Review of Brokerage Agreements

Sara,
Last week we spoke about a process to make sure we have Broker Agreements in
place.
I spoke with John last week. We will initiate the following immediately.
When we utilize a new executing broker, John will provide to us the name for
entry into the middle office system and Kelly Templeton will follow up with
the executing broker to get a customer agreement from the broker and forward
to you in Legal for review.
Kelly is currently following up with Hambrecht & Quist and Thomas Weisel
Partners.

John and I also discussed the level of risk related to different broker
relationships and the required documentation:
Executing Broker: We do not have an account open with the broker nor do we
hold positons . We only have a trade settlement risk.
OTC Activity: An ISDA agreement should be in place to cover the derivative
activity.
Service Agreements: Instinet, Posit
Prime Broker/Futures Account: Hold postions and dollars in account

thanks. sheila

---------------------- Forwarded by Sheila Glover/HOU/ECT on 04/18/2000 11:51
AM ---------------------------

Sara Shackleton
04/18/2000 09:11 AM
To: Laurel Adams/HOU/ECT@ECT, Sheila Glover/HOU/ECT@ECT, Susan
Flynn/HOU/ECT@ECT
cc: Marie Heard/HOU/ECT@ECT
Subject: Review of Brokerage Agreements

Marie is updating her list and preparing a general memorandum in connection
with the brokerage and futures agreements. I have the following times
available to meet (and I think we should schedule about an hour):

Thursday between 1:30 and 3:15
Friday after 10 am

Please let me know as soon as possible of your preference and I'll try to
accommodate everyone. Thanks. Sara