============= Page 1 of 19 ============= ....mss Kenneth L. & Linda P. Lay January ?Q, 2002 SUMMARY BALANCE SHEET As of: December 31, 2001 BF002-00906 ASSETS CURRENT ASSETS Cash on Hand $ 3,375.58 Checking Accounts 1,502,343.44 Money Market Accounts 720,75 9.08 Brokerage Accounts 5,643.31 Savings Accounts 46.47 Short-term Receivables 7,469,332.82 Notes Receivable 1,458,788.27 TOTAL CURRENT ASSETS $ 11,160,288.97 MARKETABLE INVESTMENTS Enron Corp. $ 148,587.60 Common Stock-Director 4,711,400.44 Sanders Morris Mundy-Com 404,313.00 Cypress Asset Mgmt.-Com 3,055,321.71 Paine Webber Core Hold. 20,195.00 Vested Exec Stock Options 27,651.80 TOTAL MARKETABLE INVESTMENTS 8,367,469.55 LONG-TERM INVESTMENTS Residence $ 10,156,723.27 Real Estate Other Homes 20,356,480.10 Real Estate Active Rental 2,103,490.81 Real Estate Partnerships 4,803,378.08 Farming Interests 4,500.00 Privately-Held Stock 6,364,276.09 Corporate Bond-Convertible 120,700.00 GS 1999 Exchange Fund 5,050,514.81 Family Partnerships 2,074,815.00 Other Investments 10,110,037.58 TOTAL LONG-TERM INVESTMENTS 61,144,915.74/ RETIREMENT/DEFERRED ASSETS IRA $ 46,437.21 IRA/Spouse 46,471.49 Retirement Plans 391, 851.79 Deferred Compensat'n Plans 1,641,250.34 TOTAL RETIREMENT/DEFERRED ASSETS 2,126,010.83 PERS ONAL/NON- EARNING ASSET Automobile(s) $ 361,525.65 Home Furnishings 3,018,435.97 Other Vehicles & Equip 143,720.88 TOTAL PERSONAL/NON-EARNING ASSET 3,523,682.50 Page 1 LAY-G32 1696 GOVERNMENT EXHIBIT 234 Crim. No. H-04-25 (S-2) ============= Page 2 of 19 ============= i Kenneth L. & Linda P. Lay SUMMARY BALANCE SHEET As of: December 31, 2001 TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Notes Payable Security Deposits Margin Acct Liability Other Current Liabilities TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Other Real Estate Mtge Investment Liabilities Deferred Tax Liabilities TOTAL LONG-TERM LIABILITIES BUSINESS LIABILITIES Employer Taxes/Bus Accrue Social Sec Tax/Bus TOTAL BUSINESS LIABILITIES TOTAL LIABILITIES EQUITY TOTAL NET WORTH TOTAL LIABILITIES AND NET WORTH Page 2 $ January 20, 2002 $ 86,322,367.59 8,289,871.12 1,369.18 1,981,840.65 6,276,521.85 $ 16,549,602.80 $ 14,673,679.57 2,205,074.87 64,804.00 16,943,558.44 $ 140,507.23 43,534.37 184,041.60 $ 33,677,202.84 $ 52,645,164.75 LAY-G32 1697 3F002-00907 ============= Page 3 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance ASSETS CURRENT ASSETS Cash on Hand: CASH ON HANDBVLILT 1,278.60 CASH ON HAND/CHUGLI 176.78 CASH ON HAND/LEONA 381.63 CASH ON HAND/MSTURGIS 199.77 CASH ON HAND/PRAKER 219.33 CASH ON HAND/PSTOKES 779.03 CASH ON HAND/SK 340.44 Total Cash on Hand: 3,375.58 Checking Accounts: January 20, 2002 BANK OF AMER-PRAKER 3,448.20 BANK OF AMER-VAN DER 2,640.00 BANK OF AMER/LPL PROP 3,366.07 BANK OF AMER/STOKES 4,768.21 BANK OF AMERICA 0707 5,771.74 CHASE BANK CHECKING 1,481,356.42-Includes sale of Chase UNITY 109-900 -133.21 Capital Partners int VECTRABANK 1,126.01 on 12/31/01 Total Checking Accounts: 1,502,343.44 Money Market Accounts: SOUTHWEST BANK OF TX 630,759.08 WASHINGTON DC ACCT 90,000.00 Total Money Market Accounts: 720,759.08 Brokerage Accounts: FIRST UNION MMA/FTU-26 985.50 FIRST UNION MMA/FTU-30 0.68 FIRST UNION MMA/FTU-54 3,954.72 FIRST UNION MMA/FTU-60 53.93 GOLDMAN SACHS/GS-61 627.97 JP MORGAN SEC MMA/CBT 17.51 SANDERS MORRIS MMA/SMH-JT 3.00 Total Brokerage Accounts: 5,643.31 Savings Accounts: ENRON CREDIT UNION/KLL 