UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
Date of report (date of earliest event reported):
November 18
, 2005
bebe stores, inc.
(Exact name of registrant as specified in its charter)
California |
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0-24395 |
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94-2450490 |
(State or other jurisdiction of
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(Commission File No.) |
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(I.R.S. Employer Identification
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400 Valley Drive
Brisbane, CA 94005
(Address of principal executive offices)
Registrants telephone number, including area code:
(415) 715-3900
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement.
Amendment of Line of Credit
On November 22, 2005, bebe stores, inc. (the Registrant) and Bank of America N.A. (the Bank) executed the Third Amendment (the Amendment) to the Business Loan Agreement dated March 28, 2003 between the Registrant and the Bank (the Agreement) to amend the expiration date of the Agreement from March 1, 2006 to March 31, 2009.
The Agreement and the Amendment provide the Registrant with an unsecured commercial line of credit which provides for borrowings and issuance of letters of credit for up to $25.0 million and expires on March 31, 2009. The Agreement requires the Registrant to comply with certain financial covenants, including amounts for minimum tangible net worth, unencumbered liquid assets and profitability, and certain restrictions on making loans and investments. Outstanding cash borrowings bear interest at either the banks reference rate (which was 6.75% as of October 1, 2005) or the LIBOR rate plus 1.75 percentage points. As of October 1, 2005, there were no outstanding cash borrowings under the Agreement, and there was $8.4 million outstanding in letters of credit.
The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, a copy of which is filed herewith as Exhibit 99.1 and incorporated herein by reference. The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the Agreement which was filed as Exhibit 10.18 to the Registrants Form 8-K on September 20, 2004 and is incorporated herein by reference.
Amendment of 1997 Stock Plan
At the Registrants 2005 Annual Meeting of Shareholders, the Registrants shareholders approved an amendment to the Companys 1997 Stock Plan (the 1997 Plan) to increase the maximum number of shares of common stock that may be issued under the 1997 Plan by 500,000 shares to a total of 19,613,750 shares. The 1997 Plan incorporating the amendment was adopted by the Registrants Board of Directors on August 16, 2005, subject to approval of its shareholders, and became effective with such shareholder approval on November 18, 2005.
A more detailed description of the terms of the 1997 Plan can be found in the Registrants proxy statement filed with the Securities and Exchange Commission on October 19, 2005 in the section entitled Proposal No. 2Approval Of Amendment To The Bebe Stores, Inc. 1997 Stock Plan, As Amended, To Increase Authorized Number Of Shares and is incorporated herein by reference. The foregoing summary and the summary incorporated by reference from the proxy statement are qualified in their entirety by the full text of the 1997 Plan filed herewith as Exhibit 99.2 and incorporated herein by reference.
Amendment of Non-Employee Director Cash Compensation.
On November 18, 2005, the Board of Directors approved certain changes to the cash compensation paid to the Registrants non-employee Directors.
Non-employee Directors will be paid a fee of $4,000 for each meeting of the Board of Directors that they attend. For each meeting of the Audit Committee attended, non-employee Directors will be paid $1,250 and the Chairman of such committee will be paid $3,000. For each meeting of the Compensation and Management Development Committee or the Nominating and Corporate Governance Committee attended, non-employee Directors will be paid $1,250 and the Chairman of such committees will be paid $2,500. Non-employee directors will be paid $750 for attendance at each telephonic meeting of the Board of Directors or any committee thereof.
Issuance of Options and Restricted Stock Units to Non-Employee Directors
On November 18, 2005, the Board of Directors approved the issuance of options and restricted stock units to the Registrants non-employee Directors. Each non-employee Director was granted an option to purchase 25,312 of the Registrants common stock in accordance with the provisions of the Registrants 1997 Stock Plan. The options vest one year from the date of grant. A copy of
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the form of stock option agreement applicable to each non-employee Director and all employees of Registrant is filed herewith as Exhibit 99.3 and incorporated herein by reference. Each non-employee Director was also granted 1,726 restricted stock units in accordance with the provisions of the Registrants 1997 Stock Plan. Each restricted stock unit represents a right to receive one share of common stock on the date such right vests. The restricted stock units awarded to the non-employee Directors generally vest one year from the date of grant. A copy of the form of restricted stock unit agreement applicable to each non-employee Director is filed herewith as Exhibit 99.4 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On November 22, 2005, bebe stores, inc. (the Registrant) and Bank of America N.A. (the Bank) executed the Third Amendment (the Amendment) to the Business Loan Agreement dated March 28, 2003 between the Registrant and the Bank (the Agreement) to amend the expiration date of the Agreement from March 1, 2006 to March 31, 2009.
The Agreement and the Amendment provide the Registrant with an unsecured commercial line of credit which provides for borrowings and issuance of letters of credit for up to $25.0 million and expires on March 31, 2009. The Agreement requires the Registrant to comply with certain financial covenants, including amounts for minimum tangible net worth, unencumbered liquid assets and profitability, and certain restrictions on making loans and investments. Outstanding cash borrowings bear interest at either the banks reference rate (which was 6.75% as of October 1, 2005) or the LIBOR rate plus 1.75 percentage points. As of October 1, 2005, there were no outstanding cash borrowings under the Agreement, and there was $8.4 million outstanding in letters of credit.
