============= Page 1 of 12 ============= Ken and Linda Lay Balance Sheet Comparison July 31, 2001 ENE $ 49.1000 $ 45.3500 CPQ $ 15.3200 $ 14.9400 6130101 7/31101 Current Assets 8,387,876 9,109,015 Marketable Investments Com & Pref Stocks 89,788,181 Executive Stock Options 64,368,202 Bonds Mutual Funds Partnerships (Family)' Long Term Investments 649,440 5,525,885 18,914,951 55,363,346 Variance 721,139 Stock option exercise proceeds remaining in brokerage acct to offset margin account; $ released 8/01 81,886,399 (7,901,782) 85,720 shares of ENE stock used to pay off LOCs plus 50,000 shares from stock opt exec 50,650,403 (13,717,799) 52,500 ENE stock opt exec under plan plus 50,000 stoc opt exec to hold 652,273 2,833 5,466,391 (59,494) 16,801,271 (2,113,680) 55,896,276 532,930 Sterling Group, MILAND and partnerships Retirement/Deferred Assets 46,524,051 44,385,420 (2,138,631) Personal Non Earning Assets 3,549,034 3,602,995 53,961 Current Liabilities (40,228,139) (39,086,221) 1,141,918 $4M paydown from sale of ENE to ENE less investments and expenses (taxes on stock opt exe) Long Term Liabilities (69,283,279) (60,824,518) 8,458,761 Decrease in Def. Tax Liability Business Liabilities (350,281) (363,979) (13,698) NET WORTH $183,209,267 $ 168,175,725 (15,033,542) Value based on FMV of partnership assets. No discount for partnership interest is shown. NOTE: Net Worth of $168,175,725 does not reflect 1,523,300 unvested Enron stock options and 151,948 restricted shares of Enron Corp. Based on a FMV of $45.35/share as of 7131/01, these options are valued at $8,593,149 and the restricted shares are valued at $6,890,842 totaling $15,483,991. The total value less deferred tax liability of 40% would add approximately $9,290,395 to the net worth. LAY-G32 1782 GOVERNMENT EXHIBIT LBF002 00827 229 Crim. No. H-04-25 (S-2) ============= Page 2 of 12 ============= - 1 Ken and Linda Lay Balance Sheet Comparison July 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 2121/02. 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 $4,214,684. The outstanding commitments for various investments total $ 18,237,943. LAY-G32 1783 i Rnm_nnR9R ============= Page 3 of 12 ============= List of Outstanding Commitments As of July 31, 2001 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 Chase Cap Ptrs Private Eq Fund 5,000,000 2,164,364 2,835,636 Corporate Opportunities Funds 750,000 375,000 375,000 Environmental Opportunities Fund 500,000 475,000 25,000 Environmental Opportunities II Fund 400,000 168,000 232,000 Genesis Park LP 500,000 144,758 355,242 Jester Apartments-Slidell, LA 350,000 80,000 270,000 Lazard Technology Partners II LP 1,000,000 389,365 610,635 Murphree Venture Partners V, LP 500,000 100,000 400,000 SRE Properties Partnership No. 1, L.P. 2,500,000 1,673,342 826,658 Sterling Group Partners I, L.P. 2,500,000 