Sara:

I have made some inquiry and verified that the Bear Stearns Stock Loan
enhanced leveraged product is indeed what is under consideration.

As promised, I have a brief step-by-step  explanation of such a stock loan
transaction, which is appended to this message.  There are actually two
possible scenarios: one where cash collateral is used for the stock loan,
the other where actual securities are used as collateral.  We understand
that, at least initially, you will be using bonds as collateral.

The Stock Loan Agreement is used in connection with our current form of
Institutional Account Agreement which ECT may not have signed.  I therefore
also append that agreement to this message.

I expect you waill wnat to review these attachments before we speak again.
Again, as a reminder, I will be on vacation from Friday the 16th through the
following week.  If you would like to speak before hand, or if you have any
questions regarding any of the documents, please let me know.

Regards,

Sharon

 <<Enhanced Stock Loan-explained.doc>>

 <<IAA_ 9-8-00rev_clean.doc>>

 - Enhanced Stock Loan-explained.doc
 - IAA_ 9-8-00rev_clean.doc
***********************************************************************
Bear Stearns is not responsible for any recommendation, solicitation,
offer or agreement or any information about any transaction, customer
account or account activity contained in this communication.
***********************************************************************