U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 4
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 box if no longer subject to Section 16. Form 4 or Form 5 obligations
may continue. See Instruction 1(b).
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1. Name and Address of Reporting Person*
Stern Howard B
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(Last) (First) (Middle)
5698 St. Anne's Way
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(Street)
Boca Raton FL 33496
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(City) (State) (Zip)
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2. Issuer Name and Ticker or Trading Symbol
First Entertainment Holding Corp. FTET
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3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)
###-##-####
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4. Statement for Month/Year
11/00
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5. If Amendment, Date of Original (Month/Year)
11/00
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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)
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
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Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
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<TABLE>
<CAPTION>
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
3. Disposed of (D) Securities Form: 7.
Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Code ------------------------------- Owned at End (D) or Indirect
1. Transaction (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 11/03/00 J** 318,137 A $.03** D
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Common Stock 11/08/00 S 105,000 D $.0274 D
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Common Stock 11/09/00 S 185,000 D $.0264 D
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Common Stock 11/29/00 P*** 103,500 A $.0161 D
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Common Stock 11/29/00 P*** 500 A $.017 D
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Common Stock 11/30/00 P*** 168,000 A $.017 D
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Common Stock 11/30/00 P*** 7,000 A $.0161 3,956,741(1) D
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</TABLE>
* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
** These securities were issued to the reporting person as compensation at the
rate shown pursuant to a Registration Statement on Form S-8 filed with the
Securities And Exchange Commission on November 2, 2000.
*** The Registrant and the Reporting Person have agreed that the $48,651.98 of
profits from these transactions, as defined in Section 16 of the Securities
Exchange Act of 1934, will be paid to the Registrant by a promissory note,
executed by the Reporting Person, which note provides for monthly payments
consisting of 20 percent of the Reporting Person's salary for 12 months
that the Registrant will withhold from the Reporting Person's salary (the
Reporting Person is the Chief Executive Officer of the Registrant). At the
end of 12 months, any remaining balance on the note will be paid in cash
immediately by the Reporting Person. If the Reporting Person defaults on
the note, the Registrant intends to initiate legal proceedings to recover
the balance together with costs incurred.
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses)
(Over)
(Form 4-07/99)
<PAGE>
FORM 4 (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>
10.
9. Owner-
Number ship
of Form
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- 4. Securities Date Securities Price Bene- ity: In-
cise 3. Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of ficially Direct direct
Price Trans- action or Disposed Expiration Date ---------------- Deriv- Owned (D) or Bene-
1. of action Code of(D) (Month/Day/Year) Amount ative at End In- ficial
Title of Deriv- Date (Instr. (Instr. 3, ---------------- or Secur- of direct Owner-
Derivative ative (Month/ 8) 4 and 5) Date Expira- Number ity Month (I) ship
Security Secur- Day/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity Year) Code V (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> <C>
Options to purchase Common 1,250,000 1,250,000
Common Stock fn(2) fn(2) fn(2) fn(2) Stock fn(2) fn(2) fn(2) D
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</TABLE>
Explanation of Responses:
(1) Includes 2,500,000 shares authorized to be issued pursuant to the Company's
2000 Management Compensation Plan described below in footnote 3.
(2) The 1,250,000 options issued to the Reporting Person pursuant to the 2000
Management Compensation Plan as described below in footnote 3,
"Cancellation And Reissuance Of Options In September 2000", may be
exchanged for additional options as described in footnote 3.
(3) Cancellation And Reissuance Of Options In September 2000
On September 15, 2000, the Board enacted the Company's 2000 Management
Compensation Plan to compensate directors, officers and consultants and to
provide incentives for those persons in acting on behalf of the Company. In
order to participate in the Management Compensation Plan, the Reporting
Person was required to relinquish any options previously granted to him.
Options relinquished by the Reporting Person on September 15, 2000 included
options to purchase 25,000 shares for $.21 per share until March 11, 2002;
options to purchase 50,000 shares for $.61 per share until January 4, 2005,
which options would have become exercisable if and when the average closing
price per share of the Company's common stock is at least $2.25 for 10
consecutive business days; options to purchase 75,000 shares for $.61 per
share until January 4, 2005, which options would have become exercisable if
and when the Company achieves annual revenues of at least $4.25 million;
options to purchase 125,000 shares for $.61 per share until January 4,
2005, which options would have become exercisable if and when the Company
achieves earnings per share of at least $.05; options to purchase 750,000
shares for $.61 per share until January 4, 2005, which options would have
become exercisable upon a change-in-control of the Company; and options to
purchase 75,000 shares for $1.33 per share until January 25, 2005, which
options would have become exercisable if and when the Company's common
stock trades for at least $4.50 per share for 10 consecutive business days
during the period from January 25, 2000 through July 1, 2001. Options to
purchase 1,250,000 shares of common stock have been issued, and 2,500,000
shares of common stock were authorized to be issued, to the Reporting
Person pursuant to the Management Compensation Plan. The options are
exercisable at a price of $.08 per share until September 15, 2005. The
closing sales price for the common stock on September 15, 2000 was $.08.
The options are exercisable 25% immediately and 25% on each of the first
three anniversaries of the date of grant provided that the Reporting Person
continues to be a director, officer, employee or consultant at each
respective time. In addition, the options provide that when the last sales
price for the common stock is at least $.16 per share for three consecutive
trading days, the Reporting Person may elect to exchange each option
exercisable at $.08 per share for two options exercisable at $.16 per
share. Similarly, the Reporting Person may exchange each of his options for
two options to purchase one share of common stock each at $.32 per share at
such time as the last sales price for the common stock is at least $.32 per
share for three consecutive trading days. The 2000 Management Compensation
Plan provides that the Reporting Person was not to be issued the shares
authorized by the Management Compensation Plan, and he may not exercise the
options granted pursuant to the Management Compensation Plan, unless either
the Company's authorized capital is increased to at least 75,000,000 shares
of common stock or the Board otherwise determines that the Company's
authorized capital, assuming issuance of the shares and exercise of options
granted pursuant to the Management Compensation Plan, is sufficient to
satisfy the Company's needs. Stockholder approval of an increase in
authorized capital to 250,000,000 shares was received a special meeting of
the Company's stockholders held on December 27, 2000.
/s/ Howard Stern 1/18/01
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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.
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