46.47 Total Savings Accounts: 46.47 Short-term Receivables: ACCT RECV-A. PHILLIPS 37,000.00 ACCT RECV-BJONES 105,105.02 Page 1 LAY-G32 1698 BF002-00908 ============= Page 4 of 19 ============= January 20, 2002 Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance ACCT RECV-BLANCA PEREIRA 26,83 5.00 ACCT RECV-CHAD MODAD 20,000.00 ACCT RECV-CHRISTINA EMERSO 10,000.00 ACCT RECV-D. HOBBS 66,666.00 ACCT RECV-DANIELATERRAZAS 4,178.00 ACCT RECV-EAL 27,717.19 ACCT RECV-FREDERICA MAYO 280.50 ACCT RECV-G KINNEAR 900,000.00 ACCT RECV-HUGUES HEYMAN 44,914.35 ACCT RECV-J EMERSON 28,615.85 ACCT RECV-JANE TRAN 25,000.00 ACCT RECV-JIM EMERSON 18,000.00 ACCT RECV-KLL & LPL INVEST 4,298,500.00 ACCT RECV-MARCELO LIQUITAY 10,000.00 ACCT RECV-MISC 100,525.15 ACCT RECV-MKL 150,000.00 ACCT RECV-OSVALDO PEREIRA 39,395.00 ACCT RECV-P TERRAZAS 12,558.81 ACCT RECV-PAMELA MAYORGA 12,277.90 ACCT RECV-PAOLA TERRAZAS 724.45 ACCT RECV-PAUL STOKES 2,500.00 ACCT RECV-RENT DEP (#1000) 2,102.08- ACCT RECV-RENT DEP (#811) 1,058.33 ACCT RECV-RRH 98,980.30 ACCT RECV-RUTH VILLALOBOS 50,000.00 ACCT RECV-RV 13 2,771.12 ACCT RECV-S. ADARO 9,985.00 ACCT RECV-S. HOBBS 66,666.00 ACCT RECV-T. ZILBERFARB 15,000.00 ACCT RECV-TDH 593,394.04 ACCT RECV-VAN STOKES 5,500.00 ACCT RECV-VANGUARD 330,000.00 ACCT RECV-WE TRADE INVEST 223,082.73 Total Short-term Receivables: 7,469,332.82 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 11,160 ,28 8.97 MARKETABLE INVESTMENTS Enron Corp.: ENRON 50000SH 7-01/NFL 30,000.00 ENRON CORP 1,859SH(S)/NFL 1,115.40 LAY-G32 1699 Page 2 BF002-00909 ============= Page 5 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance -ENRON CORP 2,246SH/CBT 1,347.60 ENRON CORP 35,000BA-INV 21,000.00 ENRON CORP 68,620SH NFL 41,172.00 ENRON CORP 79,691 SH/NFL 47,814.60 ENRON CORP 790SH(S)/NFL 474.00 ENRON CORP 9,440SH/NFL 5,664.00 Total Enron Corp.: 148,587.60 Page 3 Common Stock-Director COMPAQ COMP 11,970SH/BA 116,827.20 COMPAQ COMP 124596SH(2)/BA 1,216,056.96 COMPAQ COMP 20,000SHS/CBT 195,200.00 COMPAQ COMP 30,000BA-INV 292,800.00 COMPAQ COMP 71,094SH/BA 693,877.44 COMPAQ COMP 83,064/BA-INV 810,704.64 ELI LILLY 100-1 SH/FTU-54 7,854.00 ELI LILLY 100-2SH/FTU-54 7,854.00 ELI LILLY 200SH/FTU-54 15,708.00 ELI LILLY 330 SHS/NFL 25,918.20 ELI LILLY 5,000 SHS(1)/CBR 392,700.00 ELI LILLY 5,000 SHS(2)/CBR 392,700.00 ELI LILLY 5000SH-2/NFL 392,700.00 I2 TECHN 2000SHIFTU-60 31,600.00 12 TECHN 500SH/FTU-60 7,900.00 TNPC 100,000SH/FTU-60 74,000.00 TNPC 25,000SH-2/FTU-60 18,500.00 TNPC 25,000SH/FTU-60 18,500.00 Total Common Stock-Director 4,71 1,400.44 Sanders Morris Mundy-Com: CAP ENVIR 10,000SH/SMH-JT 41,000.00 CAP TITLE GR 37,037/SMH-JT 81,481.40 CAP TITLE GR 5,000/SMH-JT 11,000.00 TYLER TECHN INC/SMH-JT 227,500.00 WASTE CORP 16,666SH/SMH-JT 43,331.60 Total Sanders Morris Mundy-Com: 404,313.00 Cypress Asset Mgmt.-Com: ABBOTT LAB 100-ISHIFTU-54 5,575.00 ABBOTT LAB 300-2SHJFTU-54 16,725.00 AMEREXPRESS 100SHIFTU-54 10,707.00 AMEREXPRESS I50SH/FTU-54 16,060.50 AMER HOME 100SH-4/FTU-54 6,136.00 AMER HOME 15 0 SH- 1/FTU- 54 9,204.00 AMER HOME 150SH-2/FTU-54 9,204.00 January 20, 2002 LAY-G32 1700 ~F002-00910 ============= Page 6 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 AMER HOME 150SH/FTU-54 AMER HOME 300SH-2/FTU-54 AMER HOME 400SH/FTU-54 AMER INTL GRP 100-2/FTU-54 AMER INTL GRP 100SHIFTU-54 AMER INTL GRP 256SH/FTU-54 AMER INTL GRP 64SH/FTU-54 AMER INTL GRP 75SH/FTU-54 AMER INTL GRP 80SH/FTU-54 