Document:

EXHIBIT 4.2

        ELDORADO GOLD CORPORATION

        INCENTIVE STOCK OPTION PLAN

        OFFICERS & DIRECTORS

        Amended and Restated 

        as of May 7, 2009

         

        
            	
                        1.

                    	
                        Purpose of the Plan

                    

        

        1.1       The purpose of the Plan is to (a) attract and retain superior directors and officers engaged to provide ongoing services to the Company, to provide an incentive for such persons to put forth maximum effort for the continued success and growth of the Company, and in combination with these goals, to encourage their equity participation in the Company; and
        (b) closely align the personal interests of such directors and officers with those of the shareholders by providing them with the opportunity, through options, to acquire common shares in the capital of the Company.

        
            	
                        2.

                    	
                        Definitions

                    

        

        2.1       For the purposes of the Plan, the following terms have the respective meanings set forth below:

        
            	
                         

                    	
                        (a)

                    	
                        “Affiliate” has the same meaning ascribed to that term as set out in the OSA;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        “Associate” has the same meaning ascribed to that term as set out in the OSA;

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        “Black-Out Period” means that period during which a trading black-out period is imposed by the Company to restrict trades in the Company’s securities by an Eligible Person or Permitted Assign; 

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        “Board” means the board of directors of the Company;

                    

        

        
            	
                         

                    	
                        (e)

                    	
                        “Change of Control” means:

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        an acquisition of 40% or more of the voting rights attached to all outstanding voting shares of the Company by a person or combination of persons acting in concert by virtue of an agreement, arrangement, commitment or understanding, or by virtue of a related series of such events, and whether by transfer of existing shares or by issuance of shares from
                        treasury or both; or

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        the amalgamation, consolidation or combination of the Company with, or merger of the Company into, any other person, whether by way of amalgamation, arrangement or otherwise, unless (1) the Company is the surviving person or the person formed by such amalgamation, 

                    

        

         

        

        
            

        

        
            

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        consolidation or combination, or into which the Company has merged, is a corporation and (2) immediately after giving effect to such transaction at least 60% of the voting rights attached to all outstanding voting shares of the Company or the corporation resulting from such amalgamation, consolidation or combination, or into which the Company is merged, as the case may be are owned by
        persons who held at least 60% of the voting rights attached to all outstanding voting shares of the Company immediately before giving effect to such transaction; or 

        
            	
                         

                    	
                        (iii)

                    	
                        the direct or indirect transfer, conveyance, sale, lease or other disposition, by virtue of a single event or a related series of such events, of 90% or more of the assets of the Company based on gross fair market value to any person unless (1) such disposition is to a corporation and (2) immediately after giving effect of such disposition, at least 60%
                        of the voting rights attached to all outstanding voting shares of such corporation are owned by the Company or its affiliates or by persons who held at least 60% of the voting rights attached to all outstanding voting shares of the Company immediately before giving effect to such disposition; or

                    

        

        
            	
                         

                    	
                        (iv)

                    	
                        individuals who are elected by the shareholders to the Board at the beginning of any one year term to constitute the directors of the Company cease for any reason in such year to constitute at least 50% of the Board;

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        “Company” means Eldorado Gold Corporation;

                    

        

        
            	
                         

                    	
                        (g)

                    	
                        “Compensation Committee” means the compensation committee of the Board and if there is none, means the full Board;

                    

        

        
            	
                         

                    	
                        (h)

                    	
                        “Eligible Person” means, from time to time, any director or officer of the Company; 

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        “Exchange” means, if the Shares are listed on the TSX, the TSX and, if the Shares are not listed on the TSX, any other principal exchange upon which the Shares are listed; 

                    

        

        
            	
                         

                    	
                        (j)

                    	
                        “Grant Date” has the meaning ascribed to that term in Subsection 5.1 hereof; 

                    

        

        
            	
                         

                    	
                        (k)

                    	
                        “Insider” has the meaning ascribed to that term as set out in the OSA and includes Associates and Affiliates of an Insider, but excludes a director or officer of a subsidiary or Affiliate of the Company unless such director or senior officer 

                    

        

        
            	
                         

                    	
                        (i)

                    	
                        in the ordinary course receives or has access to information as material facts or material changes concerning the Company before the material facts or material changes are generally disclosed; 

                    

        

        
            	
                         

                    	
                        (ii)

                    	
                        is a director or senior officer of a major subsidiary (as defined in National Instrument 55-101); or

                    

        

        

        

        

        

        

        
            

        

        
            

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                        (iii)

                    	
                        is an Insider of the Company in a capacity other than as a director or senior officer of the subsidiary or Affiliate;

                    

        

        
            	
                         

                    	
                        (l)

                    	
                        “Market Value” of a Share means, on any given day, the closing board lot sale price per share of Shares on the Exchange on the trading day immediately preceding the relevant date and if there was not a board lot sale on the Exchange on such date, then the last board lot sale prior thereto;

                    

        

        
            	
                         

                    	
                        (m)

                    	
                        “NI 45-106” means National Instrument 45-106 – Prospectus and Registration Exemptions;

                    

        

        
            	
                         

                    	
                        (n)

                    	
                        “Option” means an option, granted pursuant to Section 5 hereof, to purchase a Share;

                    

        

        
            	
                         

                    	
                        (o)

                    	
                        “OSA” means the Securities Act (Ontario);

                    

        

        
            	
                         

                    	
                        (p)

                    	
                        “Option Period” has the meaning ascribed to that term in Subsection 6.3 hereof;

                    

        

        
            	
                         

                    	
                        (q)

                    	
                        “Option Price” means the price per Share at which Shares may be purchased under the Option, as determined pursuant to Paragraph 5.1(b) hereof and as may be adjusted in accordance with Section 10 hereof;

                    

        

        
            	
                         

                    	
                        (r)

                    	
                        “Optionee” means an Eligible Person to whom an Option has been granted;

                    

        

        
            	
                         

                    	
                        (s)

                    	
                        “Permitted Assign” means for an Eligible Person, a holding entity (as defined in Section 2.22 of NI 45-106) or an RRSP or RRIF of that person;

                    

        

        
            	
                         

                    	
                        (t)

                    	
                        “Plan” means the Incentive Stock Option Plan of the Company as set forth herein as the same may be amended and/or restated from time to time;

                    

        

        
            	
                         

                    	
                        (u)

                    	
                        “Securities Regulators” has the meaning ascribed to that term in Section 11 hereof; 

                    

        

        
            	
                         

                    	
                        (v)

                    	
                        “Share” means, subject to Section 10 hereof, a Common share without nominal or par value in the capital of the Company; 

                    

        

        
            	
                         

                    	
                        (w)

                    	
                        “Shareholder” means a registered holder of Shares of the Company; and

                    

        

        
            	
                         

                    	
                        (x)

                    	
                        “TSX” means the Toronto Stock Exchange.

                    

        

        2.2       Unless otherwise indicated, all dollar amounts referred to in this Option Plan are in Canadian funds.

        2.3       As used in this Plan, words importing the masculine gender shall include the feminine and neuter genders, words importing the singular shall include the plural and vice versa, unless the context otherwise requires and references to person includes any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship, company or
        corporation (with 

         

        
            

        

        
            

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        or without share capital), unincorporated association, trust, trustee, executor, administrator or other legal representative.

        
            	
                        3.

                    	
                        Administration of the Plan

                    

        

        
            	
                        3.1

                    	
                        The Plan shall be administered by the Compensation Committee.

                    

        

        3.2       The Chief Executive Officer of the Company shall periodically make recommendations to the Compensation Committee as to the grant of Options.

