Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1132

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 5
Chunk 1132
---
, 2021, we awarded Mr. Shape a stock option for the purchase of 323,810
shares of the Company’s common stock at an exercise price of $4.15 per share. The stock option will vest over a four-year period
with 25% of the option vesting on the first anniversary of the date of grant and the balance of the option (75%) vesting monthly over
the following three years after the first anniversary of the date of grant at a rate of 1/36 per month.

The Shape Employment Agreement provides that Mr.
Shape was entitled to the payment of $10,000 per month as repayment of sales commissions that had been earned in previous years totaling
approximately $140,927, subject to certain terms and conditions. During 2022, Mr. Shape was entitled to $120,000 in total payments toward
prior-year commissions in addition to accrued interest of $1,918, and was paid $90,000 towards these commissions. During 2023, Mr. Shape
became entitled to an additional $20,927 in total payments toward these prior-year commissions and accrued interest of $293. All $30,927
of outstanding payable prior-year commissions was paid to Mr. Shape during 2023. All outstanding accrued interest upon prior-year commissions
payable to Mr. Shape was orally waived on March 25, 2024.

On February 15, 2024, in connection with the Company’s
fiscal year 2023 executive bonus determinations, the Compensation Committee determined that Mr. Shape would be awarded a $50,000 cash
bonus.

Mr. Shape will be provided with standard executive
benefits. The Company will also provide standard indemnification and directors’ and officers’ insurance.

The initial term of the Shape Employment Agreement
commenced on November 8, 2021 and ended on November 8, 2024. The Shape Employment Agreement automatically renewed for an additional one-year
term at the end of the initial term, and will renew for an additional one-year term at the end of the current and each subsequent one-year
term unless either party provides notice to the other 60 days prior to the end of the then-current term.

The Company may terminate Mr. Shape’s employment
by giving at least 30 days’ written notice. If we terminate Mr. Shape without cause or he resigns for good reason as provided under the
Shape Employment Agreement, we must pay at least 24 months’ severance,