THE WELCH COMPANY 440 Davis Court #1602 San Francisco, CA 94111-2496 415 781 5700

June 8, 2000 03 00050 61 00060801

Kurtz-Fernhout Software

Subject:   Pointrel and SDS Proposal

Dear Paul,

I am very grateful for your interest in my work. My objective is to produce a product for sale that supports knowledge management, including Communication Metrics, as the core of Enterprise Management. This requires complimentary applications which might be produced under an open source arrangement, as discussed with Jack Park on May 3, 2000. More recently, on June 5, I wrote to Jack through the the DKR team about the overall framework of SDS as the foundation of knowledge management.
Your proposal may fit that model for the reasons in the record on June 1, 2000 where it appears that you intend to create an application that processes the SDS record on the web. If you do this, it would add value to SDS records as a source of daily business "intelligence," and this would help sell the SDS program for generating content. Under this scenario, Pointrel could be distributed under any terms of your choosing, e.g., open source.
An additional project to consider is joining me to create the SDS program itself in a stronger form, as indicated by your educational work shown on the web. This would give you an ownership position in SDS, and enable you to directly influence the design, and to advance the day when there is a knowledge management capability released to the world. Such an arrangement would entail a lot more thought about business arrangements.
Thanks again for your interest in SDS. I realize open source is very important to you, and hope that this does not prevent us from exploring further how to move the work forward.



Rod Welch