        3.3       The Compensation Committee shall, periodically, after considering the Chief Executive Officer’s recommendations, make recommendations to the Board as to the grant of Options. 

        3.4       In addition to the powers granted to the Board under the Plan and subject to the terms of the Plan, the Board shall have full and complete authority to grant Options, to interpret the Plan, to prescribe such rules and regulations as it deems necessary for the proper administration of the Plan and to make such determinations and to take such actions in
        connection therewith as it deems necessary or advisable. Any such interpretation, rule, determination or other act of the Board shall be conclusively binding upon all persons.

        3.5       The Board may authorize one or more officers of the Company to execute and deliver and to receive documents on behalf of the Company.

        
            	
                        4.

                    	
                        Shares Subject to the Plan

                    

        

        4.1       The maximum aggregate number of Shares issuable pursuant to Options granted under the Plan and outstanding from time to time shall not exceed that number which represents 4% of the issued and outstanding Shares from time to time. 

        4.2       The total number of Shares that may be reserved for issuance to any one Optionee pursuant to Options shall not exceed 1% of the Shares of the Company issued and outstanding on a non-diluted basis on the Grant Date of the Options.

        4.3       The total number of Shares that may be reserved for issuance to all non-executive directors pursuant to Options shall not exceed three-quarters of one percent (0.75%) of the Shares outstanding on a non-diluted basis on the Grant Date of the Options. Within any one financial year period, the total value of Options granted to a non-executive director, as
        determined by the Board on the Grant Date, shall not exceed $100,000. Notwithstanding Subsection 5.1, in determining those non-executive directors entitled to grants of Options and the number of Options to be granted to non-executive directors, the Board shall not discriminate against any particular non-executive director and shall make such determinations in accordance with its duties to act honestly and in good faith with a view to
        the best interest of the Company.

        
            	
                        4.4

                    	
                        Notwithstanding anything in this Plan to the contrary:

                    

        

        
            	
                         

                    	
                        (a)

                    	
                        the maximum number of Shares issuable pursuant to Options granted under the Plan to Insiders together with the number of Shares issuable to Insiders pursuant to Options granted under the Company’s Employees, Consultants & Advisors 

                    

        

         

        
            

        

        
            

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        Incentive Stock Option Plan (as may be amended and restated from time to time) and any other security based compensation arrangements shall not exceed 9% of the Shares issued and outstanding on a non-diluted basis at the Grant Date of the Options; and

        
            	
                         

                    	
                        (b)

                    	
                        within any one-year period, the maximum number of Shares issued pursuant to Options granted under the Plan to Insiders, together with the number of Shares issued to Insiders pursuant to Options granted under the Company’s Employees, Consultants & Advisors Incentive Stock Option Plan (as may be amended and restated from time to time) and any
                        other security based compensation arrangements shall not exceed 9% of the Shares issued and outstanding on a non-diluted basis.

                    

        

        Any entitlement to acquire Shares granted pursuant to the Plan or otherwise prior to the grantee becoming an Insider shall be excluded for the purpose of the limits set out above.

        4.5       Options may be granted in respect of authorized and unissued Shares. Shares in respect of which Options have expired, were exercised, cancelled or otherwise terminated for any reason shall be available for subsequent Options under the Plan and in the case of exercised Options, the Company shall reserve
        additional Shares for issuance pursuant to such Options.

        
            	
                        4.6

                    	
                        No fractional Shares may be purchased or issued under the Plan.

                    

        

        
            	
                        5.

                    	
                        Grants of Options

                    

        

        5.1       Subject to the provisions of the Plan, the Board shall, in its sole discretion and from time to time, determine those Eligible Persons to whom Options shall be granted and the date on which such Options are to be granted (the “Grant Date”). The Board shall also determine, in its sole discretion, in connection with each grant of Options:

        
            	
                         

                    	
                        (a)

                    	
                        the number of Options to be granted;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        the Option Price applicable to each Option, provided that the Option Price shall not be less than the Market Value per Share on the Grant Date; and

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        the other terms and conditions (which need not be identical and which, without limitation, may include non-competition provisions) of all Options covered by any grant.

                    

        

        
            	
                        6.

                    	
                        Eligibility, Vesting and Terms of Options

                    

        

        
            	
                        6.1

                    	
                        Options may be granted to Eligible Persons only.

                    

        

        6.2       Subject to the adjustments provided for in Section 10 hereof, each Option shall entitle the Optionee to purchase one Share.

        6.3       The option period (the “Option Period”) of each Option commences on the Grant Date and expires no later than at 4:30 p.m. Vancouver time on the fifth anniversary of the Grant Date. 

         

        
            

        

        
            

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        If an Option expires during a Black-Out Period then, notwithstanding any other provision of the Plan, the Option shall expire 10 business days after the Black-Out Period is lifted by the Company.

        6.4       Without restricting the authority of the Board in respect of the terms of Options to be granted hereunder, the Board may at its discretion, in respect of any such Option, provide that the right to exercise such Option will vest in instalments over the life of the Option, with the Option being fully-exercisable only when such required time period or periods
        have elapsed, and in connection therewith determine the terms under which vesting of the Options may be accelerated.

        
            	
                        6.5

                    	
                        Notwithstanding Section 6.4, Options shall vest immediately upon a Change of Control.

                    

        

        6.6       Pursuant to the Company’s Compensation Policy for non-executive directors, at the discretion of the Board, non-executive directors may be granted up to a maximum of 100,000 fully vested Options upon initial election or appointment to the Board.

        6.7       Subject to Section 8, an Option which is not subject to vesting, may be exercised (in each case to the nearest full Share) at any time during the Option Period. Subject to Section 8, an Option which is subject to vesting, may once vested, be exercised (in each case to the nearest full Share) at any time during the Option Period.

        6.8       An Option is personal to the Optionee and is non-assignable and non-transferable otherwise than:

        
            	
                         

                    	
                        (a)

                    	
                        by will or by the laws governing the devolution of property in the event of death of the Optionee; or

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        with the prior consent of the Board, to a Permitted Assign. 

                    

        

        
            	
                        7.

                    	
                        Option Agreement

                    

        

        7.1       Upon the grant of an Option, the Company and the Optionee shall enter into an option agreement, in a form set out in Appendix A or in such form as approved by the Board, subject to the terms and conditions of the Plan, which agreement shall set out the Optionee’s agreement that the Options are subject to the terms and conditions set forth in the Plan as
        it may be amended or replaced from time to time, the Grant Date, the name of the Optionee, the Optionee’s position with the Company, the number of Options, the Option Price, the expiry date of the Option Period and such other terms and conditions as the Board may deem appropriate.

        
            	
                        8.

                    	
                        Termination of Employment, Engagement or Directorship

                    

        

        8.1       In the event an Optionee’s employment or directorship terminates for any reason other than death or cause, the Optionee may exercise any Option granted hereunder to the extent such Option was exercisable and had vested on the date of termination no later than 365 days after such termination or such later date within the Option Period first established by
        the Board for such Option as the Board may fix; provided, however, that in no event shall any Option be exercisable following the expiration of the Option Period applicable thereto. In the event an 

         

        
            

        

        
            

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        Optionee’s employment or directorship is terminated for cause, each Option held by the Optionee that has not been effectively exercised prior to such termination shall lapse and become null and void immediately upon such termination.

        8.2       In the event of the death of an Optionee, either while in the employment or while a director of the Company, the Optionee’s estate may, within 365 days from the date of the Optionee’s death, exercise any Option granted hereunder to the extent such Option was exercisable and had vested on the date of the Optionee’s death; provided, however,
        that no Option shall be exercisable following the expiration of the Option Period applicable thereto. The Optionee’s estate shall include only the executors or administrators of such estate and persons who have acquired the right to exercise such Option directly from the Optionee by bequest or inheritance.

