Document:

Exhibit 10.16

    
      

    

    Exhibit
      10.16

    FORM
      OF

    INCENTIVE
      STOCK OPTION AWARD PURSUANT TO THE 

    SOUTHCREST
      FINANCIAL GROUP, INC. 2005 STOCK INCENTIVE PLAN 

    

    THIS
      AWARD is made as of the Grant Date by SOUTHCREST FINANCIAL GROUP, INC. (the
      “Company”) to _______________ (the “Optionee”).

    

    Upon
      and
      subject to the Terms and Conditions attached hereto and incorporated herein
      by
      reference, the Company hereby awards as of the Grant Date to Optionee an
      incentive stock option (the “Option”), as described below, to purchase the
      Option Shares.

    

    
      	
            	A.	
              Grant
                Date: ____________, 200__.

            

    

    

    
      	
            	B.	
              Type
                of Option: Incentive Stock Option.

            

    

    

    
      	 	
              C.

            	
              Plan
                under which granted: SouthCrest Financial Group, Inc. 2005 Stock
                Incentive
                Plan.

            

    

    

    
      	 	
              D.

            	
              Option
                Shares: All or any part of ________ shares of the Company’s no par value
                common stock (the “Common Stock”), subject to adjustment as provided in
                the attached Terms and Conditions.

            

    

    

    
      	 	
              E.

            	
              Exercise
                Price: $_____ per share, subject to adjustment as provided in the
                attached
                Terms and Conditions. The Exercise Price is, in the judgment of the
                Committee, not less than 100% of the Fair Market Value of a share
                of
                Common Stock on the Grant Date or, in the case of an Over 10% Owner,
                not
                less than 110% of the Fair Market Value of a share of Common Stock
                on the
                Grant Date.

            

    

    

    
      	 	
              F.

            	
              Option
                Period: The Option may be exercised only during the Option Period
                which
                commences on the Grant Date and ends, generally, on the earliest
                of (a)
                the tenth (10th) anniversary of the Grant Date (unless the Optionee
                is an
                Over 10% Owner, in which case the fifth (5th) anniversary of the
                Grant
                Date); (b) three (3) months following the date the Optionee ceases
                to be
                an employee of the Company (including any Affiliate) for any reason
                other
                than death, Disability or termination with Cause; (c) one (1) year
                following the date the Optionee ceases to be an employee of the Company
                (including any Affiliate) due to death or Disability; or (d) the
                date the
                Optionee ceases to be an employee of the Company (including any Affiliate)
                due to a termination with Cause; provided, however, that the Option
                may be
                exercised as to no more than the vested Option Shares, determined
                pursuant
                to the Vesting Schedule. Note
                that other limitations to exercising the Option, as described in
                the
                attached Terms and Conditions, may apply.

            

    

    

    
      	 	
              G.

            	
              Vesting
                Schedule: The Option Shares shall become vested in accordance with
                Schedule 1 hereto. 

            

    

    

    IN
      WITNESS WHEREOF, the Company has executed and sealed this Award as of the Grant
      Date set forth above. 

    
      	 	 	 
	 	SOUTHCREST
              FINANCIAL GROUP, INC.
	 
 	 
 	 
 
	
            	By:  	
            
	 	 	
              

            
	 	Title:  	 
	 	
              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TERMS
      AND CONDITIONS TO THE

    INCENTIVE
      STOCK OPTION AWARD

    PURSUANT
      TO THE SOUTHCREST FINANCIAL GROUP, INC. 

    2005
      STOCK INCENTIVE PLAN

     

    1.   Exercise
      of Option.
      Subject
      to the provisions provided herein or in the Award made pursuant to the
      SouthCrest Financial Group, Inc. 2005 Stock Incentive Plan:

    

      
       (a)       the
      Option may be exercised with respect to all or any portion of the vested Option
      Shares at any time during the Option Period by the delivery to the Company,
      at
      its principal place of business, of a written notice of exercise in
      substantially the form attached hereto as Exhibit 1, which shall be
      actually delivered to the Company no earlier than thirty (30) days and no later
      than ten (10) days prior to the date upon which Optionee desires to exercise
      all
      or any portion of the Option; 

    

       
      (b)       payment
      to the Company of the Exercise Price multiplied
      by
      the
      number of Option Shares being purchased (the “Purchase Price”) as provided
      in Section 3; and

    

       
      (c)        if
      applicable, satisfaction of withholding tax obligations under Section
      2.

    

    Upon
      acceptance of such notice and receipt of payment in full of the Purchase Price
      and, if applicable, any withholding taxes, the Company shall cause to be issued
      a certificate representing the Option Shares purchased. 

     

    2.  
Withholding.
      To the
      extent the Option is deemed to be a Nonqualified Stock Option in accordance
      with
      Section 19 hereof, the Optionee must satisfy his federal, state and local,
      if
      any, withholding taxes imposed by reason of the exercise of the Option either
      by
      paying to the Company the full amount of the withholding obligation (i) in
      cash;
      (ii) by tendering shares of Common Stock which have been owned by the Optionee
      for at least six (6) months prior to the date of exercise having a Fair Market
      Value (as defined in the Plan) equal to the withholding obligation; (iii) by
      electing, irrevocably and in writing in substantially the form of Exhibit 2
      (the
“Withholding Election”), to have the smallest number of whole shares of Common
      Stock withheld by the Company which, when multiplied by the Fair Market Value
      (as defined in the Plan) of the Common Stock as of the date the Option is
      exercised, is sufficient to satisfy the amount of minimum required withholding
      tax obligations; or (iv) by any combination of the above. Optionee may make
      a
      Withholding Election only if the following conditions are met: 

    

    (a)      
      the
      Withholding Election is made on or prior to the date on which the amount of
      tax
      required to be withheld is determined (the “Tax Date”) by executing and
      delivering to the Company a properly completed Notice of Withholding in
      substantially the form attached hereto as Exhibit 2; and 

    

    (b)      
      any
      Withholding Election will be irrevocable; however, the Committee (as defined
      in
      the Plan) may, in its sole discretion, disapprove and give no effect to the
      Withholding Election.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    3.         
       Purchase
      Price.
      Payment
      of the Purchase Price for all Option Shares purchased pursuant to the exercise
      of an Option shall be made in cash or certified check or, alternatively, as
      follows:

    

    (a)       
      by
      delivery to the Company of a number of shares of Common Stock which have been
      owned by the Optionee for at least six (6) months prior to the date of the
      Option’s exercise having an aggregate Fair Market Value, as determined under the
      Plan, on the date of exercise either equal to the Purchase Price or in
      combination with cash or a certified check to equal the Purchase Price;
      or

    

    (b)       
      if
      the
      Common Stock is then traded by brokers, whether on a national securities
      exchange or otherwise, by receipt of the Purchase Price in cash from a broker,
      dealer or other “creditor” as defined by Regulation T issued by the Board of
      Governors of the Federal Reserve System following delivery by the Optionee
      to
      the Committee of instructions in a form acceptable to the Committee regarding
      delivery to such broker, dealer or other creditor of that number of Option
      Shares with respect to which the Option is exercised.

    

    4.    Rights
      as Shareholder.
      Until
      the stock certificates reflecting the Option Shares accruing to the Optionee
      upon exercise of the Option are issued to the Optionee, the Optionee shall
      have
      no rights as a shareholder with respect to such Option Shares. The Company
      shall
      make no adjustment for any dividends or distributions or other rights on or
      with
      respect to Option Shares for which the record date is prior to the issuance
      of
      that stock certificate, except as the Plan or the attached Award otherwise
      provides.

    

    5.    Restriction
      on Transfer of Option.
      The
      Option evidenced hereby is nontransferable other than by will or the laws of
      descent and distribution and shall be exercisable during the lifetime of the
      Optionee only by the Optionee (or in the event of his Disability, by his
      personal representative) and after his death, only by his legatee or the
      executor of his estate.

    

    6.    Changes
      in Capitalization.

    

    (a)       
      If
      the
      number of shares of Common Stock shall be increased or decreased by reason
      of a
      subdivision or combination of shares of Common Stock, the payment of a stock
      dividend in shares of Common Stock or any other increase or decrease in the
      number of shares of Common Stock outstanding effected without receipt of
      consideration by the Company, an appropriate adjustment shall be made by the
      Committee, in a manner determined in its sole discretion, in the number and
      kind
      of Option Shares and in the Exercise Price.

    

    (b)      
      If
      the
      Company shall be the surviving corporation in any merger, consolidation,
      reorganization, extraordinary dividend, spin-off, or other change in corporate
      structure of the Company or its Common Stock, the Optionee shall be entitled
      to
      purchase the number and class of securities to which a holder of the number
      of
      shares of Common Stock subject to the Option at the time of the transaction
      would have been entitled to receive as a result of such transaction, and a
      corresponding adjustment, where appropriate, shall be made in the Exercise
      Price. In the event of a Change in Control or other corporate transaction
      pursuant to which the Company is not the surviving entity, the Committee may
      provide for the assumption of the Option by the surviving entity or the
      substitution of a new option, adjusted in a manner similar to that contemplated
      by the immediately preceding sentence; however, if the surviving entity does
      not
      agree to the assumption or substitution of the Option, the Committee may elect
      to terminate the Option Period as of the effective date of the Change in Control
      in consideration of the payment to the Optionee of the sum of the difference
      between the then aggregate Fair Market Value of the Common Stock and the
      aggregate Exercise Price for each vested Option Share which has not been
      exercised as of the effective date of the Change in Control. A dissolution
      or
      liquidation of the Company shall cause the Option to terminate as to any portion
      thereof not exercised as of the effective date of the dissolution or
      liquidation.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (c)      
      The
      existence of the Plan and the Option granted pursuant to this Agreement shall
      not affect in any way the right or power of the Company to make or authorize
      any
      adjustment, reclassification, reorganization or other change in its capital
      or
      business structure, any merger or consolidation of the Company, any issue of
      debt or equity securities having preferences or priorities as to the Common
      Stock or the rights thereof, the dissolution or liquidation of the Company,
      any
      sale or transfer of all or any part of its business or assets, or any other
      corporate act or proceeding. Any adjustment pursuant to this Section may
      provide, in the Committee’s discretion, for the elimination without payment
      therefor of any fractional shares that might otherwise become subject to any
      Option.

     

    7.        
      Special
      Limitation on Exercise.
      No
      purported exercise of the Option shall be effective without the approval of
      the
      Committee, which may be withheld to the extent that the exercise, either
      individually or in the aggregate together with the exercise of other previously
      exercised stock options and/or offers and sales pursuant to any prior or
      contemplated offering of securities, would, in the sole and absolute judgment
      of
      the Committee, require the filing of a registration statement with the United
      States Securities and Exchange Commission or with the securities commission
      of
      any state. If a registration statement is not in effect under the Securities
      Act
      of 1933 or any applicable state securities law with respect to shares of Common
      Stock purchasable or otherwise deliverable under the Option, the Optionee (a)
      shall deliver to the Company, prior to the exercise of the Option or as a
      condition to the delivery of Common Stock pursuant to the exercise of an Option
      exercise, such information, representations and warranties as the Company may
      reasonably request in order for the Company to be able to satisfy itself that
      the Option Shares are being acquired in accordance with the terms of an
      applicable exemption from the securities registration requirements of applicable
      federal and state securities laws and (b) shall agree that the shares of Common
      Stock so acquired will not be disposed of except pursuant to an effective
      registration statement, unless the Company shall have received an opinion of
      counsel that such disposition is exempt from such requirement under the
      Securities Act of 1933 and any applicable state securities law.

    

    8.        
      Legend
      on Stock Certificates. 
      Certificates evidencing the Option Shares, to the extent appropriate at the
      time, shall have noted conspicuously on the certificates a legend intended
      to
      give all persons full notice of the existence of the conditions, restrictions,
      rights and obligations set forth herein and in the Plan.

    

    9.        
      Governing
      Laws.
      This
      Award and the Terms and Conditions shall be construed, administered and enforced
      according to the laws of the State of Georgia.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    10.      
      Successors.
      This
      Award and the Terms and Conditions shall be binding upon and inure to the
      benefit of the heirs, legal representatives, successors and permitted assigns
      of
      the Optionee and the Company.

    

    11.       Notice.
      Except
      as otherwise specified herein, all notices and other communications under this
      Award shall be in writing and shall be deemed to have been given if personally
      delivered or if sent by registered or certified United States mail, return
      receipt requested, postage prepaid, addressed to the proposed recipient at
      the
      last known address of the recipient. Any party may designate any other address
      to which notices shall be sent by giving notice of the address to the other
      parties in the same manner as provided herein.

    

    12.      
      Severability.
      In the
      event that any one or more of the provisions or portion thereof contained in
      the
      Award and these Terms and Conditions shall for any reason be held to be invalid,
      illegal or unenforceable in any respect, the same shall not invalidate or
      otherwise affect any other provisions of the Award and these Terms and
      Conditions, and the Award and these Terms and Conditions shall be construed
      as
      if the invalid, illegal or unenforceable provision or portion thereof had never
      been contained herein.