437,500 2,062,500 Vanguard VII LP 3,000,000 900,000 2,100,000 Westbridge Ventures, L.P. 1,000,000 249,917 750,083 SUBTOTAL $20,971,000 $ 9,408,057 $ 11,562,943 List of Scheduled Commitments: Houston NFL Holdings 11,675,000 5,000,000 6,675,000 (Offset by Credit Facility at Bank of Am) TOTAL $ 32,646,000 $ 14,408,057 $ 18,237,943 i LAY-G32 1784 i QGnn0_nnA)Q ============= Page 4 of 12 ============= August 20, 2001 Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: July 31, 2001 Balance ASSETS CURRENT ASSETS Cash on Hand CASH ON HAND/SK 20.67 CASH ON HAND/PSTOKES 779.03 CASH ON HAND/MSTURGIS 200.00 CASH ON HAND/LEONA 381.63 CASH ON HAND/PRAKER 219.33 CASH ON HANDBVLILT 4,312.47 Total Cash on Hand: 5,913.13 Checking Accounts: BANK OF AMERICA 0707 47,506.46 BANK OF AMER/LPL PROP 4,039.24 BANK OF AMER/STOKES 1,788.68 CHASE BANK CHECKING 1,578.35 VECTRA BANK 4,650.20 UNITY 109-900 -2,075.09 Total Checking Accounts: 57,487.84 Money Market Accounts: WASHINGTON DC ACCT 90,000.00 Total Money Market Accounts: 90,000.00 Brokerage Accounts: GOLDMAN SACHS/GS-61 619.75 PAINE WEBBER MMA/PW-22 1,305,409.81 PANE WEBBER CYPRESS/PW-43 11,639.21 PAINE WEBBER CAP/PW-46 135,720.47 SANDERS MORRIS MMA/SMH-JT 0.49 PAINE WEBBER TCW CE/PW-71 25,847.09 PAINE WEBBER TCW MC/PW-72 27,004.93 Total Brokerage Accounts: 1,506,241.75 Savings Accounts: ENRON CREDIT UNION/KLL 46.01 Total Savings Accounts: 46.01 Treasury Bills: SAVINGS BONDS 600.00 Total Treasury Bills: 600.00 Short-term Receivables: ACCT RECV-KLL & LPL INVEST 2,523,500.00 '- ACCT RECV-TDH 500,000.00 Page 1 LAY-G32 1785 i nrnn~ 1 ============= Page 5 of 12 ============= August 20, 2001 `Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: July 31, 2001 Balance 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 BBS 75,000.00 ACCT RECV-RRH 20,000.00 ACCT RECV-BJONES 103,234.68 ACCT RECV-RV 84,643.00 ACCT RECV-ELV(FL) 580,000.00 ACCT RECV-ELV(TX) 790,242.27 ACCT RECV-G KINNEAR 900,000.00 1E_ ACCT RECV-JANE TRAN 25,000.00 ACCT RECV-E MCELROY 1,250.00 ACCT RECV-MISC 3,351.63 ACCT RECV-RANDY GRAY 600.00 ACCT RECV-S. ADARO 6,900.00 ACCT RECV-A. PHILLIPS 37,000.00 ACCT RECV-JIM EMERSON 18,000.00 ACCT RECV-PTERRAZAS 14,246.78 ACCT RECV-T. ZILBERFARB 15,000.00 ACCT RECV-HUGUES HEYMAN 31,593.12 ACCT RECV-LEONA ARMSTRONG 600.00 ACCT RECV-J EMERSON 28,615.85 ACCT RECV-VAN STOKES 3,000.00 Total Short-term Receivables: 5,989,937.74 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 9,109,014.74 MARKETABLE INVESTMENTS Enron Corp. $ 49,754,845.50 Common Stock 7,744,680.80 Fayez Sarofim Mgmt.-Com 2,987,807.23 Sanders Morris Mundy-Com 318,958.36 Cypress Asset Mgmt.