        8.3       The Board may also in its sole discretion increase the periods permitted to exercise all or any of the Options covered by any Grant following a termination of employment or directorship as provided in Subsections 8.1 or 8.2 above, if allowable under applicable law; provided, however, that in no event shall any Option be exercisable following the expiration of
        the Option Period applicable thereto.

        8.4       The Plan shall not confer upon any Optionee any right with respect to a continuation of employment or directorship of, the Company nor shall it interfere in any way with the right of the Company to terminate any Optionee’s employment at any time.

        8.5       Unless otherwise agreed to in writing by the Board, references to “termination”, “the date of termination”, “date of such termination” or similar references in this Section 8 in the case of officers is determined to be the last day of active employment with the Company or its related entity, as the case may be,
        regardless of any salary continuance or notice period required under applicable law or the reason for termination of employment (whether with or without cause or with or without notice), and in the case of a Permitted Assign is deemed to be the termination of the Eligible Person that the Permitted Assign is related to.

        8.6       For greater certainty (and subject to subsection 8.5), an Option that has not become vested on the date that the relevant termination event referred to in this Section 8 occurred, shall not be or become exercisable and shall be cancelled.

        8.7       For the purposes of this Plan, “cause” means the entitlement of the Company to terminate the employment of an Optionee without the obligation to provide the Optionee with a severance package, or any monies, benefits or notice, as specified in the Optionee’s employment agreement, or any act, which at common law in the applicable jurisdiction
        would be considered cause for dismissal without the obligation to provide notice or pay in lieu of notice.

        
            	
                        9.

                    	
                        Exercise of Options

                    

        

        9.1       Subject to the provisions of the Plan, an Option may be exercised from time to time by delivery to the Company at its head office of a written notice of exercise addressed to the President and Chief Executive Officer, the Chief Financial Officer or the Corporate Secretary of the Company specifying the number of Shares with respect to which the Option is being
        exercised, together with the appropriate form of payment (to be determined by the Company) for 

         

        
            

        

        
            

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        the aggregate of the Option Prices to be paid for the Shares to be purchased. Certificates for such Shares shall be issued and delivered to the Optionee within a reasonable time following the receipt of such notice and payment. 

        
            	
                        10.

                    	
                        Adjustment on Alteration of Share Capital

                    

        

        10.1     In the event of a subdivision, consolidation or reclassification of outstanding Shares or other capital adjustment, the number of Shares reserved or authorized to be reserved under the Plan, the number of Shares receivable on the exercise of an Option and the Option Price therefor shall be increased or reduced proportionately and such other adjustments shall be made as
        may be deemed necessary or equitable by the Board in its sole discretion and such adjustment shall be binding for all purposes.

        10.2     If the Company amalgamates, consolidates or combines with or merges with or into another body corporate, whether by way of amalgamation, arrangement or otherwise (the right to do so being hereby expressly reserved), any Share receivable on the exercise of an Option shall be converted into the securities, property or cash which the Optionee would have received upon such
        amalgamation, consolidation, combination or merger if the Optionee had exercised his or her Option immediately prior to the effective date of such amalgamation, consolidation, combination or merger and the Option Price shall be adjusted as may be deemed necessary or equitable by the Board in its sole discretion and such adjustment shall be binding for all purposes of the Plan.

        10.3     In the event of a change in the Company’s currently authorized Shares which is limited to a change in the designation thereof, the shares resulting from any such change shall be deemed to be Shares within the meaning of the Plan.

        10.4     In the event of any other change affecting the Shares, such adjustment, if any, shall be made as may be deemed necessary or equitable by the Board in its sole discretion to properly reflect such event and such adjustment be binding for all purposes of the Plan.

        10.5     No adjustment provided in this Section 10 shall require the Company to issue a fractional Share and the total adjustment with respect to each Option shall be limited accordingly.

        10.6     If, at any time when an Option granted under the Plan remains unexercised, an offer (“Take-over Bid”) to purchase all of the Shares of the Company is made by a third party, the Company shall use its best efforts to bring such offer to the attention of the Optionee as soon as practicable and the Company may, in a fair and equitable manner, at its option,
        require the acceleration of the time for the exercise of the Options granted under the Plan and of the time for the fulfillment of any conditions or restrictions on such exercise (including without limitation, vesting requirements).

        10.7     Notwithstanding any other provision herein, if because of a proposed merger, amalgamation or other corporate arrangement or reorganization, the exchange or replacement of shares in the Company of those in another company is imminent (“Business Combination”), the Board may, in a fair and equitable manner, determine the manner in which all unexercised option
        rights granted under the Plan shall be treated including, for example, requiring the acceleration of the time for the exercise of such rights by the Optionees and of the time for the fulfillment of any 

         

        
            

        

        
            

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        conditions or restrictions on such exercise (including without limitation, vesting requirements). All determinations of the Board under this Subsection 10.7 shall be binding for all purposes of the Plan.

        10.8     In order to permit Optionees to participate in a proposed Take-over Bid made by means of a take-over bid circular or a proposed Business Combination that could result in a Change of Control, the Board may make appropriate provisions for the exercise of options (whether vested or not)conditional upon the Shares resulting therefrom being taken up and paid for under the
        Take-over Bid or the completion of the Business Combination, as applicable.

        
            	
                        11.

                    	
                        Regulatory Approval

                    

        

        11.1     Notwithstanding any of the provisions contained in the Plan or any Option, the Company’s obligation to grant Optionsand issue Shares and to issue and deliver certificates for such securities to an Optionee pursuant to the exercise of an Option shall be subject to:

        
            	
                         

                    	
                        (a)

                    	
                        compliance with all applicable laws, regulations, rules, orders of governmental or regulatory authorities in Canada and the United States (“Securities Regulators”);

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        compliance with the requirements of the Exchange; and

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        receipt from the Optionee of such covenants, agreements, representations and undertakings, including as to future dealings in such Shares, as the Company determines to be necessary or advisable in order to safeguard against the violation of the securities laws of any jurisdiction.

                    

        

        11.2     The Company shall in no event be obligated to take any action in order to cause the issuance and delivery of such certificates to comply with any laws, regulations, rules, orders or requirements.

        11.3     Notwithstanding any provisions in the Plan or any Option, if any amendment, modification or termination to the provisions hereof or any Option made pursuant hereto are required by any Securities Regulators, a stock exchange or a market as a condition of approval to a distribution to the public of any Shares or to obtain or maintain a listing or quotation of any Shares,
        the Board is authorized to make such amendments and thereupon the terms of the Plan, any Options, including any option agreement made pursuant hereto, shall be deemed to be amended accordingly without requiring the consent or agreement of any Optionee or shareholder approval.

        
            	
                        12.

                    	
                        Miscellaneous

                    

        

        12.1     An Optionee entitled to Shares as a result of the exercise of an Option shall not be deemed for any purpose to be, or to have rights as, a shareholder of the Company by such exercise, except to the extent Shares are issued therefor and then only from the date such Shares are issued. No adjustment shall be made for dividends or distributions or other rights which the
        record date is prior to the date such Shares are issued pursuant to the exercise of Options.

         

        
            

             

             

            

        

        
            

        

        
            

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        12.2     The Company may require an Optionee, as a condition of exercise of an Option, to pay or reimburse any taxes which are required to be withheld in connection with the exercise of such Option and any transfer of an Option. Under no circumstances shall the Company be responsible for the payment of any tax on behalf of any Eligible Person, any Permitted Assign or any
        transferee of an Option as permitted hereunder or for providing any tax advice to them.