    

    13.      
      Entire
      Agreement.
      Subject
      to the terms and conditions of the Plan, the Award and the Terms and Conditions
      express the entire understanding of the parties with respect to the
      Option.

    

    14.       
      Violation.
      Any
      transfer, pledge, sale, assignment, or hypothecation of the Option or any
      portion thereof shall be a violation of the terms of the Award or these Terms
      and Conditions and shall be void and without effect.

    

    15.      
      Headings
      and Capitalized Terms.
      Section
      headings used herein are for convenience of reference only and shall not be
      considered in construing the Award or these Terms and Conditions. Capitalized
      terms used, but not defined, in either the Award or the Terms and Conditions
      shall be given the meaning ascribed to them in the Plan.

    

    16.      
      Specific
      Performance.
      In the
      event of any actual or threatened default in, or breach of, any of the terms,
      conditions and provisions of the Award and these Terms and Conditions, the
      party
      or parties who are thereby aggrieved shall have the right to specific
      performance and injunction in addition to any and all other rights and remedies
      at law or in equity, and all such rights and remedies shall be
      cumulative.

    

    17.      
      No
      Right to Continued Retention.
      Neither
      the establishment of the Plan nor the award of Option Shares hereunder shall
      be
      construed as giving the Optionee the right to continued employment with the
      Company or any affiliate.

    

    18.      
      Qualified
      Status of Option.
      In
      accordance with Section 2.4 of the Plan, the aggregate Fair Market Value
      (determined as of the date an Incentive Stock Option is granted) of the Option
      Shares which become exercisable for the first time by an individual during
      any
      calendar year shall not exceed $100,000. If the foregoing limitation is exceeded
      with respect to any portion of the Option Shares, that portion of the Option
      Shares which cause the limitation to be exceeded shall be treated as a
      Nonqualified Stock Option. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    19.      
      Definition
      of Cause.
      As used
      in this Award, the term “Cause” means cause as defined in any employment
      agreement between the Optionee and the Company or an Affiliate, or if none,
      cause means (i) willful and continued failure (other than such failure resulting
      from his incapacity during physical or mental illness) by the Optionee to
      substantially perform his duties with the Company or an Affiliate; (ii) willful
      misconduct by the Optionee; (iii) gross negligence by the Optionee causing
      material harm to the Company or an Affiliate; (iv) any act by the Optionee
      of
      fraud, misappropriation, dishonesty or embezzlement; (v) commission by the
      Optionee of a felony or any other crime involving moral turpitude or dishonesty;
      or (vi) the habitual and disabling use by the Optionee of alcohol or
      drugs.

    

    20.      
      Definition
      of Change in Control.
      As used
      in this Award, the term “Change in Control” shall have the same meaning as
      provided in the employment agreement between the Optionee and the Company or
      Affiliate(s), or if no such definition or employment agreement exists, “Change
      in Control” shall mean any one of the following events which may occur after the
      date the Option is granted:

    

    (a)      
      the
      acquisition by any individual, entity or “group,” within the meaning of Section
      13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended,
      (the “Exchange Act”) (a “Person”) of beneficial ownership (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of voting securities of the
      Company or [appropriate
      Bank(s) name(s)]
      where
      such acquisition causes any such Person to own ___ percent (____%) or more
      of
      the combined voting power of the then outstanding voting securities entitled
      to
      vote generally in the election of directors;

    

    (b)        within
      any twelve-month period, the persons who were directors of the Company or
[appropriate
      Bank(s) name(s)]
      immediately before the beginning of such twelve-month period (the “Incumbent
      Directors”) shall cease to constitute at least a majority of such board of
      directors, provided than any director who was not a director at the beginning
      of
      such twelve-month period shall be deemed to be an Incumbent Director if that
      director were elected to such board of directors by, or on the recommendation
      of
      or with the approval of, at least two-thirds (2/3) of the directors who then
      qualified as Incumbent Directors; and provided further that no director whose
      initial assumption of office is in connection with an actual or threatened
      election contest relating to the election of directors shall be deemed to be
      an
      Incumbent Director;

    

    (c)     
      a
      reorganization, merger or consolidation, with respect to which persons who
      were
      the shareholders of the Company or [appropriate
      Bank(s) name(s)]
      immediately prior to such reorganization, merger or consolidation do not,
      immediately thereafter, own more than fifty percent (50%) of the combined voting
      power entitled to vote in the election of directors of the reorganized, merged
      or consolidated entity’s then outstanding voting securities; or 

    

    (d)      
      the
      sale,
      transfer or assignment of all or substantially all of the assets of the Company
      or [appropriate
      Bank(s) name(s)]
      to any
      third party.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      1

    

    NOTICE
      OF EXERCISE OF

    STOCK
      OPTION TO PURCHASE

    COMMON
      STOCK OF

    SOUTHCREST
      FINANCIAL GROUP, INC.

     

    
      	 	 	Name
              _____________________________________________
	 	 	Address
              ___________________________________________
	 	 	__________________________________________________
	 	 	Date
              ______________________________________________

    

     

    SouthCrest
      Financial Group, Inc.

    P.O.
      Box
      228

    Cedartown,
      GA 30215

    Attn:
      Secretary

    

    Re:   Exercise
      of Incentive Stock Option

    

    Gentlemen:

    

    Subject
      to acceptance hereof by SouthCrest Financial Group, Inc. (the “Company”) and
      pursuant to the provisions of the SouthCrest Financial Group, Inc. 2005 Stock
      Incentive Plan (the “Plan”), I hereby give notice of my election to exercise
      options granted to me to purchase ______________ shares of Common Stock of
      the
      Company under the Incentive Stock Option Award (the “Award”) dated as of
      ___________, 200__. The purchase shall take place as of __________, 20___ (the
      “Exercise Date”).

    

    On
      or
      before the Exercise Date, I will pay the applicable purchase price as
      follows:

    

    
      	
            	o	
              by
                delivery of cash or a certified check for $___________ for the full
                purchase price payable to the order of SouthCrest Financial Group,
                Inc.

            

    

    

    
      	
            	o	
              by
                delivery of cash or a certified check for $___________ representing
                a
                portion of the purchase price with the balance to consist of shares
                of
                Common Stock that I have owned for at least six months and that are
                represented by a stock certificate I will surrender to the Company
                with my
                endorsement. If the number of shares of Common Stock represented
                by such
                stock certificate exceed the number to be applied against the purchase
                price, I understand that a new stock certificate will be issued to
                me
                reflecting the excess number of
                shares.

