Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 578

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 1C
Chunk 578
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CA will receive up to six equity bonuses depending on the board
of directors’ or the Compensation Committee’s certification of the Company’s attainment of the performance conditions
provided for such bonuses to be granted in the agreement. The performance conditions will be based on an annual sales target and an annual
net profit target. Each target will be set by the board, the Compensation Committee, or an executive officer or other party delegated
with such authority other than Mr. Audibert, for the applicable fiscal year. Each target will generally be measured against the audited
U.S. GAAP-compliant financial statements of the Company for that year, except that net profit or the equivalent item will be adjusted
to exclude expenses related to annual bonus payments to the Company’s executive officers or members of its management team. The
annual targets for fiscal year 2023 for purposes of the A&R Audibert Consulting Agreement were determined by the Compensation Committee
to be $72,000,000 for the annual sales target and $1,080,000 for the net profit target. The annual targets for fiscal year 2024 for purposes
of the A&R Audibert Consulting Agreement were determined not to have been met in any respect.

Each fiscal
year during the term of the A&R Audibert Consulting Agreement, JCA will be granted restricted common stock with performance conditions
for vesting in the number of shares of restricted stock equal to $80,000 divided by the closing price of the common stock on The Nasdaq
Capital Market tier of Nasdaq on the grant date. Each restricted stock grant will vest as to the amounts described below upon certification
by the board or the Compensation Committee of attainment of the respective performance targets. For the first term year, the A&R Audibert
Consulting Agreement provided that the restricted stock’s grant date would be the date of the agreement and the number of shares
would be based on the closing price of the common stock on The Nasdaq Capital Market on the later of that date or the date of the approval
of the grant by the board or the Compensation Committee. For the subsequent year, the restricted stock will be granted at the beginning
of the fiscal year upon approval of the board or the Compensation Committee and will be equal to $80,000 divided by the closing price
of the common stock on The Nasdaq Capital Market on the anniversary of the date of the agreement, or as otherwise determined by the board
or Compensation Committee. On April 14, 2023, JCA