Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 127

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 127
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 C. Gonzalez 
     18,000(3) 
     -  
    $27.30  
    3/2/27
  
    David C. Gonzalez 
     6,000(4) 
     12,000(4) 
    $28.90  
    10/13/33

    (1)
    Options
    granted March 16, 2010 under the 2010 Incentive Plan, subject to both time- and market-based vesting. Time vesting: 20,000 options
    on each anniversary over five years. Market vesting: increments of 20,000 upon each $2.00 increase over the $10.30 exercise price
    sustained for at least ten trading days during any quarter. As of June 30, 2025, all vesting conditions were satisfied.

72

    (2)
    Options
    granted December 26, 2013 under the 2010 Incentive Plan; non-qualified portion of 133,195 shares originally expiring December 26,
    2023; expiration extended to December 26, 2029 as approved December 21, 2023 (see Note 15). Options vest 20% annually beginning on
    the first anniversary of grant. The separate 26,805 incentive stock options were exercised in 2018.

    (3)
    Options
    granted March 2, 2017; vest 3,600 shares annually over five years.

    (4)
    Options
    granted October 13, 2023; vest 6,000 shares annually over three years (6,000 exercisable; 12,000 unexercisable at June 30, 2025).

Internal
Revenue Code Limitations

Section
162(m) of the Internal Revenue Code generally limits the deductibility of compensation paid by a publicly held corporation to each “covered
employee” to $1,000,000 per taxable year. As amended by the Tax Cuts and Jobs Act and subsequent guidance, the definition of covered
employees includes the principal executive officer, principal financial officer, the three other most highly compensated executive officers,
and anyone who was a covered employee for any taxable year beginning after December 31, 2016. The prior exception for “performance-based
compensation” no longer applies (other than certain grandfathered arrangements).

Because
InterGroup and Portsmouth are each separate publicly held corporations, the