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To: dwight martin who wrote (6791)	7/30/1999 8:39:00 AM
From: Seconds Out	Read Replies (2) \| Respond to of 10081

I think you are correct, Dwight. GMGC would have the right, but not the obligation, to compel the investor to accept stock as repayment of his principal in lieu of a cash repayment. The significant difference here versus the Convertible financing is that the company has the choice of whether to use stock as a repayment mechanism therefor eliminating the incentive for the investor to short the stock. In exchange, the company provides the investor with a discount to the market price so regardless of how high the price may go the investor is always receiving a bonus to his principal if he is compelled to accept stock instead of cash. It is certainly a more desirable form of financing than the past few rounds. Whether it represents more than that to GMGC, meaning is it an indication of progress that an investor has the degree of faith in the company not to require an essentially floorless conversion price is hard to tell. As long as the investor is receiving discounted stock he can sell at a profit immediately, assuming the deal allows him to do so, regardless of whether the stock is at $20 or $2. Then again I would guess the investor must believe that GMGC will be a going concern down the road. I wonder what the expiration date is on this line that is being provided? Even if it has no significance beyond just being a better form of financing I am happy not to have to face the potential of our financiers shorting the stock into every good bit of news. It really has added to the negative psychology of the stock price, imho. (I know that the lack of progress on a number of fronts by GMGC has been a cause as well). Seconds Out.