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Technology Stocks : Spectrum Signal Processing (SSPI) -- Ignore unavailable to you. Want to Upgrade?

To: Lhn5 who wrote (2881)	7/27/1999 4:52:00 PM
From: nord	Read Replies (1) \| Respond to of 4400

From the TPC investment In March 1999, the Company entered into an agreement with Technology Partnerships Canada ("TPC"), an agency of the Canadian government, providing for an investment in the Company to finance approximately one-third of the Company's research and development costs to develop a new product line targeted to the telecommunications market. The agreement provides for a maximum commitment by TPC of $4.35 million through 2002. The Company plans to use the funds to accelerate development of next-generation hardware and software systems that can be deployed in high-end commercial applications, such as telecommunications servers and wireless base stations. The investment is structured as a repayable investment, with repayment beginning no earlier than 2001, by way of a 2.5% royalty on the new products being financed by the investment. If the Company has not paid at least $7.4 million in royalties to TPC by December 31, 2006, royalties shall continue to be due at a rate of 2.5% until an aggregate of $7.4 million in royalties has been paid. The investment is also repayableimmediately upon the occurrence of certain events of default, which include bankruptcy events. Otherwise, the Company is not required to repay the investment except by way of royalties, if any, on the products financed by the investment. TPC did not receive an equity participation in the Company inconnection with its investment. Now where is the other 2/3 of R$D financing coming from going to come from thoughts? Norden