What is the name of the equity incentive plan approved by the Management Recruiters board in December 2019?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
In December 2019, our Board approved the 2019 HireQuest, Inc. Equity Incentive Plan (the "2019 Plan"). Subject to adjustment in accordance with the terms of the 2019 Plan, no more than 1.5 million shares of common stock are available in the aggregate for the grant of awards under the 2019 Plan. No more than 1 million shares may be issued in the aggregate pursuant to the exercise of incentive stock options. In addition, no more than 250 thousand shares may be issued in the aggregate to any employee or consultant, and no more than 50 thousand shares may be issued in the aggregate to any non-employee director in any twelve-month period. Shares of common stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner. The 2019 Plan was approved by our shareholders in June 2020 and became effective as of that date.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the equity incentive plan approved by the Board in December 2019 is called the "2019 HireQuest, Inc. Equity Incentive Plan" (also referred to as the "2019 Plan").
The 2019 Plan allows for the issuance of up to 1.5 million shares of common stock in the aggregate for awards. A maximum of 1 million shares can be issued through incentive stock options. Individual employees or consultants are limited to 250,000 shares, while non-employee directors can receive up to 50,000 shares within a 12-month period.
The shares distributed under the 2019 Plan can be authorized and unissued shares, treasury shares, or shares reacquired by the company. The 2019 Plan was approved by shareholders in June 2020 and became effective at that time. This equity incentive plan is a way for Management Recruiters to attract, retain, and motivate key personnel by offering them a stake in the company's success through stock ownership.