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Strategies & Market Trends : Pluvia's Fist.com - Pluvia's Plays & Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: jjs64 who wrote (1500)	11/26/2003 10:28:47 PM
From: TeamTi	Read Replies (3) \| Respond to of 1766

Is the EGHT CEO better at running the company then at daytrading? ---------------------------- In March 2002, 8x8's board of directors (the Board) authorized the Company to open securities trading accounts with two brokerage firms and make investments of up to $1.0 million on behalf of 8x8, Inc. as directed by our Chairman, Joe Parkinson, Chief Executive Officer, or Chief Financial Officer. Mr. Parkinson has agreed to personally reimburse 8x8 on a quarterly basis for any losses resulting from his trading activities in order to maintain a minimum investment account balance of $1.0 million. The Board has been assured of Mr. Parkinson's ability to cover any such losses; however, should he be unable to do so it could have a material impact on our cash flows and results of operations. Since the formation of these accounts in 2002, neither the Company's Chief Executive Officer nor Chief Financial Officers have made any trades in the investment accounts as these officers had not agreed to reimburse us for any losses incurred as a result of their trading activity. Mr. Parkinson did not have use of any of the investment account funds for his personal benefit. The funds have always been held in investment accounts in the Company's name and all benefits belong to 8x8. The Company invests in mutual funds, money market funds, and equity and debt securities and options of publicly traded corporations. The investment accounts are not used to trade in the Company's own stock. As part of the arrangement, the Board has expressed its intent, but not obligation, to pay Mr. Parkinson a quarterly bonus in an amount equal to 25% of the profits attributable to investments made on the Company's behalf by Mr. Parkinson to the extent such a bonus exceeds his salary for the corresponding period. The Company or Mr. Parkinson can terminate this arrangement at any time, subject to the terms of an agreement between 8x8 and Mr. Parkinson. Under the arrangement, the Company is required to return to Mr. Parkinson the amount representing the increase in value of the investment account over $1.0 million to the extent required to restore replenishment payments made by Mr. Parkinson in prior quarters. Through March 31, 2003, Mr. Parkinson had made cumulative replenishment payments of approximately $137,000 to offset losses incurred. As of September 30, 2003, 8x8 had made replenishment payments to Mr. Parkinson of approximately $126,000 and had a payable of approximately $9,800 to Mr. Parkinson , which was paid in October 2003. After the Company made the $9,800 payment in October, all of the replenishment payments made by Mr. Parkinson during fiscal 2003 had been returned to him .