-Coin. 3,186,248.36 Caprock Capital Advisors 609,950.24 PaineWebber Core Hold. 2,879,560.40 TCW Con- Equity 597,918.70 TCW Mid Cap Equity 1,395,669.43 Privately-Held Stock 12,410,760.37 i LAY-G32 1786 Page2 i RFnm_nnFn1 ============= Page 6 of 12 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: July 31, 2001 Vested Exec Stock Options: CPQ ESO 4-97 4370SH 30,240.40 CPQ ESO 4-98 2,424 SHS 1,212.00 CPQ ESO 4-99 2,953 SHS 9,124.77 ENE-ESO 12-95 8,632 SHS 226,935.28 ENE ESO 12-96 68,620 SHS 1,632,469.80 ENE ESO 1-97 113,090 SHS 2,612,379.00 ENEESO 1-97 1,275,000 SHS 30,166,500.00 ENEESO 1-98 127,184 SHS 3,216,483.36 ENE ESO 12-98 442,988 SHS 7,451,058.16 ENE ESO 12-99 650,000SHS 5,304,000.00 Total Vested Exec Stock Options: 50,650,402.77 Corporate Bond-Convertibi: LAKEWOOD SPORT CONV/SME-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 1534SH/SMH-JT 1,534.00 EARTHCARE CO 253ISH/SMH-JT 2,531.00 EARTHCARE CO 2594SH/SMH-JT 2,594.00 EARTHCARE CO 2688SH/SMH-JT 2,688.00 EARTHCARE CO 2756SH/SMH-IT 2,756.00 EARTHCARE CO ISH/SMH-JT 1.00 EARTHCARE CO 2794SH/SMH-JT 2,794.00 EARTHCARE CO 1 SH-2/SMH-JT 1.00 EARTHCARE CO 2833/SMH-JT 2,833.00 FLASHFIND CORPORATION 250,000.00 FLASHFIND CORP NOTE 3/01 75,000.00 FLASHFIND CORP NOTE 5/01 75,000.00 Total Corporate Bond-Convertibl: 652,273.00 Mutual Funds: GS 1999 EXCH FND/GS-61 5,466,390.50 Total Mutual Funds: 5,466,390.50 Partnerships-other. KLL & LPL INVESTMENT PTRNS 15,840,919.00 Page 3 August 20, 2001 LAY-G32 1787 Try:, RFnm-nnR32 ============= Page 7 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: July 31, 2001 August 20, 2001 Balance KLL & LPL FAMILY PTRNS 960,352.00 Total Partnerships-other. 16,801,271.00 TOTAL MARKETABLE W.'ESTMENTS 155,456,736.66 LONG-TERM INVESTMENTS Residence: REAL ESTATE/HUNTINGDON 10,128,137.50 Total Residence: 10,128,137.50 Real Estate Other Homes: REAL ESTATE/ASPENI 2,869,323.52 REAL ESTATE/ASPEN2 5,651,101.47 REAL ESTATE/ASPEN3 6,257,394.11 PIRATES' COVE LOTS 299,742.66 REAL ESTATE/B-3431 713,153.42 REAL ESTATE/B-3429 760,410.06 REAL ESTATE/B-3433 872,199.64 REAL ESTATE/REBA 492,639.61 REAL ESTATE/ASPEN4 1,758,282.14 REAL ESTATE/WESTGATE 284,873.38 REAL ESTATE/2514 AVALON 288,433.94 Total Real Estate Other Homes: 20,247,553.95 Real Estate Active Rental: REAL ESTATE/1741SR 147,309.00 REAL ESTATE/1852MAR 104,044.97 REAL ESTATFJ1856MAR 173,048.67 REAL ESTATE/1918SR 243,875.17 REAL ESTATE/KINGS 190,000.00 REAL ESTATFJVIKING 60,000.00 REAL ESTATE/MEXICO MO 240,026.00 REAL ESTATE/2403AVALON 944,179.00 Total Real Estate Active Rental: 2,102,482.81 Real Estate Passive: 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 JESTER APTS PARTNERS,LTD 552,654.00 J.T.FAM,SR. INVEST., LTD. 490,020.00 LAKE CHARLES APTS., LTD. 176,023.00 MILAND INVESTMENTS LLC 1,038,455.08 NOLANA, LTD. 186,000.00 LAY-G32 1788 Page 4 ~ ornn~ nnst~~ ============= Page 8 of 12 ============= LBF002-00834 } j Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: July 31, 2001 RESACA DE LAS PALMAS SAJG KIRBY BRAESWOOD SRE PROPERTIES PTR NO. I TRAILSIDE APTS, LTD. W.E. TRADE