|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the CSBC DEF 14A filed Apr 10, 2008. Stock
Options. A stock option
gives the recipient or “optionee” the right to purchase shares of common stock
at a specified price for a specified period of time. The exercise
price may not be less than the fair market value on the date the stock option is
granted. Fair market value for purposes of the Equity Plan means the
final sales 34
price of
Citizens South Banking Corporation’s common stock as reported on the Nasdaq Global Market on the
date the option is granted, or if Citizens South Banking Corporation’s common
stock was not traded on such date, then on the day prior to such date or on the
next preceding day on which Citizens South Banking Corporation’s common stock
was traded, and without regard to after-hours trading activity. The
Committee will determine the fair market value, in accordance with Section 422
of the Internal Revenue Code, if it cannot be determined in the manner described
above.
Stock
options are either “incentive” stock options or “non-qualified” stock
options. Incentive stock options have certain tax advantages and must
comply with the requirements of Section 422 of the Internal Revenue
Code. Only employees are eligible to receive incentive stock
options. Shares of common stock purchased upon the exercise of a
stock option must be paid for in full at the time of exercise (i) either in cash
or with stock of Citizens South Banking Corporation that was owned by the
participant for at least six months prior to delivery, or (ii) by reduction in
the number of shares deliverable pursuant to the exercise of the stock option,
or (iii) through a “cashless exercise” through a third party. Cash
may be paid in lieu of any fractional shares under the Equity
Plan. Stock options are subject to vesting conditions and
restrictions as determined by the Committee.
|
| |||||||
