Note 16 - Subsequent Events |
3 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Subsequent Events [Text Block] |
(16) Subsequent
Events
Employment
Agreement / Share-Based Awards
Effective
October 1, 2011, the Company and M. Farooq Kathwari, our
President and Chief Executive Officer, entered into a new
employment agreement (the "Agreement"). Pursuant to the terms
of the Agreement, Mr. Kathwari was awarded on October 1,
2011, (i) options to purchase 300,000 shares of our common
stock at an exercise price of $13.61 (the closing price of a
share of our common stock on September 30, 2011), and (ii)
105,000 shares of restricted stock, with both awards
vesting ratably over a 5-year period on each June 30.
The options have a contractual term of 10 years. In addition,
the Agreement provides that Mr. Kathwari will be entitled to
an annual incentive bonus based upon the amount by which the
Company’s operating income for the applicable fiscal
year exceeds certain thresholds specified in the Agreement.
The incentive bonus components of the Agreement are subject
to approval by the stockholders of the Company.
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