LSB BANCSHARES INC /NC/
EX-10.1
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<TYPE>EX-10.1
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<DESCRIPTION>EX-10.1
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<P align="right" style="font-size: 10pt"><B>EXHIBIT 10.1</B>



<P align="center" style="font-size: 10pt"><B>COMPREHENSIVE EQUITY COMPENSATION PLAN<BR>
FOR DIRECTORS AND EMPLOYEES</B>



<P align="center" style="font-size: 10pt"><B>STOCK OPTION AWARD AGREEMENT FOR A DIRECTOR</B>



<P align="center" style="font-size: 10pt"><B>LSB BANCSHARES, INC.</B>


<P align="left" style="font-size: 10pt">Participant: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


<P align="left" style="font-size: 10pt">Number of shares subject to this Non-Qualified Stock Option: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


<P align="left" style="font-size: 10pt">Date of this Award:<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


<P align="left" style="font-size: 10pt">Purchase price per Share: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><I>(must be at least equal to the closing selling price
per Share on the date of this Award, as quoted on the Nasdaq National Market)</I>


<P align="left" style="font-size: 10pt">Expiration date of this Option: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


<P align="left" style="font-size: 10pt">This Non-Qualified Stock Option is being awarded to the Participant in
connection with his or her service as a member of the Board of Directors of the
Company or an Affiliate.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AWARD AGREEMENT is between LSB Bancshares, Inc., a North Carolina
corporation (the &#147;Company&#148;), and the above-named Participant (&#147;Participant&#148;),
and is made pursuant and subject to the provisions of the LSB Bancshares, Inc.
Comprehensive Equity Compensation Plan for Directors and Employees (the
&#147;Plan&#148;), a copy of which has been furnished to Participant. All capitalized
terms used but not defined herein have the same meaning given them in the Plan.


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Grant of Option. </B>Subject to the provisions of the Plan and
this Award Agreement, the Company&#146;s Stock Option and Compensation
Committee (the &#147;Committee&#148;) hereby grants to the Participant the
right and Option to purchase from the Company all or any part of the
number of Shares specified above (the &#147;Award Shares&#148;) at the
Exercise Price per Share specified above (the &#147;Exercise Price&#148;).
This Option is a Non-Qualified Stock Option. This Option is
exercisable as hereinafter provided. Except as explicitly modified
hereby, this Option is subject to all of the terms and conditions of
the Plan.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Terms and Conditions. </B>This Option is subject to the
following terms and conditions:</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Expiration Date. </I>This Option shall expire on the
expiration date specified above (the &#147;Expiration Date&#148;). This
Option may not in any event be</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
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    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>exercised on or after the tenth anniversary of the date of
this Award specified above (the &#147;Date of Grant&#148;).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Exercise of Option. </I>This Option shall be
exercisable with respect to all of the Award Shares beginning
on the date that is six months after the Date of Grant. To
the extent this Option has become exercisable in accordance
with the preceding sentence:</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Option shall continue to be
exercisable until the earlier of:</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The termination of
Participant&#146;s rights hereunder pursuant to
paragraph 3, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Expiration Date; and</TD>
</TR>

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    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Participant may exercise the
Option at any time and from time to time with respect to
all or any portion of the Award Shares, and a partial
exercise of this Option shall not affect the
Participant&#146;s right to exercise this Option with respect
to the remaining Award Shares subject to the conditions
of the Plan and this Award Agreement.</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Method of Exercising Option. </I>In order to
exercise this Option in whole or in part, the Participant
shall deliver to the attention of the Company&#146;s Secretary at
the address specified in paragraph 5:</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notice of exercise in such form as
shall be acceptable to the Secretary. The notice must
specify the number of Shares with respect to which the
Option is being exercised; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Payment in full of the Exercise Price
for such Shares in the form or forms permitted under
paragraph (d)&nbsp;below and in an amount equal to the number
of such Shares times the Exercise Price.</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The date the Company receives the full Exercise Price for
such Shares shall be deemed to be the &#147;Exercise Date&#148; for
purposes of this Award Agreement.* If the person exercising
the Option is not the Participant, in addition to the above
items the Company may require appropriate documentation
evidencing such person&#146;s right to exercise this Option.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Payment for Shares. </I>Upon the exercise of this
Option, the Participant shall pay the Company the Exercise
Price for the Shares being purchased in one or more of the
following forms:</TD>
</TR>

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<P align="left" style="font-size: 10pt"><HR align="left" size="1" noshade width="25%">


<DIV align="left" style="font-size: 10pt">* Subject to changes in applicable Federal tax laws and regulations, in the
case of an exercise of the Option by the Participant the Company will treat the
excess of the Fair Market Value of the Shares purchased over the Exercise Price
for such Shares as the amount reportable to the Internal Revenue Service as
taxable income to the Participant.
</DIV>


<P align="center" style="font-size: 10pt">2
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In cash or check payable to the
Company&#146;s order;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By the surrender of Shares with an
aggregate Fair Market Value on the Exercise Date which,
together with any cash or cash equivalent paid, is equal
to the Exercise Price for the Shares being purchased;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By directing the Company to reduce
the number of Shares issued upon such exercise of the
Option to the extent necessary to cover the Exercise
Price for the Shares being purchased, based on the
Shares&#146; Fair Market Value on the Exercise Date; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Through a special sale and remittance
procedure pursuant to which Participant shall provide
irrevocable written instructions:</TD>
</TR>