        
            	
                        13.

                    	
                        Amendment and Termination

                    

        

        13.1     The Plan has been amended and restated as of May 7, 2009. Any amendments made are effective as of the date amended.

        13.2     The Board may, subject to Shareholder approval, amend the Plan at any time. Notwithstanding the foregoing, the Board is specifically authorized to amend or revise the terms of the Plan without obtaining Shareholder approval in the following circumstances:

        
            	
                         

                    	
                        (a)

                    	
                        to change the termination provisions of the Options or Plan which does not extend beyond the original expiry date;

                    

        

        
            	
                         

                    	
                        (b)

                    	
                        to add a cashless exercise feature, payable in cash or securities, whether or not the feature provides for a full deduction of the number of underlying securities from the reserved Shares; 

                    

        

        
            	
                         

                    	
                        (c)

                    	
                        to add a deferred or restricted share unit or any other provision which results in Eligible Persons receiving securities while no cash consideration is received by the Company; and 

                    

        

        
            	
                         

                    	
                        (d)

                    	
                        other amendments of a housekeeping nature including the correction or rectification of any ambiguities, defective or inconsistent provisions, errors, mistakes or omissions herein and updating provisions herein to reflect changes in the governing laws, including tax laws, and the TSX requirements.

                    

        

        Except as otherwise permitted by the TSX, amendments to the number of Shares issuable under the Plan (including an increase to a fixed maximum number of Shares or a fixed maximum percentage of Shares, as the case may be, or a change from a fixed maximum percentage to a fixed maximum number of Shares) may not be made without obtaining approval of the Shareholders in accordance with TSX requirements. For
        greater certainty, an increase does not include reloading after exercise under a fixed maximum number or percentage provided the fixed maximum or percentage is not increased and the Plan otherwise permits reloading.

        13.3     The Board may suspend or terminate the Plan at any time. No action by the Board to terminate the Plan pursuant to this Section 13 shall affect any Options granted hereunder which became effective pursuant to the Plan prior to such action.

        13.4     Except as set out below, the Board may (without Shareholder approval) amend, modify or terminate any outstanding Option, including, but not limited to, substituting another award of the same or of a different type or changing the date of exercise; provided, however that, the Optionee’s consent to such action shall be required unless the Board determines that the
        action, 

         

        
            

        

        
            

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        when taken with any related action, would not materially and adversely affect the Optionee or is specifically permitted hereunder. 

        The exercise price of any outstanding Options may not be reduced and the original Option Period extended unless Shareholder approval is obtained by way of a resolution passed by a majority of the votes cast by the Shareholders at a meeting of Shareholders. The Option Price of any outstanding Options may not be reduced and the original term of the Option Period may not be extended to the benefit of
        Insiders unless disinterested Shareholder approval is obtained in accordance with TSX requirements.

        13.5     Notwithstanding any provision contained in the Plan, effective April 28, 2005, the Plan must be reconfirmed, every three years, by a resolution passed by a majority of the votes cast by Shareholders at the annual meeting of Shareholders in the third year after April 28, 2005 and after each subsequent reconfirmation and if the Plan is not reconfirmed by the Shareholders
        as required by this provision, no further grants of Options may be made under the Plan. [The Plan was reconfirmed by the Shareholders on May 1, 2008]

         

        

        
            

        

        APPENDIX A

        OFFICERS & DIRECTORS INCENTIVE STOCK OPTION PLAN

        OF ELDORADO GOLD COMPANY

        (“the Company”)

         

        OPTION AGREEMENT

         

        This Option Agreement is entered into between the Company and the Optionee named below pursuant to the Company’s Incentive Stock Option Plan (the “Plan”) a copy of which is attached hereto, and confirms the following:

         

        
            
                	
                             

                        	
                            Grant Date:

                        	
                             

                        
	
                        	
                        	 
	
                             

                        	
                            Optionee:

                        	
                             

                        
	
                        	
                        	 
	
                             

                        	
                            Optionee’s Position with the Company:

                        	
                             

                        
	
                        	
                        	 
	
                             

                        	
                            Number of Options:

                        	
                             

                        
	
                        	
                        	 
	
                             

                        	
                            Option Price

                            ($ per Share):

                        	
                            

                            $

                        
	
                        	
                        	 
	
                             

                        	
                            Vesting Period:

                        	
                             

                        
	
                        	
                        	 
	
                             

                        	
                            Expiry Date of Option Period:

                        	
                             

                        

            

        

        Subject to the Plan, each Option that has vested entitles the Optionee to purchase one Share at any time up to 4:30 p.m. Vancouver time on the expiry date of the Option Period. 

        This Option Agreement is subject to the terms and conditions set out in the Plan, as amended or replaced from time to time. In the case of any inconsistency between this Option Agreement and the Plan, the Plan shall govern.

        The Optionee acknowledges and agrees that the Optionee will, at all times, act in strict compliance with and all applicable laws and any policies of the Company applicable to the Optionee in connection with the Plan.

         

        
            

        

        
            

            - 2 -

             

            

        

        The Optionee hereby acknowledges that he or she has not received any advice from the Corporation as to tax or legal ramification of the grant of Options hereunder and has been advised to seek independent tax advice as he or she deems necessary.

        Unless otherwise indicated, all defined terms shall have the respective meanings attributed thereto in the Plan.

        By signing this agreement, the Optionee acknowledges that he, she, or his or her authorized representative has read and understands the Plan.

         

        IN WITNESS WHEREOF the parties hereto have executed this Option Agreement as of the          day of                       ,
                   .

         

         

        
            	
                         

                    	
                         

                    	
                        ELDORADO GOLD CORPORATION

                    
	
                         

                    	
                         

                    	
                         

                    	
                        Per:

                    	
                         

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    	
                        Authorized Signatory

                    

        

         

        Acknowledged and Agreed to:

        
             

            
                	
                             

                        	
                             

                        	
                             

                        
	
                             

                        	
                            )

                            )

                            )

                        	
                             

                        
	
                            Signature of Optionee

                        	
                            )

                        	
                            Signature of Witness

                        
	
                             

                        	
                            )

                            )

                            )

                        	
                             

                        
	
                            Name and Title of Optionee

                        	
                            )

                        	
                            Name of WitnessEMPLOYMENT AGREEMENT

         This  Employment  Agreement (the  "Agreement")  is made effective as of
June 24 , 2009 (the "Effective  Date"),  by and between Atlantic Coast Bank (the
"Bank") and  Phillip  Buddenbohm  (the  "Executive").  References  herein to the
"Company" mean Atlantic Coast Federal Corporation, which owns 100% of the common
stock of the Bank.  The Company is a signatory  to this  Agreement  for the sole
purpose of guaranteeing the Bank's performance  hereunder.  Any reference to the
"Employer" shall mean both the Company and the Bank.

         WHEREAS,  the Executive is currently  employed as Chief Risk Officer of
the Employer; and

         WHEREAS,  Executive  is willing to serve the  Employer on the terms and
conditions hereinafter set forth; and

         NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein
contained,  and upon the other terms and conditions  hereinafter  provided,  the
parties hereby agree as follows:

1.       POSITION AND RESPONSIBILITIES.

         During the term of this Agreement,  Executive  agrees to serve as Chief
Risk Officer of the Bank (the "Executive Position"), and will perform all duties
and will have all powers  associated  with such position as set forth in the job
description for such Executive  Position as established by the Employer.  During
the term of the  Agreement,  Executive also agrees to serve,  if elected,  as an
officer  and/or  director of any subsidiary or affiliate of Employer and in such
capacity carry out such duties and  responsibilities  reasonably  appropriate to
that office.

