FACE="Times Roman" SIZE=3 COLOR="red"> SRI International
333 Ravenswood Avenue
Menlo Park, CA 94025
FACE="Times Roman" SIZE=4 COLOR="black">

Date: Thu, 27 Jul 2000 12:39:19 -0700

Mr. Rod Welch
rowelch@attglobal.net
The Welch Company
440 Davis Court #1602
San Francisco, CA 94111 2496

FACE="Times Roman" SIZE=5 COLOR="black"> Subject:

FACE="Times Roman" SIZE=4 COLOR="black"> SDS Initiative at SRI

Thanks for coming to meet with me Tuesday at SRI. I think the meeting was useful and productive. I believe we came up with three possible next steps to take to further our common goals:

1. Set up a meeting with some core of the OHS/DKR team, you and I to discuss the possibility of using your SDS in the OHS/DKR development process. As we discussed, the current momentum in the OHS/DKR project is strongly toward open source solutions, and there is a trend in government funding in this direction as well. I think we should see if we can find an accommodation of your proprietary software interests with the goals of the OHS/DKR project and external environmental pressures.

2. Think about and discuss possible other SRI-Welch collaborations and joint projects. In particular, if the OHS/DKR effort proves to be too far along the open source path, there may be other ways SRI could work with you in putting various tools or efforts together.

3. Work on a business model, business plan, team, and compelling pitch suitable for venture capitalists. If you or we together are able to come up with a compelling story of future revenue streams and low up-front risk, I would be happy to help you find your way through the thicket of venture capital. As I noted in the meeting, "the team" will be a key component of the story, and you and your intel acquaintance could form part of that team. Just to be clear, I am not currently available to be an officer of any such concern.

Let's keep in touch.

Sincerely,

Computer Science Laboratory

pdl.
Pat Lincoln
Director
Lincoln@csl.sri.com