CONTACTS 
0201 - O-0012 0202 Knecht, Haley, Lawrence    415 896 6930
020101 - Ms. Anne M. Bevington, Esquire

SUBJECTS
Pier 11 Fender Recon-
struction, UP/R claim
Income Taxes, 85 Audit

0605 -    ..
0606 - Summary/Objective
0607 -
060701 - Ann said UP/R called her the other day. They want to develop a
060702 - pay back program, including my entering a stipulated judgement.  This
060703 - would include an agreement to waive interest payments, per their
060704 - letter the other day, ref DRP 1.
060705 -
060706 - I asked her about the effect of the bonding company's offer with
060707 - respect to my tax situation.  She said it has no effect until we
060708 - actually reach agreement, and so for tax purposes, I should continue
060709 - to carry the interest charges, as an accrued obligation.
060710 -
060711 - Ann asked for my ideas relative to UP/R's proposal.
060712 -
060713 -   I explained I do not have a "day job" and have no assets at the
060714 -   present time which would support a pay back schedule, and this was
060715 -   disclosed to UP/R late last year at their request.
060716 -
060717 -   This is consistant with the court's finding that I did not, and was
060718 -   actually too "unreasonable" and unstable to, follow project bid
060719 -   plans.
060720 -
060721 -   Not-with-standing that finding, perhaps eminating from it, I have
060722 -   invented a software technology called POIMS and developed a program
060723 -   to apply it called SDS.  These creations apply the same intellec-
060724 -   tual material used to reach conclusions from the Pier 11 bid plans,
060725 -   and so as a result, may be beyond the reach of the market place.
060726 -
060727 -       POIMS connects people, their knowledge and ideas.  It links
060728 -       planning to performance and reporting in an elegant continu-
060729 -       um that significantly enhances productivity in the work
060730 -       place by among other things recycling our most important
060731 -       resource:  knowledge and ideas.  Additionally it instantly
060732 -       links the present to the past and the future.  Thus, as the
060733 -       name suggests, POIMS unleashes the creativity in each of
060734 -       us.
060735 -
060736 -   POIMS and SDS could easily return to UP/R and anyone else who cared
060737 -   to touch it, significant earnings well beyond my indebtedness.  But
060738 -   as with the testimony in Welch v. State, the light may be too bright
060739 -   and so strikes fear in those who must judge.
060740 -
060741 -   With such prospects, it is not possible to evaluate whether this
060742 -   product will become a commercial success.  Most of those who have
060743 -   seen it say it is great, but too complicated.  This of course is
060744 -   false. SDS simplifies a complicated business environment. Its true
060745 -   shortcoming is that it is demanding.  It does not succumb nor
060746 -   respond to anger or praise, but silently provides an environment
060747 -   where questions can be formulated that give rise to solutions.
060748 -
060749 -   My current objective is to commence marketing in earnest within the
060750 -   next month or so.  I am presently creating an on-line help feature
060751 -   which is about 20% complete.  A logo is being created.  Sales
060752 -   efforts will initially be directed toward markets like construc-
060753 -   tion, law, government procurement, and R&D that deal with a wide
060754 -   variety of facts and organizations, and have a need for good records
060755 -   of performance.  There are 4 test sites evaluating the program, IBM,
060756 -   San Diego Water Authority, Seawest, and several individuals.
060757 -
060758 -   I explained my concern about entering into any agreement that would
060759 -   eliminate resources needed to finance marketing.  I suggested
060760 -   following up on my discussion with Ed Traille last August, of giving
060761 -   us another year to commercialize this thing.
060762 -
060763 -
060764 -
060765 - Follow Up
060766 -
060767 -   Ann will discuss this with UP/R and let me know their thinking.
060768 -
060769 -
0608 -