            

    

    

    
      	
            	o	
              by
                delivery of a stock certificate representing shares of Common Stock
                that I
                have owned for at least six months which I will surrender to the
                Company
                with my endorsement as payment of the purchase price. If the number
                of
                shares of Common Stock represented by such certificate exceed the
                number
                to be applied against the purchase price, I understand that a new
                certificate will be issued to me reflecting the excess number of
                shares.

            

    

     

    
      
        
        

      

      
        Exhibit
          1
– Page 1 of 4

        
          

        

      

      
        
        

      

    

     

    
      	
            	o	
              by
                delivery of the purchase price by _________________________, a broker,
                dealer or other “creditor” as defined by Regulation T issued by the Board
                of Governors of the Federal Reserve System. I hereby authorize the
                Company
                to issue a stock certificate for the number of shares indicated above
                in
                the name of said broker, dealer or other creditor or its nominee
                pursuant
                to instructions received by the Company and to deliver said stock
                certificate directly to that broker, dealer or other creditor (or
                to such
                other party specified in the instructions received by the Company
                from the
                broker, dealer or other creditor) upon receipt of the purchase price.
                NOTE:
                This choice is available only if and when the Common Stock becomes
                traded
                by brokers.

            

    

    

    The
      required federal, state, and local income tax withholding obligations, if any,
      on the exercise of the Award shall be paid on or before the Exercise Date in
      cash or with previously owned shares of Common Stock, as provided in the Award,
      or in the manner provided in the Withholding Election previously tendered or
      to
      be tendered to the Company no later then the Exercise Date.

    

    As
      soon
      as the stock certificate is registered in my name, please deliver it to me
      at
      the above address.

    

    If
      the
      Common Stock being acquired is not registered for issuance to and resale by
      the
      Optionee pursuant to an effective registration statement on Form S-8 (or
      successor form) filed under the Securities Act of 1933, as amended (the “1933
      Act”), I hereby represent, warrant, covenant, and agree with the Company as
      follows:

    

    The
      shares of the Common Stock being acquired by me will be acquired for my own
      account without the participation of any other person, with the intent of
      holding the Common Stock for investment and without the intent of participating,
      directly or indirectly, in a distribution of the Common Stock and not with
      a
      view to, or for resale in connection with, any distribution of the Common Stock,
      nor am I aware of the existence of any distribution of the Common Stock;

    

    I
      am not
      acquiring the Common Stock based upon any representation, oral or written,
      by
      any person with respect to the future value of, or income from, the Common
      Stock
      but rather upon an independent examination and judgment as to the prospects
      of
      the Company;

    

    The
      Common Stock was not offered to me by means of publicly disseminated
      advertisements or sales literature, nor am I aware of any offers made to other
      persons by such means;

    

    I
      am able
      to bear the economic risks of the investment in the Common Stock, including
      the
      risk of a complete loss of my investment therein;

    

    I
      understand and agree that the Common Stock will be issued and sold to me without
      registration under any state law relating to the registration of securities
      for
      sale, and will be issued and sold in reliance on the exemptions from
      registration under the 1933 Act, provided by Sections 3(b) and/or 4(2) thereof
      and the rules and regulations promulgated thereunder;

    

    
      
        
        

      

      
        Exhibit
          1
– Page 2 of 4

        
          

        

      

      
        
        

      

       

    

    The
      Common Stock cannot be offered for sale, sold or transferred by me other than
      pursuant to: (A) an effective registration under the 1933 Act or in a
      transaction otherwise in compliance with the 1933 Act; and (B) evidence
      satisfactory to the Company of compliance with the applicable securities laws
      of
      other jurisdictions. The Company shall be entitled to rely upon an opinion
      of
      counsel satisfactory to it with respect to compliance with the above
      laws;

    

    The
      Company will be under no obligation to register the Common Stock or to comply
      with any exemption available for sale of the Common Stock without registration
      or filing, and the information or conditions necessary to permit routine sales
      of securities of the Company under Rule 144 under the 1933 Act are not now
      available and no assurance has been given that it or they will become available.
      The Company is under no obligation to act in any manner so as to make Rule
      144
      available with respect to the Common Stock;

    

    I
      have
      and have had complete access to and the opportunity to review and make copies
      of
      all material documents related to the business of the Company, including, but
      not limited to, contracts, financial statements, tax returns, leases, deeds
      and
      other books and records. I have examined such of these documents as I wished
      and
      am familiar with the business and affairs of the Company. I realize that the
      purchase of the Common Stock is a speculative investment and that any possible
      profit therefrom is uncertain;

    

    I
      have
      had the opportunity to ask questions of and receive answers from the Company
      and
      any person acting on its behalf and to obtain all material information
      reasonably available with respect to the Company and its affairs. I have
      received all information and data with respect to the Company which I have
      requested and which I have deemed relevant in connection with the evaluation
      of
      the merits and risks of my investment in the Company;

    

    I
      have
      such knowledge and experience in financial and business matters that I am
      capable of evaluating the merits and risks of the purchase of the Common Stock
      hereunder and I am able to bear the economic risk of such purchase;
      and

    

    The
      agreements, representations, warranties and covenants made by me herein extend
      to and apply to all of the Common Stock of the Company issued to me pursuant
      to
      this Award. Acceptance by me of the certificate representing such Common Stock
      shall constitute a confirmation by me that all such agreements, representations,
      warranties and covenants made herein shall be true and correct at that
      time.

    

    I
      understand that the certificates representing the shares being purchased by
      me
      in accordance with this notice shall bear a legend referring to the foregoing
      covenants, representations and warranties and restrictions on transfer, and
      I
      agree that a legend to that effect may be placed on any certificate which may
      be
      issued to me as a substitute for the certificates being acquired by me in
      accordance with this notice. I further understand that capitalized terms used
      in
      this Notice of Exercise without definition shall have the meanings given to
      them
      in the Plan.

    

    
      
        
        

      

      
        Exhibit
          1
– Page 3 of 4

        
          

        

      

      
        
        

      

    

     

    
      	 	 	Very truly yours,
	 	 	 
	 	 	________________________________________
	 	 	 
	
              AGREED
                TO AND ACCEPTED:

            	 	 
	 	 	 
	SOUTHCREST FINANCIAL GROUP, INC.	 	 
	 	 	 
	By: _______________________________	 	 
	 	 	 
	Title:
              ______________________________	 	 
	 	 	 
	
              Number
                of Shares

              Exercised:
                __________________________

            	 	 
	 	 	 
	
              Number
                of Shares

              Remaining:
                _________________________

            	 	Date:
              _________________________________________

    

     

    
      
        
        

      

      
        Exhibit
          1
– Page 4 of 4

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      2

    

    NOTICE
      OF WITHHOLDING ELECTION

    SOUTHCREST
      FINANCIAL GROUP, INC. 2005 STOCK INCENTIVE PLAN

     

    TO:   SouthCrest
      Financial Group, Inc.

