Following are some of the excerpts of the letter we sent to the...

Following are some of the excerpts of the letter we sent to the Administrator on two aspects. 1. Why the SPP in November/December 2008 failed and 2. The financing plan forward.

I am well aware that a lot of VCR employees and executives are reading the posts from this forum. The minimum we mentioned can be negotiated and that was why we left that as minimum and not a figure. The aim is to minimise the expenses and carry forward all the positions that are filled currently.

excerpts follow from here.

---------
We note that your primary objection to organising a new SPP stems from the fact that the previous SPP in November/December 2008 failed even though the present chairman of the board had explained the precarious nature of the company at that time to the shareholders in the 2008 AGM.

In our opinion the SPP in November/December 2008 has failed as the shareholders were not willing to support the present management for the following reasons:

1. Poor quality and high remuneration of the present management
2. Loss of confidence in the capability of the present management team
3. Refusal of the present management to reduce their remuneration as called for by the shareholders in the 2008 AGM

In that respect we feel that failure of the 2008 SPP clearly indicated the vote of no confidence in the present management team.
-------
From the feedback we are receiving (and we believe that you have been receiving as well) most of the shareholders will support a new SPP
-------
That may very well overshoot the mark for the required funds.
-------
We understand that as administrators that you have the powers to replace the present management team with a new one and request you to carry that out by replacing the present board
-------
We also noted that you have invited any proposals for the financing of the company.

Our proposal for financing is as follows:

1. Replace the present board of directors except CEO Mr. Peter Crosby
2. Draw down surplus cash from the subsidiaries to keep the operations going for one month
3. New SPP to the limit of A$10,000 per account or to the maximum amount as permitted by ASIC/ASX
4. New Directors taking the minimum salary until the company becomes cash flow positive rest as shares in the company.
5. Employees doing the same.
6. Clearly explaining the number of implants for the past nine months. Breaking down to month wise.
7. Managing the revenue and expenses of the group as a whole, not just the holding company.
8. Price of issue determined by the new directors.
9. Clearly specifying the minimum amount required to make the SPP a success.

If an SPP was raised immediately, then we are reasonably certain that the shareholders will make it a resounding success that will get yourselves very good name in terms of achieving a good outcome for the company.

The presentation yesterday by the Ventrassist cardiology principal investigator, Dr Andrew J Boyle in the American College of Cardiology 2009 Scientific Sessions is all the more reason why shareholders will support an immediate SPP.

We hope for an immediate SPP being started as a response.

Thanking you very much.

Regards

Vijay Kaknai
Michael Fox
And a lot of shareholders.