Kay:

Is this acceptable to you? Do you have any open issues that I missed.
I think it is fair.
----- Forwarded by Brian D Barto/ENRON_DEVELOPMENT on 03/09/2001 08:36 AM 
-----

	jeffrey.darst@ps.ge.com
	03/09/2001 08:35 AM
		 
		 To: bbarto@enron.com
		 cc: chasecl@pssch.ps.ge.com
		 Subject: Blue Dog Max, comments on draft CO No. 2, rev 6a


Brian,

We are in agreement with the language you proposed for Change Order #2 with
the following exception;

We suggest that the first sentence of the revision of 2.6 be retained but
that the balance of the provision be deleted and substituted with the
following:

> Purchaser and Seller agree that the Primary Warranty Period for Unit 1
> Equipment placed into storage shall be determined in accordance with
> Article 14.1.1 of the Agreement except that the Primary Warranty Period
> shall end no later than thirty-six (36) months from the date the last
> Major Component of Unit 1 is delivered to Seller's storage facility in
> undamaged condition.
>
We believe the above wording is a compromise to satisfy your concern that
Unit 1 could be damaged in transit to the storage facility.  The above
wording extends the warranty period, at no cost to Enron, at least by a
duration equal to the transit time to storage .

It is our hope that we can proceed from here.

Regards,

Jeff
Global Power Plant Systems
518-385-0663
518-381-1513 (fax)

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