EVERETT, Wash.--(BUSINESS WIRE)--Funko, Inc. (Nasdaq: FNKO) (the “Company” or “Funko”), a leading pop culture lifestyle brand, today announced that on May 20, 2024, the Compensation Committee of Funko’s Board of Directors granted (i) non-qualified stock option awards to purchase an aggregate of 297,974 shares of its Class A common stock (the “Common Stock”) $0.0001 par value per share, (ii) restricted stock unit awards covering an aggregate of 385,208 shares of Common Stock (the “Initial RSU Grant”), and (iii) restricted stock unit awards covering an aggregate of 96,302 shares of Common Stock (the “Additional RSU Grant”), to Cynthia Williams, who joined Funko as its Chief Executive Officer on May 20, 2024 (the “Effective Date”), in connection with her commencement of employment. The awards were granted under the Funko, Inc. 2024 Inducement Award Plan (the “2024 Inducement Plan”) as an inducement material to Ms. Williams’ entering into employment with Funko, in accordance with and reliance upon Nasdaq Listing Rule 5635(c)(4).
The 2024 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Funko, or following a bona fide period of non-employment, as an inducement material to such individuals’ entering into employment with Funko, pursuant to Nasdaq Listing Rule 5635(c)(4). The 2024 Inducement Plan was adopted by the Company’s Board of Directors in May 2024.
The option has an exercise price of $8.39 per share, which is equal to the closing price of Funko’s Common Stock on the Nasdaq Global Market on the date of grant. The option will vest based on the achievement of a stock price hurdle equal to $25.17, measured based on the average of the Company’s closing share price over a 90 trading day trailing average, prior to prior to the fourth anniversary of the Effective Date, subject to Ms. Williams’ continued employment with Funko on each vesting date; provided that, in no event will the option become exercisable prior to the second anniversary of the Effective Date. The restricted stock units will vest (i) in the case of the Initial RSU Grant, over four years in four equal annual installments on each of the first four anniversaries of the Effective Date and (ii) in the case of the Additional RSU Grant, over three years in three equal annual installments on each of the first three anniversaries of the Effective Date, in each case subject to Ms. Williams’ continued employment with Funko on each vesting date.
ABOUT FUNKO:
Headquartered in Everett, Washington, Funko is a leading pop culture lifestyle brand. Funko designs, sources and distributes licensed pop culture products across multiple categories, including vinyl figures, action toys, plush, apparel, housewares and accessories for consumers who seek tangible ways to connect with their favorite pop culture brands and characters. Learn more at www.funko.com, and follow us on X (@OriginalFunko) and Instagram (@OriginalFunko).