INVESTMENTS LTD W.A.REHAUSENLOT INV LTD Total Real Estate Passive: Farming Interests: 1 1ACRES ILLINOIS Total Farming Interests: 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 ENVIR OPP 500,000SH/SMH-JT ENVIRON OPP FUND II/SMH-JT GENESIS PARK LP HOUSTON NFL HOLDINGS 2.5% SMH INDX LLC/SMH-JT LAZARD TECH PTRS II LP LOMBARDI LLC/SMH-JT MURPHREE VENTURE PTRS LP MV PTRNS-CYBER DIALOGUE MV PARTNERS SANDERS OPPORT FUND/SMH-JT STERLING GROUP I LP TACONIC CAPITAL PTRS LP TCW WESTBRIDGE VENTURES VANGUARD VII LP Total Other Investments: TOTAL LONG-TERM INVESTMENTS RETIREMENT/DEFERRED ASSETS IRA PAINE WEBBER-IRA/KLL-PW Total IRA: IRA/Spouse: PAINE WEBBER-IRA/LPL-PW Page 5 Balance 240,000.00 ` 180,000.00 1,675,807.33 486,208.00 277,55 8.00 115,658.00 6,730,262.41 4,500.00 4,500.00 August 20, 2001 114,331.00-? 510,441.00 378,855.00 1,254,212.00 2,167,855.15 33 9,000.00 96,812.00 23 5,500.00 74, 800.00 144,758.00 5,000,000.00 10,928.60 397,833.00 40,83 2.50 _- 1"~,oJ e- ~0 90,610.00 346,478.007 250,000.005 952,645.84 437,500.00 2,738,460.00 247,549.00 853,938.00 16,683 ,33 9.09 55,896,275.76 44,676.10 44,676.10 44,707.46 LAY-G32 1789 r r ============= Page 9 of 12 ============= M1 _ August 20, 2001 - Kenneth L. & Linda P. Lay - BALANCE SHEET ANALYSIS As of: July 31, 2001 Balance Total IRA/Spouse: 44,707.46 Retirement Plan: •1cn {5 5;on J ~j ~~`,r \ ~n G~•o Grr~• A ENRON-RETIREMENT 4,220,212.93 ENRON SAVINGS RO/PW401K 3,701,330.95 ENRONSAVROMMA/PW401K--Fro-0 v,d,~ds-74,629.60 Ro oJer ~ro Error KEOGH MMA/PW-18 2,324.18 KEOGH MUNDER TECH/PW-18 155,059.88 ~' G H ~r o rn p y ENRON SAVINGS 401(x) 844,287.7 Se t f e rn p i o rn e nt ENRON ESOP E-5,502.77 i n n_ car n FID GROWTH CO 401(K/KLL 19,913.2 FD:) OTC 401(K)KLL 10,856.83 o n n r r) P I o FIDOVERSEAS 401(KyKLL 20,711.33 Nor-nern TruSt FID MAGELLAN 401(K)KLL 56,965.34 , Tr u st r e. MANULIFE ANN KLL/PW-R 2,996,410.56 M a ^aa ed b F T Q MANULIFE ANN LPL/PW-R 2,616,676.34 Total Retirement Plan: 14,724,881.67 Deferred Compensat'n Plan: HNG PLAN-85 83,604.00 ENRON DEFERRED COMP-85 3,737,057.12 ENRON DEFERRED COMP-94 1,312,037.00 ENRON PHANTOM STOCK DEF 22,981,991.84 ELI LILLY DEFERRED COMP 1,420,213.67 TCW DEFERRED COMP 36,251.17 Total Deferred Compensat'n Plan: 29,571,154.80 -~ ~~{~; r~5yv TOTAL RETIREMENT/DEFERRED ASSETS 44,385,420.03 PERSONAL/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 15,280.15 00 MERCEDES ML55 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 48,272.40 01 GRAND CHEROKEE 37,801.28 Total Automobile(s): 520,178.20 Page 6. LAY-G32 1790 LBF002-00835 ============= Page 10 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: July 31, 2001 Balance Home Furnishings: HOME FURNISHINGS/HUNT HOME FURNISHINGS/ASPENI HOME FURNISHINGS/13-3431 HOME FURNISHINGS/13-3429 HOME FURNISHINGSB-3433 HOME FURNISHINGS/ASPEN2 HOME FURNISHING S/ASPEN3 HOME