AMER INTL GRP 868SH/FTU-54 ANADARK PET 200SH- IIFTU-54 ANADARK PET 200SH-2/FTU-54 ANADARK PET 500SH/FTU-54 ANALOG DEV 200SH-1/FTU-54 ANALOG DEV 200SH-2/FTU-54 ANALOG DEV 500SH/FTU-54 AOL TIME 100 S-1/FTU-54 AOL TIME 100 S-2/FTU-54 AOL TIME 100 S-3/FTU-54 AOL TIME 100 S-4/FTU-54 AOL TIME 100 S-5/FTU-54 AOL TIME 200 S/FTU-54 AOL TIME 300 SHS/FTU-54 AOL TIME 400 S/FTU-54 APPLIED MAT 150SH/FTU-54 APPLIED MAT 250SH/FTU-54 APPLIED MAT 700SH/FTU-54 BANK OF NY 100SH/FTU-54 BANK OF NY 200SH-2/FTU-54 BANK OF NY 200SH-3/FTU-54 BANK OF NY 200SH-4/FTU-54 BANK OF NY 200SH/FTU-54 BANK OFNY 300SH/FTU-54 BANK OF NY 500SH-1/FTU-54 BANK OF NY 500SH-2/FTU-54 BERKSHIRE HATH 14/FTU-54 BERKSHIRE HATH 3/FTU-54 BERKSHIRE HATH 4/FTU-54 BERKSHIRE HATH B3/FTU-54 BERKSHIRE HATH 2S/FTU-54 BERKSHIRE HATH 1 S/FTU-54 BRISTOL-MYERS 600SH/FTU-54 BURLING RES 200SH-1/FTU-54 BURLING RES 200SH-2/FTU-54 BURLINGTON 100SH/FTU-54 Page 4 Balance 9,204.00 18 ,40 8.00 24,544.00 11,910.00 14,847.80 38,112.00 9,528.00 8,972.20 11,910.00 68,919.20 11,370.00 11,370.00 28,425.00 17,756.00 13,317.00 31,073.00 4,782.90 4,782.90 4,782.90 4,782.90 4,782.90 9,790.50 14,348.70 19,356.30 6,015.00 10,025.00 12,030.00 4,080.00 8,160.00 8,160.00 8,160.00 8,160.00 12,240.00 20,400.00 20,400.00 35,350.00 7,575.00 10,100.00 7,575.00 5,050.00 2,525.00 30,600.00 7,508.00 7,508.00 3,754.00 January 20, 2002 LAY-G32 1701 BF002-00911 ============= Page 7 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 BURLINGTON 300SH/FTU-54 BURLINGTON 600SH/FTU-54 CISCO SYST 150SH/FTU-54 CISCO SYST 205SH/FTU-54 CISCO SYST 290SH/FTU-54 CISCO SYST 500SHIFTU-54 CISCO SYST 50SH-1/FTU-54 CISCO SYST 50SH-2/FTU-54 CISCO SYST 800SH/FTU-54 CITIGROUP 100SH-1/FTU-54 CITIGROUP 100SH-2/FTU-54 CITIGROUP 150-1SH/FTU-54 CITIGROUP 150-2SHIFTU-54 CITIGROUP 200SH-1/FTU-54 CITIGROUP 200SH-2/FTU-54 CITIGROUP 225SH/FTU-54 CITIGROUP 450SH/FTU-54 CITIGROUP 234SH/FTU-54 CHEVRONTEX 53SH/FTU-54 COCA COLA 100SH/FTU-54 COCA COLA 150-1 SH/FTU-54 COCA COLA 150-2SH/FTU-54 COCA COLA 150-3SH/FTU-54 COCA COLA 150-4SH/FTU-54 COCA COLA 200SH/FTU-54 COCA COLA 300SH/FTU-54 COSTCO CO 100-2SH/FTU-54 COSTCO CO 100-3SH/FTU-54 COSTCO CO 100-1SHJFTU-54 COSTCO CO 200SH/FTU-54 DELL COMP 200SH/FTU 54 DELL COMP 300SHJFTU-54 DELL COMP 500SIVFTU-54 DELL COMP 700SH/FTU-54 DISNEY WALT 100-2SH/FTU-54 DISNEY WALT 200-1SH/FTU-54 DISNEY WALT 200-2SHIFTU-54 DISNEY WALT 300-ISHIFTU-54 DISNEY WALT 300-2SH/FTU-54 DISNEY WALT 300-3SH/FTU-54 DISNEY WALT 600SWFTU-54 FANNIE MAE 200SH/FTU-54 FANNIE MAE 300SHJFTU-54 GENERAL ELECT 100-1/FT'U-54 GENERAL ELECT 100-2/FTU-54 Page 5 Balance 11,262.00 22,524.00 10,866.00 7,425.10 5,251.90 9,055.00 3,622.00 3,622.00 14,488.00 9,490.24 5,048.00 14,487.76 14,48 7.76 13,528.64 10,096.00 20,797.76 41,595.52 11, 812.32 4,749.33 4,715.00 7,072.50 7,072.50 7,072.50 7,072.50 9,430.00 14,145.00 8,876.00 8,876.00 8,876.00 17,752.00 5,436.00 8,154.00 13,590.00 19,026.00 2,072.00 4,144.00 4,144.00 6,216.00 6,216.00 6,216.00 12,432.00 15,900.00 23,850.00 12,024.00 12,024.00 January 20, 2002 LAY-G32 1702 BF002-00912 ============= Page 8 of 19 ============= Kenneth L. & Linda P. Lay J BALANCE SHEET ANALYSIS As of: December 31, 2001 GENERAL ELECT 100-3/FTU-54 GENERAL ELECT 100-4/FTU-54 GENERAL ELECT 200-1/FTU-54 GENERAL ELECT 200-2/FTU-54 GENERAL ELECT 200-31FTU-54 GENERAL ELECT 200-4/FTU-54 HONEYWELL 1100 SH/FTU-54 HONEYWELL 250SH/FTU-54 IBM 100 SHS-1/FTU-54 IBM 100 SHS-2/FTU-54 