What is the contractual term for Del Taco's stock option grants?

The 2025 Del Taco Franchise Disclosure Document discusses stock options in the context of the acquisition of Del Taco Restaurants, Inc. by Jack in the Box Inc. on March 8, 2022. As part of the Merger Agreement, Del Taco's historical equity compensation plans were assumed by Jack in the Box. Some equity awards were exchanged for replacement awards of Jack in the Box, including non-accelerating restricted stock awards (RSAs). These replacement awards were modified to accelerate the remaining vesting period to one year following the Closing Date, except for awards already scheduled to vest on June 30, 2022.

The document mentions that Del Taco options subject to accelerated vesting were part of the total Del Taco shares outstanding at the time of the acquisition. However, the FDD does not explicitly state the original contractual term for Del Taco's stock option grants before the acquisition and subsequent modifications. The document focuses on how these equity awards were handled during and after the merger, particularly concerning vesting schedules and compensation expenses.

For a prospective franchisee, this information is relevant in understanding how Del Taco's existing financial obligations and employee compensation plans were integrated into Jack in the Box's financial structure. While it doesn't directly impact the franchise agreement, it provides insight into the financial management and historical employee incentives of Del Taco. To understand the specific terms of stock option grants, a franchisee should directly ask the franchisor for details on current equity compensation plans, as the information in the FDD pertains to past events related to the acquisition.