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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Michael G. Potter who wrote (10540)	2/5/1999 8:09:00 PM
From: Sun Tzu	Respond to of 16960

Ok, my last word on this and then I get off this horse. I agree that options are a sham. If you recall I wrote a few detailed articles on this last year. Eventually the bonus is paid in cash in the form of stock buy back plan. But of course the accounting sham remains. My main point was that if the market demands it, then the company does have to pay up. Of course I don't know what the market is like in the valley. So may be they are being overpaid. My suggestion: consider all the points, do a comparison with other companies in 3Dfx's league, and then fire a civil but firm email to the company. If you are still unsatisfied, then start a shareholder movement. Regards, Sun Tzu

To: Michael G. Potter who wrote (10540)	2/6/1999 4:34:00 AM
From: Patrick Grinsell	Respond to of 16960

<<If 3Dfx had to take an additional income statement hit, do you think they would've repriced the options?>> Hell no. It would have made last quarter totally unprofitable. Zacarias got the equivalent of one million dollars in his reprice. If memory serves, that's at least three times his annual salary. I guess now I know why he hasn't returned my call. Maybe he'll give me a ring after his trip to the Bahamas. I ask again...given the stock price does this sound fair? I've been in since right after the IPO and share appreciation is my only reward. I would expect to see something like this from nVidia or Diamond, but I'm rather surprised that 3dfx did it. Maybe I'm naieve in expecting a "shareholder first" attitude from these guys. Pat "Pissed as Hell" Grinsell P.S. I'm willing to let bygones be bygones if somebody over at 3dfx feels that I deserve a repricing on the cost of my shares.

To: Michael G. Potter who wrote (10540)	2/6/1999 4:38:00 AM
From: Patrick Grinsell	Read Replies (1) \| Respond to of 16960

Oh god, it gets better... It would appear that the big boys have now set up their golden parachutes. EMPLOYMENT AGREEMENTS AND CHANGE IN CONTROL ARRANGEMENTS Pursuant to letter agreements entered into with each of L. Gregory Ballard, Karl Chicca, Scott Sellers and Gary Tarolli, in the event there is a change of control of 3Dfx and such executive is terminated other than for cause within one year following the effective date of such change of control, (i) in the case of Messrs. Ballard and Chicca, 25% (or, in the event that less than 25% of such executive's options remain unvested, all) of such executive's options will be accelerated and become fully vested and (ii) in the cases of Messrs. Sellers and Tarolli, 25% of the executive's stock subject to 3Dfx's repurchase option under a restricted stock purchase agreement shall be released from such repurchase option (or all of such stock if less than 25% of the executive's stock remains subject to 3Dfx's repurchase option). For purposes of these letter agreements a "change of control" means the (i) the sale of all or substantially all of 3Dfx's assets, or (ii) a consolidation or merger of 3Dfx with or in any other corporation (other than a wholly-owned subsidiary of 3Dfx) or engagement in a transaction or series of transactions in which more than 50% of the voting power of 3Dfx is disposed. Termination other than for cause includes constructive termination resulting from (i) the reduction of such employee's rate of compensation, (ii) the reduction of such employee's scope of engagement or (iii) the requirement that such employee provide services at a location more than 50 miles from the employee's office location as of the date of the letter agreement.