X0201 4/A 2003-07-09 2003-07-10 0 0000878720 FAO INC FAOO 0000884413 KAYNE RICHARD A 1 0 1 0 Obligation to buy Warrants 2003-07-09 4 X 0 161621 D 2003-06-01 2003-11-30 Warrants to Buy 161621 0 D Obligation to buy Warrants 2003-07-09 4 X 0 18243 D 2003-06-01 2003-11-30 Warrants to Buy 18243 0 I Various Warrants to Buy 1.5 2003-07-09 4 X 0 161621 A 2003-07-09 2008-07-09 Common Stock 161621 161621 D Warrants to Buy 1.5 2003-07-09 4 X 0 18243 A 2003-07-09 2008-07-09 Common Stock 18243 18243 I Various Exercise of obligation to buy Warrants, in which the Issuer exercised the right to require Mr. Kayne to secure a letter of credit in favor of the Issuer, and the Issuer issued Warrants to Mr. Kayne in payment therefor. Mr. Kayne provided $1,100,000 of cash collateral in support of such letter of credit. This exercise transaction is exempt under Rule 16b-6(b) and Rule 16b-3 (transaction Code M would also apply). Date Exercisable was erroneously reported as 05/01/2003 on amended Form 4 filed 10/30/2003. Includes shares in which Mr. Kayne has an indirect pecuniary interest through his interests in Kayne Anderson Capital Advisors, L.P. (KACALP) and investment partnerships for which KACALP is the general partner. Mr. Kayne is the controlling shareholder of the corporate owner of the general partner of KACALP; a limited partner of each of the limited partnerships; and the trustee of the employee benefit plan account. Mr. Kayne has indirect control of additional shares held by the investment partnerships and other managed investment accounts, but he does not have any pecuniary interest, direct or indirect, in such shares and accordingly they are not reported here. Richard A. Kayne 2003-10-31