The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, a copy of which is filed herewith as Exhibit 99.1 and incorporated herein by reference. The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the Agreement which was filed as Exhibit 10.18 to the Registrants Form 8-K on September 20, 2004 and is incorporated herein by reference.
Item 8.01 Other Events.
On November 18, 2005, the Board of Directors of the Registrant declared a quarterly cash dividend of $0.04 per share. The dividend is payable on December 30, 2005 to shareholders of record at the close of business on December 16, 2005. On November 21, 2005, the Registrant issued a press release announcing the declaration of the quarterly dividend, a copy of which is filed herewith as Exhibit 99.5 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
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Description |
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99.1 |
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Third Amendment to Business Loan Agreement between Registrant and Bank of America N.A. |
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99.2 |
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bebe stores, inc. 1997 Stock Plan, as amended. |
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99.3 |
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bebe stores, inc. Form of Stock Option Agreement. |
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99.4 |
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bebe stores, inc. Form of Restricted Stock Unit Agreement. |
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99.5 |
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bebe stores, inc. Press Release dated November 21, 2005 Announcing Declaration of Quarterly Dividend. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 23, 2005 |
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bebe stores, inc. |
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/s/ Walter Parks |
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Walter Parks, Chief Financial Officer |
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Exhibit 99.1
THIRD AMENDMENT TO BUSINESS LOAN AGREEMENT
This Third Amendment to Business Loan Agreement (the Amendment) is made as of November 22, 2005, by and between Bank of America, N.A. (Bank) on the one hand, and Bebe Stores, Inc. (Borrower 1), Bebe Management, Inc. (Borrower 2), and Bebe Studio, Inc. (Borrower 3) (Borrower 1, Borrower 2, and Borrower 3 are sometimes referred to collectively as the Borrowers and individually as the Borrower) on the other hand.
RECITALS
A. Borrowers and Bank entered into that certain Business Loan Agreement dated as of March 28, 2003, as amended by that certain First Amendment to Business Loan Agreement dated as of November 24, 2003 and by that certain Second Amendment to Business Loan Agreement dated as of September 15, 2004 (the Agreement).
B. Borrowers and Bank desire to further amend the Agreement as herein provided.
AGREEMENT
1. Definitions . Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Agreement.
2. Amendments.
a. Section 1.2 of the Agreement is amended in its entirety to read as follows:
1.2 Availability Period . The line of credit is available between the date of this Agreement and March 31, 2009, or such earlier date as the availability may terminate as provided in this Agreement (the Expiration Date).
b. Section 7.2 of the Agreement is amended to add subsection (d) to read as follows:
(d) Within 90 days of the end of each fiscal year and within 45 days of each fiscal quarter, a compliance certificate of the Borrowers, signed by an authorized financial officer and setting forth (i) the information and computations (in sufficient detail) to establish that the Borrower is in compliance with all financial covenants at the end of the period covered by the financial statements then being furnished and (ii) whether there existed as of the date of such financial statements and whether there exists as of the date of the certificate, any default under this Agreement and, if any such default exists, specifying the nature thereof and the action the Borrowers are taking and propose to take with respect thereto.
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3. Representations and Warranties . Each Borrower hereby represents and warrants to Bank that: (i) no default specified in the Agreement and no event which with notice or lapse of time or both would become such a default has occurred and is continuing and has not been previously waived, (ii) the representations and warranties of each Borrower pursuant to the Agreement are true on and as of the date hereof as if made on and as of said date, (iii) the making and performance by each Borrower of this Amendment have been duly authorized by all necessary action, and (iv) no consent, approval, authorization, permit or license is required in connection with the making or performance of the Agreement as amended hereby.
4. Conditions . This Amendment will be effective when the Bank receives the following items, in form and content acceptable to the Bank:
a. This Amendment duly executed by all parties hereto.
b. Payment of all out-of-pocket expenses, including attorneys fees, incurred by the Bank in connection with the preparation of this Amendment not to exceed $1000.00. The Bank has elected not to charge the Borrowers an amendment fee for this amendment.
5. Effect of Amendment . Except as provided in this Amendment, the Agreement shall remain in full force and effect and shall be performed by the parties hereto according to its terms and provisions.
IN WITNESS WHEREOF, this Amendment has been executed by the parties hereto as of the date first above written.
Bank of America N.A. |
Bebe Stores, Inc. |
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/s/ Kenneth E. Jones |
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By |
/s/ Walter Parks |
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Kenneth E. Jones |
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Walter Parks |
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Senior Vice President |
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Chief Financial Officer |
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Bebe Management, Inc. |
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By |
/s/ Walter Parks |
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Name |
Walter Parks |
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Title |
Chief Financial Officer |
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Bebe Studio, Inc. |
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By |
/s/ Walter Parks |
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Name |
Walter Parks |
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Title |
Chief Financial Officer |
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Exhibit 99.2
bebe stores, inc.
