Champps Entertainment Announces CEO has Adopted Rule 10b5-1 Stock Trading Plan.Business Editors ENGLEWOOD, Colo.--(BUSINESS WIRE)--Sept. 13, 2002 Champps Entertainment, Inc. (Nasdaq:CMPP CMPP Centre Médico-Psycho-Pédagogique ) today announced that William H. Baumhauer, its chairman, chief executive officer and president, has informed the company that he has entered into a stock trading plan. Under this plan, Mr. Baumhauer will exercise stock options to purchase up to 1,009,000 shares of common stock of Champps over the next 10 months. These stock options expire June 30, 2003. Mr. Baumhauer will use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the stock sales to pay the exercise price of the stock options, to reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. Champps for required withholding taxes The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. in connection with the exercises, and to pay additional income taxes that he will owe as a result of the exercises. Mr. Baumhauer also intends to repay the outstanding loan made by Champps to him in the principal amount of $550,000 plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . Under the stock trading plan, only the number of shares necessary to pay these amounts will be sold. Consequently, Mr. Baumhauer's ownership interest in Champps is expected to increase as a result of his exercise of the stock options. Mr. Baumhauer stated, "My belief in the Champps concept is stronger than ever. Through this plan, I will be able to increase my ownership in the company in a systematic and organized way." The plan adopted by Mr. Baumhauer complies with the requirements of Rule 10b5-1 of the Securities and Exchange Commission. This rule permits employees to adopt written plans at a time when they are not aware of material nonpublic information Nonpublic information Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading. and to sell shares according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the plan on a regular basis, regardless of any subsequent nonpublic information they receive or the price of the stock at the time of the sale. Plans permitted under the rule allow an employee to minimize the market effect of sales by spreading them over a more extended period than the traditional trading "windows" permitted under typical insider trading policies, and also avoid being prohibited from selling any shares for long periods of time due to nonpublic information they may possess during the traditional "windows." Englewood-based Champps Entertainment, Inc. currently owns and operates 35 and franchises 12 Champps restaurants in 18 states. Champps, which competes in the upscale casual dining segment, offers an extensive menu of freshly prepared food, coupled with exceptional service. Champps creates an exciting environment through the use of videos, music, sports and promotions. Statements made in this press release include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may cause such differences include, but are not limited to, those mentioned by the Company from time to time in its filings with the Securities and Exchange Commission. The words "believe," "estimate," "expect," "intend," "anticipate," "should" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and, therefore, readers should not place undue reliance on these forward-looking statements. |
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