2.       TERM AND DUTIES.

         (a)  One  Year  Contract;  Annual  Renewal.  The  term  of  Executive's
employment  under this  Agreement  shall  commence as of the Effective  Date and
shall  continue  thereafter  for a period of one year.  Commencing  on the first
anniversary  date of this Agreement (the  "Anniversary  Date") and continuing on
each Anniversary Date thereafter,  the term of this Agreement shall renew for an
additional  year such that the  remaining  term of this  Agreement is always one
year  provided,  however,  that  in  order  for  the  Agreement  to  renew,  the
disinterested  members of the Board of Directors of the Bank (the  "Board") must
take the following actions prior to each non-renewal notice period (as described
in the next  sentence):  (i) at least  sixty (60) days prior to the  Anniversary
Date, conduct a comprehensive performance evaluation and review of Executive for
purposes of determining whether to extend the Agreement;  and (ii) affirmatively
approve the renewal or  non-renewal  of the  Agreement,  which decision shall be
included  in the  minutes  of the  Board's  meeting.  If the  decision  of  such
disinterested members of the Board is not to renew the Agreement, then the Board
shall provide the Executive with a written  notice of non-renewal  ("Non-Renewal
Notice")  at least  thirty  (30) days and not more than sixty (60) days prior to
any  Anniversary  Date,  such that this Agreement  shall terminate at the end of
twelve (12) months following such Anniversary Date.

<PAGE>

         (b)  Termination of Agreement.  Notwithstanding  anything  contained in
this Agreement to the contrary,  either  Executive or the Employer may terminate
Executive's  employment  with the  Employer  at any time during the term of this
Agreement, subject to the terms and conditions of this Agreement.

         (c) Continued  Employment  Following  Termination of Employment Period.
Nothing  in  this  Agreement   shall  mandate  or  prohibit  a  continuation  of
Executive's  employment  following the expiration of the term of this Agreement,
upon such terms and conditions as the Employer and Executive may mutually agree.

         (d) Duties;  Membership on Other Boards.  During the Employment Period,
except  for  periods of  absence  occasioned  by  illness,  reasonable  vacation
periods,  and  reasonable  leaves of  absence  approved  by the Chief  Executive
Officer,  Executive shall devote substantially all his business time, attention,
skill, and efforts to the faithful performance of his duties hereunder including
activities and services related to the organization, operation and management of
the Employer;  provided, however, that, with the approval of the Chief Executive
Officer,  Executive may serve,  or continue to serve, on the boards of directors
of, and hold any other offices or positions in,  business  companies or business
organizations,  which,  in the  Chief  Executive  Officer's  judgment,  will not
present any conflict of interest  with the Employer,  or  materially  affect the
performance of Executive's duties pursuant to this Agreement it being understood
that  membership in and service on boards or  committees  of social,  religious,
charitable or similar  organizations  does not require Chief  Executive  Officer
approval pursuant to this Section. For purposes of this Section, Chief Executive
Officer  approval  shall be deemed to have been  granted as to service  with any
such business company or organization  that Executive was serving as of the date
of this Agreement and disclosed to the Chief Executive Officer.

3.       COMPENSATION, BENEFITS AND REIMBURSEMENT.

         (a) Base Salary.  The Employer shall pay Executive a salary of not less
than  $139,000  per year  ("Base  Salary").  Such Base  Salary  shall be payable
biweekly,  or with such other  frequency as officers and employees are generally
paid.  During the period of this  Agreement,  Executive's  Base Salary  shall be
reviewed  at least  annually.  Such  review  shall  be  conducted  by the  Chief
Executive Officer, and the Employer may increase, but not decrease,  Executive's
Base  Salary  (with any  increase  in Base  Salary to become  "Base  Salary" for
purposes of this Agreement).

         (b) Bonus and Incentive  Compensation.  Executive  shall be entitled to
incentive compensation and bonuses as provided in any plan or arrangement of the
Employer in which  Executive is eligible to  participate  or as agreed to by the
Bank and the  Executive.  Nothing  paid to  Executive  under  any  such  plan or
arrangement  will be  deemed  to be in  lieu  of  other  compensation  to  which
Executive is entitled under this Agreement. Subject to the terms of the relevant
plan documents,  payments of bonuses and incentive compensation are dependent on
the Board's review of Executive's  performance for the relevant period and shall
be paid at the Board's discretion.

         (c) Employee  Benefits.  Executive  shall be entitled to participate in
all employee benefit plans,  programs and arrangements as generally  provided by
the Employer to senior executive officers and for which Executive shall qualify.

                                       2
<PAGE>

Executive  is  also  entitled  to  receive  reimbursement  for  a  country  club
membership of the Executive's  choosing,  not to exceed $5,000 (net after taxes)
annually.

         (d) Paid Time Off.  Executive  shall be entitled to paid  vacation time
each year during the term of this  Agreement  (measured  on a fiscal or calendar
year basis, in accordance with the Employer's usual practices),  as well as sick
leave,  holidays  and other paid  absences  in  accordance  with the  Employer's
policies and procedures for senior  executives.  Any unused paid time off during
an annual period shall be treated in accordance  with the  Employer's  personnel
policies as in effect from time to time.

         (e) Expense Reimbursements.  During the Employment Period, the Employer
shall pay or reimburse  Executive for all reasonable  travel,  entertainment and
other reasonable  expenses incurred by Executive during the course of performing
his obligations  under this Agreement,  upon  presentation to the Employer of an
itemized  account of such  expenses in such form as the Employer may  reasonably
require.  All  reimbursements  under this  Section 3(e) shall be paid as soon as
practicable by the Employer;  provided,  however,  that no payment shall be made
later  than  March 15 of the year  immediately  following  the year in which the
expense was incurred.

4. PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

         (a) Upon the occurrence of an Event of Termination  (as herein defined)
during the term of this Agreement, the provisions of this Section 4 shall apply.
As used in this Agreement,  an "Event of Termination" shall mean and include any
one or more of the following:

                  (i) the  involuntary  termination  by the Bank of  Executive's
full-time  employment  hereunder for any reason other than a termination  due to
"Disability"  or  death,  as set  forth  in  Section  6; or a  termination  upon
"Retirement,"  as defined in Section 7 or a termination  for "Cause," as defined
in Section 8; and

                  (ii) Executive's voluntary resignation within two years after
any of the  following,  unless  consented  to by  Executive  (where  any vote by
Executive in performance of his duties as a member of the Board in favor of such
action shall constitute express consent of Executive to such action):

                           (A) a relocation of  Executive's  principal  place of
employment to a location that is more than 50 miles from Jacksonville, Florida;

                           (B)  a  material   reduction   in  the  benefits  and
perquisites, including Base Salary, to Executive from those being provided as of
the Effective  Date (except for any reduction that is part of a reduction in pay
or benefits  that is generally  applicable to officers or employees of the Bank)
or;

                           (C) a  material  breach  of  this  Agreement  by  the
Employer;  provided,  however,  that a change in the Executive's title or duties
will not be considered a material breach of this Agreement.

                                       3
<PAGE>

         Upon the occurrence of any event  described in clause (ii) above ("Good
Reason"),  Executive  shall have the right to elect to terminate his  employment
under  this  Agreement  by  resignation  within  two  years  after  the  initial
occurrence of such  condition  upon not less than thirty (30) days prior written
notice given within a reasonable period of time (not to exceed ninety (90) days)
after the initial  event giving rise to the right to elect;  provided,  however,
that the Bank shall be given at least  thirty (30) days to remedy the  condition
before the Executive terminates employment.  Such voluntary termination for Good
Reason by Executive shall be an Event of Termination.