1997 STOCK PLAN
(As amended and restated through August 16, 2005)
TABLE OF CONTENTS
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(g) Accelerated Vesting and Settlement of Restricted Stock Unit Awards |
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(h) Restrictions on Transfer of Restricted Stock Unit Awards |
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i
bebe stores, inc.
1997 STOCK PLAN
1 . Establishment and Purpose.
The purpose of the Plan is to offer selected individuals an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing Shares of the Companys Stock. The Plan provides for the direct award or sale of Shares, the grant of Options to purchase Shares and the grant of Restricted Stock Units. Options granted under the Plan may include Nonstatutory Options (NSOs) as well as Incentive Stock Options (ISOs) intended to qualify under Section 422 of the Code.
Capitalized terms are defined in Section 13.
(a). Committees of the Board of Directors . The Plan may be administered by one or more Committees. Each Committee shall consist of two or more members of the Board of Directors who have been appointed by the Board of Directors. Each Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it. If no Committee has been appointed, the entire Board of Directors shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function.
(b). Authority of the Board of Directors . Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Purchasers, all Optionees, all Participants and all persons deriving their rights from a Purchaser, Optionee and Participant.
(c). Administration with Respect to Insiders . With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3.
(d). Committee Complying with Section 162(m) . If the Company (or any Parent or Subsidiary) is a publicly held corporation within the meaning of Section 162(m), the Board of Directors may establish a committee of outside directors within the meaning of Section 162(m) to approve any grants under the Plan which might reasonably be anticipated to result in the payment of employee remuneration that would otherwise exceed the limit on employee remuneration deductible for income tax purposes pursuant to Section 162(m).
3 . Eligibility and Award Limitation.
(a). General Rule . Only Employees, Outside Directors and Consultants shall be eligible for the grant of Options, the direct award or sale of Shares and the grant of Restricted Stock Units. For purposes of the grant of Options, Employees, Outside Directors and Consultants shall include prospective Employees, prospective Outside Directors and prospective Consultants to whom Options are granted in connection with written offers of an employment or other service relationship with the Company (or any Parent or Subsidiary). Only Employees shall be eligible for the grant of ISOs.
(b). Ten-Percent Shareholders . An individual who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible to be granted an ISO unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the date of grant, and (ii) the ISO, by its terms is not exercisable after the expiration of five years
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from the date of grant. For purposes of this Subsection (b), in determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied.
(c). Section 162(m) Grant Limit. Subject to adjustment as provided in Section 9(a), at any such time as the Company is a publicly held corporation within the meaning of Section 162(m), no Employee or prospective Employee shall be granted one or more Options within any fiscal year of the Company which in the aggregate are for the purchase of more than one million six hundred eighty-seven thousand five hundred (1,687,500) shares (the Section 162(m) Grant Limit ) . An Option which is canceled in the same fiscal year of the Company in which it was granted shall continue to be counted against the Section 162(m) Grant Limit for such period.
(a). Basic Limitation . The aggregate number of Shares that may be issued under the Plan (upon exercise of Options, Stock Purchase Rights, Restricted Stock Units or other rights to acquire Shares) shall not exceed nineteen million six hundred thirteen thousand seven hundred fifty (19,613,750) Shares, subject to adjustment pursuant to Section 9. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.
(b). Additional Shares . In the event that any outstanding Option, Stock Purchase Right, Restricted Stock Units or other right for any reason expires or is canceled or otherwise terminated, the Shares allocable to the portion of such award which has not been exercised or settled as of the time of such termination shall again be available for the purposes of the Plan. In the event that Shares issued under the Plan are reacquired by the Company pursuant to any forfeiture provision, right of repurchase or right of first refusal, such Shares shall again be available for the purposes of the Plan, except that the aggregate number of Shares which may be issued upon the exercise of ISOs shall in no event exceed nineteen million six hundred thirteen thousand seven hundred fifty (19,613,750) Shares (subject to adjustment pursuant to Section 9).
5 . Terms and Conditions of Stock Purchase Awards or Sales.
(a). Stock Purchase Agreement . Each award or sale of Shares pursuant to Section 5 shall be evidenced by a Stock Purchase Agreement between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the Plan need not be identical.
(b). Duration of Offers and Nontransferability of Rights . Any right to acquire Shares pursuant to Section 5 shall automatically expire if not exercised by the Purchaser within 30 days after the grant of such right was communicated to the Purchaser by the Company in writing. Such right shall not be transferable and shall be exercisable only by the Purchaser to whom such right was granted.
(c). Purchase Price . The Purchase Price of Shares to be offered pursuant to Section 5 shall not be less than 85% of the Fair Market Value of such Shares. Subject to the preceding sentence, the Purchase Price shall be determined by the Board of Directors at its sole discretion. The Purchase Price shall be payable in a form or combination of the forms of consideration applicable to payment of the Purchase Price, as described in Section 8.
