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Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?

To: Street Walker who wrote (544)	5/6/1999 6:50:00 PM
From: DanZ	Read Replies (1) \| Respond to of 5582

Street Walker, Thanks for your comments. You pointed out some important things that aren't obvious in the press release. I believe that GumTech management will still have much control over press releases from Gel Tech. With regard to allocation of revenue and expenses, if Gel Tech loses money, GumTech will account for the entire loss. As Gel Tech becomes profitable, the carryover loss will be reduced until it reaches zero. At that time, GumTech will book 60% of the profit from Gel Tech. You asked a good question about the capitalization of Gel Tech. I don't know how much money Biodelivery Technologies and GumTech contributed to start Gel Tech LLC. I'll look into this and post what I find out on this thread. For those who don't regularly follow the GUMM thread on Yahoo, here is a link to my comments on the significance of today's agreement with Biodelivery Technologies. messages.yahoo.com

To: Street Walker who wrote (544)	5/7/1999 11:15:00 AM
From: DanZ	Read Replies (2) \| Respond to of 5582

Street Walker, With regard to the capitalization of Gel Tech LLC: Upon signing the definitive operating agreement yesterday, GumTech and Biodelivery Technologies contributed their intellectual property rights of Zicam to the LLC. GumTech is providing a loan to the LLC of $3.5 million with interest at 8% per annum. GumTech also granted four Gel Tech employees options to acquire up to 190,000 shares of GUMM at fair market value. The options have a term of five years from their grant date, 10,000 of which will vest on the date of grant and the remainder will vest on the first anniversary of the date of grant.