Flexpower Inc. (FLXP)

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08.13.07Management Stock CompensationPosted in Uncategorized, Investor Relations at 3:12 am by Andrew Edwards

QUESTION:

Are there any plans to change the the shares issued to senior management as compensation this year. Won’t this just create additional dilution?

RESPONSE:

The original intention wat to tie senior management’s compensation to the performance of the stock, via issuing restricted stock at the beginning of this year. There are no planned changes, as the original underlying logic remains the same. The incentive to increase the price per share is just as valid now as when the shares were issued. As for concerns regarding additional dilution, there are significant restrictions on the amount of rule 144 stock insiders can sell, once they are vested. Sales of restricted securities and shares of common stock held by “affiliates” are subject to certain volume, timing and manner of sale restrictions pursuant to Rule 144.

In general, under Rule 144, a person (or persons whose shares are aggregated) who has beneficially owned shares for at least one year, including “affiliates” of the Company, would be entitled to sell within any three-month period that number of shares that does not exceed the greater of

(i) 1% of the number of shares of common stock then outstanding or

(ii) the average weekly trading volume of the common stock during the four calendar weeks preceding such sale.


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