AFC's announces adoption of 10b5-1 trading plan by CEO.
M2 EQUITYBITES-November 27, 2012-AFC's announces adoption of 10b5-1 trading plan by CEO(C)2012 M2 COMMUNICATIONS http://www.m2.com
AFC Enterprises Inc (Nasdaq:AFCE) , a franchisor and operator of Popeyes restaurants, announced on Monday that Cheryl Bachelder, the company's chief executive officer, has established a new trading plan in accordance with Rule 10b5-1 of the Securities Exchange Act.
Rule 10b5-1 permits individuals who are not then in possession of material non-public information to establish pre-arranged plans to buy or sell stock. The rule allows buying or selling shares of stock by individuals at a specific price in the future, regardless of any subsequent material non-public information.
Reportedly, this plan was adopted to enable Bachelder to exercise and sell a portion of her AFCE stock options over time as part of her long-term strategy for asset diversification and tax management.
In the event that all sales in this plan are transacted, Bachelder's holdings will continue to remain in excess of the company's stock holding policy of four times her base salary.
Under the plan, Bachelder intends to exercise up to 163,668 stock options, subject to the market price of the company's common stock, which were granted in November 2007 and are set to expire in November 2014, all as set forth in her trading plan.
The trading plan, which is effective from 20 November 2012, will expire on 30 August 2013.
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