities: DEF TAX LIAB-STK OPT ONLY Total Deferred Tax Liabilities: TOTAL LONG-TERM LIABILITIES BUSINESS LIABILITIES Employer Taxes/Bus: MEDIC WITHHELD-EE (TX) SOC SEC WITHHELD-EE (TX) MEDIC WITHHELD-LPL EE(TX) SOC SEC WITHHELD-LPL (EE) FIT WITHHELD-EE (TX) FIT WITHHELD-LPL EE(TX) SIT WITHHELD-EE (HH-CO) Total Employer Taxes/Bus: Accrued FICA TaxJBusiness: MEDIC PAYABLE-ER (TX) SOC SEC PAYABLE-ER (TX) MEDIC PAYABLE-LPL ER(TX) SOC SEC PAYABLE-LPL ER(TX) Total Accrued FICA Tax/Business: TOTAL BUSINESS LIABILITIES TOTAL LIABILITIES NET WORTH TOTAL NET WORTH TOTAL LIABILITIES AND NET WORTH Page 9' 53,012,627.20 53,012,627.20 78,401,003.94 64,187.14 10,261.87 8,465.02 1,420.80 148,457.96 16,934.00 352.00 25 0,07 8.79 64,187.14 10,261.76 8,465.02 1,420.80 84,334.72 334;413.51 139,994,182.04 201,973,230.03 341,967,412.07 June 16, 2001 LAY-G32 1323 3F002-00814