Company: FMFG
Filing Date: 2025-03-13
Form Type: PREC14A
Source: 0001437749-25-007538
Chunk: 30

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-03-13
Form: PREC14A
Chunk 30
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 is a party to any written employment agreement with the Company or the Bank. Each executive officer is paid a base salary, participates in a bonus program, is eligible to receive awards under the Farmers and Merchants Bancshares, Inc. 2023 Equity Compensation Plan (the “Equity Plan”), and participates in various employee benefit plans and programs to the extent the executive officer qualifies for such participation under the terms and conditions of the benefit plans, including the Bank’s 401(k) profit sharing plan. Any employee, including an executive officer, may elect to waive coverage under the Bank’s health insurance plan, in which case he or she will be entitled to receive an amount in cash equal to $150 for each month the employee did not participate in the Bank’s health insurance plan. Messrs. Harris and Oswald are additionally eligible to receive benefits under the Bank’s bank-owned life insurance (“BOLI”) plan and Supplemental Executive Retirement Plan Agreements, as described below. Messrs. Harris and Krebs are eligible to receive benefits under Severance Agreements under certain circumstances, as described below, and Mr. Krebs is additionally eligible to receive benefits under a Retirement Agreement under certain circumstances, as described below.

Base salary for each executive is set annually by the Bank Board, upon the recommendation of its Compensation Committee. The 2025 salary levels for the named executive officers have been set at $322,922 for Mr. Harris and $230,817 for Mr. Krebs.

Bonus Program

The Bank Board has implemented a bonus program under which certain officers are entitled to share each year in a bonus pool the amount of which is based on the Bank’s net income for that year. Participation is available to the CEO, President, Executive Vice Presidents, Senior Vice Presidents and Vice Presidents, other than Senior Vice Presidents and Vice Presidents who are involved in lending activities. The bonus pool amount is determined as follows:

| Net Income (in millions) |       |       |     | Bonus Pool          |     | Bonus Pool Range |   |          |
| Less than                | $4.50 |       |     | 0.00% of Net Income |     |               $0 |   |          |
| $4.50                    |    to | $5.25 |     | 2.20% of Net Income |     |          $99,000 | - | $115,500 |
| $5.25                    |    to | $6.00 |     | 2.75% of Net Income |