Company: CPSH
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001437749-25-008032
Chunk: 24

Company: CPS TECHNOLOGIES CORP/DE/
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 24
---
 persons who are expected to make important contributions to the Company and by providing such persons with equity ownership opportunities and performance-based incentives that are intended to better align the interests of such persons with those of the Company’s stockholders. As of December 28, 2024, the Company had issued awards representing 751,400 shares under the 2020 Plan, of which 611,400 were outstanding at fiscal year-end.

On February 28, 2025, the Board approved the grant of non-statutory stock options to purchase 15,000 shares of Common Stock to each of the five members of the Board, for an aggregate 75,000 shares, under the 2020 Plan. Such options were granted at an exercise price of $1.59 per share, the closing price of the Common Stock on the date of grant, and vested immediately. The Board also approved the grant of an aggregate 90,000 options to employees of the Company under the 2020 Plan, which included options to purchase 25,000 shares granted to our Chief Executive Officer and 14,000 shares to our Chief Financial Officer. All of the non-Board stock options vest in four equal annual installments commencing on the first anniversary of the date of grant.

Retirement, Severance, Change in Control and Similar Compensation

The Company does not currently offer or have in place any formal retirement, severance or similar compensation programs other than its retirement savings plan available to all eligible employees. Rather, the Company individually negotiates with those employees for whom retirement, severance, change of control or similar compensation is deemed necessary.

On June 17, 2022, the Company entered into an executive severance agreement with Charles K. Griffith, Jr., its Chief Financial Officer (the “COC Agreement”). The COC Agreement provides for 12 months of salary continuation (the “Griffith Salary Continuation Period”) in the event of Mr. Griffith’s termination in connection with a change of control of the Company. During the Griffith Salary Continuation Period, so long as COBRA continuation coverage is timely and properly elected by Mr. Griffith, the Company has agreed to reimburse Mr. Griffith for the Company paid portion for the cost of coverage that is in effect for the Griffith Salary Continuation Period, which reimbursements shall continue until the earlier of (i) the end of the Griffith Salary Continuation Period and (ii) the termination of Mr. Griffith’s COBRA continuation coverage. Further, in the event Mr. Griffith is terminated