IBM 150SH/FTU-54 IBM 50 SHS/FTU-54 IBM 75-1 SH/FTU-54 IBM 75-2SH/FTU-54 IBM 75-3SH/FTU-54 INTEL CORP 200SH/FTU-54 INTEL CORP 300SH/FTU-54 INTEL CORP 344SH/FTU-54 JP MORG CHASE 500SH/FTU-54 JP MORG CHASE 100SHJFTU-54 JOHN & JOHN 100SH-2TFTU-54 JOHN & JOHN 100SH-3/FTU-54 JOHN & JOHN 100SH-4/FTU-54 JOHN & JOHN 100SH-5/FTU-54 JOHN & JOHN 150SH-1/FTU-54 JOHN & JOHN 150SH-2/FTU-54 JOHN & JOHN 175SH/FTU-54 JOHN & JOHN 50SH/FTU-54 JOHN & JOHN 75SH/FTU-54 LINEARTECHN 300SH/FTU-54 LINEARTECHN 400SH/FTU-54 LOCKHEED MART 40OSHIFTU-54 LOCKHEED MART 100SH/FTU-54 MARSH & MCLEN 250SH/FTU-54 MARSH & MC 50SH-1/FTU-54 MARSH & MC 50SH-2/FTU-54 . MEDTRONIC 300SH/FTU-54 MEDTRONIC 700SH/FTU-54 ME LL O N FIN 12 50 S HJFTU- 54 MERCK 100-1 SH/FTU-54 MERCK 100-2SH/FTU-54 MERCK 100-3SH/FTU-54 MERCK 100-4SH/FTU-54 MERCK 100-5SH/FTU-54 MERCK 50 SHS/FTU-54 Balance 12,024.00 12,024.00 24,048.00 24,048.00 8,016.00 8,016.00 33,830.00 8,457.50 24,192.00 12,096.00 18,144.00 12,09 6.00 18,144.00 18,144.00 18,144.00 6,290.00 16,102.40 21,637.60 18,175.00 3,635.00 11,820.00 11,820.00 11,820.00 11,820.00 17,730.00 17,730.00 20,685.00 5,910.00 8,865.00 11,712.00 27,328.00 18,668.00 4,667.00 26,862.50 5,372.50 5,372.50 15,363.00 35,847.00 47,025.00 11,760.00 11,760.00 11,760.00 5,880.00 5,880.00 5,880.00 January 20, 2002 LAY-G32 1703 Page 6 3F002-00913 ============= Page 9 of 19 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: December 31, 2001 MERRILL LYNCH 100-1/FTU-54 MERRILL LYNCH 100-2/FTU-54 MERRILL LYNCH 300SH/FTU-54 MERRILL LYNCH 50- 1/FTU-54 MICROSFT 100SH-4/FTU-54 MICROSFT 100SH-5/FTU-54 MICROSFT 100SH-6/FTU-54 MICROSFT 100SH-7/FTU-54 MI CROSFT 125SHIFTU-54 MICROSFT 500SH/FTU-54 MICROSFT 75SH/FTU-54 MOLEX INC 200SH/FTU-54 MOLEX INC 300-1 SH/FTU-54 MOLEX INC 300-2SH/FTU-54 MOLEX INC 600-1 SH/FTU-54 MOLEX INC 600-2SHIFTU-54 MORGAN STANL 100-1/FTU-54 MORGAN STANL 100-2/FTU-54 MORGAN STANL 100-3/FTU-54 MORGAN STANL 200SH/FTU-54 NOKIA CORP 200SH-1/FTU-54 NOKIA CORP 200SH-2/FTU-54 NOKIA CORP 300SH-1/FTU-54 NOKIA CORP 300SH-2/FTU-54 NOKIA CORP 325SH/FTU-54 PEPISCO 150 SHS-1/FTU-54 PEPISCO 150 SHS-2IFTU-54 PEPISCO 200SH-2/FTU-54 PEPISCO 200SH-3/FTU-54 PEPISCO 200SH-4/FTU-54 PEPISCO 300SH-2/FTU-54 PEPISCO 500SH/FTU-54 PEPSICO 200 SHS/FTU-54 PEPSICO 300 SH-1/FTU-54 PFIZER 100SH-2IFTU-54 PFIZER 4125 SH/FTU-54 PROCT & GAM 100SH-1/FTU-54 PROCT & GAM 100SH-2/FTU-54 PROCT & GAM 100SH-3/FTU-54 PROCT & GAM 100SH-4/FTU-54 PROCT & GAM 150SH/FTU-54 PROCT & GAM 200SH/FTU-54 PROCT & GAMB 50SH/FTU-54 ROYAL DUTCH 100SH-1/FTU-54 ROYAL DUTCH 100SH-2/FTU-54 Balance 10,424.00 5,212.00 31,272.00 5,212.00 6,625.00 6,625.00 6,625.00 6,625.00 8,281.25 33,125.00 4,968.75 6,762.50 10,143.75 10,143.75 20,287.50 20,287.50 11,188.00 11,188.00 11,188.00 22,376.00 4,906.00 4,906.00 7,359.00 7,359.00 31,889.00 7,303.50 7,303.50 9,738.00 9,738.00 9,73 8.00 14,607.00 24,345.00 9,738.00 14,607.00 10,958.75 164,381.25 7,913.00 7,913.00 7,913.00 7,913.00 11,869.50 15,826.00 3,956.50 4,902.00 4,902.00 January 20, 2002 LAY-G32 1704 Page 7 BF002-00914 ============= Page 10 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 ROYAL DUTCH 125SH/FTU-54 ROYAL DUTCH 150SH/FTU-54 ROYAL DUTCH 500SHTFTU-54 ROYAL DUTCH 50SH/FTU-54 SBC COMM 101SH/FTU-54 SBC COMM 999SIVFTU-54 TARGET CORP 100SH/FTU-54 TARGET CORP 200SH-2/FTU-54 TARGET CORP 200SHIFTU-54 TARGET CORP 400SH/FTU-54 TEXACO 100 SHS-1IFTU-54 TEXACO 100 SHS-2/FTU-54 TEXACO 100 SHS-3/FTU-54 