Under the Bojangles Share-Based Compensation Plan, what conditions must employees meet for the Time-based Awards and Performance-based Awards to vest?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
Based on their terms, the Unit Awards vest 40% in equal annual installments over four to five years (the "Time-based Awards") and 60% upon the achievement of certain performance objectives (the "Performance-based Awards"), all subject to the employees' continued service to the Company. Vested Unit Awards, if any, can be converted to Class A-2 share-based units upon payment of the unit conversion price.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the vesting of Unit Awards under the Share-Based Compensation Plan is contingent upon specific conditions related to continued employment and the achievement of performance objectives. The Unit Awards are divided into two categories: Time-based Awards and Performance-based Awards.
The Time-based Awards, which constitute 40% of the Unit Awards, vest in equal annual installments over a period of four to five years. This means that an employee will receive a portion of these awards each year, provided they remain employed by Bojangles. The Performance-based Awards, making up the remaining 60%, vest upon the achievement of certain performance objectives.
Both Time-based and Performance-based Awards are subject to the condition that the employees must maintain continuous service to the company. This implies that if an employee leaves Bojangles before the vesting period is complete or before the performance objectives are met, they may forfeit the unvested portion of their Unit Awards. Vested Unit Awards can be converted to Class A-2 share-based units upon payment of the unit conversion price.