NOTE F

— STOCK BASED COMPENSATION

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

six

months ended

September 30, 2019:

	Number of Shares		Weighted Average Grant Date Fair Value Per Share
Unvested at March 31, 2019		180,000	$	7.03
Cancelled or forfeited		—		—
Granted		20,000		7.62
Vested		—		—
Unvested at September 30, 2019		200,000	$	7.09

Of the

200,000

unvested shares at

September 30, 2019,

160,000

shares have

five

year cliff vesting restrictions with vesting occurring on

January 4, 2022,

20,000

shares have

two

year cliff vesting restrictions with vesting occurring on

March 13, 2021

and

20,000

shares have

five

year cliff vesting restrictions with vesting occurring on

April 1, 2024.

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

$166,472

and

$144,480

six

months ended

September 30, 2019

and

2018,

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