Document:

Exhibit 10.8 (00058895.DOC;1)

EXHIBIT 10.8

ALLIED BANCSHARES, INC. 

CUMMING, GEORGIA

STOCK WARRANT PLAN

A.Purpose. This stock warrant plan (the "Plan") is for the purpose of securing or retaining the services of organizing directors of Allied Bancshares, Inc. (the "Company") and its bank subsidiary and to satisfy the obligations of the Company to issue stock warrants to them. The Board of Directors believes that the Plan will promote and increase personal interest in the welfare of the Company and provide incentive to the organizing directors.

B.Administration. The Plan shall be administered by the members of the Board of Directors of the Company. Said members of the Board, to the extent they shall determine, may receive recommendations concerning administration of the Plan from a committee appointed by the Board of Directors from its members.

With respect to each Warrant granted hereunder, the agreement evidencing the grant of the Warrant shall specifically state that the Warrant is a Nonqualified Stock Warrant.

The Board shall have complete authority to interpret the Plan, to prescribe, amend, and rescind rules and regulations relating to it, to determine the terms and provisions of the respective stock warrant agreements with warrant holders (which terms need not be identical), and to make all other determinations necessary or advisable for the administration of the Plans.

C.Eligibility. Warrants may be granted only to the organizing directors of the Company.

D.Stock Subject to Warrants. Subject to adjustment as provided below, the aggregate amount of stock which may be issued under Warrants granted hereunder shall be 300,000 shares of the common stock of the Company.

The number of shares which may be issued under the Plan, the number of shares issuable upon exercise of Warrants outstanding under the Plan and the exercise price per share of such outstanding Warrants shall be adjusted to reflect any stock dividend, stock split, share combination or similar change in capitalization of the Company.

After any merger of one or more corporations into the Company, any merger of the Company into another corporation, any consolidation of the Company with one or more corporations, or any other corporate reorganization of any form involving the Company as a party thereto involving any exchange, conversion, adjustment, or other modification of the outstanding shares of Company, each warrant holder shall, at no additional cost, be entitled, upon any exercise of his Warrant, to receive (subject to any required action by shareholders), in lieu of the number of shares as to which the Warrant shall then be so exercised, the number and class of stock or other securities or any other property to which the 

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warrant holder would have been entitled pursuant to the terms of the agreement of merger, consolidation, or other reorganization, if, at the time of the merger, consolidation, or other reorganization, the warrant holder had been a holder of record of the number of shares equal to the number of shares as to which the Warrant shall then be so exercised. Comparable rights shall accrue to each warrant holder in the event of successive mergers, consolidations, or reorganizations of the character described above. Individual stock warrant agreements may contain provisions which are more favorable to the warrant holder than the above terms, provided such provisions are not inconsistent with the terms of this Plan.

The determination of the Board in connection with the foregoing adjustments shall be within its sole discretion and shall be final, binding, and conclusive.

E.Terms and Conditions of All Warrants. Any warrant granted pursuant to this Plan shall be granted under a written agreement with the warrant holder, which agreement shall contain additional provisions, as established by the Board of Directors, setting forth the manner of exercise of such warrant and additional terms and restrictions, not inconsistent with the terms of this Plan.

Each stock warrant agreement, at a minimum, shall contain:
(1)the number of shares to which the Warrant pertains;

(2)the warrant price, which shall be $10.00 per share;

(3)the terms and conditions for payment shall require payment in cash;

(4)the term of the Warrant and the period or periods during the term in which the Warrant or portions thereof may be exercised, not to exceed ten years from date of grant;

(5)a provision that the Warrant is not transferable by the warrant holder other than by will or the laws of descent and distribution, and is exercisable during the warrant holder's lifetime only by the warrant holder;

Each stock warrant agreement shall provide that the warrant granted thereunder shall terminate upon the first to occur of the following dates:
(a)The expiration of 3 months after the date on which director's service as a director terminates other than by reason of permanent and total disability or death of director or other than for cause by the Company;

(b)Immediately, upon the termination or severance of director by the Company for cause, or upon notice to director to terminate or sever for cause, if earlier;

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(c)The expiration of twelve months after the date on which director's service as a director is terminated, if such termination is by reason of director's permanent and total disability;

(d)In the event of director's death while in the employ of the Company, his executors or administrators may exercise, within six months following the date of his death the warrant as to any of the shares subject to exercise of the warrant at director's death to the extent not exercised prior to his death;

(e)The final date of the term of the warrant.

F.Additional Warrant Terms. The total number of warrants for shares awarded to a director shall be divided by three. One third of such total number shall be first exercisable after one year, one third after two years, one third after three years.