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(d). Withholding Taxes . As a condition to the purchase of Shares, the Purchaser shall make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase.
(e). Restrictions on Transfer of Shares and Vesting . Any Shares awarded or sold under the Plan shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally.
(f). Accelerated Vesting . Unless the applicable Stock Purchase Agreement provides otherwise, any right to repurchase a Purchasers Shares at the original Purchase Price (if any) upon termination of the Purchasers Service shall lapse and all of such Shares shall become vested if the Company is subject to a Change in Control and the repurchase right is not assigned to the entity that employs the Purchaser immediately after the Change in Control or to its parent or subsidiary.
6 . Terms and Conditions of Options.
(a). Stock Option Agreement . Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.
(b). Number of Shares . Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 9. The Stock Option Agreement shall also specify whether the Option is an ISO or an NSO.
(c). Exercise Price . Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, and a higher percentage may be required by Section 3(b). The Exercise Price of an NSO shall not be less than 85 % of the Fair Market Value of a Share on the date of grant. Subject to the preceding two sentences, the Exercise Price under any Option shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form or combination of the forms of consideration applicable to Options, as described in Section 8.
(d). Withholding Taxes . As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option.
(e). Exercisability . Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The exercisability provisions of any Stock Option Agreement shall be determined by the Board of Directors at its sole discretion.
(f). Accelerated Vesting and Exercisability . Unless the applicable Stock Option Agreement provides otherwise, all of an Optionees Options shall become exercisable and vested in full if (i) the Company is subject to a Change in Control, (ii) such Options are not assumed by the surviving corporation or its parent and (iii) the surviving corporation or its parent does not substitute options with substantially the same terms for such Options. Any options which are not assumed or substituted for in connection with the
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Change in Control shall, to the extent not exercised as of the date of the Change in Control, terminate and cease to be outstanding effective as of the date of the Change in Control.
(g). Basic Term . The Stock Option Agreement shall specify the term of the Option. The term of an ISO shall not exceed 10 years from the date of grant, and a shorter term may be required by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire.
(h). Transferability of Options . No Option shall be transferable by the Optionee other than by beneficiary designation, will or the laws of descent and distribution. An Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionees guardian or legal representative. No Option or interest therein may be transferred, assigned, pledged or hypothecated by the Optionee during the Optionees lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. Notwithstanding the foregoing, an NSO shall be assignable or transferable to the extent permitted by the Board of Directors and set forth in the Stock Option Agreement evidencing such Option.
(i). Termination of Service (Except by Death or for Cause) . Unless otherwise specified in the Stock Option Agreement, if an Optionees Service terminates for any reason other than the Optionees death or for Cause (as defined below), then the Optionees Options shall expire on the earliest of the following occasions:
1. The expiration date determined pursuant to Subsection (g) above;
2. The date three months after the termination of the Optionees Service for any reason other than Disability; or
3. The date six months after the termination of the Optionees Service by reason of Disability.
The Optionee may exercise all or part of the Optionees Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionees Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionees Service terminated (or vested as a result of the termination). The balance of such Options shall lapse when the Optionees Service terminates. In the event that the Optionee dies after the termination of the Optionees Service but before the expiration of the Optionees Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionees estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionees Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionees Service terminated (or vested as a result of the termination).
(j). Leaves of Absence . For purposes of Subsection (i) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).
(k). Death of Optionee . Unless otherwise specified in the Stock Option Agreement, if an Optionee dies while the Optionee is in Service, then the Optionees Options shall expire on the earlier of the following dates:
1. The expiration date determined pursuant to Subsection (g) above; or
2. The date 12 months after the Optionees death.
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All or part of the Optionees Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionees estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionees death (or became exercisable as a result of the death) and the underlying Shares had vested before the Optionees death (or vested as a result of the Optionees death). The balance of such Options shall lapse when the Optionee dies.
(l). Termination for Cause . Unless otherwise specified in the Stock Option Agreement, if an Optionees Service is terminated for Cause, the Option shall terminate and cease to be exercisable immediately upon such termination of Service. Unless otherwise defined by the Optionees Stock Option Agreement or contract of employment or service, for purposes of this Section 6(l) Cause shall mean any of the following: (1) the Optionees theft, dishonesty, or falsification of any Company documents or records; (2) the Optionees improper use or disclosure of a the Companys confidential or proprietary information; (3) any action by the Optionee which has a material detrimental effect on the Companys reputation or business; (4) the Optionees failure or inability to perform any reasonable assigned duties after written notice from the Company of, and a reasonable opportunity to cure, such failure or inability; (5) any material breach by the Optionee of any employment or service agreement between the Optionee and the Company, which breach is not cured pursuant to the terms of such agreement; (6) the Optionees conviction (including any plea of guilty or nolo contendere) of any criminal act which impairs the Optionees ability to perform his or her duties with the Company; or (7) Optionees conviction for a violation of any securities law .
(m). No Rights as a Shareholder . An Optionee, or a transferee of an Optionee, shall have no rights as a shareholder with respect to any Shares covered by the Optionees Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms of such Option.
