Company: LASE
Filing Date: 2025-06-24
Form Type: 10-K
Source: 0001641172-25-016194
Chunk: 40

Company: Laser Photonics Corp
Filing Date: 2025-06-24
Form: 10-K
Item: Item 9A
Chunk 40
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 will
tie a substantial portion of each executive’s overall compensation to key strategic, financial and operational goals. We have provided,
and expect to continue to provide, a portion of our executive compensation in the form of stock options and restricted stock that vest
over time, which we believe helps to retain our executives and aligns their interests with those of our stockholders by allowing them
to participate in the longer term success of our company as reflected in stock price appreciation.

Use
of Compensation Consultants and Market Benchmarking

For
purposes of determining total compensation and the primary components of compensation for our executive officers in 2020 and 2021, we
did not retain the services of a compensation consultant or use survey information or compensation data to engage in benchmarking. In
the future, we expect that our compensation committee will consider publicly available compensation data for national and regional companies
in the laser cleaning industry to help guide its executive compensation decisions at the time of hiring and for subsequent adjustments
in compensation. Even if we retain the services of an independent compensation consultant to provide additional comparative data on executive
compensation practices in our industry and to advise on our executive compensation program generally, our Board of Directors and future
compensation committee will ultimately make their own decisions about these matters.

Beginning
in 2024, we expect that our annual cash bonus program will be based upon the achievement of specified annual corporate and individual
goals that will be established in advance by our Board of Directors or compensation committee. We expect that our annual cash bonus program
will emphasize pay-for-performance and will be intended to closely align executive compensation with achievement of specified operating
results as the amount will be calculated on the basis of percentage of corporate goals achieved. The performance goals established by
our compensation committee are based on our business strategy and the objective of building stockholder value. We expect that there will
be three steps to determine if and the extent to which an annual cash bonus is payable to a named executive officer. First, at the beginning
of the year, our compensation committee will determine the target annual cash incentive award for the named executive officer based on
a percentage of the officer’s annual base salary for that year. Second, the compensation committee will establish the specific
performance goals, including both corporate and individual objectives, that must be met for the officer to receive the award. Third,
shortly after the end of the year, the compensation committee will determine the extent to which these performance goals were met and
the amount of the award. Our compensation committee works with