hackoff.com: Chapter 9: The Fall, April 1, 2000 - June 30, 2000

Email, April 28-30, 2000

From: Joseph Windaw [mailto:jwindaw@windawwallar.com]

Sent: Friday, April 28, 2000 9:45 PM
To Joanne Ankers

Subject: The shoe

Hi, Joanne:

As I’m sure you heard, the shoe didn’t go. Boy, do you look smart and Franklin and me dumb. I trust that your colleagues at Big Router Ventures are duly impressed.

Seriously, if you don’t mind some advice from an old man, you should toot your own horn on this. If things had gone the other way, you would have been blamed.

Yours truly,

Joe

From: Joanne Ankers [mailto:joanne.ankers@bigrouter.com]
Sent: Friday, April 28, 2000 9:45 PM
To: Joseph Windaw

Subject: RE: The shoe

Hey Joe,

I always appreciate your mentoring. I did take some grief initially for 1) the fact that we’re selling at all; and 2) that we would sell less of our position than you guys did of yours once the shoe went.

Now, after our recent earnings announcement, portfolio sales are all the thing here at Big Router Venture. It’s our way of protecting the corporate bottom line, something the sales guys don’t seem to be doing very well right now. So I have something of a rep as a trend-setter, for which I am grateful to you for your sound advice. I’ll take credit for the shoe on my own; something didn’t sound right about it. I guess from a woman’s point of view, “if the shoe doesn’t fit, don’t wear it.” ha ha. That’s a joke.

Best,

Joanne

From: Joseph Windaw [mailto:jwindaw@windawwallar.com]
Sent: Saturday, April 29, 2000 10:45 AM
To: Joanne Ankers

Subject: RE: The shoe

Joanne:

You’re a very smart young lady and I’m glad to hear you’re appreciated there. I heard good things about you from your boss when we met on some other things.

As much as I’m chagrined that you got the best of us on the shoe, it is a pleasure to see how embarrassed Franklin is over this. He can’t stop talking about it. It’s good for someone as smart as him to be wrong every once in a while.

Of course, Larry Lazard is apoplectic and is convinced that we all plotted against him — including Barcourt — to deny him his “fair share”. You’re lucky you don’t have to listen to him.

Yours truly,

Joe

From: Joanne6543@hotmail.com
Sent: Monday, May 1, 2000 7:45 PM
To: Joseph Windaw

Subject: My career

Joe:

I know I can rely on you to keep this completely confidential. Note that I am writing to you from my personal account and not on Big Router’s email system.

Something totally unfair has happened and I may have to leave Big Router. Turns out that the advice you gave me wasn’t so good after all even though at first people treated me like a hero for selling some of our hackoff position before the market crashed.

Looks like there was a lot of discounting to book router sales at the end of the first quarter and so now there isn’t much in the pipeline for this quarter. That’s why the chief indicated that this quarter would be weak. So now selling from the portfolio has gone from a no-no here at BRV to the order of the day. We are selling at least some of almost all of our positions. You’d think that would make me a hero because I already got out of some of the hackoff position at a price we’re not likely to see again for a while. But, no, that’s not what’s happening at all.

Problem is that, in order to sell, we had to sign a 180 day lockup just like you and the other selling stockholders. Now we can’t sell any more hackoff until five months from now. This, during a time when we are liquidating 20% to 40% of our positions in similar companies. I only did 10% and now people are saying it’s my fault that we can’t do any more.

I need to be blunt: if I have to leave Big Router do you have a position for me at Windaw & Wallar? We have lots of memories.

Best,

Joanne

From: Joseph Windaw [mailto:jwindaw@windawwallar.com]
Sent: Monday, May 1, 2000 7:50 PM
To: James Harkins

Subject: Action items for tomorrow

Jim:

It is important that all of these things be done before noon tomorrow.

Find out what stocks are in the Big Router Ventures portfolio WITHOUT TALKING TO ANYONE AT BRV. If we’re not locked up, sell at least 50% of our positions in any of these whereever there is overlap. I’m sure there is some.

If we have any shares of Big Router itself left in our portfolio, sell them at market. I think those guys are in for a continued rough time.

We have been advertising for two open positions. Pull the ads; we’re going into a hiring freeze for a while. I wouldn’t mind if word about that gets around. It’s a prudent thing to do in this market and it’ll make people work harder.

You know the guy who always wants to come in and show me diamonds? Make an appointment for him to come around and see me tomorrow afternoon. I’m going to want to get something expensive and special for the wife.

Make sure our portfolio companies know not to buy anything from Big Router except at the end of the quarter and after negotiating at least a 25% discount - maybe more. Same for any other major equipment purchases from anyone.

Thanks,

Joe

From: Joseph Windaw [mailto:jwindaw@windawwallar.com]
Sent : Monday, May 1, 2000 7:50 PM
To: Joanne6543@hotmail.com

Subject: RE: My Career

Joanne:

I’m very sorry to hear how people at Big Router Ventures are acting. Are you sure everybody feels this way? It is easy to overreact when you are threatened. Last time I talked to your boss, he thought you were great which is not very long ago. If necessary, I’m glad to remind him.

My advice to you is not to throw away what you have built there. It is a very solid foundation.

Of course I would help you in any way that I can if worse came to worst. Right now, we have a hiring freeze here at W&W so can’t do that, but I have lots of friends and acquaintances on both coasts who, I’m sure, would be interested in someone with your qualifications. I’m assuming that you want to stay West and that’s probably best but I can help either way.

It is always important to be calm. You have a very level head. I’m sure you will do that.

Yours truly,

Joe

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