Stock Option Plan

9 Months Ended

Jun. 30, 2013

Note 9. Stock Option Plan

On December 15, 2010, the Board of Directors adopted the 2010 Stock Option Plan. The 2010 Stock Option Plan will provide Fairmount’s directors and key employees with a proprietary interest in Fairmount as an as incentive to contribute to its success. The Board of Directors of the Company may grant options to eligible employees and non-employee directors based on these factors. Plan participants will vest in their options at a rate of no more rapid than 20% per year over a five year period, beginning on the grant date of the option. Vested options will have an exercise period of ten years commencing on the date of grant. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested options shall be forfeited. The Company recognizes compensation expense during the vesting period based on the fair value of the option on the date of the grant. The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option-pricing model. As of June 30, 2013, 37,760 options have been granted to eligible employees and non-employee directors. For the three and nine months ended June 30, 2013, the Company recognized $14,094 and $23,553, respectively of compensation expense related to the stock options granted. No compensation expense has been recorded for the three and nine months ended June 30, 2012.

A summary of the Stock Option Plan during the nine months ended June 30, 2013:


	Number of Shares		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Outstanding at September 30, 2012		37,760		—
Granted		—	$	14.10	$	4.99

Outstanding at June 30, 2013		37,760

Options Exercisable at June 30, 2013		7,552	$	14.10	$	4.99

Fairmount Bancorp, Inc. 10-Q