2001 ISDA Master Agreement Protocol

This email is to update you on the status of the 2001 ISDA Master Agreement
Protocol (the "Protocol"). As part of the Protocol, there were four annexes
that addressed the disappearance of the 12 national currency units on
January 1, 2002 and the introduction of the euro. These four annexes have
been separated from the Protocol and published on our website on September
24 as the 2001 Euro Protocol. The adherence period for the 2001 Euro
Protocol is September 24 to November 30, 2001. It was important to move
forward with the 2001 Euro Protocol, given the specific nature of the timing
of the introduction of the euro.

With respect to Annexes 1 through 8, we propose drafting a new ISDA Master
Agreement rather than moving forward with a Protocol. The continuing debate
on the details of Annexes 1 to 8, the relevance of the Protocol for these
provisions and the interest in moving forward with a new ISDA Master
Agreement are some of the reasons for this recommendation. An extraordinary
amount of effort has gone into preparing the Protocol and will provide a
strong basis for proceeding with a new ISDA Master Agreement. Please let me
know what your thoughts are on this suggested approach.

With respect to Annex 9, the Force Majeure Annex, we propose posting a Form
of Amendment and the Force Majeure provisions (as well as the Commentary) on
our website. This would allow firms to incorporate such language into their
Master Agreements on the basis of bilateral negotiation. Any views you may
have in light of the events of September 11 would be welcome.

Lastly, with respect to Annex 10, the Tax Protocol, our Tax Committee will
be contacted on Tuesday to determine how to proceed with respect to those
issues. Any views on this issue would also be welcome.

Please contact me as soon as possible to share your views. I can be reached
by email or by phone at 212-332-1203.

Thank you in advance.

Kimberly Summe
General Counsel