THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700
rodwelch@pacbell.net


S U M M A R Y


DIARY: July 22, 2003 05:51 AM Tuesday; Rod Welch

Submitted draft agreement with Appendix A to Jerry at CSG.

1...Summary/Objective
2...Non-disclosure Agreement and Appendix A Submitted to Jerry
.........SDS Scope and Trade Secrets Needed for Agreement


..............
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CONTACTS 
0201 - CSG Systems Inc.                                                                                                                                                   O-00000795 0404
020101 - Mr. Jerry J. Nord
0202/- Boeing                                                                                                                                                             O-00000816 0505
020201 - Mr. Garold L. Johnson
020203/- Modeling and Simulation                                                                                                                                          O-00000816 0505

SUBJECTS
Legal Department CSG Proposes Developing Legal Agreement
Agreement on Using SDS and Participating in SDS Project Requires Memo
CSG Legal Department Proposes Developing License for SDS Pilot Test
License for SDS Pilot Test Proposed by CSG Legal Department
Agreement Non-disclosure for Jerry to Study SDS and Evaluate Business
Nord, Jerry Agrees to Planning on 030718 for Implementing Terms of No
Agreement NDA Terms Conditions Accepted Ready for Signature to Launch
Proceed with NDA Agreement and Jerry will Begin Review of SDS While W

