Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 409

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 10
Chunk 409
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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 Section 162(m) limit applies separately to compensation paid
by each entity to its own covered employees. For fiscal years 2025 and 2024, InterGroup did not incur a deduction disallowance under
Section 162(m) based on compensation paid by InterGroup to its covered employees. Compensation paid by Portsmouth is evaluated separately
by Portsmouth.

EQUITY
COMPENSATION PLANS

The
Company currently maintains one equity compensation plan, which was approved by its stockholders. Outstanding awards granted under prior
equity compensation plans, if any, remain in effect in accordance with their terms.

The
Company’s equity plans are intended to align the interests of directors, officers, and key employees with those of stockholders,
support retention and recruitment, and encourage long-term value creation through stock ownership.

The
InterGroup Corporation 2010 Omnibus Employee Incentive Plan

On
February 24, 2010, the shareholders of the Company approved The InterGroup Corporation 2010 Omnibus Employee Incentive Plan (the “2010
Incentive Plan”), which the Board adopted following the annual meeting. As modified in December 2013, the plan authorizes up to
400,000 shares of common stock for awards approved by the Compensation Committee, including stock options, stock appreciation rights,
performance awards, and other stock-based compensation. In December 2019, amendments approved by the Board and stockholders extended
the plan term to twenty years (through February 2030) and permit