SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Cherokee Inc. (NASDAQ: CHKE), a global marketer of style-focused lifestyle brands, today announced, as required by NASDAQ Listing Rule 5635(c)(4), that the Company has made a stock option grant to a new employee, Chief Financial Officer Jason Boling.
Cherokee’s Compensation Committee of its Board of Directors approved a grant of stock options as an inducement grant outside of Cherokee’s 2006 Equity Incentive Plan ("Plan"). The stock option grant was entered into as an inducement material for the employee to enter into employment with Cherokee. Cherokee expects to file a Form S-8 to register this stock option grant. Cherokee is providing this information in accordance with NASDAQ Listing Rule 5635(c) (4).
The stock option grant has an exercise price equal to the closing price of Cherokee's common stock on the grant date. The option has a term of seven (7) years and will be generally forfeited if not exercised before the expiration of the term. If the applicable employee's employment with Cherokee is terminated for any reason, the terminated employee's option shall cease vesting upon such termination. There was one option grant totaling 30,000 underlying shares, as follows:
On March 25, 2013, an option to acquire an aggregate of 30,000 shares was granted to Jason Boling, Cherokee’s Chief Financial Officer. One-third of the option vests on March 25, 2013, the one-year anniversary of the grant date, and the remainder vests thereafter in two equal annual installments, so that the option is vested in full on the three-year anniversary of the grant date.
About Cherokee Inc.
Cherokee Inc. is a global marketer and manager of a portfolio of Fashion and Lifestyle brands including Cherokee®, Carole Little®, Liz Lange® and Sideout®, in multiple consumer product categories and sectors around the world. The Company's annual global retail sales of owned brands are approaching $2 billion with license agreements with premier retailers and manufacturers covering over 40 countries around the world including Target Stores (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peru and Colombia), Arvind Mills (India and certain Middle Eastern countries), Shufersal LTD.(Israel), Comercial Mexicana (Mexico), Eroski (Spain), Nishimatsuya (Japan), Magnit (Russia), Landmark Group’s Max Stores (certain Middle East and North Africa countries), and the TJX Companies (U.S., Canada and Europe).
Statements included within this news release may contain forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. When used, the words “anticipates,” “believes,” “expects,” “may,” “should” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements included in this press release (including, without limitation, express or implied statements regarding potential future business development) involve known and unknown risk and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the effect of global economic conditions, the financial condition of the apparel and retail industry, adverse changes in licensee or consumer acceptance of products bearing the Company’s brands, the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee, Liz Lange, Completely Me, Sideout and Carole Little branded products, the Company’s dependence on Target for most of the Company’s revenues and the Company’s dependence on its key management personnel. The risks included here are not exhaustive. A further list and description of these risks, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for Fiscal Year 2012, and in its periodic reports on Forms 10-Q and 8-K. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments.