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



December 12, 2002

03 00050 61 02121201




Mr. John Deneen
jjdeneen@ricochet.net
Deneen Consulting
24 Heritage Oaks Road
Pleasant Hill, CA 94523
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Subject:   Evaluate SDS Pilot Test SDS for 3 Months

Dear John,

This confirms understandings from our meeting today about installing SDS on your computer for use and evaluation in exchange for your support to market and improve SDS. Following our meeting, I completed a version of SDS to install on your computer. Please call to schedule this installation.
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We will install the Schedule Diary System (SDS) software program on your computer without charge to you in exchange for evaluation comments you can offer, and for the purpose of posting SDS records on the Internet that demonstrate SDS work product with unique capabilities for creating and using explicit links to POIMS, NWO, cost reports and other publications and SDS records, like the one for today, that enable people to experience and associate unique features of SDS with the explanation of those features that together foster a culture of knowledge; and, further to allow you to demonstrate the SDS program and work product to potential customers for selling SDS as a product, or selling consulting services using the SDS program. An example of a scope of services using SDS is in the report published by the U.S. Army Corps of Engineers dated March 28, 1997. It is understood that you have been developing other specific uses for SDS which may result in various consulting arrangements to meet the needs of customers. If a sale should result from your efforts, terms and conditions, including compensation, will be further negotiated.
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Sales materials available to aid marketing efforts are listed in the record of our meeting today.
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The initiative you proposed today of getting articles published on SDS and Communication Metrics presents a good opportunity for writers and publications to help foster a culture of knowledge that grows awareness and demand for saving time and money using good management, as explained in POIMS.
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I would like to get your evaluation on the level of effort for a new user to become productive sending and receiving documents, preparing SDS records with subjects, contacts and links, and posting to the Internet. In order to maintain clarity, I am setting a time limit of three (3) months on this initial evalution. At the end of that time, and no later than April 1, 2003, if we have not mutually agreed to extend the review period, you should remove SDS from your computer.
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In accepting installation of the SDS program on your computer, you agree that research you have performed over the past several years, partly in association with the OHS/DKR effort sponsored by SRI in Menlo Park, Ca (e.g., meeting on March 24, 2000), shows that SDS is a unique software program for enabling important aspects of Knowledge Management, in which Rod Welch and the Welch Company have sole rights to the intellectual property, in that no other software has been discovered that accomplishes SDS functionality.
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We are also installing my personal SDS records, covering the past 15 years, on your computer for training and demonstration purposes, so that you have records available to perform SDS features that enable Knowledge Management and support Communication Metrics, as explained in POIMS.
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Sincerely,



Rod Welch
rodwelch@pacbell.net