The interest component was eliminated from the terms of this Transaction (as 
was the switch from a price return swap to a total return swap and the name 
change).  It seems that Ben and Scott S. had a subsequent conversation (after 
ours) and the agreed changes were communicated to me.  SS



	Kevin Garland@ENRON COMMUNICATIONS
	08/15/2000 01:20 PM
		
		 To: Sara Shackleton/HOU/ECT@ECT@ENRON
		 cc: Kevin Howard/Enron Communications@Enron Communications
		 Subject: Re: Raptor:  Talon/Harrier/EBS Investments, L.L.C.

I did not see the interest calculation.
KG




	Sara Shackleton@ECT
	08/15/00 08:59 AM
		 
		 To: Kevin Howard/Enron Communications@Enron Communications, Kevin 
Garland/Enron Communications@Enron Communications, Kristina Mordaunt/Enron 
Communications@Enron Communications, James Ginty/Enron Communications@Enron 
Communications, AnnMarie Tiller/Corp/Enron@ENRON, Brent 
Vasconcellos/Corp/Enron@ENRON, Ryan Siurek/Corp/Enron@ENRON
		 cc: 
		 Subject: Raptor:  Talon/Harrier/EBS Investments, L.L.C.

All:  Attached are the following docs:
 (1)  Talon I LLC/Harrier I LLC equity swap confirm
 (2)  Harrier I LLC/EBS Investments, L.L.C. equity swap confirm
 (3)  revised ISDA Master Agreement Schedule for Harrier I LLC and EBS 
Investments, L.L.C.

Please review and provide me with your comments.  I do not have all necessary 
address and account information.
The swaps are subject to the  ISDA 1996 Equity Derivatives Definitions.  
Section 7.4 (of those Definitions) contains the payment obligations and 
provides that the Equity Amount Payer pays a positive Equity Amount and "the 
other party" pays the absolute value of a negative Equity Amount.  Also, I 
believe that Accounting Issue 00-19 is inapplicable to this Total Return Swap 
or else we may have issues with the "Extraordinary Events" elections.  
Sara