We have finalized the terms of the EnronOnline direct connect pilot program.  
The following points outline the primary terms of the program.  Subject to 
your review we will begin implementation of the program pursuant to these 
terms.  Please review the terms and let me know if you have any questions or 
comments.

Direct Connect service will include the provisioning of T1 connections 
between Enron counterparties and various Enron PoP's.  EnronOnline specific 
traffic will be transported to these Enron Pop's via the Enron Intelligent 
Network.
EBS will implement and manage the direct connect service on behalf of 
EnronOnline.  All customer support relative to the direct connect service 
will be managed by EBS.
In the event of a failure of the direct connect service, the user will access 
EnronOnline via an Internet connection.
The pilot program will last for an initial term of 12 months.
EnronOnline will pay $1750 per month for installation and monthly charges for 
the local loop, all backbone and/or internetworking charges and ongoing 
support for any North American client that comprises at least 1% of all 
EnronOnline transactions (see attached list of eligible counterparties).
Any EnronOnline customer that does not comprise at least 1% of the 
EnronOnline transactions may obtain a direct connect to EnronOnline through 
EBS for $1750 per month.
All direct connect customers will be responsible for providing a router that 
can accept a T-1 circuit.
All direct connect customers will receive a Service Agreement from EBS that 
will specify the terms of the service.

I would like to begin contacting these customers ASAP so please contact me 
with any issues by noon on August 21, 2000.  

Attached is a spreadsheet that outlines the EnronOnline funded participants 
in the pilot program.