Each stock warrant agreement under the stock warrant plan shall contain a provision providing for the acceleration of the permitted exercise date for all outstanding warrants upon the occurrence of a change in control of Allied Bancshares. This provision will have the effect of making all warrants granted under the agreement currently exercisable upon the occurrence of a change in control.

A "change of control" occurs when:
(1)any "person," including a "group" as determined in accordance with Section 13(d)(3) of the Securities Exchange Act of 1934 (the "Exchange Act") (other than Allied Bancshares, any subsidiary of Allied Bancshares, or any employee benefit plan, as defined in ERISA, of any of the foregoing) is or becomes the beneficial owner, directly or indirectly, of securities of Allied Bancshares representing 25% or more of the combined voting power of Allied Bancshares' then outstanding securities;

(2)as a result of, or in connection with, any tender offer or exchange offer, merger or other business combination, sale of assets or contested election, or any combination of the foregoing transactions (a "Transaction"), the persons who were directors of Allied Bancshares before the Transaction shall cease to constitute a majority of the Board of Directors of Allied Bancshares or any successor to Allied Bancshares;

(3)Allied Bancshares is merged or consolidated with another corporation and as a result of the merger or consolidation less than 75% of the outstanding voting securities of the surviving or resulting corporation shall then be owned in the aggregate by the former shareholders of Allied Bancshares, other than (i) affiliates within the meaning of the Exchange Act or (ii) any party to the merger or consolidation;

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(4)a tender offer or exchange offer is made and consummated for the ownership of securities of Allied Bancshares representing 50% or more of the combined voting power of Allied Bancshares' then outstanding voting securities; or

(5)Allied Bancshares transfers substantially all of its assets to another corporation which is not a wholly-owned subsidiary of Allied Bancshares.

Each stock warrant agreement under the stock warrant plan shall contain a provision establishing the expiration date for exercise of the warrants under any such agreement as the date which is ten (10) years from the date of grant of such warrants. 

G.Number of Warrants. Each organizing director shall be issued a warrant to purchase the number of shares equal to the number of shares such director purchases, directly or indirectly, in the stock offering of the Company.

H.Stock Reserve. The Company at all times during the term of this Plan shall reserve and keep available such number of shares of its common stock as will be sufficient to satisfy the requirements of this Plan, and shall pay all fees and expenses necessarily incurred by the Company in connection with the exercise of warrants granted hereunder.

I.Amendment and Termination. The Board of Directors shall have the power to authorize any changes in the warrant agreement between the Company and any warrant holder under this Plan, provided such warrant holder consents to the modifications. The Board of Directors may, in its discretion, suspend or terminate this Plan at any time. No such suspension or termination shall affect warrants then outstanding.

J.Withholding Taxes. Prior to the issuance of shares upon exercise of an Warrant, the warrant holder shall pay or make adequate provision for any federal or state withholding tax obligation of the Company, if applicable.

K.Listing and Registration. Each warrant grant shall be subject to the condition that if at any time the Board shall determine in its discretion that the listing, registration or qualification of the warrant or the shares deliverable upon exercise thereof on any securities exchange or under any federal or state law, or the consent or approval of any government or other regulatory body, is necessary or desirable in connection with the warrant or the acquisition of shares thereunder, no such warrant may be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board.

Any individual exercising an warrant under this Plan may be required, upon the request of the Board, to certify at the time of such exercise that he/she is acquiring the shares for investment and not with any intention to resell or distribute them.

L.Capital Call. Any warrant granted pursuant to this Plan shall provide that in the event of the capital of First National Bank of Forsyth County falls below the minimum requirements under Georgia law or Federal law, or falls below a higher requirement as may be determined by the Office of the Comptroller of the Currency (the "OCC") or the Federal Deposit Insurance Corporation (the "FDIC"), the OCC, the FRB, or the FDIC may direct the Bank and the Company to 

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require the holder to exercise or forfeit the warrant. Within 45 days from the date the OCC, the FRB, or the FDIC notifies the Bank and the Company, the Bank and the Company shall notify the holder in writing that holders of warrants must exercise or forfeit their warrant. The Bank and the Company shall cancel the warrant if the holder does not exercise the warrant as to all of the warrant shares within 21 days of such notice to exercise given by the Bank and the Company, and upon such cancellation the warrant shall be of no further force and effect. The Bank and the Company have agreed to comply with any OCC, FRB or FDIC request that the Bank and the Company invoke their right to require the holder to exercise or forfeit the warrant under the previous circumstances.

ALLIED BANCSHARES, INC.