TEXACO 100 SHS-4/FTU-54 TEXACO 150 SH/FTU-54 TEXACO 200 SHS/FTU-54 TEXACO 300 SHS/FTU-54 TEXACO 50SIVFTU-54 TX INSTR IOOSH-1/FTU-54 TX INSTR 100SH-2/FTU-54 TX INSTR 150SH-1/FTU-54 TX INSTR 150SH-2/FTU-54 TX INSTR 300SH-1/FTU-54 TX INSTR 300SH-2/FTU-54 TX INSTR 5 0 SH-1/FTU-54 TX INSTR 50SH-2/FTU-54 TX INSTR 50SH-3/FTU-54 TX INSTR 75SH/FTU-54 VERIZON COM 122SH-1/FTU-54 VERIZON COM 122SH-2/FTU-54 VERIZON COM 122SH-3/FTU-54 VERIZON COM 129SH/FTU-54 VERIZON COM 305SH/FTU-54 VERIZON COMM 100SIVFTU-54 VIACOM INC 300SH/FTU-54 VIACOM INC 700SH-1/FTU-54 VIACOM INC 700SH-2/FTU-54 WALMART 100 SHS/FTU-54 WALMART 150 SHS-1/FTU-54 WALMART 150 SHS-2/FTU-54 WALMART 150 SHS-3/FTU-54 WALMART 200 SHS-1/FTU-54 WALMART 200 SHS-2/FTU-54 XILINX 200 SHS-1/FTU-54 XILINX 50 SHS/FTU-54 Balance 6,127.50 7,353.00 23,284.50 2,451.00 39.17 39,130.83 8,210.00 16,420.00 16,420.00 32,840.00 6,899.97 6,899.97 6,899.97 6,899.97 10,349.96 13,799.94 20,699.91 3,449.99 11,200.00 5,600.00 8,400.00 4,200.00 8,400.00 8,400.00 5,600.00 5,600.00 5,600.00 4,200.00 5,790.12 5,790.12 5,790.12 6,122.34 14,475.30 4,746.00 13,245.00 30,905.00 30,905.00 5,755.00 17,265.00 8,632.50 8,632.50 11,510.00 11,510.00 31,240.00 7,810.00 January 20, 2002 LAY-G32 1705 Page 8 BF002-00915 ============= Page 11 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Total Cypress Asset Mgmt.-Com: Paine Webber Core Hold.: CELESTICA 500SH/FTU-60 Total Paine Webber Core Hold.: Balance 3,055,321.71 20,195.00 20,195.00 Vested Exec Stock Options: CPQ ESO 4-97 4370SH 7,603.80 LLY ESO 4-00 2,800 SHS 7,280.00 LLY ESO 2-01 2,800 SHS 12,768.00 Total Vested Exec Stock Options: 27,651.80 TOTAL MARKETABLE INVESTMENTS 8,367,469.55 LONG-TERM INVESTMENTS Residence: REAL ESTATE/HUNTINGDON 10,156,723.27 Total Residence: 10,156,723.27 Real Estate Other Homes: PIRATES' COVE LOTS 299,742.66 REAL ESTATE/2514 AVALON 288,433.94 REAL ESTATE/ASPENI 2,871,953.52 REAL ESTATEIASPEN2 5,671,227.72 REAL ESTATE/ASPEN3 6,258,170.66 REAL ESTATE/ASPEN4 1,778,082.52 REAL ESTATES-3429 770,503.39 REAL ESTATES-3431 759,970.73 REAL ESTATE/B-3433 880,881.97 REAL ESTATE/REBA 492,639.61 REAL ESTATE/WESTGATE 284,873.38 Total Real Estate Other Homes: 20,356,480.10 Real Estate Active Rental: REAL ESTATE/1741SR 147,309.00 REAL ESTATE/1852MAR 104,044.97 REAL ESTATE/1856MAR 173,048.67 REAL ESTATE/1918SR 243,875.17 REAL ESTATE/2403AVALON 944,179.00 REAL ESTATE/KINGS 190,000.00 ** REAL ESTATE/MEXICO MO 240,026.00 REAL ESTATE/VIKING 61,008.00 Total Real Estate Active Rental: 2,103,490.81 Real Estate Partnerships: BLENHEIM APARTS, LTD. 175,412.00 Januarv 20, 2002 LAY-G32 1706 *Sold on 1/02/02-$415,000; :cash proceeds from sale after payment of mortgage, closing costs and 2001 property taxes-$197,511.01 Page 9 **Sold on 1/08/02-$390,000; cash proceeds from sale after closing costs and 2001 property taxes net to $378,980.97 3F002-00916 ============= Page 12 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance 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 J.T.FAM,SR.INVEST., LTD. 558,330.00 JESTER APTS PARTNERS,LTD 652,654.00 LAKE CHARLES APTS., LTD. 176,023.00 MILAND INVESTMENTS LLC 571,928.08 NOLANA, LTD. 186,000.00 RESACA DE LAS PALMAS 240,000.00 SAJG KIRBY BRAESWOOD 180,000.00 TRAILSIDE APTS, LTD. 486,208.00 W.A.REHAUSENLOT INV LTD 123,578.00 W.E. TRADE INVESTMENTS LTD 316,778.00 Total Real Estate Partnerships: 4,803,378.08 Farming Interests: 1IACRES ILLINOIS 4,500.00 Total