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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
[ ] Check this box if no longer subject of Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
[ ] Form 3 Holdings Reported
[ ] Form 4 Transactions Reported
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1. Name and Address of Reporting Person*
Neckowitz Howard A.
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(Last) (First) (Middle)
c/o Pacific Gateway Exchanmge, Inc.
533 Airport Boulevard, Suite 505
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(Street)
Burlingame California 94010
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
Pacific Gateway Exchange, Inc. (NASDAQ/NMS:PGEX)
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3. IRS or Social Security Number of Reporting Person (Voluntary)
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4. Statement for Month/Year
1997
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5. If Amendment, Date of Original (Month/Year)
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6. Relationship of Reporting Person to Issuer
(Check all applicable)
[ X ] Director [ ] 10% Owner
[ X ] Officer (give title below) [ ] Other (specify below)
President and Chief Executive Officer
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7. Individual or Joint/Group Filing
(Check applicable line)
[X] Form filed by one Reporting Person [ ] Form filed by more than one
Reporting Person
<PAGE>
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
5. 6.
4. Amount of Owner-
Securities Acquired (A) or Securities ship
Disposed of (D) Beneficially Form: 7.
(Instr. 3, 4 and 5) Owned at End Direct Nature of
2. 3. ----------------------------- of Issuer's (D) or Indirect
1. Transaction Transaction (A) Fiscal Year Indirect Beneficial
Title of Security Date Code Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) (Instr. 8) (D) & 4) (Instr.4)(Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
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Common Stock 12/31/97 G 18,141 D
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Common Stock 12/31/97 G 96,045 D
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Common Stock 12/31/97 A 75,000 A 1,575,000 D
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119,640(1) I By wife
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96,045(1) I By Howard
A. &
Cheryl
Neckowitz
Family
Trust
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</TABLE>
* If the form is filed by more than one Reporting Person, see
Instruction 4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
Page 1 of 2
<PAGE>
FORM 5 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially
Owned (e.g., puts, calls, warrants, options, convertible
securities)
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<TABLE>
<CAPTION>
9. 10.
Number Owner-
of ship
2. Deriv- of
Conver- 5. 7. ative Deriv- 11.
sion Number of Title and Amount Secur- ative Nature
or Derivative 6. of Underlying 8. ities Secur- of
Exer- Securities Date Securities Price Bene- ity: In-
cise 3. Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- 4. or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Trans- of (D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date action (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ Code 4 and 5) Date Expira- Number ity Year (I) ship
Security Secur- Day/ (Instr. ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) 8) (A) (D) cisable Date Title Shares 5) 4) 4) 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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Option
(Right to Buy) $50.19 12/30/97 A 500,000 (2) (2) Common 500,000 641,176 D
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Explanation of Responses:
(1) The reporting person disclaims beneficial ownership of these securities, and this report shall not be deemed an admission that
the reporting person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose.
(2) Options granted pursuant to the Company's 1997 Long-Term Incentive Plan. Such options vest as follows: 125,000 shareds vest
on 12/30/99, 31,250 shares vest on 3/30/00, 31,250 shares vest on 6/30/00, 31,250 shares vest on 9/30/00, 31,250 shares vest on
12/30/00, 31,250 shares vest on 3/30/01, 31,250 shares vest on 6/30/01, 31,250 shares vest on 9/30/01 and 31,250 shares vest on
12/30/01
</TABLE>
/s/ Howard A. Neckowitz February 13, 1998
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**Signature of Reporting Person Date
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
Alternatively, this Form is permitted to be submitted to the
Commission in electronic format at the option of the reporting person
pursuant to Rule 101(b)(4) of Regulation S-T.
Page 2 of 2
(122795DTI)
