Warranty

I spoke with Dick Vincent who indicated that we will have no problem
obtaining 12 mos renewable business interruption insurance when we go
operational on gas. This should solve the warranty issue with the banks
because it covers defects, design, and workmanship on the turbines and
includes lost profits, etc. Incidentally, for insurance purposes the
turbines are designated DE3 which is not a new technology designation.

Typically we will always have this coverage in place but if their is a
supplier warranty then the party providing the warranty pays ahead of the
insurer. In the case where the supplier does not pay or the warranty has
ended then the insurer will pay.

Now we just need to come up with a fix for the drop dead date.

Regards,

Rob