Einstein Bros 2008 Annual Report Download - page 56

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312509042707/d10k.htm[9/11/2014 10:10:56 AM]
outstanding SARs was $0.5 million. There were no SARs exercisable and vested as of January 1, 2008.
As of December 30, 2008, the weighted-average remaining life of total outstanding SARs, and exercisable and vested SARs was 3.41 years and
3.25 years, respectively, and the aggregate intrinsic value for both the outstanding SARs, and exercisable and vested SARs was $0.
The following table summarizes information about stock SARs outstanding at December 30, 2008:
SARs Outstanding SARs Exercisable
Range of Exercise Prices
Number of
SARs
Wt. Avg.
Exercise
Price
Wt. Avg.
Remaining
Life (Years)
Number of
SARs
Wt. Avg.
Exercise
Price
$0.00 - $10.00 27,512 $ 7.94 3.32 12,962 $ 8.00
$10.01 - $20.00 17,590 17.21 3.52 6,601 18.44
$20.01 - $30.00 1,275 23.70 3.85 — —
46,377 $ 11.89 3.41 19,563 $ 11.52
Warrants
As of December 30, 2008, we had no warrants outstanding and exercisable to purchase shares of our common stock. Previously, warrants were
issued in connection with private financing transactions and certain other services that occurred between 2000 and 2003. Transactions during fiscal
year 2006 were as follows:
2006
Outstanding at beginning of year 739,961
Issued —
Exercised (482,862)
Converted —
Forfeited (257,099)
Outstanding and exercisable at end of year —
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Table of Contents
EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
During 2006, we received total consideration of $55,000 and issued 53,217 shares of our common stock in connection with the exercises of certain
warrants previously granted to a number of investors, including Greenlight. Additionally, we issued 429,645 shares of our common stock to
Greenlight upon Greenlight’ s cashless exercises of certain warrants. Greenlight surrendered 56,953 shares of common stock in connection with
such cashless exercises.
15. SAVINGS PLAN
We sponsor a qualified defined contribution retirement plan covering eligible employees of Einstein Noah Restaurant Group (the “401(k) Plan”).
Employees, excluding officers, are eligible to participate in the 401(k) Plan if they meet certain compensation and eligibility requirements. The
401(k) Plan allows participating employees to defer the receipt of a portion of their compensation and contribute such amount to one or more
investment options. We did not accrue a discretionary match for fiscal years ended 2007 or 2008. Our contribution to the plan was $0.2 million for
the fiscal year ended 2006. Employer contributions vest at the rate of 100% after three years of service.
We established the Einstein Noah Restaurant Group, Inc. Nonqualified Deferred Compensation Plan (the “DC Plan”) in June of 2007 for key
employees, generally officers of the Company. The DC Plan allows an eligible employee to defer up to 80% of the participant’ s base salary and
bonus. In lieu of payments of the deferred amounts to the participant, the payments are to be invested with The Charles Schwab Trust Company
under investment criteria directed by the participant.
16. INCOME TAXES
Utilization of our fully reserved net operating loss (“NOL”) carryforwards reduced our federal and state income tax liability incurred in 2008. We
have recorded a provision for income taxes related to our estimate of income taxes due on taxable earnings for 2007 and 2008 of $0.5 million and
$1.1 million, respectively.
In accordance with SFAS 109, Accounting for Income Taxes (“SFAS No. 109”), we will assess the continuing need for a valuation allowance that