On March 20, 2000, Net2Wireless Corporation granted to Joav Avtalion, a
director of Net2Wireless Corporation, options to purchase 322,222 shares of
common stock at a price of $1.86 per share, below the fair market value of the
Net2Wireless common stock as of the date of grant. Net2Wireless Corporation is
currently finalizing an agreement with Beneficial Investment Services Ltd., a
British Virgin Islands corporation controlled by Mr. Avtalion, under which
Beneficial Investment Services Ltd. is to receive consulting fees of $1,500 for
the period November 1999 through March 2000, and $2,000 per day as of April 2000
in connection with Mr. Avtalion's consulting services and business development.
To date, Net2Wireless has paid Mr. Avtalion $104,224 for his consulting
services. Mr. Avtalion has extensive entrepreneurial and executive management
experience and has taken an active role in providing Net2Wireless with
management advice in connection with negotiations with potential strategic
partners, recruiting executive management, and investor relationships.
Net2Wireless believes the compensation is the fair market value for Mr.
Avtalion's services. The term of this agreement is for one year, retroactive to
January 1, 2000. |
