Einstein Bros 2011 Annual Report Download - page 60

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312512092597/d260635d10k.htm[9/11/2014 10:08:30 AM]
1,217,749 $12.17 6.85 566,665 $ 10.68
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EINSTEIN NOAH RESTAURANT GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
As of January 3, 2012, the Company has approximately $1.2 million of total unrecognized compensation cost related to non-vested awards
granted under its plans, which will be recognized over a weighted-average period of 1.36 years.
Restricted Stock Unit Activity
With the approval of the Omnibus Plan in May 2011, the Company can now issue RSUs. The Company’ s outstanding RSUs have a three year
life and one-third of each grant becomes unrestricted each year on the anniversary of the grant date. Upon vesting, the RSUs are generally net
share-settled to cover the required withholding tax and the remaining amount is converted into an equivalent number of shares of the Company’ s
common stock. The fair value of the Company’ s RSUs is determined based upon the closing fair market value of the Company’ s common stock on
the grant date.
Transactions for fiscal 2011 were as follows:
Number
of
Shares
Weighted
Average
Grant
Date Fair
Value
Aggregate
Intrinsic
Value
Non-vested rights, December 28, 2010 — $—
Granted 99,880 15.55
Vested — —
Forfeited (3,700) 15.52
Non-vested rights, January 3, 2012 96,180 $ 15.55 $1,452,318
As of January 3, 2012, the Company had approximately $0.9 million of total unrecognized compensation cost related to RSUs, which will be
recognized over a weighted average period of 1.39 years.
Restricted Stock
On January 9, 2009, the Company’ s Compensation Committee granted 63,776 shares of restricted stock with a value of $375,000 in
connection with Mr. O’ Neill’ s appointment as President and Chief Executive Officer. The Company recognized compensation cost for this award
using a graded vesting attribution method over the requisite service period. Stock-based compensation expense for fiscal years 2009, 2010 and
2011 includes $0.2 million, $0.1 million and $0.1 million, respectively, related to the vesting of these shares. As of January 9, 2012, all shares are
fully vested.
13. SAVINGS PLANS
The Company sponsors a qualified defined contribution retirement plan (the “401(k) Plan”) covering employees, excluding officers, if they
meet certain eligibility requirements. The 401(k) Plan allows participating employees to defer the receipt of a portion of their compensation, on a
pretax basis, and contribute such amount to one or more investment options. Employer contributions are fully vested after three years of service.
The Company did not accrue or pay a discretionary match for each of the fiscal years ended December 29, 2009, December 28, 2010 and
January 3, 2012.
The Company established the Einstein Noah Restaurant Group, Inc. Nonqualified Deferred Compensation Plan (the “DC Plan”) in June 2007
for key employees, generally officers of the Company. The DC Plan allows an eligible employee to defer up to 80% of their 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.
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