Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain
Officers; Compensatory Arrangements of Certain Officers.
On February 17, 2021, the Board of Directors (the Board) of The
RealReal, Inc. (the Company) increased the size of the Board from 9 to 10 directors and appointed Karen Katz to the Board as a Class I Director, with her term expiring at the Companys 2023 annual meeting of
stockholders or upon her successor having been elected and qualified.
As a non-employee director, Ms. Katz
is entitled to receive compensation arrangements in accordance with the Companys Director Compensation Program, which includes an annual cash retainer of $35,000, paid quarterly, and an annual equity award of $165,000 in restricted stock units
under the Companys 2019 Equity Incentive Plan, which shall vest on the earlier of the one year anniversary of the grant of such equity award or the date immediately prior to the Companys annual meeting of stockholders occuring after such
date of grant, subject to continued service as a non-employee director through such vesting date. Initial cash retainers or equity awards would be adjusted pro rata for the first partial year of service. In
addition, the Company will enter into its form of Indemnity Agreement with Ms. Katz, a copy of which has been filed as Exhibit 10.02 to Amendment No. 2 to the Companys Registration Statement on Form
S-1 filed with the Securities and Exchange Commission on June 17, 2019.
There is no arrangement or
understanding between Ms. Katz and any other persons pursuant to which Ms. Katz was appointed as a director. Furthermore, there are no transactions between Ms. Katz and the Company that would be required to be reported under
Item 404(a) of Regulation S-K.
On Feburary 17, 2021, the Board also appointed Rati Sahi Levesque, age
40, as President of the Company. Ms. Levesque has served as the Companys Chief Operating Officer since April 2019 and will remain in that role. Ms. Levesque served as our Chief Merchant from May 2012 to March 2019. Previously,
Ms. Levesque served as our Director of Merchandise from May 2011 to May 2012. Ms. Levesques base compensation will increase to $375,000, in part to recognize her increased responsibilities as President of the Company. Ms. Levesque
will otherwise continue to participate in the usual compensation and benefit programs available to an executive officer of the Company, all as described in the Companys proxy statement for its 2020 annual meeting of stockholders filed with the
Securities and Exchange Commission on April 29, 2020. No family relationships exist between Ms. Levesque and any of the Companys directors or other executive officers.
There is no arrangement or understanding between Ms. Levesque and any other persons pursuant to which Ms. Levesque was selected as President of the
Company. Furthermore, there are no transactions between Ms. Levesque and the Company that would be required to be reported under Item 404(a) of Regulation S-K.
A copy of the Companys announcement regarding the election of Ms. Katz to the Board and the appointment of Ms. Levesque as President of the Company
is attached as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.