Until May 31, 2022, the Company had two active share-based stock plans, the Luby's Incentive Stock Plan, as amended and restated effective December 5, 2015 (the "Employee Stock Plan") and the Nonemployee Director Stock Plan, as amended and restated effective February 9, 2018. Both plans authorized the granting of stock options, restricted stock, and other types of awards consistent with the purpose of the plans.

As a result of the dissolution and liquidation of the Company on May 31, 2022, more fully described at Note 1. Nature of Operations and Significant Accounting Policies, all unexercised stock options were cancelled and all unvested restricted stock units were accelerated and vested at the time of the Company's transfer of its assets to the Trust.

Under the going concern basins of accounting, compensation cost for share-based payment arrangements under the Nonemployee Director Stock Plan, recognized in selling, general and administrative expenses for the 12 week period ended November 18, 2020 was $0.2 million and compensation cost for share-based payment arrangements under the Employee Stock Plan, recognized in selling, general and administrative expenses for the 12 week period ended November 18, 2020 was $25 thousand.

Options granted under the Employee Stock Plan generally vested 50% on the first anniversary of grant date, 25% on the second anniversary of the grant date and 25% on the third anniversary of the grant date, and expired ten years from the grant date. Stock options granted under the Employee Stock Plan had exercise prices equal to the market price of the Company’s common stock at the date of the grant.

A summary of the Company’s stock option activity for fiscal 2022 and 2021 is presented in the following table.


	Shares Under Fixed Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
		(Per share)		(In Years)	(In thousands)





Outstanding at August 26, 2020	860,501	$	4.07	5.0	$	—
Granted	—	0.00		—	—
Exercised	(138,289)	2.82		—	115
Cancelled	—	0.00		—	—
Forfeited / Cancelled	(301,991)	4.52		—	—
Expired	(18,531)	5.37		—	—
Outstanding at August 25, 2021	401,690	$	4.09	4.2	$	—

Exercised	(233,399)	1.64		—	26

Forfeited / Cancelled	(163,627)	4.48		—	—
Expired	(4,664)	4.42		—	—
Outstanding at May 31, 2022	0	$	0.00	0	$	—
Exercisable at May 31, 2022	0	$	0.00	0	$	—

Grants of restricted stock units consisted of the Company’s common stock and generally vested after three years. All restricted stock units were cliff-vested. Restricted stock units were valued at market price of the Company’s common stock at the date of grant.

A summary of the Company’s restricted stock unit activity during fiscal years 2021 and 2022 and is presented in the following table:


	Restricted Stock Units	Weighted Average Fair Value		Weighted- Average Remaining Contractual Term
		(Per share)		(In years)




Unvested at August 26, 2020	173,808	$	2.57	2.0
Granted	—	—		—
Vested	(168,572)	2.59		—
Forfeited	—	—		—
Unvested at August 25, 2021	5,236	$	1.92	1.1

Vested	(5,236)	1.92		—

Unvested at May 31, 2022	—	$	—	0

Under the Nonemployee Director Stock Plan, directors received grants of restricted stock in lieu of cash payments, for all or a portion of their compensation as directors. Directors received a 20% premium of additional restricted stock by opting to receive stock over a minimum required amount of stock, in lieu of cash. The number of shares granted was valued at the average of the high and low price of the Company’s stock at the date of the grant. Restricted stock awards vest when granted because they are granted in lieu of a cash payment. However, directors were restricted from selling their shares until after the third anniversary of the date of the grant. As of October 1, 2020, there were no shares available for issuance under the Non-employee Director Stock Plan and directors compensation subsequent to that date was paid in cash.

On August 12 2020, the Board of Directors approved a bonus opportunity agreement by which six members of management, including the Chief Operating Officer, the Chief Financial Officer and the Chief Accounting Officer were eligible to receive both a cash bonus and a restricted stock award bonus (collectively, the "retention awards"). The retention awards were intended to retain certain key employees in their roles with the Company and to carry out the Plan of Liquidation. A portion of the retention awards were earned for each of the closing of the sale of (1) our CCS business line, (2) the Fuddruckers business line and (3) 30 or more of our Luby's cafeterias (each being a "Triggering Event").

The cash bonus was paid on the next payroll cycle following such Triggering Event. The restricted stock award was considered earned as of the date of such Triggering Event and was to vest on the 1st anniversary of the Triggering Event, unless the individual's employment with us is terminated prior to the restriction lapsing.

Total cash paid under the retention awards in fiscal 2021 and fiscal 2022 was approximately $135 thousand. There were 90,000 restricted stock awards earned in fiscal 2021 and fiscal 2022. All earned restricted stock awards earned under the retention awards were vested and shares of common stock were issued during fiscal 2022.

The Company had a voluntary 401(k) employee savings plan to provide substantially all employees of the Company an opportunity to accumulate personal funds for their retirement. Through March 18, 2020, we matched 25% of participants’ contributions made to the plan up to 6% of their salary. We temporarily suspended Company matching March 19, 2020 in response to the effect of the COVID-19 Pandemic on our operations. We resumed Company matching effective December 19, 2020. The 401(k) plan was terminated effective May 31, 2022 and final distributions from the plan to the participants is expected to be completed before the end of calendar year 2022.

On August 12, 2020, the Board of Directors approved severance agreements for eight members of management, including the Chief Operating Officer, the Chief Financial Officer and the Chief Accounting Officer. The agreements provide for a separation payment upon (1) termination by the Company of employment without cause (as defined in the severance agreement), (2) resignation for Good Reason (as defined in the Appendix to the severance agreement), in either case the individual ceases to be an employed by us or a successor to all or part of our business. The separation payment will not be paid if the individual is offered, but declines comparable employment with a successor. The separation payment is calculated as a percentage of the individual's annual base salary, ranging from 25% to 100%. Two members of management resigned from the Company during fiscal 2021 and their severance agreements were terminated.

During the period beginning August 26, 2021 and ended May 31, 2022 we paid severance of approximately $0.5 million to three individuals under these severance agreements. The amount remaining to be paid to the three individuals under these severance agreements as of May 31, 2022 is approximately $0.3 million.