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Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: m. jacobs who wrote (4374)	8/17/1999 4:58:00 PM
From: Edward W. Richmond	Respond to of 8117

Michael, I appreciate your response to the re-pricing issue. I have just arrived home from an AGM where another company re-priced their options from $2.03 to $1.51. The stock trades at $0.50. The company could have decided to re-price at the current level, but has chosen not to pick the lowest dip in price to determine the re-pricing level. While I am very positive about PYT and its future, I do think the Globe & Mail article sums up investors' perception of the re-pricing of options. I will respond to each of your points in the next day or two. Best regards to Pyng staff, Ed

To: m. jacobs who wrote (4374)	8/17/1999 5:36:00 PM
From: John M. Willis	Respond to of 8117

A couple questions for Mr. Jacobs. By stating that new technical medical staff are needed and stock options are required to lure them, are you implying that the product is not finalized? What is your stance on cash bonuses when PYNG is showing a profit?

To: m. jacobs who wrote (4374)	8/17/1999 6:05:00 PM
From: AriKirA	Read Replies (1) \| Respond to of 8117

Well, it's good to see that you are still around Mr Jacobs albeit I get the impression that there is only one individual on this thread you are willing to respond ... How about the PP I suggested? I thought it was a fair deal, no? Now there are several points to be addressed in your post... Since I am kind of busy right now, I'll adress some of them that can be adressed off the top of my head.. In the first place there were several levels of stock options issued at the time of cancellation. Some were almost expired, some were getting close, some were due to be re-set, and others were about to be set for employees who had past their trial period. The options were not consistent either in price or time. A big SO WHAT!!!! The fact that the options were not consistent in price nor time has absolutely no effect on the repricing of options... We have also hired new employees and will need to hire more soon, as we go into production. They, after an initial trial period, also will be entitled to stock options. The reality of hiring qualified medical technical staff is that they, no matter where they work, are induced by stock options as part of the benefits of working for either a large or a small research and development company Now now, that wasn't the song you were singing a while back was it? You clearly state in your post that such individuals are induced by Stock options as part of benefits of working.... Part of is of the essence here. We are not asking management to not issue stock options. We are asking you to be fair towards the company, the employees, and us, the part owners of Pyng Technology Corp, the latter holding a 90% interest in Pyng Medical Corp the beneficiary of the FAST 1 patents. My intention was clear, close out all the old options and reset them for a consistent price and time frame. This was to ensure that individuals who are currently employed or who will be employed by Pyng, as direct employees, directors, have a common base, and a clear understanding that all are equal in the stock option plan Can't believe what you just said in that paragraph. I ensure you that I will be including said excerpt in my letter addressed to the pertinent VSE and BCSC analysts and section directors. ALL ARE EQUAL UNDER THE STOCK OPTION PLAN?????????????? How about all are equal in the stock market? Therefore, based on your reasoning, you are willing to compensate all the shareholders that bought at higher prices??????? I am one of the lucky ones that sold in the 5 range and bought back in the low 2s. What about all the others out there? ALL ARE NOT EQUAL UNDER THE STOCK OPTION PLAN. When they negotiated their positions they accepted the conditions that were proposed to them which included options at X XX price. Kind of like a salesman who decides to work on a base salary + commissions and then after realizing that his sales were not as anticipated decides to ask a full salary!!!!!!!!! This should't be happening In Canada, where taxes reach 54 percent very easily, stock options are not considered as a capital gain but rather as direct income and are taxed accordingly, if exercised above the strick price. I won't even bother commenting this paragraph. I will do so when I get the chance latter on in the week. Stock options are not free, the recipient, if they wish to exercise them, must pay the company for the right to do so. In doing so the company receives, from an internal source, additional funding for the operations. additonal funding from an internal source... What about the 3$ difference per option that the company is losing? Well you're going to tell me that the option were not going to be exercised... They would of been if management had taken the proper steps in evaluating their position when they issued such options. Missed targets .... Missed options... NO incentives ... Not only do shareholders get screwed from the missed targets, which by the way were publicily announced, management decides to reprice options because they didn't do their job in the first place... I mean come on!!!! Such a thing can even be considered as fraud towards the company because the company is the one losing out here... You want additional financing, I suggest you issue 1 right per share exercisable à 1.35$. That way EVERYONE that has backed the company can participate in the fincancing and the eventual success of the FAST 1. I assure you most of the shareholders will jump on those rights!!!!! we asked the governing authorities if cancellation of all old options and re-pricing would be allowed we were told that they would be. . Well, funny because when I talked with the VSE and the BCSC today, they said 2 repricings in the same year were not looked upon very positively. I kind of agree with them.... Kind of running out of time so I'll cut this conversation short... well don't really mean conversation because I get the feeling I am talking to myself but hey, at least you can say I tried... AK

To: m. jacobs who wrote (4374)	8/17/1999 6:21:00 PM
From: James Harvey	Respond to of 8117

Mr. Jacobs, Let me compliment you for responding to the concerns over re-pricing stock options. Many CEOs wouldn't bother. Your response, however, comes up short in my opinion. You state many of the characteristics of and reasons why options are used, which I believe we all understand. The only reason I see you have given for the re-pricing is the desire to have uniformity in the option program among new and older employees. While there is some validity to this it doesn't, in my judgment, justify it. Many companies using options have various employees holding options that mature at various dates and prices. When options are granted a contract is made between the company (on behalf of the shareholders) and the employee. Everyone hopes the company will do well, meet its targets, and increase the stock price so that the employee will be able to exercise the option well below the stock price and increase their wealth. The option is an incentive to work to grow the company, it's value, and the stock price. When company projections and financial goals are not met the options become the kind of problem Pyng has faced. When you re-price options you break a contract, reduce the value of options as an incentive (because any employee now knows you will simply re-price if you fail), reduce the revenue that will come to the company when the options are exercised, reward poor performance, and shake investor confidence, because you say to us you were wrong in the original pricing and projections and you now believe the company will do less well than you thought. I believe you would avoid most of these problems if you kept the contract re options and let them expire (unexercised if necessary) and then issue new options as dictated. I realize this may become complicated in start up companies, if options are used for basic compensation purposes (a bad use for them) rather than as incentives for high performance, which is a better use. A new company would be better off to borrow and pay reasonable salaries than rely on options for basic compensation. I am still a loyal shareholder in spite of significant losses and I will hang in a bit longer, but I have to say that if you continue to re-price options I will be gone. Three times and out for me. I'm with Ari and the others on this one.