BRC Inc. appointed Chris Mondzelewski as Chief Executive Officer of the Company, effective January 1, 2024, in addition to his continuing role as President of the Company. On December 22, 2023, the Company and Mr. Mondzelewski entered into a letter agreement setting forth Mr. Mondzelewski?s compensation for serving as President and Chief Executive Officer. Pursuant to the letter agreement, (a) Mr. Mondzelewski?s annual base salary will be $600,000, (b) his target annual incentive opportunity will be 100% of base salary, and (c) subject to Compensation Committee approval, the Company anticipates granting restricted stock units with a fair market value of $625,000 and stock options with a fair market value of $1,875,000 to Mr. Mondzelewski in the first quarter of 2024.

As previously reported, Evan Hafer will step down as Chief Executive Officer of the Company, effective December 31, 2023, and assume the role of Founder and Executive Chairman of the Board effective January 1, 2024. On December 22, 2023, the Company and Mr. Hafer entered into a letter agreement pursuant to which Mr. Hafer has agreed to receive an annual base salary of $1 and not participate in the Company?s annual incentive program in connection with his new role. The remaining terms of Mr. Hafer?s Employment Agreement, dated December 29, 2022, remain unchanged.

The foregoing description of the letter agreement between the Company and Mr. Hafer does not purport to be complete and is qualified in its entirety by reference to the full text of the letter agreement, which will be filed as an exhibit to the Company?s Annual Report on Form 10-K for the year ending December 31, 2023. As previously reported, Tom Davin will transition out of his role as Co-Chief Executive Officer of the Company on December 31, 2023 while remaining on the Board. In connection with the transition, the Company and Mr. Davin entered into a separation and release agreement, which provides for, among other things, certain payments in lieu of benefits offered by the Company and a customary release.

The foregoing description of the separation and release agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the separation and release agreement, which will be filed as an exhibit to the Company?s Annual Report on Form 10-K for the year ending December 31, 2023.