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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (9753)	3/23/1999 9:20:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 27311

Larry, the warrants "have been paid for" alright, but the shares (895,000 or 985,000 depending which of the two numbers from their recent 10Q you believe) will be paid for only when the warrants are exercised, and then VLNC will absolutely get between $6 and $6.7 MM for these shares. The warrants run, I believe to 2003, so VLNC may not see that money until they do not really need it (if FMK is right and within a year VLNC is starting to throw serious cash to the bottom line). Zeev

To: Larry Brubaker who wrote (9753)	3/23/1999 10:23:00 PM
From: wm sharp	Respond to of 27311

Hi Larry. Just my regular check in on your progress. Seems like your ongoing fact-finding mission is bearing fruit. There certainly has been a great deal of discussion in recent days, weeks, months, and I particularly like your prediction of a 3-bagger by year end. You have stated that you are not bottom fishing, yet there is little else to explain your concentrated internet activity as a non-investor relative to this venture. (Shucks, maybe I'm just confusing you with Zeev.) Thus, my usual question: Are we invested yet?

To: Larry Brubaker who wrote (9753)	3/24/1999 4:00:00 AM
From: add	Read Replies (1) \| Respond to of 27311

Larry, I warrants are an inducement in the financing. CC,Gemini, and Carl Berg all have received them as part of a package deal, thus they must be accounted for. Will they have to pay when they exercise them? Usually, they would have to but in this case its their choice. The terms are they can get a "cashless" exercise. This means if the stock price is above the strike price of the warrants, the can get some shares without paying anything. For example, if the stock price is 50% more than the strike price, then the warrant holder can get 1/2 a share for each warrant he holds without paying a penny. His other choice is to pay the strike price to Valence and get 1 share for each warrant. I'm not sure the cashless feature was given to all three parties, but I think it was. So, technically, you're outvoted 3-1 since they can choose to exercise by paying the strike price.