         (b) Upon the occurrence of an Event of Termination,  the Employer shall
pay Executive,  or, in the event of his  subsequent  death,  his  beneficiary or
beneficiaries, or his estate, as the case may be, as severance pay or liquidated
damages,  or both, a lump sum in cash equal to one times (i) the highest  annual
rate of Base Salary paid to Executive at any time under this  Agreement and (ii)
the highest  annual  bonus and  non-equity  incentive  compensation  paid to the
Executive for the most recent  calendar year prior to the Event of  Termination;
provided however, that, to the extent required by regulations or interpretations
of the Office of Thrift Supervision,  all severance payments under the Agreement
shall be  reduced  not to  exceed  three (3) times  Executive's  average  annual
compensation (as defined in such regulations or  interpretations)  over the most
recent five (5) taxable  years.  Such payment  shall not be reduced in the event
Executive   obtains  other  employment   following  the  Event  of  Termination.
Notwithstanding the foregoing,  in the event Executive is a "Specified Employee"
(as defined in the  Internal  Revenue  Code (the  "Code")  Section  409A and the
regulations  thereunder)  to the extent  required  under Code Section  409A,  no
payment  shall be made to Executive  prior to the first day of the seventh month
following the Event of Termination.

         (c) Upon the  occurrence  of an Event of  Termination,  the Bank  shall
provide  at the Bank's  expense,  life and  disability  insurance  coverage  and
non-taxable  medical and dental insurance coverage  substantially  comparable to
the coverage  maintained  by the Bank for  Executive and his family prior to the
Event of  Termination,  except to the extent such coverage may be changed in its
application  to all Bank  employees.  Such coverage at the Bank's  expense shall
cease  upon the  earlier  of (i)  twelve  (12)  months  following  the  Event of
Termination or (ii) Executive's obtaining  substantially similar coverage from a
new employer.

5. CHANGE IN CONTROL.

         (a) In the event that the aggregate  payments or benefits to be made or
afforded  to  Executive  in the event of a change in  control as defined in Code
Section 280G and that would be deemed to include an "excess  parachute  payment"
under Code  Section  280G or any  successor  thereto,  then at the  election  of
Executive,  (i) such  payments  or  benefits  shall be  payable or  provided  to
Executive over the minimum period  necessary to reduce the present value of such
payments or benefits  to an amount  that is one dollar  ($1.00)  less than three
times  Executive's  "base  amount"  under such Code  Section  280G,  or (ii) the
payments or benefits to be provided under this Agreement shall be reduced to the
extent  necessary to avoid treatment as an excess  parachute  payment,  with the
allocation of the reduction among such payments and benefits to be determined by
Executive. Notwithstanding anything in this subsection to the contrary, a change
in  control  shall not be deemed to have  occurred  upon the  conversion  of the

                                       4
<PAGE>

Company's mutual holding company parent to stock form, or in connection with any
reorganization used to effect such a conversion.

6. TERMINATION FOR DISABILITY OR DEATH.

         (a) Termination of Executive's  employment based on "Disability"  shall
be construed to comply with Section 409A of the Internal  Revenue Code and shall
be  deemed  to have  occurred  if:  (i)  Executive  is  unable  to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental  impairment  that can be  expected  to  result  in  death,  or last for a
continuous  period of not less than  twelve (12)  months;  (ii) by reason of any
medically  determinable  physical or mental  impairment  that can be expected to
result in death,  or last for a  continuous  period of not less than twelve (12)
months,  Executive is receiving income replacement  benefits for a period of not
less than three months under an accident and health plan  covering  employees of
the Bank or the Company; or (iii) Executive is determined to be totally disabled
by the Social Security  Administration.  The provisions of Sections 6(b) and (c)
shall  apply  upon  the  termination  of the  Executive's  employment  based  on
Disability.

         (b) Executive shall be entitled to receive Base Salary earned until the
date of Executive's  termination  of employment due to Disability,  plus payment
for unused vacation,  personal leave,  sick leave and other vested benefits,  as
well as payment under any short- or long-term  disability plan maintained by the
Bank.

         (c)  The  Bank  shall  cause  to be  continued  life,  disability,  and
non-taxable  medical and dental insurance coverage  substantially  comparable to
the coverage  maintained by the Bank for the Executive  prior to the termination
of his employment based on Disability, except to the extent such coverage may be
changed  in its  application  to all  Bank  employees  or  not  available  on an
individual basis to an employee  terminated  based on Disability.  This coverage
shall cease upon the earlier of (i) the date Executive  returns to the full-time
employment  of the  Bank;  (ii)  Executive's  full-time  employment  by  another
employer; or (iii) Executive's death.

         (d) In  the  event  of  Executive's  death  during  the  term  of  this
Agreement, his estate, legal representatives or named beneficiaries (as directed
by Executive in writing) shall be paid Executive's earned but unpaid Base Salary
through  Executive's  date of death, and the Employer shall pay all premiums for
six (6) months following Executive's date of death for medical, dental and other
insurance benefits normally provided for Executive's  family.  Such payments are
in addition to any other benefits that Executive's beneficiaries may be entitled
to  receive  under any  employee  benefit  plan  maintained  by the Bank for the
benefit of Executive,  including,  but not limited to, the Bank's life insurance
and tax-qualified and non-qualified retirement plans.

7.       TERMINATION UPON RETIREMENT.

         Termination of Executive's  employment based on "Retirement" shall mean
termination  of Executive's  employment at age sixty-five  (65) or in accordance
with any retirement  policy  established by the Board with  Executive's  consent
with respect to him.  Upon  termination  of Executive  based on  Retirement,  no
amounts or benefits shall be due Executive under this  Agreement,  and Executive
shall be entitled to all benefits under any retirement  plan of the Employer and
other plans to which Executive is a party.

                                       5
<PAGE>

8.       TERMINATION FOR CAUSE.

         (a) The Employer may terminate the Executive's  employment at any time,
but any termination  other than Termination for Cause, as defined herein,  shall
not prejudice the Executive's  right to compensation or other benefits under the
Agreement.  The Executive  shall have no right to receive  compensation or other
benefits for any period after  Termination for "Cause."  Termination for "Cause"
shall  include  termination  because  of the  Executive's  personal  dishonesty,
incompetence,  willful  misconduct,  breach of fiduciary duty involving personal
profit, material breach of the Code of Ethics of either the Bank or the Company,
material  violation of the  Sarbanes-Oxley  requirements  for officers of public
companies that in the reasonable  opinion of the Chief Executive  Officer or the
Board will likely cause substantial  financial harm or substantial injury to the
reputation of the Company or the Bank, willfully engaging in actions that in the
reasonable opinion of the Chief Executive Officer or the Board will likely cause
substantial  financial harm or substantial injury to the business  reputation of
the  Company or the Bank,  failure  to perform  stated  duties  after  receiving
written  notice of  Executive's  failure to  perform  assigned  duties,  willful
violation of any law, rule or regulation (other than routine traffic  violations
or similar offenses) or final cease-and-desist  order, or material breach of any
provision of the Agreement.

         (b) For  purposes  of this  Section 8, no act or failure to act, on the
part of the  Executive,  shall be  considered  "willful"  unless it is done,  or
omitted to be done, by the Executive in bad faith or without  reasonable  belief
that  the  Executive's  action  or  omission  was in the best  interests  of the
Employer.  Any act,  or failure to act,  based upon the  direction  of the Chief
Executive  Officer or based upon the advice of counsel for the Employer shall be
conclusively  presumed to be done,  or omitted to be done,  by the  Executive in
good faith and in the best interests of the Employer.

