Sam, I can't put my finger on the PEPS offering but on its face it looks like SEG will eventually sell a total of 2,250,000 of their ~6M shares. That still leaves them with >10% ownership and the following agreement appears to remain active (see the 3/13/97 10-K at freeedgar.com)
Interesting eh?
Craig
Seagate Relationship
The Company also has a strategic relationship with Seagate, which owns approximately 25% of the Company's Common Stock. In January 1993, Seagate acquired a 25% ownership interest, calculated on a fully diluted basis, in the Company and entered into a joint cooperation agreement that provides for a strategic alliance between the parties. Seagate has the option to market the
Company's products commencing in January 1999 and at that time may be established as a distributor for the Company's products. If the option is exercised, the Company and Seagate will coordinate their efforts so that up to one-third of the Company's worldwide net revenues from all flash products could be generated from sales of the Company's flash products through Seagate. The
joint cooperation agreement also provides that each party will have the exclusive right to market to certain customers. The joint cooperation agreement will terminate if, among other things, Seagate's ownership interest in the Company falls below 10% or, on or after January 15, 2000, upon at least one year's advance written notice by the Company to Seagate. Seagate has the right to nominate one director to the Company's Board of Directors. Alan F. Shugart, Seagate's Chairman, President and Chief Executive Officer, serves as Seagate's nominee to the Company's Board of Directors. See "Item 13: Certain Relationships and Related Transactions." |
