Thanks, Chaz, for the response.  What I am looking for in question #3 
(purchase commitment) is did I convey the info correctly re:  what BMC will 
accept from Enron to allow the EBS deal to close?  From notes to the Net 
Works directors and Bob McAuliffe, I have copied the following statements 
into the space below:  

"1)  The pricing is applicable if EBS gets their deal done, and you are 
willing to provide some form of commitment (at least in writing, either 
e-mail or letterhead) to purchasing a BMC product in 2001...  For example, if 
Randy Matson's team chose the BMC solution at the conclusion of their current 
testing, they could lock in the discount at 45% by sending an e-mail (or 
other form of written communication) committing to the purchase in 2001 (the 
preference would be to get the "buy" done by end of 1st Qtr, if possible).  
This would be sufficient commitment for BMC to go forward with their 
purchases of EBS' solutions currently proposed to BMC."  Is this correct the 
way I have presented it to NetWorks?  Will their replies work for you if 
completed as requested above?
 
I didn't want to put you in a bind when I told the NetWorks teams what BMC 
would feel is acceptable proof-of-commitment, nor did I want to have to go 
back to the Net Works group and change the requirements.

I've got another note to send you in a minute or so, from Doug Cummins.

Thank you,
Jeff





	Chaz Vaughan@ENRON COMMUNICATIONS
	12/12/2000 07:29 PM
		
		 To: Jeff Youngflesh/NA/Enron@ENRON
		 cc: Stephen Morse/Enron Communications@Enron Communications
		 Subject: Re: BMC Update

Jeff,

Thank you for your efforts on the BMC deal.  We are making real progress.  
Here are the answers to your questions:

1.  How much do they want you to guarantee them in BMC revenue?  
$4 MM in software and $2.4 MM in maintenance and professional services
2.  Are you still looking at a $13MM TCV over 5 years?  
No, our current TCV over 5 years is $10 MM 
3.  Have I properly conveyed the "accepable-to-BMC method" of proving 
purchase commitment from Enron?  
Not sure what you mean here
4.  Your note re:  getting the Prof'nl Svcs contract signed says it has to be 
done by 6pm the 14th...what if you don't get it until the morning of the 15th?
We prefer the 14th, but if we can't get it until the 15th, that will work


Please let me know if you have any other questions.  I will call you tomorrow 
to touch base.

Thanks,

Chaz Vaughan
Enron Broadband Services
1400 Smith Street
Houston, TX  77002
Ph:  713-345-8815
Cell: 713-444-3074
Fax: 713-853-7354
Chaz_Vaughan@enron.net 



	Jeff Youngflesh@ENRON
	12/12/00 04:43 PM
		 
		 To: Stephen Morse/Enron Communications@Enron Communications, Chaz 
Vaughan/Enron Communications@Enron Communications
		 cc: Jennifer Medcalf/NA/Enron@Enron, Brad Nebergall/Enron 
Communications@Enron Communications, Eric Merten/Enron Communications@Enron 
Communications
		 Subject: BMC Update

Steve/Chaz - 

I have taken your EBS Professional Services contract through our contracts 
folks, and we have ended up with it now being in EBS' contracts dept w/one of 
your attorneys.  Our contracts Director, Tom Moore, and I spoke w/Eric Merten 
(PDX) early this afternoon, and he now has the contract.  EBS may have some 
Intellectual Property issues related to ownership of BMC Consultant-developed 
materials (while being paid by Enron).  Eric is in the driver's seat with the 
contract at this point.  

I have sent notes to all of the Net Works directors currently engaged in one 
form or another with BMC product and/or personnel.  In it, they have been 
requested to help us understand our opportunity from a number of angles:  
Application(s) considered, attractiveness of the new pricing, attractiveness 
of the BMC flexibility w/regard to "purchase commitment", etc.  In addition, 
I have re-iterated the time urgency.

I have followed up the note w/telephone calls & messages to all of them:  
Doug Cummins, Randy Matson, Bob Martinez, Jim Ogg, and Bruce Smith.  I am 
meeting with Bob Martinez on Wednesday at 3pm.  Matson, Ogg, and Smith have 
me in their voicemailbox, Cummins was in a meeting and he said he would call 
me back.

Would either one of you please let me know what BMC wants EBS to do for 
them:  how much do they want you to guarantee them in BMC revenue?  Are you 
still looking at a $13MM TCV over 5 years?  Have I properly conveyed the 
"accepable-to-BMC method" of proving purchase commitment from Enron?  Your 
note re:  getting the Prof'nl Svcs contract signed says it has to be done by 
6pm the 14th...what if you don't get it until the morning of the 15th?

I will call you to follow up on this note.

Thank you,

Jeff Youngflesh