Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 19

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 19
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Costs

| 12. | Are any fees or expenses charged to participants in connection with participation in the Plan? |

Participants will not pay any service charges in connection with purchases of shares under the Plan, as we will pay the expenses of administering the Plan. However, participants who sell their shares through the Plan will pay standard dealer mark-ups, brokerage commissions and other expenses charged in connection with such sales (see Question No. 23).

Reports to Participants

| 13. | How will participants be advised of the purchase of shares of common stock? |

As soon as practicable after each purchase of shares, each participant will receive a statement of account. These statements are the participant’s continuing record of the cost of purchases and should be retained for tax purposes.Participants also will receive copies of the same communications that we send to all other stockholders, including notices of annual meetings and income tax information for reporting dividends paid.

Dividends

| 14. | Will Participants be credited with dividends on shares held in their account under the Plan? |

Yes. We will pay dividends, as and when declared, to the record holders of all shares of our common stock. As the record holder of shares purchased under the Plan for participants, the Administrator will receive dividends for all Plan shares held on the record date. The Administrator will credit such dividends to participants’ accounts in the Plan on the basis of full and fractional shares held in their respective accounts and will reinvest such dividends in additional shares.

Certificates for Shares

| 15. | Will stock certificates be issued for shares of common stock purchased? |

No. As permitted by Maryland law and the Company’s Bylaws, our board of directors has elected to use an electronic system for recording the issuance, ownership and transfer of shares of our common stock, known as the Direct Registration System. This means that we do not, and will not, issue paper certificates evidencing the shares of common stock that you own. Rather, our transfer agent and registrar maintains an account for each record holder of shares that reflects the number of shares owned by that stockholder. The number of shares credited to an account under the Plan will be shown on the participant’s statement of account. This additional service protects against loss, theft or destruction of stock certificates.

If you wish to transfer or pledge the shares held in your Plan account, then you must contact the Administrator for instructions. See Question No. 31 for information about contacting the Administrator. Any such transfer or pledge will be subject to compliance with any