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Technology Stocks : Asyst Technologies (ASYT) Good Value/Where is the Bottom? -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (556)	11/11/1997 6:06:00 PM
From: Q.	Read Replies (1) \| Respond to of 2313

Ian, if there's one thing I hate to see in SEC filings for stocks I own, it is something under the heading "Related Party Transactions" where the chairman is helping himself to something that should belong to the shareholders. Not only is this unfair, but it also shows that the CEO is distracted from his job of looking after the co. Apparently this has happened with regard to the Automation division. Rather than just shutting the whole thing down and being done with it, the co. has apparently written it off, and then given it to another co., PAT, which is owned by the CEO I suspect that the division isn't worth anything, since it always lost money, so maybe the value of what the co. gave to the CEOis immaterial. Just the same, I don't like reading that the CEOis busy trying to make something other than Asyst into a success. ========================= Related Party Transaction- On September 30, 1997, the Company entered into an asset purchase agreement with Palo Alto Technologies, Inc. ("PAT") pursuant to which the Company sold to PAT certain intellectual property rights and office equipment which were owned or licensed by Asyst Automation, Inc. (a discontinued operation) in consideration for quarterly "Earn-Out Payments" up to an aggregate of $2.0 million. The "Earn- Out Payments" are equal to 4.0 percent of PAT gross revenue. The Company may convert the right to receive such "Earn-Out Payments" into shares of PAT securities at the closing of certain issuances of securities by PAT. In addition, PAT granted the Company the non-exclusive, worldwide right to distribute and sell any of PAT's products on PAT's most favorable distributor terms and conditions; except PAT may grant exclusive distribution rights to particular markets so long as such rights are first offered to the Company and the Company does not accept the offer. Such distribution rights shall terminate on the earlier of (i) the fifth anniversary of such agreement or (ii) if the Company begins selling its own products which are directly competitive with PAT's products. The Chairman and Chief Executive Officer of the Company is the Chairman and principal shareholder of PAT. The parties have agreed that the Chairman and Chief Executive Officer of the Company and one other officer of the Company may be advisors or directors of PAT while employed full time by the Company