Spanish Broadcasting System, Inc. (the “Company” or “SBS”) (NASDAQ: SBSA) announced today that Juan A. Garcia joined the Company as Executive Vice President. Mr. Garcia’s duties with the Company will include developing and executing refinancing strategies for the Company. In connection with Mr. Garcia’s employment, the Company granted Mr. Garcia non-qualified stock options to purchase 75,000 shares of the Company’s Class A Common Stock. Options for 25,000 shares shall vest on each of the first, second and third anniversaries of the effective date of Mr. Garcia’s employment agreement. The options have an exercise price of $2.99. The options shall have a ten-year term commencing on their vesting date, contain anti-dilution and cashless exercise provisions, and shall automatically vest if Mr. Garcia is terminated without cause or resigns after a change in control. The options were issued to Mr. Garcia outside of the Company’s 2006 Omnibus Equity Compensation Plan as an inducement award in accordance with NASDAQ Stock Market Rule 5635(c)(4).
