Jorge:

The Bank of Montreal ("BMO") master agreement provides for Market Quotation 
in the event of early termination for non-commodity based products. BMO 
prepared the letter to document our agreement to a different valuation 
methodology for the terminated transaction.  Please execute the letter.

P.S.  Do know the difference between Market Quotation and Loss?

Sara Shackleton
Enron North America Corp.
1400 Smith Street, EB 3801a
Houston, Texas  77002
713-853-5620 (phone)
713-646-3490 (fax)
sara.shackleton@enron.com



	Jorge A Garcia@ENRON
	02/09/2001 04:22 PM
		 
		 To: Sara Shackleton/HOU/ECT@ECT
		 cc: Laurel Adams/HOU/ECT@ECT
		 Subject: Bank of Montreal- Early Termination Letter

Good Afternoon Sara,

I wanted to document our discussion this afternoon regarding the Early 
Termination Letter for our Deal No. M368796 that settled on 2/2/01, with the 
Bank of Montreal. You stated that the Master ISDA Agreement states that the 
valuation method for early termination should be the process of obtaining 
Market Quotations from Reference Market Makers. This Early Termination Letter 
reflects that BMO determined the value through its ordinary valuation methods 
instead. This was agreed upon by, the trader, Ellen Su. Therefore, you 
provided your approval for us to execute this letter. Please respond with 
your agreement for our files.

Many Thanks,

Jorge A. Garcia
Manager- Risk Management
Enron Global Markets LLC
713/853-5596