    

    FROM:
      _________________________________________       

    

    RE:  Withholding
      Election

    

    This
      election relates to the Option identified in Paragraph 3 below. I hereby
      certify that:

    

    
      	(1)	
              My
                correct name and social security number and my current address are
                set
                forth at the end of this document.

            

    

    

    
      	(2)	
              I
                am (check one, whichever is
                applicable).

            

    

    

    
      	 	
              o

            	
              the
                original recipient of the Option.

            

    

    

    
      	 	
              
                o

              

            	
              the
                legal representative of the estate of the original recipient of the
                Option.

            

    

    

    
      	 	
              
                o

              

            	
              a
                legatee of the original recipient of the
                Option.

            

    

    

    
      	 	
              
                o

              

            	
              the
                legal guardian of the original recipient of the
                Option.

            

    

    

    
      	(3)	
              The
                Option to which this election relates was issued under the SouthCrest
                Financial Group, Inc. 2005 Stock Incentive Plan (the “Plan”) in the name
                of _________________________ for the purchase of a total of
                _______________ shares of Common Stock of the Company. This election
                relates to _______________ shares of Common Stock issuable upon exercise
                of the Option, provided that the numbers set forth above shall be
                deemed
                changed as appropriate to reflect the applicable Plan
                provisions.

            

    

    

    
      	(4)	
              In
                connection with any exercise of the Option with respect to the Common
                Stock, I hereby elect: 

            

    

    

    
      	 	
              
                o

              

            	
              to
                have certain of the shares otherwise issuable pursuant to the exercise
                withheld by the Company for the purpose of having the value of the
                shares
                applied to pay federal, state, and local, if any, taxes arising from
                the
                exercise.

            

    

    

    
      	 	
              
                o

              

            	
              to
                tender shares held by me for a period of at least six (6) months
                prior to
                the exercise of the Option for the purpose of having the value of
                the
                shares applied to pay such taxes.

            

    

    

    The
      shares to be withheld or tendered, as applicable, shall have, as of the Tax
      Date
      applicable to the exercise, a Fair Market Value equal to the minimum statutory
      tax withholding requirement under federal, state, and local law in connection
      with the exercise.

    

    
      
        
        

      

      
        Exhibit 2
          – Page 1 of 2

        
          

        

      

      
        
        

      

       

    

    
      	
              (5)

            	
              This
                Withholding Election is made no later than the Tax Date and is otherwise
                timely made pursuant to the Plan.

            

    

    

    
      	(6)	
              I
                understand that this Withholding Election may not be revised, amended
                or
                revoked by me.

            

    

    

    
      	(7)	
              The
                Plan has been made available to me by the Company. I have read and
                understand the Plan and I have no reason to believe that any of the
                conditions to the making of this Withholding Election have not been
                met.

            

    

    

    
      	(8)	
              Capitalized
                terms used in this Notice of Withholding Election without definition
                shall
                have the meanings given to them in the
                Plan.

            

    

    

    

    
      	Dated: _______________________	 	_____________________________________
	 	 	Signature
	 	 	 
	 _________________________	 	 _____________________________________
	Social Security Number  	 	Name (Printed)
	 	 	 
	 	 	_____________________________________
	 	 	Street Address
	 	 	 
	 	 	_____________________________________
	 	 	City, State, Zip
              Code

    

    

    
      
        
        

      

      
        Exhibit 2
          – Page 2 of 2

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      1

    VESTING
      SCHEDULE

    INCENTIVE
      STOCK OPTION AWARD

    ISSUED
      PURSUANT TO THE

    SOUTHCREST
      FINANCIAL GROUP, INC. 2005 STOCK INCENTIVE PLAN

     

    
      	
              A.

            	
              The
                Option Shares shall become vested Option Shares following completion
                of
                the years of service as an employee of the Company or any Affiliate
                as
                indicated in the schedule below.

            

    

     

    
      
        	
                Percentage
                  of Option Shares 

                Which
                  are Vested Shares

              	 	
                Years
                  of Service after the 

                Grant
                  Date

              
	
              	 	
              
	
              	 	
                 

                 

                 

              

      

       

    

    
      	
              B.

            	
              Notwithstanding
                the foregoing, in the event of a Change in Control, 100% of the Option
                Shares shall become vested Option Shares immediately prior to such
                Change
                in Control.

            

    

    

    
      	
              C.

            	
              For
                purposes of the Vesting Schedule, Optionee shall be granted a year
                of
                service for each twelve-consecutive-month period following the Vesting
                Commencement Date and during which Optionee continues, at all times,
                as an
                employee of the Company or any Affiliate. No credit shall be given
                for a
                partial year of service.

            

    

     

    
      
        
        

      

      
        Schedule 1
          – Page 1 of 1Exhibit 10-17

    
      

    

    Exhibit
      10.17

    FORM
      OF

    NONQUALIFIED
      STOCK OPTION AWARD PURSUANT TO THE 

    SOUTHCREST
      FINANCIAL GROUP, INC. 2005 STOCK INCENTIVE PLAN 

    

    THIS
      AWARD is made as of the Grant Date by SOUTHCREST FINANCIAL GROUP, INC. (the
      “Company”) to _______________ (the “Optionee”).

    

    Upon
      and
      subject to the Terms and Conditions attached hereto and incorporated herein
      by
      reference, the Company hereby awards as of the Grant Date to Optionee a
      nonqualified stock option (the “Option”), as described below, to purchase the
      Option Shares.

    

    
      	
            	A.	
              Grant
                Date: ____________, 200_.

            

    

    

    
      	
            	B.	
              Type
                of Option: Nonqualified Stock
                Option.

            

    

    

    
      	 	
              C.

            	
              Plan
                under which granted: SouthCrest Financial Group, Inc. 2005 Stock
                Incentive
                Plan.

            

    

    

    
      	 	
              D.

            	
              Option
                Shares: All or any part of ________ shares of the Company’s no par value
                common stock (the “Common Stock”), subject to adjustment as provided in
                the attached Terms and Conditions.

            

    

    

    
      	 	
              E.

            	
              Exercise
                Price: $_____ per share, subject to adjustment as provided in the
                attached
                Terms and Conditions. The Exercise Price is, in the judgment of the
                Committee, not less than 100% of the Fair Market Value of a share
                of
                Common Stock on the Grant Date.

            

    

    

    
      	 	
              F.

