Subject: Nolan Deposition: Day 5
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Mon, 24 Jul 2000 13:26:00 -0700 (PDT)

Cory Gordon concluded his examination on Friday.? Highlights: 

--The NSM/Pruessag Off-Take Agreements did not contain any tonnage and/or 
quality requirements. 

--Part of the offering proceeds ($3 million) were mysteriously paid to an 
entity called Rowlyn Investments.? The disbursement was approved by Shultes.? 
Nolan had no knowledge of the payment or the entity.

--NSM purchased its scrap from Suntech -- a company not surprisingly 
controlled by Swasdi. 

--Nolan learned of SDI's termination after the letter had been sent by 
Busse.? Nolan was surprised and shocked to see the letter.? Nolan believes 
that the plant can be salvaged and will "make a lot of money for someone" in 
the future.

Swartz began his examination late afternoon and tried to get Nolan focused on 
the two days prior to the Oct. 13 Bondholders' meeting.? Swartz asked Nolan 
about the source of the cash flow numbers presented to the bondholders.? 
Nolan generally deferred all questions concerning the cash/expenditure 
numbers to Stickler and Heasley.? Swartz did not ask questions about 
ECT/Enron although he did inquire whether Kevin McConville was generally 
accessible to Nolan.? Nolan stated that while he worked more closely with 
Stickler, Ari Levy and Heasly, McConville was responsive.

Michael Tomaino was the only defense counsel to ask questions.? Tomaino 
focused on the problems SDI had with its start up phase and the depressed 
nature of the East Asian steel market in 1998.? Nolan stated that the 
operational and quality problems NSM faced were identical to those faced by 
SDI during its start up.? Nolan also stated that, in his opinion, the 
depressed Asian market was to blame for NSM's demise.? 

This e-mail message may contain legally privileged and/or confidential 
information. If you are not the intended recipient(s), or the employee 
or agent responsible for delivery of this message to the intended 
recipient(s), you are hereby notified that any dissemination, 
distribution or copying of this e-mail message is strictly prohibited. 
If you have received this message in error, please immediately notify 
the sender and delete this e-mail message from your computer.