Karat Packaging Inc.

09/24/2021 | Press release | Distributed by Public on 09/24/2021 11:34

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Agreements of Certain Officers (Form 8-K)

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Agreements of Certain Officers.

The information set forth in Item 8.01 of this Current Report on Form 8-K is incorporated herein by reference.

Other Events.

Employee RSU Acceleration

In February 2019 and May 2021, Karat Packaging Inc. (the "Company") granted restricted stock units ("RSUs") to its key employees, including Joanne Wang, the Company's Chief Operating Officer, pursuant to Restricted Stock Award Agreements under its Stock Incentive Plan. In addition, in September 2020, the Company granted Ann T. Sabahat, the Company's Chief Financial Officer, RSUs pursuant to its Stock Incentive Plan. As disclosed in the prospectus relating to the Company's initial public offering ("IPO"), these RSUs were scheduled to vest in three equal installments beginning on April 15, 2022, the date of the first anniversary of the closing of the IPO.

On September 20, 2021, the Compensation Committee of the Company's Board of Directors approved the accelerated vesting of (i) the first tranche of the RSUs from April 15, 2022 to October 15, 2021, (ii) the second tranche of the RSUs from April 15, 2023 to October 15, 2022, (iii) the third tranche of the RSUs from April 15, 2024 to October 15, 2023 and (iv) all of Ms. Sabahat's RSUs from April 15, 2022 to September 20, 2021.

Acceleration of Stock Options

In February 2019, the Company issued Stock Options to purchase shares of its Common Stock ("Options") pursuant to Stock Option Agreements under its Stock Incentive Plan to each independent member of the Board of Directors. The Options have an exercise price of $10.00 and were scheduled to vest on April 15, 2022, the date of the first anniversary of the closing of the IPO.

On September 20, 2021, the Compensation Committee of the Company's Board of Directors approved the accelerated vesting of the Options from April 15, 2022 to October 15, 2021.