CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL Contract Life-Cycle Management Platts 6 th Annual Strategic Supply Chain Management for Utilities Conference January 29, 2008 Catherine E. Gouze, Esq. Enporion, Inc.

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #10

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #10 SAVE MONEY

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL “MONEY DOESN’T TALK, IT SWEARS.” - Bob Dylan Pressure to drive cost out of the supply chain Contract Leakage o Unredeemed rebates o Discounts not applied o Overcharging o Maverick Spend Identified in “Real Time”

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #9

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #9 CREATE YOUR OWN MONSTER

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #8

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #8 COMPLY WITH CONTRACT TERMS AND REGULATIONS

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL Operational Compliance o internal policies and procedures o business objectives Supplier Compliance o pricing, service levels, deadlines Regulatory Compliance o FERC, HAZMAT, OSHA, EPA, DOT, IRS….

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #7

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #7 DEVOTE MORE RESOURCES TO THE OFFICE OF COMPLIANCE

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #6

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #6 FIX THE BROKEN STEPS IN THE CONTRACT LIFE-CYCLE PROCESS

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL BPM – Business Process Management “It’s about the fusion of business operations and information technology to the point of unity. That transformation is well under way on a scale that can only be called the greatest 21 st century business reformation.” -Peter Fingar

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL Pre-approved templates and clauses Automated process with configurable roles, permissions, security, and alerts Audit to ensure all following same process Violators identified in Real Time, so corrective measures in Real Time Ongoing process: adjustments easier with automated process Learning curve for new employees shortened

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL QUERY: Whether process definition will occur without the discipline of software implementation… and even if so, are the benefits sustainable without the controls and data capture the software provides?

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #5

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #5 WORK MORE WITH YOUR LEGAL DEPARTMENT

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #4

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #4 PROVIDE ANALYSIS AND REPORTING

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL Significant value and data in contracts Need tools to extract the data Spend visibility in Real Time Corrections/adjustments in Real Time New savings opportunities identified, and deals may be renegotiated Set up reports that are valuable to you Analyze the data at a more detailed level

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #3

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #3 WORK MORE WITH YOUR FINANCE DEPARTMENT

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #2

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #2 COMPLY WITH SARBANES OXLEY ACT OF 2002 (“SOX”)

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL Public Company Accounting, Reform, and Investor Protection Act of 2002 CEO/CFO personally responsible for establishment and maintenance of controls and procedures Periodically test and evaluate effectiveness SOX reporting, material changes of events that may have an impact on a company’s perceived market value….reported to SEC in 48 hours

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #1

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL

CREATING POWERFUL CONNECTIONS ENPORION CONFIDENTIAL #1 KEEP YOUR CEO OUT OF PRISON