The Company has granted service-based restricted stock awards ("RSAs") and performance stock units ("PSUs") to employees and non-employee directors under the Strattec Security Corporation 2024 Equity Incentive Plan ("2024 Equity Incentive Plan"). Prior to October 2024, stock options and RSAs were granted under the Amended and Restated Strattec Security Corporation Stock Incentive Plan ("Stock Incentive Plan"). Awards granted under the 2024 Equity Incentive Plan that expire or are canceled without delivery of shares become available for re-issuance. No additional grants will be made under the Stock Incentive Plan.

The number of shares of the Company's common stock authorized under the 2024 Equity Incentive Plan is 550,000. As of June 29, 2025, there were 435,742 shares available for future awards.

Shares of restricted stock granted under approved plans have voting rights, earn dividends and vest over a pre-determined period of time, up to three years from the date of the grant. The fair value of restricted stock awards are based on the closing stock price on the date of grant.

As of June 29, 2025, 16,878 PSUs were outstanding which may be earned based on the achievement of certain financial metrics over the three-year period ending June 27, 2027. The PSUs will vest ranging from 0% (for performance below threshold) to 200% (for performance above target) and continued employment. The fair value of PSUs was based on the closing stock price on the date of grant. The PSUs earn dividend equivalents during the vesting period while compensation expense is recognized over the service period when it is probable that the performance criteria will be met. As of June 29, 2025, there was $567,000 of unrecognized compensation cost

related to non-vested PSUs and $2.6 million of unrecognized compensation cost related to non-vested RSAs, which will be expensed over the remaining vesting period of approximately 2 years.

A summary of restricted stock award and performance stock unit activity was as follows:


	RSAs					PSUs
				Weighted Average				Weighted Average
				Grant Date				Grant Date
	Shares			Fair Value		Shares		Fair Value
Nonvested Balance at July 2, 2023		87,900		$	32.09		-		—
Granted		51,675		$	22.16		-		—
Vested		(56,750	)	$	30.12		-		—
Forfeited		(3,500	)	$	29.79		-		—
Nonvested Balance at June 30, 2024		79,325		$	27.21		-		—
Granted		115,302		$	39.31		16,878	$	39.16
Vested		(48,963	)	$	29.49		-		—
Forfeited		(16,525	)	$	31.26		-		—
Nonvested Balance at June 29, 2025		129,139		$	36.37		16,878	$	39.16

The Company also has an Employee Stock Purchase Plan which provides substantially all U.S. full-time associates an opportunity to purchase shares of Strattec common stock through payroll deductions. A total of 100,000 shares may be issued under the plan. Shares issued from treasury stock under the plan totaled 1,577 at an average price of $37.84 during fiscal 2025 and 2,998 at an average price of $24.08 during fiscal 2024. A total of 41,227 shares remain available for purchase under the plan as of June 29, 2025.