Company: CRCT
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001828962-25-000065
Chunk: 39

Company: Cricut, Inc.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 39
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 direct vendor or directly to a customer through our sales channels.

(3) “Engaged Paid Subscribers” means 90-day engaged paid subscribers divided by 365-day engaged paid subscribers measured on December 31, 2024 as compared to December 31, 2023. In order to be classified as “engaged”, a paid subscriber must cut at least one project in the given timeframe.

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(4) “Subscriptions Gross Profit” means gross profit generated from Subscriptions for the fourth quarter 2024.

(5) “Project Materials Cost Reduction” means cost reduction of a defined group of Project Materials SKUs that are impactful to the business.

Mr. Arora

Mr. Arora’s bonus opportunity under our 2024 bonus plan was based on the following four components: Operating Income, Global Machine POS, Q4 Engaged Paid Subscribers, and Q4 Subscriptions Gross Profit.

These components were structured similarly to the bonus opportunities for our other named executive officers (as described below) and would be equal to the percentage of the target goal that was actually achieved, with each of these performance criteria weighted as follows: Operating Income (50%), Global Machine POS (20%), Engaged Paid Subscribers (20%), and Subscriptions Gross Profit (10%). Mr. Arora’s target bonus opportunity for this component was equal to 100% of his weighted average salary for the year, which was $509,875, and was subject to a maximum cap of 200% of payout.

In addition, Mr. Arora had another bonus opportunity related to these four criteria, under which the four performance criteria were weighted the same as described above, with the amount of the bonus for each performance criteria determined as follows (aggregating to an additional potential for $840,000):

| Performance Criteria         |     |                    Achievement 
 (as Percentage of Target Goal) |     | Bonus |
| Operating Income             |     |                  Less than 70% |     | None  |
| Target of 100%               |     |                       $280,000 |     |       |
| Maximum of 110%              |     |                       $420,000 |     |       |
| Global Machine POS           |     |                  Less than 60% |     | None  |
| Target of 100%               |     |                       $112,000 |     |       |
| Maximum of 110%              |     |                       $168,000 |     |       |
|