-5- Mr. Facq’s margin account was secured by the shares he would receive, to be held in the margin account. If the value of the shares in the margin account decreased below a certain level, Hambrecht and Quist was authorized (pursuant to the Margin Loan Agreement, and NASD and SEC rules) to sell the shares to repay the amount Mr. Facq owed. Mr. Facq was personally liable for repayment of any shortfall. In 2000, Mr. Facq used his Hambrecht and Quist account on several occasions to borrow money to exercise the options.6 Mr. Facq’s purchases in 2000 are shown in the table below, which also indicates the exercise prices and the amount of withholding taxes for each purchase funded through the margin account. Purchase Shares Tax Market Value Purchased Exercise Date Price Withholding of Shares Feb. 7, 2000 56,000 $140 $1,289,589.25 $4,364,500.00 Feb. 15, 2000 144,000 360 4,252,621.23 14,440,500.00 Mar. 7, 2000 100,000 500 7,718,382.64 18,870,429.60 Apr. 17, 2000 200,000 500 2,650,352.75 9,000,000.00 May 24, 2000 200,000 500 2,723,977.75 9,250,000.00 July 28, 2000 50,000 93,750 -- 1,593,750.00 6The number of shares Mr. Facq purchased is not consistent with the initial number of shares InfoSpace granted Mr. Facq because stock splits occurred between the grant of the options and when Mr. Facq exercised them.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011