-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Sltst3dcsk2NRyhtgb20AHN2AtG/PeLTEo8p9xXdMxIS61ntR7WiUuuvdM8GnKtT QwTsokI1M7ZpNSu0XAYP5w== 0000950134-06-001759.txt : 20060202 0000950134-06-001759.hdr.sgml : 20060202 20060202163122 ACCESSION NUMBER: 0000950134-06-001759 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060127 ITEM INFORMATION: Entry into a Material Definitive Agreement FILED AS OF DATE: 20060202 DATE AS OF CHANGE: 20060202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HASTINGS ENTERTAINMENT INC CENTRAL INDEX KEY: 0001054579 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL- COMPUTER & PRERECORDED TAPE STORES [5735] IRS NUMBER: 751386375 STATE OF INCORPORATION: TX FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24381 FILM NUMBER: 06574021 BUSINESS ADDRESS: STREET 1: 3601 PLANS BLVD STREET 2: SUITE 1 CITY: AMARILLO STATE: TX ZIP: 79102 BUSINESS PHONE: 8063512300 MAIL ADDRESS: STREET 1: P O BOX 35350 CITY: AMARILLO STATE: TX ZIP: 79120-5350 8-K 1 d32555e8vk.htm FORM 8-K e8vk
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
January 27, 2006
HASTINGS ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
         
Texas
(State or other jurisdiction of incorporation) 		  000-24381
(Commission File Number) 		  75-1386375
(IRS Employer Identification No.)
3601 Plains Blvd.
Amarillo, Texas 79102
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (806) 351-2300
None
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

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Section 1 — Registrant’s Business and Operations
Item 1.01 Entry into a Material Definitive Agreement.
SIGNATURES

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Section 1 — Registrant’s Business and Operations
Item 1.01 Entry into a Material Definitive Agreement.
On January 27, 2006, the Board of Directors (the “Board”) of Hastings Entertainment, Inc. (the “Company”), upon the recommendation of the Compensation Committee of the Board, unanimously approved the acceleration of the vesting date of all outstanding and unvested options issued on or before January 27, 2006, under all current stock option plans, effective the same day.
The table below summarizes the outstanding options subject to accelerated vesting.
Summary of Options Subject to Acceleration
                 
    Aggregate number of shares   Weighted average
    to receive accelerated vesting   exercise price per share
Board of Directors
    80,480     $ 5.29  
Executive officers
    292,279     $ 5.06  
All other employees
    214,850     $ 4.88  
Total (1)
    587,609     $ 5.03  
 
(1)   The accelerated options represent 37% of the Company’s currently outstanding stock options.
The Company believes that the decision to accelerate the vesting of these options, many of which have exercise prices that are higher than the Company’s current stock price, will give employees increased performance incentives and will enhance current retention. The Company also implemented the acceleration program to eliminate non-cash compensation expense that would have to be recorded in future periods following the Company’s adoption of Financial Accounting Standards Board Statement No. 123, “Share Based Payment (revised 2004),” (FAS 123R) in the first quarter of fiscal 2006. FAS 123R requires recognizing compensation cost for any unvested stock options at the date of adoption over the remaining requisite service period of the options. Currently, the Company accounts for options using the intrinsic value method of accounting prescribed by Accounting Principles Board Opinion 25, “Accounting for Stock Issued to Employees” and provides footnote disclosure of the compensation expense associated with the stock options.
The future expense that will be eliminated as a result of the option acceleration program is estimated to be approximately $969,000, net of income taxes, over a period of five years during which the options would have vested.

 

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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
Date: February 2, 2006  Hastings Entertainment, Inc.
(Registrant)
 		  
  By:   /s/ Dan Crow    
    Dan Crow   
    Vice President, Chief Financial Officer
(Principal Financial and Accounting Officer) 		  
 

 

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