Municipals

Kim and Barry -

I had a couple of thoughts with respect to our meeting yesterday on
municipals. It appears to me that with the California municipals especially,
accellerating the entire sales process will be critical. I'm thinking about
how we can get in place as much of the required paper as possible prior to
negotiating deal terms. Much of the required documentation (proof of
authority to transact, outside legal opinion, etc.) will be difficult to push
until you are actually negotiating with these counterparties, as there won't
be any incentive on their part to drive these issues. However, from our end,
we can prepare all of the required contracts prior to any meetings with these
counterparties so that we don't lose any time on that front.

With that in mind, do you have a list of target counterparties that you will
be attacking in the near term? If so, please forward to me and I will begin
the process of reviewing from a credit standpoint and putting together draft
Master contracts to put in front of the counterparties. It will take me some
time to get through reviews/contracts/etc., but if you have a list of
targets, I can at least get started.

If you have any thoughts on how I can help you develop some of this business,
please let me know.

Thanks,

Jay