Enron Mail

From:dan.lyons@enron.com
To:michael.miller@enron.com, john.howton@enron.com
Subject:Power Systems
Cc:david.delainey@enron.com, mark.haedicke@enron.com
Bcc:david.delainey@enron.com, mark.haedicke@enron.com
Date:Fri, 8 Sep 2000 04:47:00 -0700 (PDT)

Prior to the equity investment in and joint venture with Power Systems
Manufacturing ("PSM"), we will need to take the following actions:

* conduct additional due diligence on the PSM/General Electric ("GE") lawsuit
regarding infringement of GE patents. We will need to determine if the
litigation will affect the viability of PSM as operator or ENA as owner of
the equipment involved in the litigation. This will commence immediately and
a brief legal opinion will be obtained on these points.

* conduct legal patent due diligence on the mobile power units that are the
subject of the joint venture and obtain favorable legal opinions with
respect to the intellectual property issues surrounding both the component
parts being acquired and the proposed modified units themselves. Completion
of the due diligence and obtaining of the legal opinions should be a
condition precedent to any funding to the joint venture.

cc: Dave Delainey
Mark Haedicke