Farming Interests: 4,500.00 Privately-Held Stoclc ACOUSTIC TECH 100,000 SH-B AMER EQ LIFE 2500/SMH-JT AMER EQ LIFE HLDG/SMH-JT COUNTRYWATCH.COM DR RED DUKE INC 52,632 SHS ECOUTLOOK COM SERIES B EC OUTLOOK COM SERIES C ETERNITV, INC. 1,500 SH-A ETERNITV, INC. NOTE EVELOCITY CORP 1000000 P-B EVELOCITY CORP 150,000 P-B EVELOCITY CORP 18345.2 P-B EVELOCITY CORP 300,000 P-B EVELOCITY CORP 850,000 P-B FLASHFIND CORP 150,000 P-B FLASHFIND CORP NOTE 3/01 FLASHFIND CORP NOTE 5/01 FLASHFIND CORPORATION HOSTCENTRIC 54,347 SH-B INDX SOFTWARE 18588/SMH-JT LOMBARDI SOFT 7500S/SMH-JT MRS. FIELDS HOLDING CO. NETVERSANT 125,000/SMH-JT OLD BALDY CORP 250 SHS Page 10 210,000.00 39,975.00 199,875.00 250,000.00 100,000.80 200,000.00 299,999.57 150,000.00 37,500.00 500,000.00 75,000.00 18,345.20 300,000.00 850,000.00 112,500.00 75,000.00 75,000.00 250,000.00 249,996.20 50,001.72 75,000.00 81,000.00 500,000.00 28,360.00 January 20, 2002 LAY-G32 1707 IF002-00917 ============= Page 13 of 19 ============= January 20, 2002 Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance OLD BALDY COkP 33 SHS 12,000.00 PHOTOFETE.COM CONVERT NOTE 123,103.12 QUESTIA MEDIA 12,295SH 6,981.10 QUESTIAMEDIA 12,821SH 7,279.76 QUESTIA MEDIA 1294297SH-B 734,901.84 QUESTIA MEDIA 558,306 SH-A 317,006.15 QUESTIA MEDIA 647,148SH-C 367,450.63 SMH AGENCY 20-AISMH-JT 68,000.00 Total Privately-Held Stock 6,364,276.09 Corporate Bond-Convertible EARTHCARE CO 1534SH/SMH-JT EARTHCARE CO 1SH-2/SMH-JT EARTHCARE CO 1SH/SMH-JT EARTHCARE CO 1SH-3/SMH-JT EARTHCARE CO 253 1 SH/SMH-JT EARTHCARE CO 2594SH/SMH-JT EARTHCARE CO 2688SH/SMH-JT EARTHCARE CO 27565H/SMH-JT EARTHCARE CO 2794SH/SMH-JT EARTHCARE CO 2833/SMH-JT EARTHCARE CO 2967/SMH-JT EARTHCARE CO DEB/SMH-IT Total Corporate Bond-Convertible 1,534.00 1.00 1.00 1.00 2,531.00 2,594.00 2,688.00 2,756.00 2,794.00 2,833.00 2,967.00 100,000.00 120,700.00 GS 1999 Exchange Fund: GS 1999 EXCHFND/GS-61 5,050,514.81 Total GS 1999 Exchange Fund 5,050,514.81 Family Partnerships: KLL & LPL FAMILY PTRNS 318,389.00 KLL & LPL INVESTMENT PTRNS 1,756,426.00 Total Family Partnerships: 2,074,815.00 Other Investments: BBT PARTNERS, L.P. BROADWING, LLC CAPRICORN INVESTORS II LP CAPRICORN INVESTORS III CARSON PRIV CAP EUROPE LP CHAMPION L.L.C/SMH-JT CORPORATE OPPT FUND/SMH-JT CPC YELL, L.P. ENVIR OPP 500,000SH/SMH-JT ENVIRON OPP FUND lI/SMH-JT 255,696.76 162,331.00 510,441.00 378,855.00 1,254,212.00 96,812.00 497,250.00 250,000.00 213,000.00 125,200.00 LAY-G32 1708 Page 11 3F002-00918 ============= Page 14 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance HOUSTON NFL HOLDINGS 2.5% 3,993,705.00 LOMBARDI LLC/SMH-JT 40,832.50 MURPHREE VENTURE PTRS LP 120,610.00 MV PARTNERS 250,000.00 MV PTRNS-CYBER DIALOGUE 346,478.00 SANDERS OPPORT FUND/SMH-JT 940,744.87 SMH CERI, LLC/SMH 72,450.00 SMH INDX LLC/SMH-JT 10,928.60 SMH LIFE SCIENCES/SMH-JT 125,000.00 STERLING GROUP I LP 415,015.85 WESTTX ASSOCIATES, LP 50,475.00 Total Other Investments: 10,110,037.58 TOTAL LONG-TERM INVESTMENTS 61,144,915.74 RETIREMENT/DEFERRED ASSETS IRA: FIRST UNION-IRA/KLL-FTU 46,437.21 Total IRA: 46,43 7.21 IRA/Spouse: FIRST UNION-IRA/KPL-FTU 46,471.49 Total IRA/Spouse: 46,471.49 Retirement Plans: January 20, 2002 ENRON RO-IRA/FTU-56 48-28- ENRON ESOP 72.