----- Original Message -----

From: XXXX XXXXXXX (wozdak)
To: E. Lynn Schoenmann
Sent: Thursday, October 25, 2001 2:24 PM
Subject: Trustee pay

Hi Ms. Schoenmann, Ref. NorthPoint Communications Co. bankruptcy

Our NorthPoint Stockholder's Group is interested in learning how individual Trustees and/or the U.S. Trustee's Office get payment out of the cases they administer, such as NorthPoint Communications Chapter 7 bankruptcy case.

Specifically, do Trustees or the Trustees Office receive a fixed, pre-determined amount, or is there a sliding scale, a percentage system or some other means of calculating the payment they receive from a case?

Is there an incentive for Trustees or the Trustees Office to liquidate an asset at a higher price? For instance, is there a financial incentive for you to negotiate a higher price for an asset, or to negotiate a higher offer for settlement of the lawsuit asset?

If the NorthPoint vs. Verizon lawsuit goes to trial, would you or the Trustees office participate in any judgment against Verizon and would the payment to you or The Trustee's Office, if any, be a pre-determined amount, or is there a sliding scale, a percentage system or some other means of calculating the payment received from a case?

You have inspired hope in many hearts with your professional intensity and your focus on maximizing value to NorthPoint's Estate. Our Stockholder's Group appreciates the cordial professional treatment that you have extended to us, even though we must get under your skin sometimes.

Our Stockholder's Group has grown to 196 Members who own over 8 million shares of NorthPoint. Our members range from a 10 year-old boy with NorthPoint shares in a Trustee(!)-administered investment account, to seasoned business executives and every demographic in between. This has been such an interesting and educational case that I will hate to see it end. Thank you again.

XXXX XXXXXXX

Ms. Schoenmann's answer:

From: Schoenmann
Date: October 25, 2001
To: XXXX XXXXXXX (wozdak)
Subject: Re.Trustee Pay

The U. S. Trustee's office assesses quarterly fees for Chapter 11 estates. There are no fees payable to the U. S. Trustee's office for Chapter 7 estates. As you know, NorthPoint was converted to a Chapter 7 on June 12.

My fees as Trustee are as awarded by and at the discretion of the court. Please refer to Section 326(a) of the Bankruptcy Code, which sets the maximum compensation payable.

Thank you for your kind expressions. I need to caution all shareholders, however, to temper your enthusiasm. Although I continue to believe we have an excellent case against Verizon, a substantial recovery must be realized before any funds will be available for equity holders, and we are in the very early stages of the litigation.

Here is the section 326 (a) of the Bankruptcy Code that Ms. Schoenmann referred to: US Code as of: 01/02/01

Sec. 326. Limitation on compensation of trustee

(a) In a case under chapter 7 or 11, the court may allow reasonable compensation under section 330 of this title of the trustee for the trustee's services, payable after the trustee renders such services, not to exceed 25 percent on the first $5,000 or less, 10 percent on any amount in excess of $5,000 but not in excess of $50,000, 5 percent on any amount in excess of $50,000 but not in excess of $1,000,000, and reasonable compensation not to exceed 3 percent of such moneys in excess of $1,000,000, upon all moneys disbursed or turned over in the case by the trustee to parties in interest, excluding the debtor, but including holders of secured claims.