Company: CIO
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052437
Chunk: 77

Company: City Office REIT, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 77
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 to use cash-based awards as the medium of payment for all incentive compensation, especially any compensation in excess of the existing Annual Limitation.

The Third Amendment is described below and the material features of the EIP, as amended by the Third Amendment, are summarized below. A copy of the Third Amendment is included as Exhibit A to this proxy statement. The summary below is qualified in its entirety by reference to the text of the EIP.

<div align='center'>**THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT THE STOCKHOLDERS VOTE “FOR” THE THIRD AMENDMENT TO THE EIP.**</div>

#### Summary of the Third Amendment
As more fully described below, the Third Amendment (i) increases the EIP’s share authorization; (ii) removes the limitations on the calendar-year individual award limits; and (iii) extends the expiration date of the EIP.

<div align='center'>51</div>

**Share Authorization

As of December 31, 2024, approximately 638,701 shares (approximately 143,059 shares as of February 20, 2025) of the EIP’s 3,763,580 share authorization remain available. The Third Amendment will increase the aggregate share authorization by 2,000,000 shares (from 3,763,580 shares to 5,763,580 shares).

In determining the proposed increase in the EIP’s share authorization, the Board of Directors considered anticipated share usage over the next five years for equity-based awards given past equity grant practices and the expected growth of the Company over the next five years and the size of the proposed increase relative to the number of issued and outstanding shares of the Company’s common stock, and the Company’s understanding of its investors’ perceptions of the appropriate size of the increase in the EIP’s share authorization. The Board of Directors believes that the additional share authorization included in the Third Amendment will be sufficient to provide competitive equity grants to eligible employees over the next few years and will not be perceived by most shareholders as overly dilutive. In the event that our shareholders do not approve the Third Amendment at the 2025 Annual Meeting, we expect that we will have to adopt a cash-based incentive program in early 2026, which may adversely affect our ability to attract and retain highly qualified executives and directors and potentially could be detrimental to our results of operations.

Deletion of Individual Award Limits

The individual award limits contained within the existing EIP are related to I.R.C. Section