On January 16, 2009, bebe stores, inc. (the "Company") entered into a separation agreement (the "Separation Agreement") with Mr. Gregory Scott, the Company's Chief Executive Officer. Pursuant to the Separation Agreement, Mr. Scott's employment with the Company was terminated effective January 9, 2009 (the "Termination Date"). Under the Separation Agreement, Mr. Scott has provided a general release of claims against the Company.

Pursuant to the Separation Agreement, the Company will pay Mr. Scott: (i) all accrued but unpaid salary, and all accrued but unused vacation time earned through the Termination Date within three days of the Termination Date; and
(ii) a severance payment of $600,000, equal to one year of his annual base salary, paid in equal installments over the twelve (12) month period following the Termination Date. Pursuant to the Separation Agreement, the Company will also provide Mr. Scott with medical and dental insurance, under the same or substantially similar programs in which Mr. Scott was entitled to participate immediately prior to his termination, for a period of twelve (12) months following the Termination Date.

Pursuant to the Separation Agreement, Mr. Scott will also become fully vested as of the Termination Date with respect to any previously unvested portion of the option to purchase 100,000 shares of the Company's common stock which was previously granted to Mr. Scott on September 8, 2008, and the option shall remain exercisable until the date one year from the Termination Date.

The foregoing description is qualified in its entirety by reference to the Separation Agreement, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.

(d) Exhibits

Exhibit No.                               Description

10.1          Separation Agreement between bebe stores, inc. and Mr. Gregory
              Scott, dated as of January 9, 2009