Clickpaper.com Confirming Entity

Discussions over the last several days with legal and tax have resulted in a
change to the legal entity we'll use for the "trading" portion of
Clickpaper.com activity.
As long as our business model is a one to many model the decision is......
a. For Click Match activity Clickpaper.com can still be used as planned.
Simply, we'll only be invoicing for transaction fees.
b. For Click Trade activity the following will happen.
1. Physical trading that occurs at any North American Hub developed by
Clickpaper.com, Enron North America, Corp. (ENA) will be the
confirming entity. I have asked legal to develop a simple recital statement
for the physical confirmation to indicate that the transaction originated as
a "Clickpaper.com on-line transaction".
2. Physical trading that occurs at any Hub developed for the U.K., Latin
America, or Asia, has not yet been finalized for legal entity purposes. My
desire is that we follow the legal entity structure used by EOL on-line
trading for Hubs in similar countries. We'll work that out soon.

Strictly from an operational point of view the benefits are many but the most
significant is a much simplified mid/back-office effort in order to support
Clickpaper on-line business. We no longer need to be concerned about setting
up more portfolio/book i.d.'s for risk books as on-line deals can go into the
same risk books used today for pulp and paper. Intercompany transactions
between Clickpaper.com and ENA are now eliminated for on-line trades which
simplifies the confirmation support as well as the downstream financial
reporting/reconcilation activity that would be required by using
Clickpaper.com as the entity.

If our one to many model is successful, we move to a many to many model. At
that point, all of this changes. So for now, ENJOY!

For now,

Jeff Harbert