Company: BKTI
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001437749-25-012867
Chunk: 62

Company: BK Technologies Corp
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 62
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000 shares of our common stock for issuance under the 2025 Plan. Stockholders also are being asked to approve the 2025 Plan in order to satisfy the rules of the NYSE American relating to stockholder approval of equity compensation plans and to authorize the grant of stock options under the 2025 Plan that are intended to qualify for treatment as incentive stock options for purposes of Section 422 of the Internal Revenue Code.

The Board believes that the 2025 Plan is necessary for the Company to continue to provide appropriate incentives for outstanding service and to assist in recruiting and retaining highly qualified individuals as employees, non-employee directors and consultants. Unless our stockholders approve the 2025 Plan, we may be required to increase the cash component of our compensation mix, which may inhibit our ability to retain and recruit highly qualified officers, employees, non-employee directors and consultants and align their interests with the interests of our stockholders.

We estimate that the shares requested under the 2025 Plan will be sufficient for the Company to continue its equity compensation program for approximately four years. However, the actual duration of the share reserve under the 2025 Plan will depend on currently unknown factors, such as the Company’s future stock price, changes in participation, our hiring and promotion activity, future grant practices, award type mix and levels, competitive market practices, acquisitions and divestitures, and the rate of returned shares due to forfeitures.

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Certain key features of the 2025 Plan are described below:

| Feature                                                            |     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Reasonable Share Reserve                                           |     | The total number of shares that may be issued pursuant to awards granted under the 2025 Plan will be limited to 500,000 shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Responsible Share Counting Provisions                              |     | The 2025 Plan does not permit “liberal share recycling.” Only awards that are cancelled, forfeited or paid only in cash can be added back to the 2025 Plan’s share reserve. Shares withheld to satisfy a tax withholding obligation or pay the exercise price of a stock option will not be added back to the 2025 Plan’s share reserve, and neither will any shares repurchased by the Company using stock option proceeds.                                                                                                                                                                                                                               |
| Minimum Vesting Periods                                            |     | The 2025 Plan generally requires that awards be granted with a minimum vesting period of at least one year for full vesting of the award. However,