Fashionable women's clothing & accessories producer bebe stores inc announced that its Chief Executive Officer, Greg Scott, has adopted a pre-arranged stock trading plan to sell a portion of his bebe stock over time as part of his individual long-term strategy for asset diversification and liquidity.
The stock trading plan was adopted in accordance with the requirements of Rule 10b5-1 of the Securities and Exchange Act of 1934 and bebe's policies regarding its employees' stock transactions.
Rule 10b5-1 allows a company's officers and Directors to adopt written, pre-arranged stock trading plans when they do not have material, non-public information about the company or its securities.
Using these plans, which preclude the insider from exercising subsequent influence over the timing or amount of trades, insiders can gradually diversify their investment portfolios, spread stock trades out over an extended period of time to reduce any market impact and avoid concerns about whether they had material, non-public information when stock is sold on their behalf.
Under Scott's Rule 10b5-1 trading plan, stock options may be exercised for up to approximately 900,000 shares and such shares may be sold for his account over a period of approximately twelve months.
Shares are exercisable under Scott's stock options only in accordance with their vesting requirements.
The transactions under Scott's trading plan will commence no earlier than December 2005 and will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
bebe stores inc designs, develops and produces a distinctive line of contemporary women's 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.
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