Destination Maternity Corporation (NASDAQ: DEST), the world's leading maternity apparel retailer, announced that today it granted inducement equity awards with respect to 104,393 shares of its common stock to David Stern, who today joined the Company as Executive Vice President and Chief Financial Officer.
The inducement awards are 15,569 shares of time-vested restricted stock, a time-vested non-qualified stock option with respect to 73,255 shares, and 15,569 performance-based restricted stock units. The stock option is a non-qualified stock option and has an exercise price of $5.62 per share, which was the closing stock price of the Company's common stock on the NASDAQ Global Select Market on the business day immediately preceding the grant date. The restricted stock and stock option awards will both vest in equal installments over four years, based on Mr. Stern's continued service to the Company, and are subject to accelerated vesting upon a change in control of the Company.
The performance-based restricted stock unit ("PRSU") award will vest and be earned by Mr. Stern based on the Company's achievement of certain earnings targets over the three year period ending at the conclusion of the 2018 fiscal year and subject to Mr. Stern's continued service to the Company beyond the close of the Company's 2018 fiscal year, consistent with the PRSU awards granted to other named executive officers early this year, as described in the Company's Form 8-K filed on April 12, 2016.
These equity awards were granted as inducement material to Mr. Stern's entering into employment with Destination Maternity in accordance with NASDAQ Listing Rule 5635(c)(4).
About Destination Maternity
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. As of April 30, 2016 Destination Maternity operates 1,487 retail locations in the United States, Canada, Puerto Rico and, most recently, England, including 530 stores, predominantly under the trade names Motherhood Maternity®, A Pea in the Pod® and Destination Maternity®, and 957 leased department locations. The Company also sells merchandise on the web primarily through its brand-specific websites, motherhood.com and apeainthepod.com, as well as through its destinationmaternity.com website. Destination Maternity has international store franchise and product supply relationships in the Middle East, South Korea, Mexico, Israeland India. As of April 30, 2016 Destination Maternity has 203 international franchised locations, including 23 standalone stores operated under one of the Company's nameplates and 180 shop-in-shop locations. Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com.
