Dale,
Thanks for your message. In our phone conversation before the meeting you=
=20
mentioned=20
another contractual arrangement under which we could work with your compa=
ny=20
employees on a case-study.
The cost of a weekly project would be $12,000 that would be applied to the=
=20
purchase price should
we go ahead and decide to acquire the software. This project would allow us=
=20
to evaluate the model and
come up with an estimate of the manpower necessary to support the model=20
internally.
Please, let me know more about this option.
We are primarily interested in a long-term natural gas model and the databa=
se=20
for North America. =20
Unless a familiarity with the short term model is a prerequisite, we don't=
=20
have resources to spend too much time on it.
Of course, a trading desk may be interested in the short term
version of the model. I shall talk to them about it.
Vince
"Dale M. Nesbitt" <dale.nesbitt@worldnet.att.net< on 11/13/2000 06:00:05 PM
To: <
john.goodpasture@enron.com<, "Vince. J. Kaminski"=20
<
Vince.J.Kaminski@enron.com<
cc: =20
Subject: MarketPoint License Agreement
John/Vince:
I really enjoyed the meeting the other day with you and a broad cross
section of your people. Thank you very much for setting it up, and thank
you for giving me the opportunity to speak with your people.
As I mentioned to John, I am sending you the license paperwork for
MarketPoint. I have attached our standard license agreement for your
consideration. As I mentioned, the license agreement covers the entire
bundled product, which includes
? North American gas, short and long term
? North American electricity, short and long term
? World gas
? Western European gas
? World oil
We are just finishing porting the world oil, world gas, and western Europea=
n
gas models over from our old (now obsolete) software system into
MarketPoint, so they will not be fully tested and complete for a couple of
months. However, the gas and electricity models for North America are
presently complete and tested. That should allow us to give you an
attractive price before the full worldwide toolkit is available throughout
your worldwide business.
As I understood it, you will want the gas modeling capability first and wil=
l
want to defer decisions on electric or other capability. As I mentioned at
the meeting, we are prepared to offer that for approximately=20
the fully
bundled price. As you read the license agreement, you will see that the
software licenses for $100,000 annually, the gas data for $5,000, and the
electric data for $10,000. MarketPoint will agree to license you the gas
model plus the data for=20
the software license plus the data license for a
total of $55,000 annually. This is just under=20
the fully bundled price. I
think that is consistent with the discussions at our meeting, and from
MarketPoint=01,s perspective would provide a great basis to move forward
together with Enron. If or when Enron ever desires to =01&scale up=018 to =
another
model or model(s) from the MarketPoint portfolio, we will simply scale you
up to the entire license agreement. This will allow you to decouple the ga=
s
decision from any other decisions you might make. (I will be glad to put
this additional pricing provision into the agreement if you decide to move
forward.)
I felt I was able to communicate the philosophy, scope, and operation of ou=
r
approach during the meeting and to deliver you much of the information you
might need to evaluate whether MarketPoint meets your needs. I thought you
were able to see the depth and sophistication of the product yet at the sam=
e
time its simplicity and effectiveness. I thought you were able to see the
benefits of the MarketPoint dimension of economic equilibrium as a
complement and supplement to other approaches you will assuredly use. I
would be interested in your impressions and those of your colleagues. I
look forward to your response and to moving ahead together. We view you as
a very important prospective customer and client and will work with you to
earn and secure your business.
If you decide to license MarketPoint, we can arrange to transfer and mount
MarketPoint and the short term NARG model (which is the model we suggest yo=
u
begin with) and travel to Houston to deliver our 1=20
day training seminar.
Our clients are usually very fluent after that 1=20
day training seminar.
Thereafter, we would want you to work with the short term NARG model for a
few weeks while you get up to speed, very fluent, and very comfortable
before you take delivery of the longer term version of NARG several weeks
later.
Thanks again, and all the best. If there is some item from the meeting tha=
t
I might have forgotten to send, please remind me. My notes don't show
anything, but I was speaking a lot rather than writing notes during the
meeting and might have overlooked something someone wanted.
Dale Nesbitt
President
MarketPoint Inc.
27121 Adonna Ct.
Los Altos Hills, CA 94022
(650)218-3069
dale.nesbitt@marketpointinc.com
- LICENSE.DOC
