Vince:

I am disappointed to hear that the interest on the part of your internal
users has waned.  We have made a lot of progress since you and they last
reviewed it, completing and finalizing our

.  short term North American gas model and data base (which endogenizes
storage into a Continent-wide zero arbitrage solution)

.  long term North American gas model and data base (which drills wells
and builds pipe and calculates equilibrium given such decisions)

.  short term North American electric model and data base

.  long term North American electric model and data base (which tells
you precisely where on a nodal basis all forward power plant
construction will and should occur.  The model builds the right amount
of capacity in the right place at the right time)

.  Western European gas model and data base

.  World Gas Trade model and data base

.  World Oil Model and data base

We are striving to have the definitive economic modeling system so that
companies like Enron can incorporate and proprietize your own "private
knowledge" in combination with our general knowledge.

Vince, I wanted to raise another issue with you.  Now that MarketPoint
is developed and operational and (hopefully) the leading technology
available for dynamic microeconomic market modeling, I perceive that
that it has more value as an acquisition play by a major player such as
Enron than it does as "just another commoditized model" supported by a
"play for pay" consulting firm such as Altos who is continually hounding
internal users for license and consulting fees.  My goal from the outset
has been to use my traditional consulting base to capitalize the best
tool in the industry and when the tool is complete to seek acquisition
or investment by someone who can make a lot of money by proprietizing
it.  After a substantial development period here in the Silicon Valley
(a very good place to develop software--that is why we were here),
MarketPoint is just now arriving at the point of seeking equity
investment or outright acquisition by a major player who can proprietize
and benefit internally from MarketPoint as well as potentially enhancing
the customer value from e-commerce verticals such as enrononline.com.

When you and I had breakfast at the Hyatt about a year ago, you
expressed the sentiment that Enron wants to be able to proprietize and
husband technology such as MarketPoint (rather than seeing it licensed
to everyone) so that you can comfortably augment it with your
competitive advantage.  We are at the point where we want to talk
seriously with you and a selected few others about that.  That is why I
want to speak with you next Friday.

1.  Could we really sell MarketPoint to a single entity such as Enron
and take it off the market?  Without elaborating, our licenses are
structured so that we can do that.

2.  Is the MarketPoint genie out of the bottle with licensees; would
they know how to replicate it?  Not a chance, we have protected the
source code and the critical technical documentation and concentrated it
three people in the world.  (They issue technical tasks on a piecemeal
basis.)  It is extremely tough to do it.

3.  Can MarketPoint run tens, hundreds, or thousands of fundamentally
based forward market scenarios and thereby generate a continuously
refreshed, extensive forward joint probability density function over
price?  We have just completed development of our Enterprise/LAN
version, which fully parallelizes our calculations and renders the
number of processors and the MIPS we can access over the intranet or
internet essentially limitless.  MarketPoint can now automatically "farm
out" its microeconomic calculations across processors on a huge network
and make all its calculations in parallel.  This means that you can
actually run a continuous, fundamentally based, automatic-feed forward
probability density function calculation over gas price or over
electricity price by region by time and a few seconds or minutes
depending on how many processors reside within your network.  Without
parallelization, this simply cannot happen.  Think of the magnitude of
competitive advantage this could bring to Enron if you can proprietize
it.  You are one of a handful of organizations who could really monitize
that.

4.  How large or detailed a model can you run?  With its tremendous
degree of parallelization (under our algorithm, every node can be a
parallel activity), our LAN Enterprise Version allows models of
essentially unlimited size to be solved through parallelization very
quickly and efficiently.  The models are highly modularized (individual
network nodes linked together) and therefore can be expanded and run
efficiently.

5.  Are the MarketPoint development risks gone?  Yes, we have been
offering MarketPoint under stand alone commercial license for a few
months.  The gas, electricity, and oil models all demonstrably work, and
we have a number of test and demonstration cases.  I have been waiting
until this was true before looking for an investor.  While there are
maintenance costs and tasks to be done forever, there are no more known
development costs or risks.