By: s/Andrew K. Walker 
Title: President

(Corporate Seal)

Attest: s/Richard E. Bell
Title: Vice-President-Secretary

Date: October 16, 2003

 

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<PAGE>Exhibit 10.9 (00058896.DOC;1)

EXHIBIT 10.9

DE NOVO BANK CONSULTING AGREEMENT

May 21, 2003

Organizers

Forsyth County De Novo Bank, (proposed)

Cumming, Forsyth County, Georgia

Dear Organizers:

In keeping with our recent discussions, Brent Baker, Inc. (BBI), a Georgia Corporation, would be pleased to serve as exclusive Financial Advisor to the Bank/Bank Holding Company in Organization in the Forsyth County area of Georgia ('New Bank') in connection with the plan to effect the organization of a De Novo Bank/Bank Holding Company (the 'Engagement'). The initial term of the Engagement shall be for twelve months, and proposed terms are outlined below.

The Service of BBI

In its role as Financial Advisor, BBI shall provide the following sendees:

1.Assist with preparation of the documents for the organization of the bank (the Application);

2.Be responsible for preparing the feasibility analysis, location, and operations plan;

3.Assist in the development and selection of the organizing Board of Directors;

4.Assist in preparing the organizers confidential biographical and financial information;

5.Assist in the hiring of key employees and their compensation packages.

The outline of services above consists specifically to the preparation and filing of the application.

Compensation

I.In connection with the services to be provided, as outlined above, the new bank shall pay to BBI a fee equal to $35,000. The fee shall be non-refundable and shall be payable in the following manner:

$17,500. shall be due upon the execution of this agreement,

$17,500. shall be due upon filing the application and its acceptance by the appropriate regulatory agencies.

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The New Bank shall also be responsible for any pre-approved out-of-pocket expenses associated with the services to be provided by BBI.

Additional

I.The stock offering: Should the directors specifically request, BBI will assist in the preparation of a data base to be used for mail and telephone solicitation, assisting in the development of marketing materials (newsletter, response cards, folders, letters, etc.), and ordering mailing lists. BBI will also manage the stock raise, including the telephone campaign and motivating both Organizers and Employees in the sales effort. BBI will charge a fee of $5,000 per month until a maximum of $25,000 is reached. BBI is not a licensed broker and cannot directly participate in selling bank securities.

II.BBI may be called upon to provide other assistance or services in-connection with the organization of the proposed new bank. On a fee basis, BBI will be available to assist in various other requests that may include, but not limited to: locating branch sites, and assisting in any negotiations. Any additional assistance or services provided by BBI will incur agreed upon fees above the level of compensation listed above.

Indemnification and Contribution

Recognizing that transactions of the type contemplated by this Letter of Agreement sometimes result in litigation, and that BBI's role is limited solely to those services provided for herein, the New Bank agrees to indemnify BBI (and its directors, officers, shareholders, partners, agents, finders, employees, and controlling persons) to the full extent permitted by law against any and all claims, losses and expenses as incurred (including all reasonable fees and disbursements of BBI and its counsel and all of BBI's and its counsel's reasonable travel and other out-of-pocket expenses) in connection with the investigation of and preparation for any such pending or threatened claims and any litigation or other proceeding arising there from (such fees, disbursements and expenses to be reimbursed quarterly as incurred) arising out of BBI's engagement hereunder.

If indemnification were for any reason not to be available with respect to any mater, the New Bank agrees to contribute to any settlement, loss or expenses so arising, in such proportion so that BBI is responsible for that portion represented by the percentage that BBI's cash fees hereunder bears to the total aggregate consideration payable in the proposed settlement for an action, suit, claim, loss or otherwise and the New Bank shall be responsible for the balance. The foregoing agreement shall be in addition to any rights that any indemnified party may have at common law or otherwise. However, BBI shall be solely responsible for any settlement attributable to direct misrepresentation by BBI.

In like manner, BBI shall indemnify the New Bank, and hold it harmless, from any and all loss, damage, liability or expense, including cost and reasonable attorney's fees, to which it may become subject, or which it may incur by reason of or in connection with any misrepresentations or misstatements of facts that BB1, or any of its representatives, may willfully make, knowing such statements to be false.

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Confidentiality

In connection with the Engagement, BBI shall have access to confidential materials of the New Bank. BBI, its shareholders, employees and agents shall keep all such information strictly confidential in whatever form so received, and shall execute a confidentiality agreement if so requested by the New Bank, and BBI agrees that the New Bank shall be entitled to equitable and injunctive relief in the event BBI breached any of its confidentiality obligations to the Bank.

If the foregoing correctly sets forth our entire understanding, please sign and return the enclosed copy of this Letter Agreement.

Sincerely

 

s/Brent H. Baker, Sr.

Brent H. Baker, Sr.

President, CEO

Agreed and Accepted This 21st 

day of May, 2003

Bank/Bank Holding Company in Organization

 

By: s/Andrew K. Walker

       President (Proposed)

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