3410 -
3410 -    ..
3411 - Summary/Objective
3412 -
341201 - Follow up ref SDS 63 NW5M, ref SDS 61 NW5M.
341202 -
341203 - Received ref DRT 1 0001 from Jerry confirming telecon on 030718 and
341204 - saying.....
341205 -
341206 -    a.  From our discussion last week:
341208 -         ..
341209 -    b.  (as I recall)....
341210 -
341211 -        1)  Will proceed with the confidentiality agreement between me
341212 -            and you. You are finalizing changes? ref DRT 1 OF5V
341214 -  ..
341215 - This aligns with understandings from the record on 030718. ref SDS 63
341216 - OM7F
341217 -
341218 -           [...below, sent a letter confirming this point. ref SDS 0
341219 -           YQ38
341221 -  ..
341222 - Jerry continues...
341223 -
341224 -        2)  Once I receive the software, I will install it on my home
341225 -            p.c., use the internet to connect to it from work and begin
341226 -            entering personal/personnel information I normally keep in
341227 -            folders at home. ref DRT 1 00SQ
341229 -  ..
341230 - This aligns with draft non-disclosure agreement in the record on
341231 - 030708, ref SDS 57 WT7U, and with our planning on Friday, 030718.
341232 - ref SDS 63 6O95
341233 -
341234 -           [...below, sent a letter confirming this point. ref SDS 0
341235 -           YQ38
341237 -  ..
341238 - Jerry continues....
341239 -
341240 -        3)  Will continue to pursue the licensing agreement.  I
341241 -            will look for a template and have CSG provide me with other
341242 -            licensing agreements they have with other vendors.
341243 -            ref DRT 1 00SU
341245 -  ..
341246 - Generally aligns with planning on 030718 to develop licensing as part
341247 - of a business plan for phase 2. ref SDS 63 NW5M
341248 -
341249 -             [On 030729 customer inquiry for SDS asks about license
341250 -             requirements. ref SDS 66 M95N
341251 -
341252 -             [On 030730 Jerry reported decision to eliminate original
341253 -             plan to develop NDAs with CSG staff to use SDS, and
341254 -             instead work on developing a license to accomplish the
341255 -             same purpose. ref SDS 67 ES68
341256 -
341258 -  ..
341259 - Jerry continues....
341260 -
341261 -        4)  Prepare an email to Ken Heatherly with initial introduction
341262 -            to SDS. Will explain some of the pitfalls I've encountered,
341263 -            how SDS works, and a starting point for him - this will
341264 -            precede a formal demonstration that has been requested.
341265 -            ref DRT 1 00SY
341267 -  ..
341268 - Confirms with planning on 030718. ref SDS 63 A853
341270 -         ..
341271 -    c.  Let me know if this agrees with your notes.
341272 -
341274 -  ..
341275 - Submitted ref DIT 1 0001 to Jerry saying....
341276 -
341277 -    a.  Confirming our telecon on 030718, ref SDS 63 0001, here are the
341278 -        highlights...
341279 -
341280 -        1.  We will implement the plan on 030708 for a two phase
341281 -            project, with phase 1 guided by a non-disclosure agreement,
341282 -            ref OF 1 0001, and shown in the record on 030708,
341283 -            ref SDS 57 WS8G, including Appendix A, ref OF 1 0002, also
341284 -            developed on 030708, ref SDS 57 NY6K, and which I have just
341285 -            about completed.  Perhaps you could generate the base
341286 -            document in Word for signature, and get Ken and others to
341287 -            review it, if you feel that is appropriate.  I will send a
341288 -            draft of Appendix A today.  We will want to do some editing
341289 -            on my initial draft of Trade Secrets; I understand that
341290 -            Morris and Gary will have some comments, and I am sure you
341291 -            will as well, plus Ken and CSG may wish to at least
341292 -            comment. ref DIT 1 0001
341293 -
341294 -                  [...above, aligns with Jerry's understandings.
341295 -                  ref SDS 0 OF5V
341297 -                   ..
341298 -                  [...below, Appendix A is submitted to Jerry.
341299 -                  ref SDS 0 ME5H
341301 -             ..
341302 -        2.  We will sign the Agreement and you will then incorporate
341303 -            this Agreement into your IP agreement with CSG, ref DIT 1
341304 -            156O, as planned on 030708, ref SDS 57 DY74, and citing the
341305 -            record on 030630 showing receipt of your NDA with CSG.
341306 -            ref SDS 54 MW4H
341307 -
341308 -                  [On 030724 received signed agreement from Jerry.
341309 -                  ref SDS 65 0001
341311 -             ..
341312 -            This step launches phase 1 where I prepare an SDS program
341313 -            set for you, and you then have six (6) months to learn and
341314 -            use SDS for the purpose of evaluating business viability.
341315 -            The phase 1 period will be used to formulate a Phase 2
341316 -            product development, marketing and business plan, including
341317 -            important licensing issues raised by CSG counsel on 030716,
341318 -            ref SDS 61 KY9F, and as we discussed on 030718, ref SDS 63
341319 -            NW5M, per Jerry's letter above. ref SDS 0 MU5Y  The Phase 2
341320 -            business plan may include CSG, if CSG and the other
341321 -            parties, i.e., you and me, agree. Phase 1 can end at any
