From: DenizkurtE@aol.com Sent: Wednesday, January 28, 2004 9:42 PM To: rule-comments@sec.gov Subject: Stock Options Rules Dear Staff: This is just a simple example of why the stock options rules need to be amended. I am using VNTK as my example but really we could pick thousands of companies and it wouldn't matter, the scam is still the same. Below is the paperwork the company files with the SEC for insiders to sell shares. None of the money of course goes to the company for use to accomplish their mission statement and goals of turning an idea into a reality where they company actually makes a positive EPS. Instead it goes into their pockets. For a job well done? Hardly!!! Take a look at the date of this 2/14/2000. See where the stock price was then and where it is now. How has the company done? Have they achieved anything? I doubt it. So once again Wall Street IPO's a company, insiders give themselves shares, dump them into the market - walking away with big chunks of cash, and investors get screwed. Isn't it time the SEC installs a provision that no stock or stock options can be sold until a company goes from red to black with a positive EPS for at least 2 quarters? It only makes sense doesn't it? Reward success and not failure!!! Instead its "dilute shareholder value and line the pockets of insiders." If our country built the Golden Gate Bridge like this it would be sitting beneath the water right now. Wall Street is building a house of cards with this type of fraud. The American public needs the SEC now more than ever after all the other abuses Wall Street has perpetrated to stop this abusive stock options scam. Options should be a tool for rewarding success not for rewarding failure. This statement below really bothers me: Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved our common stock, or determined that this prospectus is complete or accurate. Any representation to the contrary is a criminal offense. Wow, this sounds like the biggest "legalese" mumbo jumbo similar to the old "No one admits or deny's any wrongdoing" garbage I see after investigations. If the SEC isn't approving that this filing is accurate then why do companies file? Maybe I just don't get it. But the options situation I do understand. Our economy is going to be hurt even worse in the future if this situation isn't taken care of. Please, let's make sure the policy is to reward success. Thanks for listening. Sincerely, Erol Denizkurt 4548 Andover Way F303 Naples, FL 34112 Phone: 239-417-4348 Fax: 240-331-5618 DenizkurtE@aol.com http://www.vianet.com/execmgmt.htm Preliminary Prospectus Subject to Completion, Dated February 14, 2000 VIANET TECHNOLOGIES, INC. 5,720,500 Shares of Common Stock and 14,630,776 Shares of Common Stock Issuable Upon Exercise of Common Stock Purchase Warrants
Vianet Technologies, Inc.: The Offering: o Vianet develops, manufactures and sells o This prospectus relates to the possible computer networking products, electronic sale, from time to time, by certain communications technologies and value stockholders, the "selling stockholders" added services. of Vianet of up to 5,720,000 shares of common stock, and 14,630,776 shares of common stock underlying common stock purchase warrants. o 83 Mercer Street, 3rd Floor o There is no underwriter or coordinating New York, New York 10012 broker acting in connection with the (212) 219-7680 offering of common shares by the selling stockholders. o NASD OTC Electronic Bulletin Board o Vianet will not receive any proceeds Symbol: VTNK from sales by the selling stockholders, except when warrantholders choose to exercise their warrants, in which case Vianet will receive the exercise price of the warrants. See "Plan of Distribution" for further details concerning the possible sale of these shares.
-------------------------------------------------- Your investment in our common stock involves a high degree of risk. Before investing in our common stock, you should consider carefully the risks described under "Risk Factors" beginning on page 6. -------------------------------------------------- Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved our common stock, or determined that this prospectus is complete or accurate. Any representation to the contrary is a criminal offense. -------------------------------------------------- The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Prospectus is not an offer to sell these securities and we are not soliciting offers to buy these securities in any state where the offer or sale is not permitted.