            	
              Option
                Period: The Option may be exercised only during the Option Period
                which
                commences on the Grant Date and ends, generally, on the earliest
                of (a)
                the tenth (10th) anniversary of the Grant Date; (b) three (3) months
                following the date the Optionee ceases to be an employee of the Company
                (including any Affiliate) for any reason other than death, Disability
                or
                termination with Cause; (c) one (1) year following the date the Optionee
                ceases to be an employee of the Company (including any Affiliate)
                due to
                death or Disability; or (d) the date the Optionee ceases to be an
                employee
                of the Company (including any Affiliate) due to a termination with
                Cause;
                provided, however, that the Option may be exercised as to no more
                than the
                vested Option Shares, determined pursuant to the Vesting Schedule.
                Note
                that other limitations to exercising the Option, as described in
                the
                attached Terms and Conditions, may apply.

            

    

    

    
      	 	
              G.

            	
              Vesting
                Schedule: The Option Shares shall become vested in accordance with
                Schedule 1 hereto. 

            

    

    

    IN
      WITNESS WHEREOF, the Company has executed and sealed this Award as of the Grant
      Date set forth above. 

     

    
      	 	 	 
	 	SOUTHCREST
              FINANCIAL GROUP, INC.
	 
 	 
 	 
 
	
            	By:  	
            
	 	 	
              

            
	 	Title:  	 
	 	
              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TERMS
      AND CONDITIONS TO THE

    NONQUALIFIED
      STOCK OPTION AWARD

    PURSUANT
      TO THE SOUTHCREST FINANCIAL GROUP, INC. 

    2005
      STOCK INCENTIVE PLAN

     

    1.    Exercise
      of Option.
      Subject
      to the provisions provided herein or in the Award made pursuant to the
      SouthCrest Financial Group, Inc. 2005 Stock Incentive Plan:

     

    (a)  the
      Option may be exercised with respect to all or any portion of the vested Option
      Shares at any time during the Option Period by the delivery to the Company,
      at
      its principal place of business, of a written notice of exercise in
      substantially the form attached hereto as Exhibit 1, which shall be
      actually delivered to the Company no earlier than thirty (30) days and no later
      than ten (10) days prior to the date upon which Optionee desires to exercise
      all
      or any portion of the Option; 

    

    (b)  payment
      to the Company of the Exercise Price multiplied
      by
      the
      number of Option Shares being purchased (the “Purchase Price”) as provided
      in Section 3; and

    

    (c)  satisfaction
      of withholding tax obligations under Section 2.

    

    Upon
      acceptance of such notice and receipt of payment in full of the Purchase Price
      and any withholding taxes, the Company shall cause to be issued a certificate
      representing the Option Shares purchased. 

    

    2.   Withholding.
      The
      Optionee must satisfy his federal, state and local, if any, withholding taxes
      imposed by reason of the exercise of the Option either by paying to the Company
      the full amount of the withholding obligation (i) in cash; (ii) by tendering
      shares of Common Stock which have been owned by the Optionee for at least six
      (6) months prior to the date of exercise having a Fair Market Value (as defined
      in the Plan) equal to the withholding obligation; (iii) by electing, irrevocably
      and in writing in substantially the form of Exhibit 2 (the “Withholding
      Election”), to have the smallest number of whole shares of Common Stock withheld
      by the Company which, when multiplied by the Fair Market Value (as defined
      in
      the Plan) of the Common Stock as of the date the Option is exercised, is
      sufficient to satisfy the amount of minimum required withholding tax
      obligations; or (iv) by any combination of the above. Optionee may make a
      Withholding Election only if the following conditions are met: 

    

    (a)  the
      Withholding Election is made on or prior to the date on which the amount of
      tax
      required to be withheld is determined (the “Tax Date”) by executing and
      delivering to the Company a properly completed Notice of Withholding in
      substantially the form attached hereto as Exhibit 2; and 

    

    (b)  any
      Withholding Election will be irrevocable; however, the Committee (as defined
      in
      the Plan) may, in its sole discretion, disapprove and give no effect to the
      Withholding Election.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    3.   Purchase
      Price.
      Payment
      of the Purchase Price for all Option Shares purchased pursuant to the exercise
      of an Option shall be made in cash or certified check or, alternatively, as
      follows:

    

    (a)  by
      delivery to the Company of a number of shares of Common Stock which have been
      owned by the Optionee for at least six (6) months prior to the date of the
      Option’s exercise having an aggregate Fair Market Value, as determined under the
      Plan, on the date of exercise either equal to the Purchase Price or in
      combination with cash or a certified check to equal the Purchase Price;
      or

    

    (b)  if
      the
      Common Stock is then traded by brokers, whether on a national securities
      exchange or otherwise, by receipt of the Purchase Price in cash from a broker,
      dealer or other “creditor” as defined by Regulation T issued by the Board of
      Governors of the Federal Reserve System following delivery by the Optionee
      to
      the Committee of instructions in a form acceptable to the Committee regarding
      delivery to such broker, dealer or other creditor of that number of Option
      Shares with respect to which the Option is exercised.

    

    4.   Rights
      as Shareholder.
      Until
      the stock certificates reflecting the Option Shares accruing to the Optionee
      upon exercise of the Option are issued to the Optionee, the Optionee shall
      have
      no rights as a shareholder with respect to such Option Shares. The Company
      shall
      make no adjustment for any dividends or distributions or other rights on or
      with
      respect to Option Shares for which the record date is prior to the issuance
      of
      that stock certificate, except as the Plan or the attached Award otherwise
      provides.

    

    5.   Restriction
      on Transfer of Option.
      The
      Option evidenced hereby is nontransferable other than by will or the laws of
      descent and distribution and shall be exercisable during the lifetime of the
      Optionee only by the Optionee (or in the event of his Disability, by his
      personal representative) and after his death, only by his legatee or the
      executor of his estate.

    

    6.   Changes
      in Capitalization.

    

    (a)  If
      the
      number of shares of Common Stock shall be increased or decreased by reason
      of a
      subdivision or combination of shares of Common Stock, the payment of a stock
      dividend in shares of Common Stock or any other increase or decrease in the
      number of shares of Common Stock outstanding effected without receipt of
      consideration by the Company, an appropriate adjustment shall be made by the
      Committee, in a manner determined in its sole discretion, in the number and
      kind
      of Option Shares and in the Exercise Price.

