Company: FMFG
Filing Date: 2025-05-23
Form Type: S-1
Source: 0001437749-25-018314
Chunk: 20

Company: Farmers & Merchants Bancshares, Inc.
Filing Date: 2025-05-23
Form: S-1
Chunk 20
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 applicable laws and may require the payment by the participant of applicable taxes.

| 16. | In whose name will accounts be maintained? |

An account will be maintained in each participant’s name as shown on our stockholder records at the time the participant joins the Plan. When shares are sold under the Plan, those shares will be registered in the name of the person or entity who holds the account.

Changing Method of Participation and Withdrawal

| 17. | How does a participant change his or her method of participation? |

A participant may change his or her method of participation at any time through the Administrator’s website at or by completing a new Authorization Form and sending it to the Company, who will then forward it directly to the Administrator for processing. See Question No. 31 for information regarding how to contact the Administrator. The change will apply as of the next dividend payment date after the Administrator receives the new instructions, provided that the Authorization Form has been received by the Administrator prior to the record date for that next dividend.

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| 18. | May a participant withdraw from the Plan? |

Yes. The Plan is entirely voluntary and a participant may withdraw at any time.

If the request to withdraw is received by the Administrator prior to record date for a dividend, then the amount of the dividend that would otherwise have been invested will be paid as soon as practicable to the withdrawing participant. Thereafter, all dividends will be paid in cash. A stockholder may re-enroll in the Plan at any time.

| 19. | How does a participant withdraw from the Plan? |

To withdraw from the Plan, a participant must notify the Administrator that he or she wishes to withdraw. Please see Question No. 31 for information about contacting the Administrator.

Federal Income Tax Consequences

| 20. | What are the Federal income tax consequences of participation in the Plan? |

A participant will be treated for Federal income tax purposes as having received on each dividend payment date the full amount of the cash dividend, if any, payable on that date with respect to shares of common stock owned by the participant, including shares registered in the participant’s name and shares held for the participant’s Plan account, even though that amount is not actually received by the participant in cash but is instead applied to the purchase of new shares for the participant’s account. In addition, if we offer a discount on the price at which shares are purchased under the Plan, then participants will generally be treated for Federal income tax purposes as