Company: CRWS
Filing Date: 2025-06-16
Form Type: 8-K
Source: 0001437749-25-020526
Chunk: 1

Company: CROWN CRAFTS INC
Filing Date: 2025-06-16
Form: 8-K
Item: Item 5.02
Chunk 1
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 Ms. Spencer: (i) will receive a minimum base salary of $250,000.00, subject to salary increases at the discretion of the Board or a committee thereof; and (ii) commencing with the Company’s 2026 fiscal year (which began March 31, 2025), will be eligible to receive, with respect to each fiscal year of the Company during the term of the Employment Agreement, an annual bonus of up to 40% of her base salary at target performance and up to 60% of her base salary at maximum performance, pursuant to the Company’s bonus plan for its highly compensated employees, which bonus plan shall be based on the Company’s annual EBITDA targets, provided, however, that the specific terms of the bonus plan shall be in the discretion of the Board or a committee thereof. Notwithstanding the foregoing, Ms. Spencer’s bonus for fiscal year 2026 will be prorated based on the number of days she is employed during such fiscal year. Additionally, the Employment Agreement provides that Ms. Spencer is entitled to receive all other fringe benefits and to participate in all other employee benefit plans and arrangements, as are generally provided to other similarly situated, highly compensated employees of the Company.

At the discretion of the Board or a committee thereof, Ms. Spencer may also receive awards under any equity compensation plan established by the Company. Upon her execution of the Employment Agreement, Ms. Spencer also received a grant of 15,000 shares of the Company’s common stock pursuant to the Company’s 2021 Incentive Plan, which shares are subject to vesting on June 16, 2027, the second anniversary of the date of the Employment Agreement.

2

The Employment Agreement further provides that, in the event of the termination of Ms. Spencer’s employment either by the Company without “cause” or by Ms. Spencer for “good reason,” as such terms are defined in the Employment Agreement, then the Company will: (i) pay to Ms. Spencer, as severance, equal installment payments (the “ Severance Payments”) payable in accordance with the Company’s normal payroll practices and cycles, totaling the sum of her annual base salary as then in effect plus the highest annual bonus paid or payable to her in respect of any of the three full fiscal years ended immediately prior to the date of her termination; and (ii) pay to Ms. Spencer all salary accrued through the date of the termination, plus credit for any vacation earned but not taken, and any bonus earned for the