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<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To a Participant-designated securities brokerage firm
to effect the immediate sale of the Shares
purchased under the Option and remit to the
Company the Exercise Price for such Shares (plus
all applicable Federal, state and local income
taxes required to be withheld by the Company by
reason of such exercise to the extent the
Participant has not made other arrangements with
the Company for such taxes); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To the Company to deliver
the certificates for the purchased Shares directly
to such brokerage firm in order to complete the
sale.</TD>
</TR>

</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For purposes of clauses (ii)&nbsp;and (iii)&nbsp;of this paragraph,
Fair Market Value shall mean the closing selling price per
Share reported on the Nasdaq National Market on the trading
day immediately preceding the Exercise Date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Nontransferability. </I>This Option may not be
transferred except by will or by the laws of descent and
distribution. During Participant&#146;s lifetime, this Option may
be exercised only by Participant.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exercise Following Death or Termination of Employment. </B>The
provisions of Section 6(g) of the Plan shall apply to this Award
Agreement without modification.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Withholding. </B>To the extent federal, state and/or local
income and employment tax withholding requirements should apply upon
the exercise of this Option, Participant hereby agrees to make
appropriate arrangements with the Company for the satisfaction of
such withholding requirements.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Notices. </B>Any notice or other communication given pursuant to
this Agreement shall be in writing and shall be personally
delivered, sent by overnight delivery</TD>
</TR>

</TABLE>


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</TABLE>

<P align="center" style="font-size: 10pt">3
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<P align="left" style="margin-left:5%; font-size: 10pt">service, or mailed by United States registered or certified mail,
postage prepaid, return receipt requested, to the following
addresses:

<DIV align="center">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to the Company:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LSB Bancshares, Inc.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">One LSB Plaza</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lexington, North Carolina 27293-0867</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Secretary</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to Participant:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Participant&#146;s address of record with the Company.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Participant agrees to notify the Company of any change
of address)</TD>
</TR>

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</DIV>



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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding the foregoing, the Company in its discretion may
allow the Participant to provide any notice or other communication
pursuant to this Agreement in another form, including but not
limited to oral or electronic form.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Fractional Shares. </B>Fractional shares shall not be issuable
hereunder, and when any provision hereof may entitle Participant to
a fractional share such fractional share shall be disregarded.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Shareholder Rights. </B>The holder of this Option shall not
have any shareholder rights with respect to any of the Award Shares
until such person shall have properly exercised this Option, paid
the Exercise Price for such Award Shares and become a holder of
record of such Award Shares, and then only with respect to such
Award Shares so purchased by such holder.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Entitlement or Claims for Compensation. </B>The grant of
Awards under the Plan is made at the discretion of the Committee,
and the Plan may be suspended or terminated by the Company at any
time. The grant of an Award in one year or at one time does not in
any way entitle Participant to an Award grant in the future. The
Plan is wholly discretionary in nature and is not to be considered
part of the Participant&#146;s normal or expected compensation subject to
severance, resignation, redundancy or similar compensation.
Participant shall have no rights to compensation or damages as a
result of Participant&#146;s cessation of Service for any reason
whatsoever, whether or not in breach of contract, insofar as those
rights arise or may arise from Participant&#146;s ceasing to have rights
under or be entitled to exercise this Option as a result of such
cessation or from the loss or diminution in value of such rights.
If Participant did acquire any such rights, Participant is deemed to
have waived them irrevocably by accepting the Option.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Change in Capital Structure. </B>The terms of this Option are
subject to adjustment by the Committee as provided in the Plan,
including but not limited to Section 5(e) thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Governing Law. </B>This Agreement shall be governed by the laws
of the State of North Carolina.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">4
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Compliance with Laws. </B>The exercise of this Option and the
issuance of Shares upon such exercise shall be subject to compliance
by the Company and Participant with all applicable requirements of
law relating thereto and with all applicable regulations of the
Nasdaq National Market (or any stock exchange on which the Shares
may be listed and trading at the time of such exercise and
issuance). The inability of the Company to obtain approval from any
regulatory body having authority deemed by the Company to be
necessary to the lawful issuance and sale of any Shares pursuant to
this Option shall relieve the Company of any liability with respect
to the non-issuance or sale of the Shares as to which such approval
shall not have been obtained. The Company, however, shall use its
best efforts to obtain all such approvals.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Conflicts. </B>In the event of any conflict between the
provisions of the Plan as in effect on the date hereof and the
provisions of this Award Agreement, the provisions of the Plan shall
govern. All references herein to the Plan shall mean the Plan as in
effect on the date hereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Participant Bound by Plan. </B>Participant hereby acknowledges
receipt of a copy of the Plan and agrees to be bound by all the
terms and provisions thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Binding Effect. </B>Subject to the limitations stated above and
in the Plan, this Agreement shall be binding upon and inure to the
benefit of the legatees, distributees, and personal representatives
of Participant and the successors of the Company.</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt">IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by a
duly authorized officer, and Participant has affixed his signature hereto.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">LSB BANCSHARES, INC.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="65%"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Robert F. Lowe, President</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="65%"></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">PARTICIPANT</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><HR align="left" size="1" noshade width="25%"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="20%"></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">5
</DIV>

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