9.       NOTICE.

         (a)  Any  purported   termination  by  the  Bank  for  Cause  shall  be
communicated by Notice of Termination to Executive.  If, within thirty (30) days
after any Notice of Termination for Cause is given,  Executive notifies the Bank
that a dispute  exists  concerning the  termination,  the parties shall promptly
proceed to arbitration,  as provided in Section 19. Notwithstanding the pendency
of  any  such  dispute,   the  Employer  shall  discontinue  paying  Executive's
compensation  until the  dispute is finally  resolved  in  accordance  with this
Agreement.  If it is determined that Executive is entitled to  compensation  and
benefits under Section 4, the payment of such  compensation  and benefits by the
Employer  shall  commence  immediately  following  the  date  of  resolution  by
arbitration, with interest due Executive on the cash amount that would have been
paid  pending  arbitration  (at the prime rate as  published  in The Wall Street
Journal from time to time).

         (b) Any other  purported  termination by the Bank or by Executive shall
be communicated by a "Notice of Termination" (as defined in Section 9(c)) to the
other party.  If,  within  thirty (30) days after any Notice of  Termination  is
given,  the party receiving such Notice of Termination  notifies the other party
that a dispute  exists  concerning the  termination,  the parties shall promptly
proceed to arbitration as provided in Section 19.  Notwithstanding  the pendency
of any such  dispute,  the Employer  shall  continue to pay  Executive  his Base
Salary,  and other  compensation  and benefits in effect when the notice  giving

                                       6
<PAGE>

rise to the dispute was given (except as to termination of Executive for Cause);
provided, however, that such payments and benefits shall not continue beyond the
date that is twelve  (12)  months  from the date the  Notice of  Termination  is
given. In the event the voluntary  termination by Executive of his employment is
disputed by the Bank, and if it is determined in  arbitration  that Executive is
not entitled to termination benefits pursuant to this Agreement, he shall return
all cash payments made to him pending  resolution by arbitration,  with interest
thereon at the prime rate as published  in The Wall Street  Journal from time to
time, if it is determined in arbitration that Executive's  voluntary termination
of employment was not taken in good faith and not in the reasonable  belief that
grounds  existed  for  his  voluntary  termination.  If  it is  determined  that
Executive is entitled to receive severance  benefits under this Agreement,  then
any  continuation  of Base Salary and other  compensation  and benefits  made to
Executive under this Section 9 shall offset the amount of any severance benefits
that are due to Executive under this Agreement.

         (c) For purposes of this  Agreement,  a "Notice of  Termination"  shall
mean a written notice that shall indicate the specific termination  provision in
this  Agreement  relied upon and shall set forth in reasonable  detail the facts
and  circumstances  claimed to provide a basis for  termination  of  Executive's
employment under the provision so indicated.

10. POST-TERMINATION OBLIGATIONS AND CONFIDENTIALITY.

         (a)  Executive  hereby  covenants  and agrees that (except  following a
change in control as defined in the  Company's  2005 Stock Option  Plan),  for a
period of one year  following his  termination  of employment  with the Bank, he
shall  not,  without  the  written  consent  of the  Bank,  either  directly  or
indirectly:

                  (i) solicit, offer employment to, or take any other action
intended (or that a reasonable person acting in like circumstances would expect)
to have the  effect  of  causing  any  officer  or  employee  of the Bank or the
Company, or any of their respective subsidiaries or affiliates, to terminate his
or her employment and accept  employment or become  affiliated  with, or provide
services for compensation in any capacity whatsoever to, any business whatsoever
that  competes  with the  business of the Bank or the  Company,  or any of their
direct or indirect  subsidiaries  or affiliates or has  headquarters  or offices
within 50 miles of the  locations  in which the Bank or the Company has business
operations or has filed an application  for regulatory  approval to establish an
office;

                  (ii) become an officer, employee, consultant, director,
independent  contractor,  agent, sole proprietor,  joint venturer,  greater than
five percent (5%) equity owner or stockholder, partner or trustee of any savings
bank,  savings and loan  association,  savings and loan holding company,  credit
union, bank or bank holding company,  insurance company or agency,  any mortgage
or loan broker or any other entity  competing with the Bank or its affiliates in
the same  geographic  locations  where the Bank or its  affiliates  has material
business interests; or

                  (iii) solicit, provide any information, advice or
recommendation  or take any other action  intended (or that a reasonable  person
acting in like  circumstances  would  expect) to have the effect of causing  any
customer  of  the  Bank  to  terminate  an  existing   business  or   commercial
relationship with the Bank.

                                       7
<PAGE>

         (b) Executive shall, upon reasonable  notice,  furnish such information
and  assistance  to the Bank as may  reasonably  be  required  by the  Bank,  in
connection  with  any  litigation  in  which  it or any of its  subsidiaries  or
affiliates is, or may become, a party;  provided,  however, that Executive shall
not be  required  to  provide  information  or  assistance  with  respect to any
litigation  between the  Executive  and the Bank or any of its  subsidiaries  or
affiliates.

         (c) All payments and benefits to Executive  under this Agreement  shall
be subject to Executive's  compliance  with this Section 10. The parties hereto,
recognizing  that  irreparable  injury will result to the Bank, its business and
property in the event of  Executive's  breach of this Section 10, agree that, in
the  event of any such  breach  by  Executive,  the Bank  will be  entitled,  in
addition  to any other  remedies  and damages  available,  to an  injunction  to
restrain the violation  hereof by Executive  and all persons  acting for or with
Executive.  Executive  represents  and admits that  Executive's  experience  and
capabilities are such that Executive can obtain employment in a business engaged
in  other  lines  and/or  of a  different  nature  than the  Bank,  and that the
enforcement  of a remedy by way of injunction  will not prevent  Executive  from
earning a livelihood.  Nothing herein will be construed as prohibiting  the Bank
or the Company  from  pursuing  any other  remedies  available  to them for such
breach or threatened breach, including the recovery of damages from Executive.

11.      SOURCE OF PAYMENTS.

         All payments provided in this Agreement shall be timely paid in cash or
check from the  general  funds of the Bank.  The  Company,  however,  guarantees
payment and  provision of all amounts and benefits due  hereunder to  Executive,
and if such  amounts  and  benefits  due from the  Bank are not  timely  paid or
provided by the Bank, such amounts and benefits shall be paid or provided by the
Company.

12.      EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

         This Agreement  contains the entire  understanding  between the parties
hereto and supersedes any prior employment agreement between the Employer or any
predecessor of the Employer and Executive,  except that this Agreement shall not
affect or operate to reduce any benefit or compensation  inuring to Executive of
a kind elsewhere  provided.  No provision of this Agreement shall be interpreted
to mean that  Executive  is  subject  to  receiving  fewer  benefits  than those
available to him without reference to this Agreement.

13. NO ATTACHMENT; BINDING ON SUCCESSORS.

         (a) Except as required by law, no right to receive  payments under this
Agreement  shall be  subject to  anticipation,  commutation,  alienation,  sale,
assignment,  encumbrance,  charge,  pledge, or  hypothecation,  or to execution,
attachment,  levy, or similar process or assignment by operation of law, and any
attempt,  voluntary  or  involuntary,  to effect any such action  shall be null,
void, and of no effect.

         (b) This Agreement  shall be binding upon, and inure to the benefit of,
Executive and the Employer and their respective successors and assigns.

