UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 1, 2006
----------------
FRIENDLY ICE CREAM CORPORATION
-------------------------------------------------------------------------------
(Exact Name Of Registrant As Specified In Its Charter)
MASSACHUSETTS
(State or Other Jurisdiction of Incorporation)
001-13579 04-2053130
------------------------ -----------------------------------------
(Commission File Number) (I.R.S. Employer Identification No.)
1855 Boston Road, Wilbraham, MA 01095
---------------------------------------- -------------------
(Address of Principal Executive Offices) (Zip Code)
(413) 731-4000
(Registrant's Telephone Number, Including Area Code)
Not Applicable
-----------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On November 1, 2006, the Compensation Committee of the Board of
Directors of Friendly Ice Cream Corporation (the "Company"), approved the
issuance of restricted stock units and stock options to members of the Company's
Board of Directors pursuant to and subject to the terms of the Company's 2003
Incentive Plan, as amended (the "2003 Incentive Plan"). Subject to the terms of
the 2003 Incentive Plan, each restricted stock unit provides the holder with the
right to receive one share of common stock of the Company when the restrictions
lapse or vest. The restricted stock units vest on November 1, 2009, if the
recipient is a member of the Company's Board of Directors on such date, subject
to accelerated vesting in the event of a change in control or the director's
death, disability or retirement. The stock options have an exercise price of
$10.61 per share and vest in three equal annual installments commencing on
November 1, 2007. The following table sets forth the number of restricted stock
units and stock options awarded to each of the directors listed below.
Name Restricted Stock Units Stock Options
---- ---------------------- -------------
Donald J. Smith
Chairman of the Board 6,000 4,000
--------------------------------------------------------------------------------
Steven L. Ezzes
Chairman of the Audit Committee
6,000 6,000
--------------------------------------------------------------------------------
Michael J. Daly
Chairman of the Compensation
Committee 6,000 5,000
--------------------------------------------------------------------------------
Burton J. Manning 6,000 4,000
--------------------------------------------------------------------------------
Perry J. Odak 6,000 4,000
--------------------------------------------------------------------------------
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: November 2, 2006 FRIENDLY ICE CREAM CORPORATION
By: /s/ PAUL V. HOAGLAND
------------------------------------
Name: Paul V. Hoagland
Title: Executive Vice President
of Administration
and Chief Financial Officer
2