10. STOCK COMPENSATION PLAN

Long-Term Incentive Plan

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The Company maintains the 2016 Long-Term Incentive Plan (the “Plan”); the Plan amended and restated the former 2011 Stock Option Plan (the “2011 Plan”). All remaining awards under the 2011 Plan expired on February 17, 2025. The Plan expanded the types of awards authorized by the 2011 Plan to include, among other awards, restricted stock. Under the provisions of the Plan, awards may consist of grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock and performance shares to officers and key employees of the Company, as well as directors. The Plan is administered by the Personnel and Compensation Committee of the Board of Directors.

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The maximum number of shares of common stock that may be issued under the Plan is 300,000 shares, and 190,005 shares remained available for grant as of June 30, 2025. Shares of common stock issued under the Plan may be treasury shares or authorized but unissued shares. Forfeited awards are returned to the pool of shares available for grant for future awards.

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Through the six months ended June 30, 2025, 13,625 restricted shares were awarded to certain officers and all directors. Each of the awards vest after three-years, with no interim vesting. As of June 30, 2025, there was $260,000 of unrecognized compensation cost related to all non-vested restricted stock awards. This cost is expected to be recognized over the vesting period through February 2028.

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Compensation expense for stock options granted and restricted stock awarded is measured using the fair value of the award on the grant date and is recognized over the vesting period. The Company recognized stock-based compensation expense for the three and six months ended June 30, 2025 of $38,000 and $75,000, respectively, and for the three and six months ended June 30, 2024 of $36,000 and $70,000, respectively.

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The following table presents a summary of the status of the Company’s non-vested restricted stock awards as of June 30, 2025. Changes during the period then ended are presented further below:

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No stock options were awarded during the six months ended June 30, 2025. All previously granted stock options have vested, and all remaining options previously granted under the Plans expired on February 17, 2025.

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As of June 30, 2025, there was no unrecognized compensation cost related to options granted under the Plan, and no options were exercised under the Plan during the period.

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A summary of the status of the outstanding stock options as of June 30, 2025, and changes during the period then ended, is presented below:

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Employee Stock Purchase Plan

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The Company has an Employee Stock Purchase Plan under which employees, through payroll deductions, may purchase shares of Company stock annually. The option price of the stock purchases is between 95% and 100% of the fair market value of the stock on the offering termination date as determined annually by the Board of Directors. The maximum number of shares which employees may purchase under the Plan is 250,000; however, the annual issuance of shares may not exceed 5,000 shares plus any unissued shares from prior offerings. There were 2,402 shares issued from treasury under this plan during the three and six months ended June 30, 2025 and 2,866 shares issued from treasury under this plan during the three and six months ended June 30, 2024. As of June 30, 2025, there were 147,152 shares reserved for issuance under the Employee Stock Purchase Plan.