Subject: re : marketpoint license agreement
john ,
fyi
vince
- - - - - - - - - - - - - - - - - - - - - - forwarded by vince j kaminski / hou / ect on 11 / 27 / 2000
03 : 31 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
" dale m . nesbitt " on 11 / 27 / 2000 02 : 51 : 54 pm
please respond to
to :
cc :
subject : re : marketpoint license agreement
vince :
i will send you our contract for the week long engagement . the way we do it
is send out our time and materials contract , which has a space for
individual task statements . i then put in a task statement for the week
long project at the $ 12 k level so that the costs and risks are capped for
you . look for it in the next day or two .
with regard to the long run and short run gas models , they are both
implemented in the same software system . neither is a prerequisite for
running the other , but both operate the same way and the sum of the two
consumes approximately the same resources are either individually .
i plan to have an extended visit in houston beginning one week from today
and lasting through the following wednesday . ( intensively tutoring my
daughter for her first semester economics finals at rice . she certainly
should have gotten a better looking tutor . ) that will make it very easy to
come by and finalize whatever needs to be finalized with you that week .
with her in houston , i spend a good bit of time there .
look for the stuff in the next day or two . i look forward to working with
you and your colleagues .
thanks
dale
- - - - - original message - - - - -
from : vince . j . kaminski @ enron . com [ mailto : vince . j . kaminski @ enron . com ]
sent : monday , november 27 , 2000 10 : 44 am
to : dale . nesbitt @ worldnet . att . net
cc : vince . j . kaminski @ enron . com
subject : re : marketpoint license agreement
dale ,
thanks for your message . in our phone conversation before the meeting you
mentioned
another contractual arrangement under which we could work with your
company employees on a case - study .
the cost of a weekly project would be $ 12 , 000 that would be applied to the
purchase price should
we go ahead and decide to acquire the software . this project would allow us
to evaluate the model and
come up with an estimate of the manpower necessary to support the model
internally .
please , let me know more about this option .
we are primarily interested in a long - term natural gas model and the
database for north america .
unless a familiarity with the short term model is a prerequisite , we don ' t
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 " on 11 / 13 / 2000 06 : 00 : 05 pm
to : , " vince . j . kaminski "
cc :
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
european
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
will
want to defer decisions on electric or other capability . as i mentioned at
the meeting , we are prepared to offer that for approximately
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
the software license plus the data license for a
total of $ 55 , 000 annually . this is just under
the fully bundled price .
i
think that is consistent with the discussions at our meeting , and from
marketpoint ' s perspective would provide a great basis to move forward
together with enron . if or when enron ever desires to " scale up " 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
gas
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
our
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
same
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
you
begin with ) and travel to houston to deliver our 1
day training seminar .
our clients are usually very fluent after that 1
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
that
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
( see attached file : license . doc )