Company: OCC
Filing Date: 2025-02-28
Form Type: DEF 14A
Source: 0001437749-25-005577
Chunk: 23

Company: OPTICAL CABLE CORP
Filing Date: 2025-02-28
Form: DEF 14A
Chunk 23
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The 2017 Plan is intended to comply with the provisions of SEC Rule 16b-3, which permits Incentive Awards granted under the plan to be exempt from the short-swing profit liability rules under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). In addition, the 2017 Plan is designed to allow Incentive Awards to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code” or the “Internal Revenue Code”) regarding deferred compensation arrangements, to the extent applicable.

Common Shares Available for Incentive Awards

If this Proposal No. 2 is approved, the number of Common Shares available for issuance under the 2017 Plan, will be (i) 350,000 Common Shares plus (ii) the total number of shares remaining available for issuance under the 2017 Plan.

As of February 1, 2025:

| ● | 50,904 shares remained available for issuance under the 2017 Plan; |

| ● | There were 405,297 restricted shares of the Company, previously granted under the 2017 Plan that are issued and outstanding, but which have not yet vested and are subject to forfeiture; and |

| ● | There were no options, warrants, stock appreciation rights or other stock incentive awards outstanding. |

The number of shares available for issuance under the 2017 Plan will be subject to adjustment upon the occurrence of any stock dividend or other distribution, stock split, merger, consolidation, combination, share repurchase or exchange or other similar corporate transaction or event. In addition, no more than 250,000 Common Shares may be allocated to the Incentive Awards that are granted during any single taxable year of the Company to any Participant. The aggregate maximum cash amount payable under the 2017 Plan in any single taxable year of the Company to any Participant cannot exceed $2,000,000. The aggregate maximum number of Common Shares that may be allocated to grants of Incentive Awards to all non-employee Directors as a group during any single calendar year shall be 125,000 shares.

In the event that Proposal No. 2 is approved, the number of shares authorized and available for issuance under the 2017 Plan will be 400,904 shares, which includes the 50,904 shares still available for issuance under the 2017 Plan and previously authorized for reservation by the Company’s shareholders on March 28, 2017