12. Stock and Stock Options

In October 2000, the Company approved a Stock Incentive Plan which was effective for a ten-year period commencing on October 25, 2000 and ending on October 24, 2010. The aggregate number of shares of Common Stock as to which options and Stock Appreciation Rights may be granted to participants under the original Plan was not to exceed 7,000,000. An amendment to the Plan increasing the number of shares that may be issued under the Plan by 3,500,000 shares and extending the Plan for another ten years was approved by the Company’s Board of Directors on February 1, 2008 and approved by the Company’s shareholders at the Annual Meeting of Stockholders held on June 2, 2008. On March 21, 2016 at a special meeting of the shareholders, the Plan was amended to permit grant of common stock. Options are not transferable, are exercisable for 3 months after voluntary resignation from the Company, and terminate immediately upon involuntary termination from the Company. The purchase price of shares subject to this Plan shall be determined at the time the options are granted, but are not permitted to be less than 85% of the fair market value of such shares on the date of grant.

On March 21, 2016, the Company’s shareholders approved a 1 for 10 reverse stock split, effective with trading on March 24, 2016. All share and per share information in the following tables has been adjusted to reflect the impact of this reverse stock split.

In August 2018, the Tengasco, Inc. 2018 Stock Incentive Plan (the “2018 Plan”) was adopted to continue to provide an incentive to key employees, officers, directors, and consultants of the Company and its present and future subsidiary corporations, and to offer an additional inducement in obtaining the services of such individuals. The 2018 Plan contains the same substantive terms as the Company’s previous stock incentive plan adopted in October, 2000 and thereafter amended until its expiration on January 10, 2018. The 2018 Plan provided an aggregate number of shares for which shares, options, and stock appreciation rights may be issued equal to the number of shares that had been available for issuance in the previous plan upon expiration. The 2018 Plan was approved by a majority of the Company’s shareholders acting on written consents and the shares thereunder were subject to Registration Statement on Form S-8 filed August 27, 2018.

The following table summarizes stock option activity in 2018 and 2017:



	2018			2017
		Weighted			Weighted
		Average			Average
		Exercise			Exercise
	Shares	Price		Shares	Price
Outstanding, beginning of year	30,000	$	3.73	37,500	$	4.70
Granted	—	$	—	—	$	—
Exercised	—	$	—	—	$	—
Expired/cancelled	(13,125)	$	4.43	(7,500)	$	8.40
Outstanding, end of year	16,875	$	3.18	30,000	$	3.73
Exercisable, end of year	16,875	$	3.18	30,000	$	3.73

The following table summarizes information about stock options outstanding and exercisable at December 31, 2018:



Weighted Average Exercise Price		Options Outstanding (shares)	Weighted Average Remaining Contractual Life (years)	Options Exercisable (shares)
$	4.10	1,875	—	1,875
$	4.80	1,875	0.2	1,875
$	4.40	1,875	0.5	1,875
$	4.40	1,875	0.8	1,875
$	2.50	1,875	1.0	1,875
$	2.30	1,875	1.2	1,875
$	2.70	1,875	1.5	1,875
$	2.20	1,875	1.8	1,875
$	1.20	1,875	2.0	1,875
		16,875		16,875

During 2018 and 2017, the Company issued no additional options to each of the three non-executive directors.

In addition, during 2018, the Company issued 19,366 shares of common stock to the Directors and to the CEO. The shares issued to Directors was in lieu of stock options and vested immediately. The shares issued to the CEO was in lieu of a portion of the quarterly cash payment paid for service as the Company’s CEO and vested immediately. The company recorded compensation expense of approximately $23,000 as a result of the stock issuances. In addition, during 2017, the Company issued 23,503 shares of common stock to the Directors and to the CEO. The shares issued to Directors was in lieu of stock options and vested immediately. The shares issued to the CEO was in lieu of a portion of the quarterly cash payment paid for service as the Company’s CEO and vested immediately. The company recorded compensation expense of approximately $14,000 as a result of the stock issuances.