<PAGE> 1
FORM 4
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check this box if no longer OMB APPROVAL
subject to Section 16. Form 4 or OMB Number: 3235-0287
Form 5 obligations may continue. Expires: September 30, 1998
See Instruction 1(b). Estimated average burden
hours per response. . . 0.5
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935
or Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
1. Name and Address of Reporting Person*
Kaul Rakesh K.
(Last) (First) (Middle)
1500 Harbor Boulevard
(Street)
Weehawken NJ 07087
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
Hanover Direct, Inc.-HNV
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
August 1996
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[X] Director [X] Officer (give title below)
[ ] 10% Owner [ ] Other (specify below)
President and CEO
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Firm filed by More than One Reporting Person
<TABLE>
<CAPTION>
Table 1-Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
- -----------------------------------------------------------------------------------------------------------------------------------
1. Title of Security 2. Trans- 3. Trans- 4. Securities Acquired (A)
(Instr. 3) action action or Disposed of (D)
Date Code (Instr. 3, 4 and 5)
(Inst. 8)
(Month/ --------------------------------------------------------------------------------
Day/ Code V Amount (A) or Price
Year) (D)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Common Stock 8/23/96 P 1,510,000 A $1.15625
</TABLE>
<TABLE>
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1. Title of Security 5. Amount of 6. Owner- 7. Nature of
(Instr. 3) Securities ship Indirect
Beneficially Form: Beneficial
Owned at Direct Owner-
End of Month (D) or ship
Indirect
(Instr. 3 and 4) (I) (Instr. 4)
(Instr. 4)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Common Stock 1,510,000 D
</TABLE>
Reminder: Report on a separate line for each class of securities
beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, Over
see Instruction 4(b)(v). SEC 1474 (7-96)
<PAGE> 2
FORM 4 (continued) Table II - Derivative Securities Acquired, Disposed of,
or Beneficially Owned (e.g., puts, calls, warrants,
options, convertible securities)
<TABLE>
<CAPTION>
1. Title of 2. Conversion 3. Trans- 4. Trans- 5. Number of 6. Date 7. Title and 8. Price
Derivative or Exercise action action Derivative Exercisable Amount of of
Security Price of Date Code Securities and Expiration Underlying Deriv-
(Instr. Derivative (Month/ (Instr. Acquired (A) Date (Month/ Securities ative
3) Security Day/Year) 8) or Disposed Day/Year) (Instr. 3 Secur-
of (D) and 4) ity
(Instr. 3,4, (Instr.
and 5) 5)
------------------------------------------------------------------------
Date Expira- Amount
Exer- tion or Number
Code V (A) (D) cisable Date Title of Shares
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock Option $1.15625 8/23/96 A 755,000(1) 3/7/97 3/7/99 Common 755,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 755,000(1) 3/7/98 3/7/00 Common 755,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 755,000(1) 3/7/99 3/7/01 Common 755,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 755,000(1) 3/7/00 3/7/02 Common 755,000
(Right to buy) Stock
</TABLE>
<TABLE>
<CAPTION>
9. Number of 10. Ownership 11. Nature of
derivative Form of Indirect
Securities Derivative Beneficial
Beneficially Security Ownership
Owned at End Direct (D) (Instr. 4)
of Month or Indirect
(Instr. 4) (I)
(Instr. 4)
- -------------------------------------------------------------------------
<S> <C> <C> <C>
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option
(Right to buy)
</TABLE>
Explanation of Responses:
(1) Pursuant to a Long Term Incentive Plan between the Reporting Person and
the Company, the Company granted the Reporting Person an option which vests
and becomes exercisable with respect to 755,000 shares on 3/7/97 and with
respect to an additional 755,000 shares on each of the next three anniversaries
of such issue.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, see Instruction 6 for procedures.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ Rakesh K. Kaul 9/10/96
- -------------------------------- -------
** Signature of Reporting Person Date
Page 2
SEC 1474 (7-96)
<PAGE> 3
FORM 4 (continued) Table II - Derivative Securities Acquired, Disposed of,
or Beneficially Owned (e.g., puts, calls, warrants,
options, convertible securities)
<TABLE>
<CAPTION>
1. Title of 2. Conversion 3. Trans- 4. Trans- 5. Number of 6. Date 7. Title and 8. Price
Derivative or Exercise action action Derivative Exercisable Amount of of
Security Price of Date Code Securities and Expiration Underlying Deriv-
(Instr. 3) Derivative (Month/ (Instr. Acquired (A) Date (Month/ Securities ative
Security Day/Year) 8) or Disposed Day/Year) (Instr. 3 Secur-
of (D) and 4) ity
(Instr. 3,4, (Instr.