&} ENRON SAV RO MMA/FTU-56 85,470.95 ENRON SAVINGS 401K Uk h ENRON-RETIREMENT FID GROWTH CO 401(K)/KLL ~~~9~90 Th**** FED MAGELLAN 401(K)/KLL oK5-7**** FID OTC' 401(K)/KLL 06 **** FID OVERSEAS 401(K)IKLL 0~*** KEOGH MMA/PW-18 2,351.79 - KEOGH MUNDER TECH/PW-18 137,511.36 Total Retirement Plans: 9- 9" Deferred Compensat'n Plans ELI LILLY DEFERRED COMP 8 1,523,900.86 *' 7 e, 5 ENRON DEFERRED COMP- 94 ENRON DEFERRED COMP ** :- br *** E - ENRON PHANTOM STOCK DEF - *** mow ~' HNG PLAN-85 $ TCW DEFERRED COMP 33,745.45 Total Deferred Compensat'n Plans LAY-G32 1709 ***Information unavailable at this time. ****Number of shares has not been upddi2since 10/01; however, NAV is as of 12/31/01. F002-00919 ============= Page 15 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 TOTAL RETIREMENT/DEFERRED ASSETS PERSONAL/NON-EARNING ASSET Automobile(s): 00 MERCEDES 0500 LWB 00 MERCEDES ML55 00 RED JEEP WRANGLER 00 YELLOW JEEP WRANGLER 01 GRAND CHEROKEE 92 4WD JEEP CHEROKEE 93 MERCEDES 600SL 95 LT SUBURBAN CHEVY Total Automobile(s): Home Furnishings: HOME FURNISH/2514AVALON HOME FURNISHINGS/ASPEN1 HOME FURNISHING S/AS P EN2 HOME FURNISHINGS/ASPEN3 HOME FURNISHINGS/B-3429 HOME FURNISHINGS/B-3431 HOME FURNISHINGS/B-3433 HOME FURNISHINGS/HUNT Total Home Furnishings: Other Vehicles & Equip: BW 21' OUTRAGE BOAT DUFFY 18'-I DUFFY 18'-ll HURRICANE 19' SUPER SPORT BOAT 1997 Total Other Vehicles & Equip: TOTAL PERS ONAL/NON-EARNING ASSET TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Notes Payable: COMPASS BANK LOC ENRON CORP. LOAN Total Notes Payable: Security Deposits: SEC DEPOSIT/Z-1856MAR Page 13 January 20, 2002 Balance 2,i 149,176.18 73,348.19 20,400.00 20,400.00 37,801.28 7,400.00 40,000.00 13,000.00 361,525.65 1,536.28 138,984.11 264,641.69 553.86 80,833.15 196,815.63 106,522.74 2,228,548.51 3,018,435.97 49,327.00 19,098.00 19,098.00 22,695.14 33,502.74 143,720.88 3,523,682.50 86,322,367.59 789,871.12 7,500,000.00 8,289,871.12 125.00 LAY-G32 1710 BF002-00920 ============= Page 16 of 19 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: December 31, 2001 Balance SEC DEPOSIT/Z-1918SR 850.20 SEC DEPOSIT/Z-MCDUF 393.98 Total Security Deposits: 1,369.18 Margin Acct Liability: FIRST UNION MARGIN/FTU-52 1,981,840.65 Total Margin Acct Liability: 1,981,840.65 Other Current Liabilities: 2001 PERSON PROP TAX LIAB EST 2001 INCOME TAX LIAB EST 01 MILAND PROP TX LIAB Total Other Current Liabilities: TOTAL CURRENT LIABILITIES 278,371.85 5,910,000.00 88,150.00 6,276,521.85 16,549,602.80 LONG-TERM LIABILITIES Other Real Estate Mtge: BANK OF AM/ASPEN2 4,235,297.47 BANK OF AM/ASPEN3 5,459,132.25 BANK OF AMER/2403AVALON 832,930.44 BANK OF AMER/2514 AVALON 225,000.00 BANK OF AMER/ASPENI 1,486,519.54 BANK OF AMER/ASPEN4 1,200,000.00 BANK OF AMER/B-3429 234,107.11 BANK OF AMER/B-3433 519,120.72 BANK OF AMER/REBA 314,868.97 CITICORP MORTGAGE/B-3431 166,703.07 Total Other Real Estate Mtge: 14,673,679.57 Investment Liabilities: BANK OF AMER/GALV LOTS 88,824.87 BANK OF AMER/WESTGATE LOT 191,250.00 BK OF AM/CREDIT FACILITY 1,925,000.00 Total Investment Liabilities: 2,205,074.87 Deferred Tax Liabilities: DEF TAX LIAB-STK OPT ONLY Total Deferred Tax Liabilities: TOTAL LONG-TERM LIABILITIES BUSINESS LIABILITIES Employer Taxes/Bus: FIT WITHHELD-EE (TX) FIT WITHHELD-LPL EE(TX) MEDIC WITHHELD-LPL EE(TX) Page 14 64,804.00 64, 804.00 16,943,558.44 90,071.86 5,643.00 631.37 January 20, 2002 LAY-G32 1711 3F002-00921 ============= Page 17 of 19 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: December 31, 2001 MEDIC WITHHELD-EE (TX) SIT WITHHELD-EE (HH-CO) SOC SEC WITHHELD-EE (TX) SOC SEC WITHHELD-LPL (EE) Total Employer Taxes/Bus: Accrue Social Sec Tax/Bus: MEDIC PAYABLE-ER (TX) MEDIC PAYABLE-LPL ER(TX) SOC SEC PAYABLE-ER (TX) SOC SEC PAYABLE-LPL ER(TX) Total Accrue Social Sec Tax/Bus: TOTAL BUSINESS LIABILITIES TOTAL LIABILITIES NET WORTH TOTAL NET WORTH TOTAL LIABILITIES AND NET WORTH Page 15 Balance 10,356.01 1,25 8.00 29,847.47 2,699.52 140,507.23 10,356.01 631.37 29,847.47 2,699.52 43,534.37 184,041.60 3 3,677,202.84 52,645,164.75 86,322,367.59 January 20, 2002 LAY-G32 1712 3F002-00922 ============= Page 18 of 19 ============= Ken and Linda Lay Schedule of Contingent Liabilities December 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 valued at $1,500,000+. Ken has guaranteed three secured notes for his sister, Sharon Lay. The notes in the name of Sharon Lay Productions, Inc. are as follows, $275,000 that matured on October 23, 2001, $275,000 maturing on February 14, 2002 and a construction loan in the amount of $1,230,000 maturing on January 17, 2003. These loans all have an interest rate of 30-Day LIBOR + 1.5% and are collateralized by residential real estate. He has also guaranteed two unsecured notes, one in the amount of $50,000 for Sharon Lay Productions, Inc. that matures February 21, 2002 and one in the amount of $100,000 for Sharon S. Lay which matures September 25, 2002. 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 $4,936,750. On September 1, 2001, Ken and Linda have guaranteed an unsecured $1,000,000 line of credit for KLL & LPL Investments, Ltd: at Bank of.America. The line of credit matures on September 1, 2002 with a floating interest rate of 30-Day LIBOR plus 1:25%. The amount currently funded is $0, Kenneth L. Lay, a preferred limited partner, executed certain indemnification agreements with the general partners of the following partnerships: Haines Apartments, Ltd., Nolana, Ltd., Resaca De Las Palmas, Ltd. and SAJG Kirby Braeswood, Ltd. The amount of the contingent liability, if any, has not been determined. Ken Lay has been named as a party defendant in several shareholder derivative actions against Enron Corp. and others. The outstanding commitments for various investments total $ 3,506,689. LAY-G32 1713 -002-00923 ============= Page 19 of 19 ============= Jam. List of Outstanding Commitments As of December 31, 2001 Total Outstanding PERSONAL Commitment Total Invested Commitment Broadwing, LLC 96,000 48,000 48,000 Capricorn Investors II LP 500,000 500,000 - Capricorn Investors III LP 750,000 402,811 347,189 Carson Private European Fund 1,625,000 1,300,000 325,000 Corporate Opportunities Funds 750,000 525,000 225,000 12107-$125,000 Environmental Opportunities Fund 500,000 475,000 25,000 Environmental Opportunities II Fund 400,000 216,000 184,000 Genesis Park LP 500,000 144,758 Abandoned 12101 Jester Apartments-Slidell, LA 350,000 180,000 170,000 Lazard Technology Partners II LP 1,000,000 389,365 Abandoned 12/01 Murphree Venture Ptners (10/24-Rev) 125,000 130,000 (5,000) SMH LifeSciences Opportunity Fund 250,000 125,000 125,000 Sterling Group Partners I, L.P. 2,500,000 437,500 2,062,500 Westbridge Ventures, L.P. 1,000,000 273,830 Abandoned 12/01 WestTx Associates, L.P.(revised 12119) 50,475 50,475 SUBTOTAL $ 10,396,475 $ 5,197,739 $ 3,506,689 List of Scheduled Commitments: Houston NFL Holdings (10/31-Revised) 5,000,000 5,000,000 - TOTAL $ 15,396,475 $ 10,197,739 $ 3,506,689 LAY-G32 1714 ~F002-00924