MRVC's financial relationship with New Access:
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
In July 1998, the Company and New Access Communications, Inc. ("New
Access") entered into a Securities Purchase Agreement, under which the Company
purchased for $950,000 shares of the capital stock of New Access equal to
approximately 19% of the capital stock of New Access then outstanding and
warrants to purchase additional capital stock of New Access, which, if fully
exercised for an aggregate of $2,050,000, the Company would own an
aggregate of approximately 60% of New Access's capital stock (when the
shares purchased upon exercise of the warrants are added to the
Company's existing stake in New Access). The warrants are exercisable
in two installments (provided the first installment is exercised) by July 1, 1999 and January 4, 2000, respectively. New Access is
engaged in the development of new products based on wave division
multiplexing technology. Dr. Margalit is the Chairman of the Board and Chief Executive Officer of New Access and a principal shareholder of it. Dr. Near Margalit is the son of Dr. Shlomo Margalit, a principal shareholder of the Company and the Company's Chairman of the Board of Directors and Chief Technical Officer.
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