Who must approve all awards granted under the Benihana 2019 Equity Incentive Plan?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Incentive Plan provides for the granting of stock options, warrants, restricted stock or other stock-based awards. All awards are required to be approved by the Board or a designated committee of the Board. Options are generally granted with an exercise price equal to fair market value of the Company's common stock on the date of grant and expire after ten years. Vesting of options and restricted stock can either be based on the passage of time or on the achievement of performance goals. The Board has the authority to amend, modify or terminate the Equity Incentive Plan, subject to any required approval by the Company's stockholders under applicable law or upon advice of counsel. No such action would affect any options previously granted under the Equity Incentive Plan without the consent of the holders.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, all awards under the Equity Incentive Plan must be approved by the Board of Directors or a designated committee of the Board. The Equity Incentive Plan allows for the granting of stock options, warrants, restricted stock, or other stock-based awards.
Options are typically granted at an exercise price equivalent to the fair market value of Benihana's common stock on the grant date and usually expire after ten years. The vesting of options and restricted stock can be based on the passage of time or the achievement of specific performance goals.
The Board of Directors retains the authority to amend, modify, or terminate the Equity Incentive Plan, although any such changes may require approval from the company's stockholders or legal counsel. Importantly, any modifications to the plan will not affect previously granted options without the consent of the holders.