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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
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