6.  Does MarketPoint work for other commodities?  Yes.  MarketPoint can
help you avoid difficulties of the past across a broad range of
commodities and guide your businesses in such commodity areas with
workable, fundamental models of those industries.  MarketPoint is
designed to give you early warning flags and guidance in commodity
oriented business including but not limited to energy.

7.  What would be your role?  If Enron proprietized MarketPoint, I have
the feeling you would probably inherit technical responsibility and
could safely leverage MarketPoint into your group, secure in the
knowledge that it is truly proprietary to you and Enron and would not be
in the hands of Enron competitors.  I should think that if Enron were
interested, someone else's budget would acquire it and you would get it.
Yours is one of a handful of groups in the world with whom I would want
to work because you have the sophistication to make progress.

8.  Is it really realistic to sell MarketPoint?  It is realistic.  Only
two people (Mark Nickeson and I) own over 90 percent of the capital
stock in MarketPoint, and there are no outstanding options,
encumberances, or other impediments.  We own it outright, and we have
the ability and disposition to move.  That is the beauty of capitalizing
it as we have with consulting dollars--we paid people with MONEY rather
than with stock, and we ended up owning the stock and the flexibility
and value such ownership affords.  We don't have to deal with employees
or venture capitalists; we have autonomy of action.

These are the issues I would like to speak with you about next Friday if
you are interested.  I would anticipate that this is a not decision that
you alone will make within Enron, but I wanted to lay this out for you
and if you are interested and amenable work together to present it to
the right people in your organization.  I need to get started in the
right way with the right Enron people, and I would appreciate your
support if you are so disposed.

There is one additional issue as well.  Would you, Krishna, and your
guys be prepared to enthusiastically endorse MarketPoint if I were to
interest an internal Enron group in using or licensing it?  (If so, I
would be prepared make MarketPoint available to you and your group under
their license and train you to use it at no additional cost to you.  I
am confident if I could get MarketPoint into your hands, it would be
win-win for you and for us.)  The reason I am asking is that I have the
opportunity to brief one of your operating groups who has expressed
interest (through another consulting company) in one of the MarketPoint
models.  Before doing that, I want to be confident that you, Krishna,
and your group are enthusiastic supporters and endorsers of MarketPoint
if one of your inhouse groups is interested in spending the resources to
move forward.  Please advise by email or when we get together.

All the best.  Give me an email shout or voice shout at my cell
650.218.3069 on Monday if you can.  Thanks for your consideration.

Dale Nesbitt





-----Original Message-----
From: Kaminski, Vince J [mailto:Vince.J.Kaminski@ENRON.com]
Sent: Friday, September 28, 2001 5:17 AM
To: dale.nesbitt@marketpointinc.com
Cc: Krishnarao, Pinnamaneni
Subject: RE: Meeting on Friday to Discuss MarketPoint?


Dale,

Thanks for your message.

We don't see at this point any interest from our internal users in
proceeding with
licencing of MarketPoint. I shall stay in touch with you and will notify
you if there is any change.

Vince

>  -----Original Message-----
> From: 	"Dale M. Nesbitt" <dale.nesbitt@worldnet.att.net>@ENRON
> [mailto:IMCEANOTES-+22Dale+20M+2E+20Nesbitt+22+20+3Cdale+2Enesbitt+40w
> orldnet+2Eatt+2Enet+3E+40ENRON@ENRON.com]
> Sent:	Friday, September 28, 2001 2:02 AM
> To:	Kaminski, Vince J
> Cc:	Krishnarao, Pinnamaneni
> Subject:	Meeting on Friday to Discuss MarketPoint?
>
> Vince:
>
> Would you and Krishna be available to talk about MarketPoint and Enron
> on Friday October 5 after lunch, say 130?  Give an email shout to
> confirm.  Thanks.
>
> Dale Nesbitt
>


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