(n). Modification, Extension and Assumption of Options . Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise Price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionees rights or increase the Optionees obligations under such Option.
(o). Restrictions on Transfer of Shares and Vesting . Any Shares issued upon exercise of an Option shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally.
7 . Terms and Conditions of Restricted Stock Units.
(a). Restricted Stock Units Agreement . Each Restricted Stock Unit award pursuant to this Section 7 shall be evidenced by a Restricted Stock Units Agreement between the Participant and the Company. Such award shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Restricted Stock Units Agreement. The provisions of the various Restricted Stock Units Agreements entered into under the Plan need not be identical.
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(b). Purchase Price . No monetary payment (other than applicable tax withholding, if any) shall be required as a condition of receiving a Restricted Stock Unit award, the consideration for which shall be services actually rendered to the Company, a Parent or Subsidiary, or for its benefit.
(c). Vesting . Restricted Stock Units may or may not be made subject to vesting conditions based upon the satisfaction of such Service requirements, conditions or restrictions, as shall be established by the Board of Directors and set forth in the Restricted Stock Units Agreement.
(d). Voting . A Participant shall have no voting rights with respect to shares of Stock represented by Restricted Stock Units until the date of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).
(e). Effect of Termination of Service . Unless otherwise provided by the Board of Directors in the grant of Restricted Stock Units and set forth in the Restricted Stock Units Agreement, if a Participants Service terminates for any reason, whether voluntary or involuntary (including the Participants death or disability), then the Participant shall forfeit to the Company any Restricted Stock Units which remain subject to vesting conditions as of the date of the Participants termination of Service.
(f). Settlement of Restricted Stock Unit Award . The Company shall issue to the Participant on the date on which the Restricted Stock Units subject to the Participants Restricted Stock Unit award vests or on such other date as determined by the Board of Directors, in its discretion, and set forth in the Participants Restricted Stock Units Agreement a number of whole shares of Stock equal to the number of whole Restricted Stock Units as set forth in and subject to the Restricted Stock Units Agreement which are no longer subject to vesting conditions or which are otherwise to be settled on such date, subject to withholding of applicable taxes, if any.
(g). Accelerated Vesting and Settlement of Restricted Stock Unit Awards . Unless the applicable Restricted Stock Units Agreement provides otherwise, all of a Participants Restricted Stock Units shall become vested in full if (i) the Company is subject to a Change in Control, (ii) such Restricted Stock Units do not remain outstanding, (iii) such Restricted Stock Units are not assumed by the surviving corporation or its parent and (iv) the surviving corporation or its parent does not substitute a substantially equivalent award. The Restricted Stock Units shall be settled in accordance with Section 7(f) immediately prior to the effective date of the Change in Control to the extent the Restricted Stock Units are neither assumed or substituted for in connection with the Change in Control.
(h). Restrictions on Transfer of Restricted Stock Unit Awards . Prior to the issuance of shares of Stock in settlement of a Restricted Stock Unit award, the award shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participants beneficiary, except by will or by the laws of descent and distribution.
(a). General Rule . The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such Shares are purchased, except as otherwise provided in this Section 8.
(b). Surrender of Stock . To the extent that a Stock Option Agreement so provides, payment may be made all or in part with Shares owned by the Optionee or the Optionees representative. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date when the Option is exercised. This Subsection (b) shall not apply to the extent that acceptance of Shares in payment of the Exercise Price would cause the Company to recognize compensation expense with respect to the Option for financial reporting purposes.
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(c). Services Rendered . At the discretion of the Board of Directors, Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the award.
(d). Exercise/Sale . To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.
(e). Exercise/Pledge . To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes.
(a). General . In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a spin-off, a reclassification or a similar occurrence, the Board of Directors shall make appropriate adjustments in one or more of (i) the number of Shares available for future grants under Section 4, (ii) the number of Shares covered by each outstanding Option, Stock Purchase Right and Restricted Stock Unit award, (iii) the Section 162(m) Grant Limit set forth in Section 3(c) or (vi) the Exercise Price under each outstanding Option. Notwithstanding the foregoing, any fractional shares resulting from an adjustment pursuant to this Section 9 shall be rounded down to the nearest whole number, and no any event may the exercise price be decreased to an amount less than the par value, if any, of the Stock.
(b). Mergers and Consolidations . In the event that the Company is a party to a merger or consolidation, outstanding Options, Stock Purchase Rights and Restricted Stock Units shall be subject to the agreement of merger or consolidation. Such agreement, without the Optionees, Purchasers or Participants consent, may provide for:
1. The continuation of such outstanding Options, Stock Purchase Right or Restricted Stock Units by the Company (if the Company is the surviving corporation);
2. The assumption of the Plan and such outstanding Options, Stock Purchase Rights or Restricted Stock Units by the surviving corporation or its parent;
3. The substitution by the surviving corporation or its parent of options, stock purchase rights or restricted stock units with substantially the same terms for such outstanding Options, Stock Purchase Rights or Restricted Stock Units; or
4. The cancellation of such outstanding Options without payment of any consideration.
(c). Reservation of Rights . Except as provided in this Section 9, an Optionee, Purchaser or Participant shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any class. Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments,
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reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.
