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Technology Stocks : CustomTracks Corporation (CUST) -- Ignore unavailable to you. Want to Upgrade?

To: Rajiv who wrote (680)	6/9/1999 8:39:00 AM
From: Mama Bear	Read Replies (1) \| Respond to of 2514

Rajiv, are you sure? Roger Babb seems to think there is: "Now that I am a director, there are strict rules which govern the trading of my "beneficially owned" shares and of course these rules should be applied only to those shares meeting that strict definition......And I may not change the direction of my trading (buy or sell) in less than a six month period. #reply-8780787 I've heard a few other folks mention this restriction as well. Barb

To: Rajiv who wrote (680)	6/9/1999 8:58:00 AM
From: Rajiv	Read Replies (1) \| Respond to of 2514

Critical Path says CustomTracks ends lawsuit SAN FRANCISCO, June 9 (Reuters) - E-mail service provider Critical Path Inc. (Nasdaq:CPTH - news) said Wednesday that CustomTracks (Nasdaq:CUST - news) has agreed to dismiss its trade secrets lawsuit against Critical Path. The suit, originally filed on May 27, alleged misappropriation of trade secrets and breach of a non-disclosure agreement between the companies. CustomTracks, which is developing an Internet transaction system, said at the time that the suit related to its digital signature and encryption technology. Critical Path gave no further details on the dismissal of the lawsuit.

To: Rajiv who wrote (680)	6/9/1999 1:51:00 PM
From: Roger A. Babb	Read Replies (2) \| Respond to of 2514

Rajiv, insider trading rules do in fact prevent an insider from changing the direction of his trading within six months of the last trade. The penalty for breaking the rule is that any profits from the trade must be refunded to the company. This rule is strictly enforced. There is a shady area called "stock loans" that are used to circumvent these rules and also to hide the fact that an insider is selling. In my opinion, these are also illegal. Works like this: Insider borrows against his shares, delivering the shares as security. Loan shark SELLS the shares immediately. Insider receives X% of selling price as his "loan" and writes the loan shark a "call" for his original shares that are now gone. At end of term, insider can walk away with no recourse or he can repay the loan. Of course he would not repay the loan if the share price has fallen. But if the share price is up, the loan shark will exercise his call which means that he simply returns the loan payoff money. Either event simply means the loan is not repaid and rights to the shares are forfeited. Net result of stock loan: the insider sold his shares and delayed reporting it until the end of the term of the loan. In my opinion, illegal and as a stock holder I would sue any insider I caught doing this trick!