Women's clothing retailer Bebe Stores Inc has announced that Manny Mashouf, Chairman; Barbara Wambach, CAO; Barbara Bass, Director and Corrado Federico, Director, have each adopted a pre-arranged stock trading plan to sell a portion of their bebe stock over time as part of their individual long-term strategy for asset diversification and liquidity.
The stock trading plans were each 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 an 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 Mashouf's Rule 10b5-1 Plan, he may sell up to 2,700,000 shares over a period of approx. twelve months. If Mashouf completes all the planned sales of shares under his Rule 10b5-1 Plan, he would beneficially own approx. 65,000,000 shares (approx. 70 percent) of bebe's outstanding stock.
Under Ms Wambach's Rule 10b5-1 Plan, stock options may be exercised for up to approx. 455,000 shares and such shares may be sold for her account over a period of approx. twelve months. Shares are exercisable under Ms Wambach's stock options only in accordance with their vesting requirements.
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