On March 20, 2000, Net2Wireless Corporation granted to David Rubner (or an
entity controlled by him), a director of Net2Wireless Corporation, options to
purchase 1,074,074 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 a written agreement with Mr.
Rubner (or an entity controlled by him), under which he (or an entity controlled
by him) is to receive compensation of $100,000 per year, in consideration for
his services as a director and chairman of the board of directors. To date,
Net2Wireless has paid Mr. Rubner $50,000 for his consulting services. Mr. Rubner
has extensive executive management experience and is knowledgeable in the
telecommunications industry. Mr. Rubner is familiar with many of the
participants in the telecommunications industry and he plays an active role in
investor relations and seeking strategic partners for Net2Wireless. Net2Wireless
believes the compensation is the fair market value for Mr. Rubner's services.
The term of this agreement is for one year, retroactive to January 1, 2000.
On formation, Yaron Sobol, general counsel to Net2Wireless, was issued
78,010 shares of common stock of Net2Wireless. On December 7, 1999, Mr. Sobol
was granted options to purchase 42,963 shares of common stock with an exercise
price of $1.86 per share, above the fair market value of the common stock of
Net2Wireless as of the date of grant. On January 18, 2000, Net2Wireless granted
Mr. Sobol options to purchase an addition 107,407 shares with an exercise price
of $1.86 per share, above the fair market value of the common stock of
Net2Wireless as of the date of grant. |
