Form 4: CEO Shannon Acquires Lucky Strike Performance RSUs

Lucky Strike Entertainment Corp's CEO, Thomas F. Shannon, acquired 1,122 Restricted Stock Units tied to performance metrics and the company's acquisition of Bowlero Corp.

Summary

• Thomas F. Shannon, Chief Executive Officer, Director, and 10% Owner of Lucky Strike Entertainment Corp (LUCK), acquired 1,122 Restricted Stock Units (RSUs) on November 4, 2025.
• The RSUs were received as part of the Business Combination Agreement related to the acquisition of Bowlero Corp.
• These RSUs will vest only if the closing share price of Lucky Strike's Class A Common Stock reaches or exceeds $17.50 per share for any 10 trading days within a consecutive 20-trading day period, on or before the 5-year anniversary of the acquisition closing date.
• If the vesting condition is not met, the RSUs will be forfeited on the 5-year anniversary of the acquisition closing.
• The RSUs underlie 1,122 shares of Class B Common Stock, which are convertible into Class A Common Stock on a one-to-one basis at the holder's option.
• Class B Common Stock will automatically convert to Class A Common Stock upon Mr. Shannon ceasing to beneficially own at least 10% of the outstanding common stock, his death or disability, termination of his CEO employment for cause, or the fifteenth anniversary of the acquisition closing.
• Following this transaction, Mr. Shannon beneficially owns 4,919,056 shares of Class B Common Stock.

Sentiment

Score: 7

Explanation: The CEO's acquisition of performance-based equity, with vesting tied to a significant share price increase, is a positive signal. It aligns management's interests with shareholder value creation and indicates confidence in the company's future prospects.

Positives

• The acquisition of performance-based Restricted Stock Units by the CEO aligns management's incentives directly with shareholder value creation, as vesting is contingent on a significant increase in the Class A Common Stock price to $17.50 per share.
• The transaction demonstrates continued insider ownership and commitment from a key executive, who is also a 10% owner.

Risks

• The Restricted Stock Units are subject to forfeiture if the Class A Common Stock price target of $17.50 is not met within the specified 5-year timeframe from the acquisition closing date.
• The value of the RSUs is directly tied to the future performance of the company's Class A Common Stock, exposing the holder to market risk.

Future Outlook

The vesting conditions for the acquired Restricted Stock Units establish a clear performance target for the Class A Common Stock, requiring it to reach $17.50 per share within five years of the Bowlero acquisition closing. This indicates management's focus on achieving significant share price appreciation.

Industry Context

This insider transaction follows the acquisition of Bowlero Corp., indicating Lucky Strike Entertainment's strategic expansion within the entertainment and leisure industry. The performance-based equity grant is a common mechanism to incentivize executives in growth-oriented companies post-acquisition.

Related Party Transactions

• The Restricted Stock Units were received by Thomas F. Shannon, the CEO and a 10% owner, pursuant to the terms of the Business Combination Agreement in connection with the acquisition of Bowlero Corp. This constitutes a transaction between a key executive and the company.

Stakeholder Impact

• Shareholders: Potential positive impact as the CEO's compensation is directly tied to increasing the Class A Common Stock price, aligning management's efforts with shareholder returns.
• Employees: No direct impact mentioned, but overall company performance driven by executive incentives could indirectly benefit employees.

Next Steps

• Achievement of the Class A Common Stock price target of $17.50 per share for 10 trading days within a 20-trading day period to enable RSU vesting.
• Monitoring the 5-year anniversary of the Bowlero acquisition closing for RSU vesting or forfeiture.

Key Dates

Keywords

Lucky Strike Entertainment, LUCK, Thomas F. Shannon, CEO, Restricted Stock Units, RSU, Insider Transaction, SEC Form 4, Bowlero Corp, Class B Common Stock, Class A Common Stock, Performance-based Equity