SAN FRANCISCO, March 2 /PRNewswire-FirstCall/ -- On March 1, 2006, RedEnvelope, Inc. granted a restricted stock award for 200,000 shares of the Company's common stock to Ken Constable in connection with the appointment of Mr. Constable as its President and Chief Executive Officer, as announced by the Company on February 21, 2006. The stock award was granted without stockholder approval as an inducement award pursuant to Nasdaq Marketplace Rules 4350(i)(1)(A)(iv). Mr. Constable's stock award will be vested as to 25% of the shares on the date of issuance with the balance of the shares to vest in 36 equal monthly installments following the first anniversary of Mr. Constable's employment for so long as Mr. Constable is providing services to the Company.
As set forth in the restricted stock award agreement between the Company and Mr. Constable, in the event Mr. Constable's employment is terminated by the Company other than for cause, in the event he terminates his employment for certain specified reasons, in the event he terminates his employment (other than for the specified reasons) within six months following a change of control of the Company, or if his employment is terminated due to his death or long-term disability, the stock award will immediately vest as to 25% of the then-unvested portion of the stock award. Alternatively, in the event that Mr. Constable's employment is terminated by the Company other than for cause, without his consent, or by Mr. Constable for certain specified reasons within six months following a change of control of the Company, the stock award will immediately vest as to 50% of the then-unvested portion of the stock award. Mr. Constable's stock award is subject to further terms and conditions set forth in the restricted stock award agreement filed by RedEnvelope, Inc. as an exhibit to the Form S-8 filed with the Securities and Exchange Commission on February 28, 2006.
About RedEnvelope, Inc.
RedEnvelope, Inc. is an online retailer of upscale gifts for every occasion, every day. RedEnvelope offers a unique assortment of imaginative gifts through its catalog and website, http://www.redenvelope.com/.
Whether a gift is a token of gratitude or a grand gesture of love, we consider its giving and receiving a cherished occasion in itself. In Asian traditions, gifts are often presented in a simple red envelope -- a timeless symbol of love and appreciation. In the spirit of this tradition, gifts purchased from RedEnvelope are accompanied by a personalized message in a red envelope. We offer an extensive collection of imaginative, original gifts for every occasion, recipient and budget through our Web site and catalog, as well as customized corporate gift services. Several unique features help guide customers to the gift they want, including: GiftSearch, GiftReminder, ExpressGifts (guaranteed overnight delivery), online customer service, multiple addressing and an inventory system that tracks in real-time to ensure that every item featured on the site is available. Our goal is to make gift giving -- no matter what the occasion -- easy and fun.