The Company grants 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, 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 28, 2026, there were 364,808 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 28, 2026, 35,533 PSUs were outstanding which may be earned based on the achievement of certain financial metrics over a three-year period ending. 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 28, 2026, there was $1.3 million of unrecognized compensation cost related to non-vested PSUs and $2.4 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
Granted		36,912			67.45		19,506			68.06
Vested		(68,260	)		35.43		(851	)		67.50
Forfeited		(7,389	)		48.11		-			—
Nonvested Balance at June 28, 2026		90,402		$	48.28		35,533		$	54.35

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. A total of 40,359 shares remain available for purchase under the plan as of June 28, 2026.