Company: CLPR
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001437749-25-013840
Chunk: 36

Company: Clipper Realty Inc.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 36
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 the outstanding capital stock eligible to elect directors of the merged entity or its parent; |

| ● | we sell or dispose of all or substantially all of our assets (other than to a Company affiliate); or |

| ● | our stockholders approve a plan of liquidation or dissolution. |

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Amendment, Effective Date and Termination of the 2025 Omnibus Incentive Plan

Our Board may amend or terminate the 2025 Omnibus Incentive Plan at any time, provided that no such amendment may materially adversely impair the rights of a grantee of an award without the grantee’s consent. Our stockholders must approve any amendment if their approval is required in order to comply with the Code, applicable laws, or applicable stock exchange requirements. Unless terminated sooner by our Board or extended with stockholder approval, the 2025 Omnibus Incentive Plan will terminate on the day before the tenth anniversary of the Effective Date.

Certain U.S. Federal Income Tax Consequences under the 2025 Omnibus Incentive Plan

The following is a brief description of the U.S. federal income tax consequences generally arising with respect to awards under the 2025 Omnibus Incentive Plan under currently applicable laws and regulations. This description is not intended to, and does not, provide or supplement tax advice to grantees. Grantees are advised to consult with their own independent tax advisors with respect to the specific tax consequences that, in light of their particular circumstances, might arise in connection with their receipt of awards under the plans, including any state, local or foreign tax consequences and the effect, if any, of gift, estate and inheritance taxes.

Non-Qualified Stock Options. The grant of a non-qualified stock option does not result in taxable income to the grantee of such an option or in a deduction by us. Upon the exercise of a non-qualified stock option, generally the grantee will recognize ordinary income in an amount equal to the difference between the fair market value of the common stock on the date of exercise and the exercise price of the option. The Company will generally be entitled to a tax deduction for the amount taxable to an individual upon the exercise of the non-qualified stock option upon exercise, as described above, in the same year as those amounts are taxable to the individual. Any gain or loss upon the disposition of the stock receive upon exercise will be a capital gain or loss to the grantee.

Incentive Stock Options. No taxable income is