LSB BANCSHARES, INC.
MANAGEMENT INCENTIVE PLAN
EFFECTIVE JANUARY 1, 1996
The LSB Bancshares, Inc. Management Incentive Plan (the "Plan") provides an opportunity for selected key
employees of LSB Bancshares, Inc. ("LSB") and its subsidiaries to earn awards for the achievement of specific
corporate and individual performance goals. The specific purposes of the Plan are:
(a) to attract and retain key employees;
(b) to increase key employees' attention and achievement of specific goals related to the rate of return on the
assets of LSB thereby enhancing the profitability of LSB; and
(c) to reward key employees for their individual and combined contributions to the achievement of specific
performance objectives and strategic goals.
Article II Definitions
The following words or terms used in the Plan and its Exhibits have the indicated meanings:
2.1 Beneficiary or Beneficiaries means a person or persons or other entity designated by a Participant to receive
the payment of a Participant's entitlements under the Plan. If there is no valid designation by the Participant, or if
the designated Beneficiary is not living or in existence at the time of the Participant's death, the Participant's
Beneficiary is the Participant's estate.
2.2 Board means the Board of Directors of LSB.
2.3 Committee means the Stock Option and Compensation Committee of the Board.
2.4 Earned Incentive Award means the actual award a Participant is entitled to receive determined in accordance
with Section 4.3.
2.5 Effective Date means January 1, 1996.
2.6 Eligible Employee means an individual employed by LSB or a Subsidiary in a legal and bonafide relationship
of employer and employee and who is a key employee of LSB or a Subsidiary. An individual is a key employee
of LSB or a Subsidiary if such individual is in a position to affect materially the profitability of LSB or a Subsidiary
by reason of the nature and extent of such employee's duties and responsibilities.