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



July 26, 2000

03 00050 61 00072601




Mr. Morris E. Jones
Business Unit Manager
morris.jones@intel.com
Cable Network Operation
Intel Corporation
350 East Plumeria; Mail Stop CHP3-105
San Jose, CA 95124

Subject:   Help Preparing Business Plan

Dear Morris,

Here is Jack's letter again with the initial draft of a proposal for an SDS project.

It occurred to me, in writing up the record, that if you pull free at 5p, or even 5:30p you could still attend the meeting, since the important discussion will not begin until after the main DKR meeting ends at 6p. The difficulty with this is you would be right in the middle of traffic, and that is a big waste of time, the opposite of what we want to achieve with SDS.

Another idea might be to just call in and we can put you on the speaker phone. This is probably the best scenario, and I could call you, since I am not sure where in the SRI facility we will be meeting for this second session.

To be sure this is only an exploratory discussion to see if people are on the same page as far as pursuing an SDS project. We don't need to solve all of the issues at this meeting, because the people attending likely do not have authority to commit to anything. The big question is, assuming that is so, what next steps need to be taken to form an entity and obtain funding. Might letters of intent to participate from SRI and LANL be useful in gaining the interest of investors, or would this be a negative? Would like to come out of the meeting with specific actions parties will take to move ahead.

Licensing seems like an area with a lot of possibilities for imaginative arrangements. Hope we have a little time to discuss in the morning.

Sincerely,

THE WELCH COMPANY



Rod Welch
rowelch@attglobal.net