Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 1034

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 3
Chunk 1034
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”) and non-statutory stock options (“NSSOs”),
restricted stock awards, restricted stock units (“RSUs”),
performance stock awards, stock appreciation rights (“SARs”), other equity-based awards and performance bonuses. Awards are
memorialized in an award agreement and are subject to the conditions, restrictions and contingencies specified by the board of directors
in such an agreement (and the 2024 Equity Plan). The board of directors of Bancorp 34, in its capacity as Administrator, in its sole
discretion, will determine who receives awards under the 2024 Equity Plan. Except for incentive stock options, awards under the 2024
Equity Plan may be granted to employees of Bancorp 34 and its affiliates, nonemployee directors of Bancorp 34 and consultants who provide
bona fide services for Bancorp 34 or an affiliate as a consultant or advisor and who are not employees or non-employee directors. Incentive
stock options may be granted only to employees of Bancorp 34 or its affiliates.

Stock
Options. Options can be issued as ISOs or NSSOs. ISOs are options to purchase our common stock
that receive tax benefits under Section 422 of the Code. NSSOs are options to purchase our common stock that do not meet those requirements.
As a general rule, the exercise price of each option must be at least 100% (or, in the case of an ISO granted to a 10% or more stockholder,
110%) of the fair market value of a share on the date of grant. A higher or lower exercise price may be permissible in connection with
a merger or other corporate transaction if it would not violate Section 409A of the Code. The maximum term of any option is ten years
from the date of grant (or five years, for ISOs granted to a 10% or more stockholder).

Unless otherwise provided
in an option award agreement, all of a participant’s outstanding options (whether or not vested) will immediately terminate and
cease to be exercisable if an executive engages in a “detrimental activity” under the Plan. For purposes of the Plan, “detrimental
activity” means any conduct or act determined to be materially injurious, detrimental or prejudicial to the reputation or financial
position of the Company or any of its affiliates, as determined by the Administrator.

Restricted
Stock. A restricted stock award can be issued as a restricted stock award or restricted stock
unit.