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To: Marie Meyer who wrote (842)	5/8/1998 9:36:00 PM
From: George	Read Replies (2) \| Respond to of 10714

Marie, the following from C3's IPO prospectus may help explain things: "The Company has reserved approximately $15.9 million of the net proceeds of this offering to fund the acquisition of additional SiC crystal growth systems from Cree, which the Company could be required to purchase for use by Cree in supplying commercial production quantities of SiC crystals to the Company. Under the Exclusive Supply Agreement, Cree has the option to require the Company to purchase such systems from Cree at Cree's cost or to build such systems itself and recoup its costs by incorporating the cost of the systems into the cost of the SiC crystals purchased by the Company." There's also this: "If Cree elects to have the Company purchase the additional crystal growth systems, such systems must remain at Cree's facilities and ownership of such systems will transfer to Cree when the Company has fully depreciated their cost."