Jeff,

Details of the weather transaction we discussed yesterday (requiring a cash collateralized account in lieu of a letter of credit). This would be the first weather deal done in Latin America and hopefully create other opportunities with the Mexican government. Let me know if you have time to discuss further (I'd like to get your input before proceeding with Treasury).

Thanks,

Brian Hendon
x36301

 -----Original Message-----
From: 	Stoiani, Valter  
Sent:	Wednesday, November 14, 2001 9:04 AM
To:	Hendon, Brian
Subject:	Agro Asemex


Brian,

Please find below the details of the deal. Please let me know if you need anything else.


Counterparty			Agro Asemex (entity owned by the Mexican government)
Structure			Call option on weather derivative portfolio
Weather indices			Temperature and precipitation
Location			7 weather stations (5 in western Mexico and 2 in southern Texas)
Deal Term			Oct 01, 2001 - May 31, 2002
Limit				US$ 900,000
Gross premium			US$ 150,000

Gross profit to be marked	US$ 117,500

Requirement:		Upon confirmation of the deal, $750,000 shall be deposited in an escrow account, to be made available for counterparty's conditional withdrawal until the end of June, 2002.

Note: In addition to the remuneration that the funds will accrue in the escrow account, this deal will provide an additional return on capital of roughly 16% over 7 months, or 27% annualized.

Thanks for your help.

Valter