Company: CLPR
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001437749-25-013840
Chunk: 40

Company: Clipper Realty Inc.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 40
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 the 2025 Non-Employee Director Plan is not approved by our stockholders, following the expiration of the 2015 Non-Employee Director Plan, we will be unable to maintain our equity award practices for non-employee directors and therefore will be at a significant competitive disadvantage in attracting, retaining and motivating non-employee directors. The Board believes that it is in our and our stockholders’ interest to approve the 2025 Non-Employee Director Plan.

The following is a summary of the material provisions of the 2025 Non-Employee Director Plan and is qualified in its entirety by reference to the specific language of the 2025 Non-Employee Director Plan in the form attached hereto as Appendix B.

Overview

The purposes of our 2025 Non-Employee Director Plan are to attract, retain and motivate non-employee directors of the Board, align the interests of those individuals with the Company’s stockholders and promote ownership of the Company’s equity.

The 2025 Non-Employee Director Plan provides for the grant of “non-qualified stock options” that do not meet the requirements of “incentive stock options” under Section 422 of the Code, SARs, restricted stock, restricted stock units, LTIP units, dividend equivalent rights and other equity-based, equity-related or cash-based Awards (including performance-based Awards), with each grant evidenced by an award agreement providing the terms of the Award. Only our non-employee directors are permitted to participate in the 2025 Non-Employee Director Plan.

Administration

The 2025 Non-Employee Director Plan is administered by the Compensation Committee. Subject to the terms of the 2025 Non-Employee Director Plan, the Compensation Committee determines which non-employee directors will receive Awards under the 2025 Non-Employee Director Plan, the dates of grant, the number and types of Awards to be granted, the exercise or purchase price of each Award, and the terms and conditions of the Awards, including the period of their exercisability and vesting and the fair market value applicable to a stock Award.

In addition, the Compensation Committee has the authority to determine whether any Award may be settled in cash, shares of our common stock, other securities, or other awards or property. The Compensation Committee has the authority to interpret the 2025 Non-Employee Director Plan and may adopt any administrative rules, regulations, procedures and guidelines governing the 2025 Non-Employee Director Plan or any Awards granted under the 2025 Non-Employee Director Plan as it deems to be appropriate