341322 -            time, depending on your results. This means you can abandon
341323 -            the effort in a week, and no harm no foul under terms of
341324 -            the Agreement.  However, our aim is to work together on
341325 -            getting you first up to speed using SDS over a 2 month
341326 -            period, then getting you using SDS on the job at CSG, and
341327 -            then developing a Phase 2 Agreement. ref DIT 1 O57K
341329 -             ..
341330 -        3.  As we discussed on Friday, support for improvement in any
341331 -            organization is always fragile, ref SDS 63 WZ7N, and so
341332 -            requires ingenuity and persistence, as Don Rumsfeld noted
341333 -            in remarks to the War College last year, ref DIT 1 G58O,
341334 -            also, noted in the record on 030708. ref SDS 63 G46I
341336 -             ..
341337 -            Another ingredient for enabling fragile opportunity to take
341338 -            root and grow is strong leadership. ref DIT 1 C89M  Your
341339 -            leadership is excellent on working with Ken and others at
341340 -            CSG to introduce SDS work product via email so they have a
341341 -            mental framework to grasp objectives, as we discussed on
341342 -            Friday. ref SDS 63 YU3O
341344 -             ..
341345 -            If this requires printing some of POIMS and providing
341346 -            conventional highlights to aid discussion, than naturally
341347 -            that should be done. ref DIT 1 M84K
341349 -         ..
341350 -    b.  Again, will get the 1st draft of SDS trade secrets to you later
341351 -        today. ref DIT 1 294O
341352 -
341353 -
341354 -
341356 -  ..
3414 -
3415 -
3416 - 0958
3417 -
341701 - Received ref DRT 2 0001 from Jerry responding to the letter sent
341702 - earlier today on preparing to launch SDS, per above, ref SDS 0 YQ38,
341703 - and saying....
341705 -        ..
341706 -       Read thru the below information.  From my standpoint and from
341707 -       letter sent yesterday, I am ready to proceed.  Your move.  I
341708 -       believe the "bases" are covered with the agreement as
341709 -       proposed in the below links.  Let me know what I need to do
341710 -       next!
341712 -  ..
341713 - This confirms we are agreed on objectives and language.
341714 -
341715 -
341716 -
341718 -  ..
3418 -
3419 -
3420 - 1111
3421 -
342101 - Non-disclosure Agreement and Appendix A Submitted to Jerry
342102 -
342103 - Based on letter from Jerry, per above, ref SDS 0 O13F, submitted
342104 - ref DIT 2 0001 saying....
342105 -
342106 -    a.  Per planning in our call last Friday on July 18, here is a
342107 -        first draft of Appendix A, ref OF 1 0002, that explains "trade
342108 -        secrets" of SDS, which includes implementation that
342109 -        accomplishes the management science of Communication Metrics.
342111 -         ..
342112 -    b.  Please submit comments and also a draft of the non-disclosure
342113 -        language shown in the record on 030708, ref SDS 57 NS6J, which
342114 -        has been formatted in a separate file for convenience.
342115 -        ref OF 1 0001
342116 -
342117 -          [On 030723 Jerry approves draft Agreement; work on finalizing
342118 -          edits, and submitted final draft to Jerry for preparing an
342119 -          Agreement with signature. ref SDS 64 PSTQ
342120 -
342121 -
342122 -
342124 -  ..
3422 -
3423 -
3424 - 1317
3425 -
342501 - Called Jerry.
342502 -
342503 - He seems very anxious to get going, and related ideas for helping CSG
342504 - management and his colleages understand the objectives of working with
342505 - SDS, based on POIMS.  Jerry related having been going over POIMS with
342506 - his oldes son, and he talked his some into working with POIMS online
342507 - for about 20 minutes, rather than printing it, and this led his son
342508 - seeing the light and deciding that reading SDS materials works better
342509 - online.
342511 -  ..
342512 - Jerry will convert the files into Word for signature and then add SDS
342513 - to his IP agreement with CSG.  We can then get going.
342514 -
342515 -          [On 030723 Jerry approves draft Agreement; work on finalizing
342516 -          edits, and submitted final draft to Jerry for preparing an
342517 -          Agreement with signature. ref SDS 64 PSTQ
342519 -  ..
342520 - I will prepare a CD for Jerry.
342521 -
342522 -
342523 -
342524 -
342525 -
342526 -
342527 -
342528 -
342529 -
342530 -
342531 -
342532 -
3426 -

SUBJECTS
Trade Secrets SDS List on Jerry Nord's Non-disclosure Agreement with
Appendix Trade Secrets Non-disclosure Patentable Intellectual Propert
Appendix A Technology Defined Cited in Article 1 Section 1 Confidenti
Trade Secrets Appendix A Agreement Report Progress on Drafting
Appendix A Trade Secrets SDS Scope Com Metrics

4807 -
480801 -          ..
480802 -         SDS Scope and Trade Secrets Needed for Agreement
480803 -
480804 -         Follow up ref SDS 63 6O41, ref SDS 61 6O41.
480805 -
480806 -         Trade secretes are generally listed in the record on 000831.
480807 -         ref SDS 27 IW5G
480809 -          ..
480810 -         This morning completed putting the list in a document for
480811 -         Appendix A, ref OF 1 0002, cited on 030708. ref SDS 57 NY6K
480813 -          ..
480814 -         Transmitted to Jerry per letter above. ref SDS 0 ME5H
480815 -
480816 -
480817 -
480818 -
480819 -
480820 -
480821 -
480822 -
480823 -
480824 -
4809 -
Distribution. . . . See "CONTACTS"