10. Securities Law Requirements.
(a). General . Shares shall not be issued under the Plan unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Companys securities may then be traded.
(b). Financial Reports . Each Optionee, Purchaser and Participant shall be given access to information concerning the Company equivalent to that information generally made available to the Companys common shareholders.
Nothing in the Plan or in any right, Option or Restricted Stock Unit granted under the Plan shall confer upon the Purchaser, Optionee, or Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Purchaser, Optionee or Participant) or of the Purchaser, Optionee or Participant which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.
(a). Term of the Plan . The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to the approval of the Companys shareholders. In the event that the shareholders fail to approve the Plan within 12 months after its adoption by the Board of Directors, any grants of Options or sales or awards of Shares that have already occurred shall be rescinded, and no additional grants, sales or awards shall be made thereafter under the Plan. The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the Shares available for issuance under the Plan have been issued and all restrictions on such Shares under the terms of the Plan and the agreements evidencing Options and awards granted under the Plan have lapsed. However, all ISOs shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board of Directors or the date the Plan is duly approved by the shareholders of the Company. Notwithstanding the foregoing, if the maximum number of Shares issuable pursuant to the Plan as provided in Section 4 has been increased at any time (other than pursuant to Section 9), all ISOs shall be granted, if at all, within ten (10) years from the earlier of (i) the date on which the latest such increase in the maximum number of Shares issuable under the Plan was approved by the shareholders of the Company or (ii) the date such amendment was adopted by the Board of Directors.
(b). Right to Amend or Terminate the Plan . The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that any amendment of the Plan which increases the number of Shares available for issuance under the Plan (except as provided in Section 9), or which materially changes the class of persons who are eligible for the grant of ISOs, shall be subject to the approval of the Companys shareholders. Shareholder approval shall not be required for any other amendment of the Plan.
(c). Effect of Amendment or Termination . No Shares shall be issued or sold under the Plan after the termination thereof, except in settlement of Restricted Stock Unit awards and upon exercise of an Option granted prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan.
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(a). Board of Directors shall mean the Board of Directors of the Company, as constituted from time to time.
(b). Change in Control shall mean:
1. The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, unless 50% or more of the combined voting power of the continuing or surviving entitys securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were shareholders of the Company immediately prior to such merger, consolidation or other reorganization, in substantially the same proportions as their ownership of Company stock prior to the transaction ; or
2. The sale, transfer or other disposition of all or substantially all of the Companys assets.
A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Companys incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Companys securities immediately before such transaction.
(c). Code shall mean the Internal Revenue Code of 1986, as amended.
(d). Committee shall mean a committee of the Board of Directors, as described in Section 2(a).
(e). Company shall mean bebe stores, inc., a California corporation.
(f). Consultant shall mean an individual who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors.
(g). Disability shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment.
(h). Employee shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary.
(i). Exchange Act shall mean the Securities Exchange Act of 1934, as amended.
(j). Exercise Price shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement.
(k). Fair Market Value shall mean, as of any date, the value of a Share as determined by the Board of Directors, in its sole discretion, subject to the following:
1. If, on such date, there is a public market for the Stock, the Fair Market Value of a Share shall be the closing sale price of a Share (or the mean of the closing bid and asked prices of a Share if the Stock is so quoted instead) as quoted on the Nasdaq National Market, the Nasdaq Small-Cap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the next day on which the Stock was so traded following the relevant date, or such other appropriate day as shall be determined by the Board of Directors, in its sole discretion.
2. If, on such date, there is no public market for the Stock, the Fair Market Value of a Share shall be as determined by the Board of Directors in good faith.
(l). Insider shall mean an officer or a director of the Company or any other person whose transactions in Stock are subject to Section 16 of the Exchange Act.
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(m). ISO shall mean an incentive stock option described in Section 422(b) of the Code.
(n). NSO shall mean a stock option not described in Sections 422(b) or 423(b) of the Code.
(o). Option shall mean an ISO or an NSO granted under the Plan and entitling the holder to purchase Shares.
(p). Optionee shall mean an individual who holds an Option.
(q). Outside Director shall mean a member of the Board of Directors who is not an Employee.
(r). Parent shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.
(s). Plan shall mean this bebe stores, inc. 1997 Stock Plan.
(t). Participant shall mean an individual to whom the Board of Directors has granted a Restricted Stock Unit award pursuant to Section 7.
(u). Purchase Price shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Board of Directors.
(v). Purchaser shall mean an individual to whom the Board of Directors has offered the right to acquire Shares under the Plan (other than upon exercise of an Option).
(w). Restricted Stock Unit shall mean a bookkeeping entry representing a right granted to a Participant pursuant to Section 7 of the Plan to receive a share of Stock on a date determined in accordance with the provisions of Section 7 and the Participants Restricted Stock Units Agreement.
