Message-ID: <10525507.1075859684056.JavaMail.evans@thyme>
Date: Fri, 8 Sep 2000 04:47:00 -0700 (PDT)
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
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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