FURNISH/2514AVALON Total Home Furnishings: 2,164,312.11 13 8,984.11 189,455.63 80,833.15 103,872.74 259,141.69 553.86 1,53 6.28 2,938,689.57 Other Vehicles & Equip: BW 21' OUTRAGE BOAT 49,327.00 DUFFY 18'-I 19,098.00 DUFFY 18'-lI 19,098.00 HURRICANE 19' 22,695.14 SPIRIT CANOE 406.43 SUPER SPORT BOAT 1997 33,502.74 Total Other Vehicles & Equip: 144,127.31 TOTAL PERSONAL/NON-EARNING ASSET 3,602,995.08 TOTAL ASSETS 268,450,442.27 LIABILITIES CURRENT LIABILITIES Notes Payable: CHASE BANK LOC COMPASS BANK LOC ENRON CORP. LOAN BANK OF AMER $40M NON PAINE WEBBER-LOC/PW-42 ACCT PAYABLE (ST)-ENRON Total Notes Payable: Security Deposits: SEC DEPOSIT/Z-1918SR SEC DEPOSIT/Z-1856MAR SEC DEPOSIT/Z-MCDUF Total Security Deposits: Margin Acct Liability. PAINE WEBBERMARGIN/PW-44 PAINE WEBBER MARGIN/PW-33 FIRST UNION MARGIN/UN Page 7 7,042,000.00 3,489,871.12 4,000,000.00 7,854,391.70 -5,142.58 371,823.79 22,752,944.03 850.20 125.00 400.00 1,375.20 1,658,580.59 3,762,708.16 10,910,612.62 August 20, 2001 LAY-G32 1791 LBF002-00836 ============= Page 11 of 12 ============= Kenneth L. & Linda P. Lav BALANCE SHEET ANALYSIS As of: July 31, 2001 Balance Total Margin Acct Liability: 16,331,901.37 TOTAL CURRENT LIABILITIES 39,086,220.60 LONG-TERM LIABILITIES Home Mortgage: BANK OF AMER/HUNTINGDON 4,340,566.36 BANK OF AMER/HUNT #2 LIEN 487,491.65 BANK OF AMER/HUNT #3 LIEN 488,711.24 Total Home Mortgage: 5,316,769.25 Other Real Estate Mtge: BANK OF AMER/ASPENI 1,496,422.30 CITICORP MORTGAGEE-3431 185,894.34 BANK OF AMER/B-3429 236,337.63 BANK OF AMERJB-3433 522,044.93 BANK OF AMER/REBA 316,854.60 BANK OF AMER/2514 AVALON 225,000.00 BANK OF AM/ASPEN2 4,257,610.39 BANK OF AM/ASPEN3 5,486,570.10 BANK OF AMER/ASPEN4 1,200,000.00 BANK OF AMER/2403AVALON 837,471.38 Total Other Real Estate Mtge: 14,764,205.67 Investment Liabilities: BANK OF AMER/GALV LOTS 91,400.89 BANK OF AMER/WESTGATE LOT 191,250.00 BK OF AM/CREDIT FACILITY 5,000,000.00 Total Investment Liabilities: 5,282,650.89 Deferred Tax Liabilities: DEF TAX LIAB-STK OPT ONLY 3 5,460,892.00 Total Deferred Tax Liabilities: 35,460,892.00 TOTAL LONG-TERM LIABILITIES 60,824,517.81 BUSINESS LIABILITIES Employer Taxes/Bus: MEDIC WITHHELD-EE (TX) 65,959.12 SOC SEC WITHHELD-EE (TX) 15,046.21 MEDIC WITHHELD-LPL EE(TX) 8,597.94 SOC SEC WITHHELD-LPL (EE) 1,989.12 FIT WITHHELD-EE (TX) 162,496.22 FIT WITHHELD-LPL EE(TX) 18,122.00 SIT WITHHELD-EE (HH-CO) 176.00 Total Employer Taxes/Bus: 272,386.61 Page 8 August 20, 2001 LAY-G32 1792 LBF002-00837 ============= Page 12 of 12 ============= Kenneth L. & Linda P. Lay BALANCE SHEET ANALYSIS As of: July 31, 2001 Accrued FICA Tax/Business: 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 Balance 65,959.12 15,046.21 8,59 7.94 1,989.12 91,592.39 363,979.00 100,274,717.41 August 20, 2001 168,175,724.86 268,450,442.27 W7, LAY-G32 1793 LBF002-00838