(x). Restricted Stock Units Agreement shall mean a written agreement between the Company and a Participant who is granted Restricted Stock Units under the Plan which contains the terms, conditions and restrictions pertaining to the acquisition of such award.
(y). Rule 16b-3 shall mean Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulation.
(z). Section 162(m) shall mean Section 162(m) of the Code.
(aa). Service shall mean service as an Employee, Outside Director or Consultant. Service shall not be deemed to have terminated merely because of a change in the capacity in which an individual renders Service to the Company (or any Parent or Subsidiary) or a change in the corporation for which the individual renders such Service, provided that there is no interruption or termination of the individuals Service.
(bb). Share shall mean one share of Stock, as adjusted in accordance with Section 9 (if applicable).
(cc). Stock shall mean the Common Stock of the Company.
(dd). Stock Option Agreement shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to the Optionees Option.
(ee). Stock Purchase Agreement shall mean the agreement between the Company and a Purchaser who acquires Shares under the Plan which contains the terms, conditions and restrictions pertaining to the acquisition of such Shares.
(ff). Stock Purchase Right means a right to purchase Shares granted under Section 5.
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(gg). Subsidiary means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.
The undersigned hereby certifies that the foregoing is the bebe stores, inc. 1997 Stock Plan as amended.
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bebe stores, inc. |
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/s/ GREG SCOTT |
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Title: |
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Chief Executive Officer |
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Exhibit 99.3
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bebe stores, inc. dba bebe |
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ID: 94-2450490 |
Notice of Grant of Stock Options |
400 Valley Drive |
and Option Agreement |
Brisbane, CA 94005-1208 |
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Option Number: |
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ADDRESS |
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0697 |
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Effective , you have been granted a(n) Incentive Stock Option to buy shares of bebe stores, inc. dba bebe (the Company) stock at $ per share.
The total option price of the shares granted is $ .
Shares in each period will become fully vested on the date shown.
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By your signature and the Companys signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Companys Stock Option Plan as amended and the Option Agreement, all of which are attached and made a part of this document.
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bebe stores, inc. dba bebe |
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SIGNATURE |
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bebe stores, inc. 1997 STOCK PLAN:
STOCK OPTION AGREEMENT
Except as otherwise provided in this Agreement, this option and the rights and privileges conferred hereby shall not be sold, pledged or otherwise transferred (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment, levy or similar process.
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The Optionee may exercise all or part of this option at any time before its expiration under the preceeding sentence, but only to the extent that this option had become exercisable before the Optionees Service terminated. When the Optionees Service terminates, this option shall expire immediately with respect to the number of Shares for which this option is not yet exercisable. In the event that the Optionee dies after termination of Service but before the expiration of this option, all or part of this option may be exercised (prior to expiration) by the executors or administrators of the Optionees estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option had become exercisable before the Optionees Service terminated.
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All or part of this option may be exercised at any time before its expiration under the preceding sentence by the executors or administrators of the Optionees estate or by any person who has acquired this option directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that this option had become exercisable before the Optionees death. When the Optionee dies, this option shall expire immediately with respect to the number of Shares for which this option is not yet exercisable.
No Shares shall be issued upon the exercise of this option unless and until the Company has determined that:
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The Company may, but shall not be obligated to, register or qualify the sale of Shares under the Securities Act or any other applicable law. The Company shall not be obligated to take any affirmative action in order to cause the sale of Shares under this Agreement to comply with any law.
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In the event of any transaction described in Section 9(a) of the Plan, the terms of this option (including, without limitation, the number and kind of Shares subject to this option and the Exercise Price) shall be adjusted as set forth in Section 9(a) of the Plan. In the event that the Company is a party to a merger or consolidation, this option shall be subject to the agreement of merger or consolidation, as provided in Section 9(b) of the Plan.
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A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Companys incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Companys securities immediately before such transaction.
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Exhibit 99.4
bebe
stores inc.
NOTICE OF GRANT OF RESTRICTED STOCK UNITS
(the Participant ) has been granted an award (the Award ) pursuant to the bebe stores, inc. 1997 Stock Plan (the Plan ) consisting of one or more rights (each such right being hereinafter referred to as a Restricted Stock Unit ) to receive in settlement of each such right one (1) share of Stock of bebe stores, inc., as follows:
Date of Grant: |
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For each Restricted Stock Unit, except as otherwise provided by the Restricted Stock Units Agreement, the date on which such unit becomes a Vested Unit in accordance with the vesting schedule set forth below. |
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Except as provided in the Restricted Stock Units Agreement and provided that the Participants Service has not terminated prior to the relevant date, the number of Vested Units shall cumulatively increase on each respective date set forth below by the number of units set forth opposite such date, as follows: |
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By their signatures below, the Company and the Participant agree that the Award is governed by this Notice and by the provisions of the Plan and the Restricted Stock Units Agreement attached to and made a part of this document. The Participant acknowledges receipt of a copy of the Plan and the Restricted Stock Units Agreement, represents that the Participant has read and is familiar with their provisions, and hereby accepts the Award subject to all of their terms and conditions.
