Company: FMFG
Filing Date: 2025-03-13
Form Type: PREC14A
Source: 0001437749-25-007538
Chunk: 42

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-03-13
Form: PREC14A
Chunk 42
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 Change in Control; or (iii) the Bank terminates his employment without Just Cause (as defined in the Krebs Severance Agreement) within 12 months of a Change in Control. The amount of the severance payment would be 2.99 times Mr. Krebs’ then-current “base amount” (as defined in Section 280G of the IRC) less the sum of all other “parachute payments” (as defined in Section 280G of the IRC) to which Mr. Krebs is entitled on account of the Change in Control.

As of December 31, 2024, Mr. Krebs’ “base amount” was $240,058 and the gross amount to which Mr. Krebs would have been entitled under the Krebs Severance Agreement as of such date is approximately $717,772. Because, however, both the Retirement Agreement and the Krebs Severance Agreement were in effect as of December 31, 2024, Mr. Krebs would have received approximately $650,611 under the Krebs Severance Agreement in connection with a Change in Control as of such date to give effect to the payment due under the Retirement Agreement, which would be considered a “parachute payment” under Section 280G of the IRC.

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Pay Versus Performance

As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between compensation actually paid to our principal executive officer (the “PEO”) and the other named executive officers (the “Non-PEO named executive officers”) and certain financial performance metrics of the Company using a methodology that has been prescribed by the SEC.

| Pay Versus Performance 
 Year(s)                
 (a)                    |     | Summary         
 Compensation    
 Table Total for 
 PEO             
 (b)             |         |     | Compensation     
 Actually Paid to 
 PEO (1)(3)       
 (c)              |         |     | Average Summary    
 Compensation       
 Table Total for    
 Non-PEO Named      
 Executive Officers 
 (2)                
 (d)                |         |     | Average         
 Compensation    
 Actually Paid   
 to Non-PEO      
 Named           
 Executive       
 Officers (2)(3) 
 (e)             |         |     | Value of      
 Initial Fixed 
 $100          
 Investment    
 Based On:     
 Total         
 Shareholder   
 Return        
 (