Company: CRCT
Filing Date: 2025-04-01
Form Type: PRE 14A
Source: 0001828962-25-000058
Chunk: 42

Company: Cricut, Inc.
Filing Date: 2025-04-01
Form: PRE 14A
Chunk 42
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 the underlying award agreements, our named executive officers received dividend equivalents in the form of additional RSUs. For more information, see the section titled “Related Person Transactions.”

2024 LTIP Awards

In addition to the annual equity awards, in July 2024, the compensation committee granted Messrs. Arora, Shill, and Olsen and certain other of our key employees awards of performance-based RSUs because it believed that performance should be a significant factor in our overall equity compensation program, in order to (i) provide greater incentive for these key employees to drive our long-term growth and thereby create additional stockholder value and (ii) promote long-term retention of these key employees. Mr. Arora’s award covered 2,000,000 RSUs, Mr. Shill’s award covered 500,000 RSUs, and Mr. Olsen’s award covered 275,000 RSUs.

Each of these RSU awards is eligible to vest in two tranches based on our achievement of Operating Income (excluding the impact of stock-based compensation and payroll tax expense associated with awards

under the 2024 LTIP) as follows:

• 30% of the RSUs are eligible to vest upon our achievement of Operating Income of at least $149 million over four consecutive quarters by Q2 2028; and

• 70% of the RSUs are eligible to vest upon our achievement of Operating Income of at least $240 million over four consecutive quarters by Q2 2029.

Each tranche that becomes eligible to vest will vest on the first quarterly vesting date (February 15, May 15, August 15, and November 15) on or following the date that the compensation committee determines that the applicable total Operating Income goal was achieved, subject to the applicable named executive officer’s continued service.

For these purposes, Operating Income means the Company’s GAAP income from operations as reported, as further adjusted to deduct the stock-based compensation expense and payroll tax expense, in each case, related to this Award and Company performance-based equity awards granted with the same vesting terms.

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The targets for the 2024 LTIP awards are intended to incentivize the management team to aim high and these targets are achievable only through a sustained level of high performance.

If a “change in control” (as defined in our 2021 Equity Incentive Plan) occurs before June 30, 2025, none of the RSUs shall vest, and all of the RSUs shall