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Restricted Stock Units Agreement and 1997 Stock Plan |
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bebe stores, inc.
RESTRICTED STOCK UNITS AGREEMENT
bebe stores, inc. has granted to the individual (the Participant ) named in the Notice of Grant of Restricted Stock Units (the Grant Notice ) to which this Restricted Stock Units Agreement (the Agreement ) is attached an award (the Award ) of Restricted Stock Units (the Units ) upon the terms and conditions set forth in the Grant Notice and this Agreement. The Award has been granted pursuant to the bebe stores, inc. 1997 Stock Plan (the Plan ), as amended to the Date of Grant. The provisions of the Plan are incorporated into this Agreement by this reference. By signing the Grant Notice, the Participant: (a) represents that the Participant has read and is familiar with the terms and conditions of the Grant Notice, the Plan and this Agreement, (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, the Plan and this Agreement, (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors upon any questions arising under the Grant Notice, the Plan or this Agreement, and (d) acknowledges receipt of a copy of the Grant Notice, the Plan and this Agreement.
All questions of interpretation concerning the Grant Notice and this Agreement shall be determined by the Board of Directors. All determinations by the Board of Directors shall be final and binding upon all persons having an interest in the Award.
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The Units shall vest and become Vested Units as provided in the Grant Notice.
In the event that the Participant s Service terminates for any reason or no reason, with or without cause, the Participant shall forfeit and the Company shall automatically reacquire all Units which are not, as of the time of such termination, Vested Units, and the Participant shall not be entitled to any payment therefor.
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In the event of a Change in Control, the surviving, continuing, successor, or purchasing entity or parent thereof, as the case may be (the Acquiror ), may, without the consent of the Participant, either assume or continue the Companys rights and obligations with respect to outstanding Units or substitute for outstanding Units substantially equivalent rights with respect to the Acquirors stock. For purposes of this Section, a Unit shall be deemed assumed if, following the Change in Control, the Unit confers the right to receive, subject to the terms and conditions of the Plan and this Agreement, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Stock on the effective date of the Change in Control was entitled; provided, however, that if such consideration is not solely common stock of the Acquiror, the Board of Directors may, with the consent of the Acquiror, provide for the consideration to be received upon settlement of the Unit to consist solely of common stock of the Acquiror equal in Fair Market Value to the per share consideration received by holders of Stock pursuant to the Change in Control. In the event the Acquiror elects not to assume, continue or substitute for the outstanding Units in connection with a Change in Control, the vesting of the Units shall be accelerated in full and the total Number of Restricted Stock Units subject to the Award shall be deemed Vested Units effective as of the date of the Change in Control, and the Award shall be settled in full in accordance with Section 6 immediately prior to the Change in Control, provided that the Participants Service has not terminated prior to such date. The vesting of Units and settlement of the Award that was permissible solely by reason of this Section shall be conditioned upon the consummation of the Change in Control.
In the event of any transaction described in Section 9(a) of the Plan, the terms of the Restricted Stock Units shall be adjusted as set forth in Section 9(a) of the Plan.
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The Participant shall have no rights as a stockholder with respect to any shares which may be issued in settlement of this Award until the date of the issuance of a certificate for such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued. If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between the Company and the Participant, the Participants employment is at will and is for no specified term. Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of the Company or interfere in any way with any right of the Company Group to terminate the Participants Service as a Director, an Employee or a Consultant, as the case may be, at any time.
The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of stock issued pursuant to this Agreement. The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to this Award in the possession of the Participant in order to carry out the provisions of this Section.
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Exhibit 99.5
Contact :
Walter Parks
Chief Financial Officer
bebe stores, inc.
(415) 715-3900
bebe stores, inc.
Announces Quarterly Dividend
BRISBANE, CALIF. November 21, 2005 bebe stores, inc. (Nasdaq: BEBE) today announced that its Board of Directors declared bebes quarterly cash dividend of $0.04 per share. The dividend is payable on December 30, 2005 to shareholders of record at the close of business on December 16, 2005.
bebe stores, inc. designs, develops and produces a distinctive line of contemporary womens apparel and accessories, which it markets under the bebe, BEBE SPORT and bebe O brand names. bebe currently operates 225 stores, of which 170 are bebe stores, 20 are bebe outlet stores and 35 are BEBE SPORT stores. These stores are located in the United States, Puerto Rico and Canada. In addition, we have an online store at www.bebe.com.
The statements in this news release, other than the historical financial information, contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from anticipated results. Wherever used, the words expect, plan, anticipate, believe and similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties and the companys future results of operations could differ materially from historical results or current expectations. Some of these risks include, without limitation, miscalculation of the demand for our products, effective management of our growth, decline in comparable store sales performance, ongoing competitive pressures in the apparel industry, changes in the level of consumer spending or preferences in apparel, and/or other factors that may be described in the companys annual report on Form 10-K and/or other filings with the Securities and Exchange Commission. Future economic and industry trends that could potentially impact revenues and profitability are difficult to predict.
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