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To: Terrapin who wrote (5904)	6/7/1998 5:42:00 PM
From: Jazz102	Respond to of 8193

"Toughest Boards are Biggest Stockholders" - NY Times Business Section p.7 "Directors with a lot of money tied up in the stock of the company they oversee are more likely to dismiss a poor performing chief executive than directors who don't have much money at stake, .....directors with large ownership stakes provide more vigilant oversight .....establish a critical linkage between equity ownership and effective monitoring...Companies that dismissed their chief executives after a three year stock decline of at least 10% were run by directors with median stock holdings in their company of $470,000...is significant because it suggests a new way to measure the likelihood that a board member will act independently of management"

To: Terrapin who wrote (5904)	6/9/1998 9:28:00 PM
From: Calvin Scott	Respond to of 8193

John, first, sorry for the delay in responding but I can spend only so much time on the "net". So, let me see how I can do with your question regarding the B of D. The present board has five members. James Guzy, Suhas Patil, Mike Hackworth, Robert Smith and Rhines. Their is a faction of Guzy and Smith versus Patil, Hackworth and Rhines. Recall the ousting of Tom Kelly. This was induced by the Hackworth gang. The question is where will Teo fit in this group? With Hackworth or with Guzy? I think the answer is obvious. Teo with over 10% of the shares, will make his own faction. I don't think the others will care to join him and I think there will be some very heated discussions on strategy etc. in the future. However, I really doubt whether or not any of us will be part of this discussion. In fact, I bet you barely hear a whisper (wimper?) from any of them for quite some time. Teo doesn't strike me as being overly offensive but I think he will demand some changes such as further cost cutting maybe selling off some more of the IP, etc. Who knows, maybe there is some truth to the statement he made about someone he knows that is interested in the company. For now, the next volley of excrement from Hackworth will occur between now and the shareholders meeting behind the scenes. Don't expect a lot of excitement coming from that meeting though. These guys don't like to air their laundry in public. Change will occur but I am sure it will be slow and deliberate. Calvin Scott