Sounds reasonable to me.



	Mary Cook
	08/30/2000 02:04 PM
		 
		 To: Sara Shackleton/HOU/ECT@ECT, Mark Taylor/HOU/ECT@ECT
		 cc: 
		 Subject: Warrant Based Swaps

Based upon discussions with Andrea Reed, the res of the swap will be the 
warrant itself, not the underlying stock.  The warrants are valued separately 
with a "warrant model" and carry a price of their own differentiated from, 
although affected by, the stock price.  I did not get into further detail on 
the specifics of the modeling.  The will provide us the number of warrants, 
the strike price as of August 3.  Otherwise they will work similarly to the 
stock based swap I think.  She said they do not plan to exercise them, but 
may sell them as warrants.  Let me know what you think.  Mary