Bear Stearns

Sheila,

The relief on funding should be in place later today.

I have spoken with Russ Miron from Bear and he said he will have the stock
loan agreement in place by the end of the day.
Russ made his statement contingent on all the documentation being in place.
Cheryl Nelson in our Legal department believes all documentation is complete.
Cheryl will verify this one last time this afternnoon.

Once the stock loan account is set up:
Bear positions will be flipped to the new stock loan acount.
The margin will be lowered to 20% a side as promised.
We will transfer the long positions at Morgan into Bear.
We should be able to flip the Morgan account into ECI from its current ECT
status.

The Goldman account can be flipped at any time as we do not face any Margin
calls by doing the name change.

Thanks,

Tom