Company: CLPR
Filing Date: 2025-04-30
Form Type: DEF 14A
Source: 0001437749-25-013840
Chunk: 39

Company: Clipper Realty Inc.
Filing Date: 2025-04-30
Form: DEF 14A
Chunk 39
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 compensation paid to our chief executive officer, chief financial officer or other “covered employee” in any taxable year. As a result, awards to such covered persons will generally be limited in their deductibility by the Company. In addition, our ability to obtain a deduction for future payments could be limited by Section 280G of the Code, which provides that certain payments made in connection with a change in control are not deductible by the Company (and may be subject to additional taxes for the grantee).

Section409A. Some awards under the plans may be considered to be deferred compensation subject to Section 409A of the Code. Failure to satisfy the applicable requirements under this provision for awards considered deferred compensation would result in the acceleration of income and additional income tax liability to the recipient, including certain penalties.

<div align='center'>Recommendation of the Board of Directors:

OUR BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE“FOR”THE APPROVAL OF THE 2025 OMNIBUS INCENTIVE PLAN

33

PROPOSAL NO. 4

APPROVAL OF 2025 NON-EMPLOYEE DIRECTOR PLAN</div>

The Board is asking our stockholders to approve the 2025 Non-Employee Director Plan. The Board approved the 2025 Non-Employee Director Plan on April 18, 2025, subject to approval by our stockholders. If the 2025 Non-Employee Director Plan is approved by stockholders, the 2025 Non-Employee Director Plan will be effective as of such date (the “Effective Date”). The 2025 Non-Employee Director Plan is intended as the successor to the Company’s 2015 Non-Employee Director Plan, which will expire on August 2, 2025 pursuant to its terms. All outstanding awards granted under the 2015 Non-employee Director Plan will continue under the terms of the 2015 Non-employee Director Plan.

If the 2025 Non-Employee Director Plan is approved by our stockholders, the 2025 Non-Employee Director Plan will replace the 2015 Non-Employee Director Plan as of such date, and we will cease granting any new awards under the 2015 Non-Employee Director Plan. If the 2025 Non-Employee Director Plan is not approved by our stockholders, the 2015 Non-Employee Director Plan will remain in effect in its current form, and we will continue to be able to grant equity incentive awards under such plan until its expiration. If