This excerpt taken from the VLNC 8-K filed Oct 6, 2008.
Item 8.01 Other Events.
On September 30, 2008, Berg & Berg Enterprises, LLC (Berg & Berg) exercised its right to purchase 1,402,743 shares of Valence Technology, Inc. (the Company) common stock at a price per share of $3.208 for an aggregate purchase price of $4.5 million, pursuant to the terms of that certain Warrant to Purchase Common Stock of the Company issued to Berg & Berg on January 4, 2002 (the Warrant), as subsequently amended.
As payment of the $4.5 million exercise price of the Warrant, Berg & Berg surrendered certain promissory notes issued on September 26 ($1.0 million in principal and $1,095 in accrued interest), September 18 ($1.0 million in principal and $2,849.32 in accrued interest), and July 23, 2008 ($2,458,337.83 in principal and $37,716.96 in accrued interest). Because the total amount of the $3.0 million promissory note issued to Berg & Berg on July 23, 2008 was not paid in full, a new promissory will be issued to Berg & Berg in the principal amount of $541,662.17, which will continue to bear interest at a rate of 8.0% per annum (of which, $8,310.44 in interest has accrued as of September 30, 2008) and which will continue to be payable on November 15, 2008. The managing member of Berg & Berg is Carl E. Berg, who is the Chairman of the Companys Board of Directors and the principal stockholder of the Company.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.