and 5) 5)
------------------------------------------------------------------------
Date Expira- Amount
Exer- tion or Number
Code V (A) (D) cisable Date Title of Shares
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock Option $1.15625 8/23/96 A 250,000(2) 3/7/97 3/7/06 Common 250,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 250,000(2) 3/7/98 3/7/06 Common 250,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 250,000(2) 3/7/99 3/7/06 Common 250,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 250,000(2) 3/7/00 3/7/06 Common 250,000
(Right to buy) Stock
Stock Option $1.15625 8/23/96 A 2,000,000(3) (3) 3/7/06 Common 2,000,000
(Right to buy) Stock
</TABLE>
<TABLE>
<CAPTION>
9. Number of 10. Ownership 11. Nature of
derivative Form of Indirect
Securities Derivative Beneficial
Beneficially Security Ownership
Owned at End Direct (D) (Instr. 4)
of Month or Indirect
(Instr. 4) (I)
(Instr. 4)
- -------------------------------------------------------------------------
<S> <C> <C> <C>
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option
(Right to buy)
</TABLE>
Explanation of Responses:
(2) Pursuant to a Long Term Incentive Plan between the Reporting Person and
the Company, the Company granted the Reporting Person an option, the vesting
of which is subject to the meeting of certain performance goals with respect
to the Company, which becomes exercisable with respect to 250,000 shares on
3/7/97 and with respect to 250,000 shares for each of the three succeeding
performance years.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, see Instruction 6 for procedures.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ Rakesh K. Kaul 9/10/96
- -------------------------------- -------
** Signature of Reporting Person Date
Page 2
SEC 1474 (7-96)
<PAGE> 4
(3) Pursuant to a Long Term Incentive Plan between the Reporting Person and the
Company, the Company granted the Reporting Person an option which becomes
exercisable only upon satisfaction of the condition that the average closing
price of the Company's Common Stock on the American Stock Exchange composite
tape, on each trading day during any period of 91 consecutive calendar days
commencing after 3/7/96 and ending on or before 3/7/02 has equaled or exceeded
$7.00 per share.
<PAGE> 5
FORM 4 (continued) Table II - Derivative Securities Acquired, Disposed of,
or Beneficially Owned (e.g., puts, calls, warrants,
options, convertible securities)
<TABLE>
<CAPTION>
1. Title of 2. Conversion 3. Trans- 4. Trans- 5. Number of 6. Date 7. Title and 8. Price
Derivative or Exercise action action Derivative Exercisable Amount of of
Security Price of Date Code Securities and Expiration Underlying Deriv-
(Instr. 3) Derivative (Month/ (Instr. Acquired (A) Date (Month/ Securities ative
Security Day/Year) 8) or Disposed Day/Year) (Instr. 3 Secur-
of (D) and 4) ity
(Instr. 3,4, (Instr.
and 5) 5)
------------------------------------------------------------------------
Date Expira- Amount
Exer- tion or Number
Code V (A) (D) cisable Date Title of Shares
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Stock Option $1.15625 8/23/96 J* 377,500 3/7/97 3/7/02 Common 377,500
(Right to buy) Stock
Stock Option $1.15625 8/23/96 J* 377,500 3/7/98 3/7/03 Common 377,500
(Right to buy) Stock
Stock Option $1.15625 8/23/96 J* 377,500 3/7/99 3/7/04 Common 377,500
(Right to buy) Stock
Stock Option $1.15625 8/23/96 J* 377,500 3/7/00 3/7/05 Common 377,500
(Right to buy) Stock
</TABLE>
<TABLE>
<CAPTION>
9. Number of 10. Ownership 11. Nature of
derivative Form of Indirect
Securities Derivative Beneficial
Beneficially Security: Ownership
Owned at End Direct (D) (Instr. 4)
of Month or Indirect
(Instr. 4) (I)
(Instr. 4)
- -------------------------------------------------------------------------
<S> <C> <C> <C>
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option
(Right to buy)
Stock Option 7,530,000 D N/A
(Right to buy)
</TABLE>
Explanation of Responses:
* Pursuant to the Employment Agreement dated 3/7/96 between the Company
and the Reporting Person, NAR Group Limited granted the Reporting Person
four options expiring 3/7/02 and the first three anniversaries thereof,
respectively, for the purchase of 377,500 shares of Common Stock.
** Intentional misstatements or omissions of facts constitute Federal Criminal
Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, see Instruction 6 for procedures.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ Rakesh K. Kaul 9/10/96
- -------------------------------- -------
** Signature of Reporting Person Date
Page 2
SEC 1474 (7-96)