                                       8
<PAGE>

14. MODIFICATION AND WAIVER.

         (a)  This  Agreement  may  not be  modified  or  amended  except  by an
instrument in writing signed by the parties hereto.

         (b) No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement,  except by written  instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing  waiver
unless specifically  stated therein,  and each such waiver shall operate only as
to the specific  term or condition  waived and shall not  constitute a waiver of
such term or condition for the future as to any act other than that specifically
waived.

15. REQUIRED PROVISIONS.

         (a) The Bank may terminate Executive's  employment at any time, but any
termination  by the Board other than  termination  for Cause shall not prejudice
Executive's  right to  compensation  or other  benefits  under  this  Agreement.
Executive shall have no right to receive  compensation or other benefits for any
period after termination for Cause.

         (b) If Executive is suspended from office and/or temporarily prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) [12 U.S.C.  ss.1818(e)(3)] or 8(g)(1) [12 U.S.C.  ss.1818(g)(1)]
of the Federal Deposit Insurance Act, the Bank's obligations under this contract
shall be  suspended  as of the date of  service,  unless  stayed by  appropriate
proceedings.  If the  charges in the notice are  dismissed,  the Bank may in its
discretion (i) pay Executive all or part of the compensation  withheld while its
contract obligations were suspended and (ii) reinstate (in whole or in part) any
of its obligations which were suspended.

         (c)  If  Executive  is  removed  and/or  permanently   prohibited  from
participating  in the  conduct of the Bank's  affairs by an order  issued  under
Section 8(e)(4) [12 U.S.C.  ss.1818(e)(4)] or 8(g)(1) [12 U.S.C.  ss.1818(g)(1)]
of the Federal  Deposit  Insurance  Act, all  obligations of the Bank under this
Agreement  shall  terminate as of the  effective  date of the order,  but vested
rights of the contracting parties shall not be affected.

         (d) If the Bank is in default as defined in Section  3(x)(1) [12 U.S.C.
ss.1813(x)(1)] of the Federal Deposit Insurance Act, all obligations of the Bank
under  this  Agreement  shall  terminate  as of the  date of  default,  but this
paragraph shall not affect any vested rights of the contracting parties.

         (e) All obligations under this Agreement shall be terminated, except to
the extent  determined  that  continuation  of the contract is necessary for the
continued  operation  of the Bank,  (i) by the  Director of the Office of Thrift
Supervision ("OTS") or his or her designee,  at the time the FDIC enters into an
agreement to provide  assistance to or on behalf of the Bank under the authority
contained  in  Section  13(c) [12  U.S.C.  ss.1823(c)]  of the  Federal  Deposit
Insurance  Act; or (ii) by the  Director or his or her  designee at the time the
Director  or his or her  designee  approves  a  supervisory  merger  to  resolve
problems  related to operation of the Bank or when the Bank is determined by the
Director to be in an unsafe or unsound condition. Any rights of the parties that
have already vested, however, shall not be affected by such action.

                                       9
<PAGE>

         (f)  Notwithstanding  anything  herein  contained to the contrary,  any
payments  to  Executive  by the Bank or the  Company,  whether  pursuant to this
Agreement or otherwise,  are subject to and  conditioned  upon their  compliance
with Section 18(k) of the Federal Deposit  Insurance Act, 12 U.S.C. ss. 1828(k),
and the regulations promulgated thereunder in 12 C.F.R. Part 359.

16.      SEVERABILITY.

         If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this  Agreement or any part of such  provision not held so invalid,  and each
such other  provision and part thereof shall to the full extent  consistent with
law continue in full force and effect.

17.      HEADINGS FOR REFERENCE ONLY.

         The headings of sections and paragraphs  herein are included solely for
convenience of reference and shall not control the meaning or  interpretation of
any of the provisions of this Agreement.

18.      GOVERNING LAW.

         This  Agreement  shall be  governed by the laws of the State of Georgia
but only to the extent not superseded by federal law.

19.      ARBITRATION.

         Any dispute or  controversy  arising under or in  connection  with this
Agreement shall be settled exclusively by binding arbitration, as an alternative
to civil  litigation  and  without  any trial by jury to  resolve  such  claims,
conducted  by a panel of three  arbitrators  sitting in a location  selected  by
Executive  within  fifty  (50)  miles  from  the main  office  of the  Bank,  in
accordance  with the rules of the American  Arbitration  Association's  National
Rules for the  Resolution  of  Employment  Disputes  ("National  Rules") then in
effect.  One arbitrator shall be selected by Executive,  one arbitrator shall be
selected  by the  Bank  and  the  third  arbitrator  shall  be  selected  by the
arbitrators  selected by the  parties.  If the  arbitrators  are unable to agree
within  fifteen  (15)  days upon a third  arbitrator,  the  arbitrator  shall be
appointed for them from a panel of arbitrators  selected in accordance  with the
National Rules.  Judgment may be entered on the arbitrator's  award in any court
having jurisdiction.

20.      INDEMNIFICATION.

         Executive  shall be provided with coverage under a standard  directors'
and officers'  liability insurance policy, and shall be indemnified for the term
of this Agreement and for a period of six years thereafter to the fullest extent
permitted under  applicable law against all expenses and liabilities  reasonably
incurred  by him in  connection  with  or  arising  out of any  action,  suit or
proceeding  in which he may be  involved by reason of his having been a director
or officer of the Bank or any  affiliate  (whether or not he  continues  to be a
director or officer at the time of incurring such expenses or liabilities), such
expenses and  liabilities to include,  but not be limited to,  judgments,  court
costs  and  attorneys'  fees  and  the  cost  of  reasonable  settlements  (such

                                       10
<PAGE>

settlements must be approved by the Board), provided,  however,  Executive shall
not be indemnified  or reimbursed for legal expenses or liabilities  incurred in
connection  with an  action,  suit or  proceeding  arising  from any  illegal or
fraudulent act committed by Executive.  Any such  indemnification  shall be made
consistent  with Section 545.121 of the OTS Regulations and Section 18(k) of the
Federal Deposit Insurance Act, 12 U.S.C. ss.1828(k),  and the regulations issued
thereunder in 12 C.F.R. Part 359.

21.      NOTICE.

         For  the   purposes   of  this   Agreement,   notices   and  all  other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective addresses set forth below:

       To the Company:               Atlantic Coast Federal Corporation
                                     Attn: Robert J. Larison, Jr., President
                                     505 Haines Avenue
                                     Waycross, Georgia 31501

       To the Bank:                  Atlantic Coast Bank
                                     Attn:  Robert J. Larison, Jr., President
                                     505 Haines Avenue
                                     Waycross, Georgia 31501

       To Executive:                 Phillip Buddenbohm

                                       11
<PAGE>

                                   SIGNATURES

         IN WITNESS  WHEREOF,  the  Company  and the Bank have each  caused this
Agreement to be executed by its duly  authorized  representative,  and Executive
has signed this Agreement, effective as of the date first above written.

                                            ATLANTIC COAST FEDERAL CORPORATION

June 24, 2009                               By: /s/ Robert J. Larison, Jr.
---------------------------                     ---------------------------
Date                                            Robert J. Larison, Jr. President
                                                and Chief Executive Officer

                                            ATLANTIC COAST BANK

June 24, 2009                               By: /s/ Robert J. Larison, Jr.
---------------------------                     ---------------------------
Date                                            Robert J. Larison, Jr. President
                                                and Chief Executive Officer

                                            EXECUTIVE

June 24, 2009                               /s/ Phillip Buddenbohm
                                            -----------------------------------
Date                                        Phillip Buddenbohm

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