Michael Gold to see The Wet Seal's new merchandise strategy

13 Jul '05

3 min read

California based fashionable apparel retailer The Wet Seal Inc announced that it had entered into an agreement on July 7, 2005 with Michael Gold to compensate him for his part in the sales turnaround of the Company and provide incentives for his future assistance in achieving the Company's return to profitability.

Mr. Gold has been acting as a consultant to the Company and has been instrumental in both the design and execution of the Company's new merchandise strategy. Mr. Gold will continue in the role until January 31, 2007.

Mr. Gold will be paid $2.8 million for the fiscal year ending January 28, 2006 (the current fiscal year of the Company) and $1.2 million for the fiscal year ending February 3, 2007.

In addition, Mr. Gold will be awarded 2.0 million shares of restricted stock to vest on January 28, 2006, the last day of this fiscal year, and two tranches of performance shares of 1,750,000 each (the "Shares").

Tranche 1 of the Shares is to vest as follows: 350,000 shares will vest if, at any time after January 1, 2006 and before January 1, 2008, the trailing 20-day weighted average closing price (the "20-Day Average") equals or exceeds $3.50 per share; an additional 350,000 shares will vest (until tranche 1 is 100% vested) each time the 20-Day Average price of the Company's stock during the vesting period equals or exceeds $4.00, $4.50, $5.00 and $5.50 per share, respectively.

Tranche 2 of the Shares is to vest as follows: 350,000 shares will vest if, at any time after January 1, 2007 and before January 1, 2008, the 20-Day Average equals or exceeds $6.00 per share; an additional 350,000 shares will vest (until tranche 2 is 100% vested) each time the 20-Day Average price of the Company's stock during the vesting period equals or exceeds $6.50, $7.00, $7.50 and $8.00 per share, respectively.

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