    

    (b)  If
      the
      Company shall be the surviving corporation in any merger, consolidation,
      reorganization, extraordinary dividend, spin-off, or other change in corporate
      structure of the Company or its Common Stock, the Optionee shall be entitled
      to
      purchase the number and class of securities to which a holder of the number
      of
      shares of Common Stock subject to the Option at the time of the transaction
      would have been entitled to receive as a result of such transaction, and a
      corresponding adjustment, where appropriate, shall be made in the Exercise
      Price. In the event of a Change in Control or other corporate transaction
      pursuant to which the Company is not the surviving entity, the Committee may
      provide for the assumption of the Option by the surviving entity or the
      substitution of a new option, adjusted in a manner similar to that contemplated
      by the immediately preceding sentence; however, if the surviving entity does
      not
      agree to the assumption or substitution of the Option, the Committee may elect
      to terminate the Option Period as of the effective date of the Change in Control
      in consideration of the payment to the Optionee of the sum of the difference
      between the then aggregate Fair Market Value of the Common Stock and the
      aggregate Exercise Price for each vested Option Share which has not been
      exercised as of the effective date of the Change in Control. A dissolution
      or
      liquidation of the Company shall cause the Option to terminate as to any portion
      thereof not exercised as of the effective date of the dissolution or
      liquidation.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (c)  The
      existence of the Plan and the Option granted pursuant to this Agreement shall
      not affect in any way the right or power of the Company to make or authorize
      any
      adjustment, reclassification, reorganization or other change in its capital
      or
      business structure, any merger or consolidation of the Company, any issue of
      debt or equity securities having preferences or priorities as to the Common
      Stock or the rights thereof, the dissolution or liquidation of the Company,
      any
      sale or transfer of all or any part of its business or assets, or any other
      corporate act or proceeding. Any adjustment pursuant to this Section may
      provide, in the Committee’s discretion, for the elimination without payment
      therefor of any fractional shares that might otherwise become subject to any
      Option.

    

    7.   Special
      Limitation on Exercise.
      No
      purported exercise of the Option shall be effective without the approval of
      the
      Committee, which may be withheld to the extent that the exercise, either
      individually or in the aggregate together with the exercise of other previously
      exercised stock options and/or offers and sales pursuant to any prior or
      contemplated offering of securities, would, in the sole and absolute judgment
      of
      the Committee, require the filing of a registration statement with the United
      States Securities and Exchange Commission or with the securities commission
      of
      any state. If a registration statement is not in effect under the Securities
      Act
      of 1933 or any applicable state securities law with respect to shares of Common
      Stock purchasable or otherwise deliverable under the Option, the Optionee (a)
      shall deliver to the Company, prior to the exercise of the Option or as a
      condition to the delivery of Common Stock pursuant to the exercise of an Option
      exercise, such information, representations and warranties as the Company may
      reasonably request in order for the Company to be able to satisfy itself that
      the Option Shares are being acquired in accordance with the terms of an
      applicable exemption from the securities registration requirements of applicable
      federal and state securities laws and (b) shall agree that the shares of Common
      Stock so acquired will not be disposed of except pursuant to an effective
      registration statement, unless the Company shall have received an opinion of
      counsel that such disposition is exempt from such requirement under the
      Securities Act of 1933 and any applicable state securities law.

    

    8.   Legend
      on Stock Certificates. 
      Certificates evidencing the Option Shares, to the extent appropriate at the
      time, shall have noted conspicuously on the certificates a legend intended
      to
      give all persons full notice of the existence of the conditions, restrictions,
      rights and obligations set forth herein and in the Plan.

    

    9.   Governing
      Laws.
      This
      Award and the Terms and Conditions shall be construed, administered and enforced
      according to the laws of the State of Georgia.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    10.        
      Successors.
      This
      Award and the Terms and Conditions shall be binding upon and inure to the
      benefit of the heirs, legal representatives, successors and permitted assigns
      of
      the Optionee and the Company.

    

    11.       
      Notice.
      Except
      as otherwise specified herein, all notices and other communications under this
      Award shall be in writing and shall be deemed to have been given if personally
      delivered or if sent by registered or certified United States mail, return
      receipt requested, postage prepaid, addressed to the proposed recipient at
      the
      last known address of the recipient. Any party may designate any other address
      to which notices shall be sent by giving notice of the address to the other
      parties in the same manner as provided herein.

    

    12.        
      Severability.
      In the
      event that any one or more of the provisions or portion thereof contained in
      the
      Award and these Terms and Conditions shall for any reason be held to be invalid,
      illegal or unenforceable in any respect, the same shall not invalidate or
      otherwise affect any other provisions of the Award and these Terms and
      Conditions, and the Award and these Terms and Conditions shall be construed
      as
      if the invalid, illegal or unenforceable provision or portion thereof had never
      been contained herein.

    

    13.        
      Entire
      Agreement.
      Subject
      to the terms and conditions of the Plan, the Award and the Terms and Conditions
      express the entire understanding of the parties with respect to the
      Option.

    

    14.        
      Violation.
      Any
      transfer, pledge, sale, assignment, or hypothecation of the Option or any
      portion thereof shall be a violation of the terms of the Award or these Terms
      and Conditions and shall be void and without effect.

    

    15.        
      Headings
      and Capitalized Terms.
      Section
      headings used herein are for convenience of reference only and shall not be
      considered in construing the Award or these Terms and Conditions. Capitalized
      terms used, but not defined, in either the Award or the Terms and Conditions
      shall be given the meaning ascribed to them in the Plan.

    

    16.        
      Specific
      Performance.
      In the
      event of any actual or threatened default in, or breach of, any of the terms,
      conditions and provisions of the Award and these Terms and Conditions, the
      party
      or parties who are thereby aggrieved shall have the right to specific
      performance and injunction in addition to any and all other rights and remedies
      at law or in equity, and all such rights and remedies shall be
      cumulative.

    

    17.        
      No
      Right to Continued Retention.
      Neither
      the establishment of the Plan nor the award of Option Shares hereunder shall
      be
      construed as giving the Optionee the right to continued employment with the
      Company or any affiliate.

