Sara/Jill -

Here is a termsheet and sample confirmation for the termination of the Total 
Return Swaps and the booking of a Forward Purachase contract.

JEff
---------------------- Forwarded by Jeff Nogid/HOU/ECT on 08/09/2000 04:11 PM 
---------------------------


"Lyons, Maureen (CICG - Equity Linked Capital Markets)" 
<malyons@exchange.ml.com> on 08/09/2000 04:17:50 PM
To: "'jeff.nogid@enron.com'" <jeff.nogid@enron.com>
cc:  
Subject: ENE- Forward Termsheet and Forward Confirmation Template


Hi Jeff,

Per our conversation this afternoon, I have attached the draft forward
purchase termsheet and forward transaction confirmation template for your
review.  Please give us a call to discuss terminating the Total Return Swap
as of Friday, 08/04/2000, and entering into a forward purchase contract at
your earliest convenience.

If you have any questions or need additional information, please let us
know.  We are looking forward to speaking with you soon!

 <<ENE-Forward-Draft termsheet.doc>>
<<Forward-Confirmation-Template-8-9.doc>>

Thank you,
Maureen Lyons
Merrill Lynch
Equity Linked Capital Markets
212-449-6763 (T)
212-738-1069 (F)


Maureen Lyons
Merrill Lynch
Equity Linked Capital Markets
212-449-6763 (T)
212-738-1069 (F)


 - ENE-Forward-Draft termsheet.doc
 - Forward-Confirmation-Template-8-9.doc