EQUITY COMPENSATION PLANS

AND CAPITAL STOCK

The Company maintains the Friedman Industries, Incorporated

2016

Restricted Stock Plan (the “Plan”). The Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) and continues indefinitely until terminated by the Board or until all shares allowed by the Plan have been awarded and earned. The aggregate number of shares of the Company’s Common Stock eligible for award under the Plan is

500,000

shares. Subject to the terms and provisions of the Plan, the Committee

may,

from time to time, select the employees, directors or consultants to whom awards will be granted and shall determine the amount and applicable restrictions of each award. Forfeitures are accounted for upon their occurrence.

The following table summarizes the activity related to restricted stock awards for the

two

years ended

March 31, 2020:

	Number of Shares			Weighted Average Grant Date Fair Value Per Share
Unvested at March 31, 2018		210,000		$	6.88
Cancelled or forfeited		(50,000	)		6.88
Granted		20,000			8.23
Vested		—			—
Unvested at March 31, 2019		180,000		$	7.03
Cancelled or forfeited		—			—
Granted		90,000			5.05
Vested		—			—
Unvested at March 31, 2020		270,000		$	6.37

Of the

270,000

unvested shares at

March 31, 2020,

160,000

shares have

five

year cliff vesting restrictions with vesting occurring on

January 4, 2022,

20,000

shares have

five

year cliff vesting restrictions with vesting occurring on

April 1, 2024,

20,000

shares have

two

year cliff vesting restrictions with vesting occurring on

March 13, 2021

and

70,000

shares will vest in equal amounts each year for

five

years commencing on

April 1, 2020.

Compensation expense is recognized over the requisite service period applicable to each award. The Company recorded compensation expense of

$332,944

and

$137,598

in fiscal

2020

and

2019,

respectively, relating to the stock awards issued under the Plan. Subsequent to

March 31, 2020,

restricted stock awards of

11,000

shares total were granted with a grant date fair value of

$4.53

per share and

one

year cliff vesting restrictions with vesting occurring on

April 1, 2021.

As of

March 31, 2020,

unrecognized compensation expense related to stock awards was approximately

$885,000,

which is expected to be recognized over a weighted average period of approximately

3.1

years.

The Company has

1,000,000

authorized shares of Cumulative Preferred Stock with a par value of

per share. The stock

may

be issued in

one

or more series, and the Board of Directors is authorized to fix the designations, preferences, rights, qualifications, limitations and restrictions of each series, except that any series must provide for cumulative dividends and must be convertible into Common Stock. There were

shares of Cumulative Preferred Stock issued as of

March

31,

2020

March

31,

2019.