CONTACTS 
0201 - Golden Gatweay Center                                                                                                                                              O-00000033 0902
020101 - Mr. Clay Tominaga; Manager                                                                                                                                       O-00000033 0902
020102 - Tennant Administrattion, 440 Davis Court                                                                                                                         O-00000033 0902

SUBJECTS
Notice of Rent Default
Planning to Recover Account to Good Standing

0404 -
0404 -    ..
0405 - Summary/Objective
0406 -
040601 - Follow up ref SDS 5 0000.
040602 -
040603 - Clay asked about getting a months rent of about $1,300 to defer action
040604 - on GGC's eviction notice, ref DRP 1 0001, reported in the record on
040605 - 030417. ref SDS 5 0001
040607 -  ..
040608 - This amount cannot be adavnced to GGC because it would severly limit
040609 - ability to invest toward generating larger revenues needed for
040610 - operations, including ongoing payments to GGC.  Focus has to be on
040611 - sales of products and services illustrated by proposals on 030417 to
040612 - IBM, ref SDS 4 0001, and to SRI. ref SDS 3 0001  A third opprotunity
040613 - currently being reviewed is on the Future Combat Systems (combat) project
040614 - for the US Army and sponsored by Aerospace company.  The Welch SDS program is
040615 - being used on a trial, as reported on 030126, ref SDS 2 0001, and if
040616 - successful, this will be a substantial order.
040618 -  ..
040619 - We discussed a $200 good faith payment on account, and then reviewing
040620 - progress in two weeks toward deciding a course of action based on
040621 - realistic income estimates.
040623 -  ..
040624 - Clay asked about current income stream?  He indicated that if a
040625 - payment is coming due to Welch shortly, then GGC would work within
040626 - that framework.
040627 -
040628 -
040630 -  ..
040631 - Welch Record at 440 Davis Court Demonstrates History of Payment
040632 -
040633 - Explained having invested the past 25 years at GGC developing new
040634 - capability for a new way of working that adds "intelligence" to
040635 - information, see POIMS, ref OF 1 6221, and have recently turned to
040636 - marketing issues.  Welch capabilities for the Schedule Diary System
040637 - and Communication Metrics explained on the Internet at....
040639 -        ..
040640 -       http://www.welchco.com
040641 -
040642 - ...are beginning to be recognized by mainstream sales channels,
040643 - reported in the record on 010907. ref SDS 1 KX3L  Additionally,
040644 - visitors to Welch resources on the Internet have now reached 60K per
040645 - month, and 300K hits.  This exposure has recently yielded several
040646 - specific possibilities, but cannot make any promises for a few weeks,
040647 - as noted above. ref SDS 0 PV6H
040649 -  ..
040650 - Clay indicated that a delay of a few weeks presents a risk to GGC.  He
040651 - proposes accepting $200 payment with specific payment target dates,
040652 - and also entering into a stipulated judgement in the event of default
040653 - on future payment dates.
040654 -
040655 -
040657 -  ..
040658 - Payment of $200 to GGC Demonstrates Willingness to Perform
040659 - History of Payments in Good Standing Shows Ability to Pay Future Debt
040660 -
040661 - Clay advised that Golden Gateway Center will not accept a payment on
040662 - account of $200 unless the tenant agrees to a stipulated judgement.
040664 -  ..
040665 - A stipulated judgement restricts the time for opportunities to evolve
040666 - into income for meeting obligations to GGC and others.  Discussion did
040667 - not develop grounds for refusing payment at this time, although Clay
040668 - described administrative steps this might entail which would increase
040669 - GGC's exposure by about $500.
040671 -  ..
040672 - Clay seemed to indicate that in the absence of a firm payment plan
040673 - based on a recognized income stream, GGC is concerned about making
040674 - further allowances for the tenant to recover and make good on the
040675 - outstanding debt.  Clay noted that in another 2 weeks, GGC will have
040676 - incurred additional exposure of $500.  On 030417 Clay's colleague Mei
040677 - Xiao noticed that GGC is aware of Welch's willingness and ability to
040678 - recover and make good on this obligation based on a record of 25 years
040679 - having made timely payment on all obligations owed to GGC, ref SDS 5
040680 - 6P4O, and on ability to deliver a unique product and service needed to
040681 - meet new realities of a changing world order, as set out in POIMS.
040682 - ref OF 1 8536  This capability is demonstrated by viewing this record
040683 - online at....
040684 -
040685 -      http://www.welchco.com/sd/08/00101/02/03/04/18/152637.HTM
040687 -  ..
040688 - We decided to take this up again on Monday, with the understanding
040689 - that without a showing of substantial progress on the current debt,
040690 - Clay will consider recommending that GGC initiate legal procedings.
040692 -  ..
040693 - Thanked Clay for offering ideas and urged that GGC accept the offer of
040694 - payment demonstraging willingness to perform our agreement, and to
040695 - take all reasonalble steps to satisfy obligations to GGC in order to
040696 - retain possession and occupancy in good standing at 440 Davis Court
040697 - #1602, so that work on SDS and Com Metrics can continue.
040699 -  ..
040700 - Submitted ref DIT 1 001 to Clay with a link to this record confirming
040701 - these understandings.
040702 -
040703 -     [On 030423 Clay received this letter and plans to respond.
040704 -     ref SDS 6 0001
040705 -
040706 -
040707 -
040708 -
040709 -
040710 -
040711 -
0408 -