    

    18.        
      Definition
      of Cause.
      As used
      in this Award, the term “Cause” means cause as defined in any employment
      agreement between the Optionee and the Company or an Affiliate, or if none,
      cause means (i) willful and continued failure (other than such failure resulting
      from his incapacity during physical or mental illness) by the Optionee to
      substantially perform his duties with the Company or an Affiliate; (ii) willful
      misconduct by the Optionee; (iii) gross negligence by the Optionee causing
      material harm to the Company or an Affiliate; (iv) any act by the Optionee
      of
      fraud, misappropriation, dishonesty or embezzlement; (v) commission by the
      Optionee of a felony or any other crime involving moral turpitude or dishonesty;
      or (vi) the habitual and disabling use by the Optionee of alcohol or
      drugs.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    19.        
      Definition
      of Change in Control.
      As used
      in this Award, the term “Change in Control” shall have the same meaning as
      provided in the employment agreement between the Optionee and the Company or
      Affiliate(s), or if no such definition or employment agreement exists, “Change
      in Control” shall mean any one of the following events which may occur after the
      date the Option is granted:

    

    (a)  the
      acquisition by any individual, entity or “group,” within the meaning of Section
      13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934, as amended,
      (the “Exchange Act”) (a “Person”) of beneficial ownership (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of voting securities of the
      Company or [appropriate
      Bank(s) name(s)]
      where
      such acquisition causes any such Person to own ___ percent (____%) or more
      of
      the combined voting power of the then outstanding voting securities entitled
      to
      vote generally in the election of directors;

    

    (b)  within
      any twelve-month period, the persons who were directors of the Company or
[appropriate
      Bank(s) name(s)]
      immediately before the beginning of such twelve-month period (the “Incumbent
      Directors”) shall cease to constitute at least a majority of such board of
      directors, provided than any director who was not a director at the beginning
      of
      such twelve-month period shall be deemed to be an Incumbent Director if that
      director were elected to such board of directors by, or on the recommendation
      of
      or with the approval of, at least two-thirds (2/3) of the directors who then
      qualified as Incumbent Directors; and provided further that no director whose
      initial assumption of office is in connection with an actual or threatened
      election contest relating to the election of directors shall be deemed to be
      an
      Incumbent Director;

    

    (c)  a
      reorganization, merger or consolidation, with respect to which persons who
      were
      the shareholders of the Company or [appropriate
      Bank(s) name(s)]
      immediately prior to such reorganization, merger or consolidation do not,
      immediately thereafter, own more than fifty percent (50%) of the combined voting
      power entitled to vote in the election of directors of the reorganized, merged
      or consolidated entity’s then outstanding voting securities; or 

    

    (d)  the
      sale,
      transfer or assignment of all or substantially all of the assets of the Company
      or [appropriate
      Bank(s) name(s)]
      to any
      third party.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    EXHIBIT
      1

    

    NOTICE
      OF EXERCISE OF

    STOCK
      OPTION TO PURCHASE

    COMMON
      STOCK OF

    SOUTHCREST
      FINANCIAL GROUP, INC.

     

    
      	 	 	Name
              _____________________________________________
	 	 	Address
              ___________________________________________
	 	 	__________________________________________________
	 	 	Date
              ______________________________________________

    

     

    SouthCrest
      Financial Group, Inc.

    P.O.
      Box
      228

    Cedartown,
      GA 30215

    Attn:
      Secretary

    

    Re:   Exercise
      of Nonqualified Stock Option

    

    Gentlemen:

    

    Subject
      to acceptance hereof by SouthCrest Financial Group, Inc. (the “Company”) and
      pursuant to the provisions of the SouthCrest Financial Group, Inc. 2005 Stock
      Incentive Plan (the “Plan”), I hereby give notice of my election to exercise
      options granted to me to purchase ______________ shares of Common Stock of
      the
      Company under the Nonqualified Stock Option Award (the “Award”) dated as of
      ___________, 200__. The purchase shall take place as of __________, 20___ (the
      “Exercise Date”).

    

    On
      or
      before the Exercise Date, I will pay the applicable purchase price as
      follows:

    

    
      	
            	o	
              by
                delivery of cash or a certified check for $___________ for the full
                purchase price payable to the order of SouthCrest Financial Group,
                Inc.

            

    

    

    
      	
            	o	
              by
                delivery of cash or a certified check for $___________ representing
                a
                portion of the purchase price with the balance to consist of shares
                of
                Common Stock that I have owned for at least six months and that are
                represented by a stock certificate I will surrender to the Company
                with my
                endorsement. If the number of shares of Common Stock represented
                by such
                stock certificate exceed the number to be applied against the purchase
                price, I understand that a new stock certificate will be issued to
                me
                reflecting the excess number of
                shares.

            

    

    

    
      	
            	o	
              by
                delivery of a stock certificate representing shares of Common Stock
                that I
                have owned for at least six months which I will surrender to the
                Company
                with my endorsement as payment of the purchase price. If the number
                of
                shares of Common Stock represented by such certificate exceed the
                number
                to be applied against the purchase price, I understand that a new
                certificate will be issued to me reflecting the excess number of
                shares.

            

    

     

    
      
        
        

      

      
        Exhibit 1 –
Page 1 of 4

        
          

        

      

      
        
        

      

    

     

    
      	
            	o	
              by
                delivery of the purchase price by _________________________, a broker,
                dealer or other “creditor” as defined by Regulation T issued by the Board
                of Governors of the Federal Reserve System. I hereby authorize the
                Company
                to issue a stock certificate for the number of shares indicated above
                in
                the name of said broker, dealer or other creditor or its nominee
                pursuant
                to instructions received by the Company and to deliver said stock
                certificate directly to that broker, dealer or other creditor (or
                to such
                other party specified in the instructions received by the Company
                from the
                broker, dealer or other creditor) upon receipt of the purchase price.
                NOTE:
                This choice is available only if and when the Common Stock becomes
                traded
                by brokers.

            

    

    

    The
      required federal, state, and local income tax withholding obligations, if any,
      on the exercise of the Award shall be paid on or before the Exercise Date in
      cash or with previously owned shares of Common Stock, as provided in the Award,
      or in the manner provided in the Withholding Election previously tendered or
      to
      be tendered to the Company no later then the Exercise Date.

    

    As
      soon
      as the stock certificate is registered in my name, please deliver it to me
      at
      the above address.

    

    If
      the
      Common Stock being acquired is not registered for issuance to and resale by
      the
      Optionee pursuant to an effective registration statement on Form S-8 (or
      successor form) filed under the Securities Act of 1933, as amended (the “1933
      Act”), I hereby represent, warrant, covenant, and agree with the Company as
      follows:

    

    The
      shares of the Common Stock being acquired by me will be acquired for my own
      account without the participation of any other person, with the intent of
      holding the Common Stock for investment and without the intent of participating,
      directly or indirectly, in a distribution of the Common Stock and not with
      a
      view to, or for resale in connection with, any distribution of the Common Stock,
      nor am I aware of the existence of any distribution of the Common Stock;

    

    I
      am not
      acquiring the Common Stock based upon any representation, oral or written,
      by
      any person with respect to the future value of, or income from, the Common
      Stock
      but rather upon an independent examination and judgment as to the prospects
      of
      the Company;

    

    The
      Common Stock was not offered to me by means of publicly disseminated
      advertisements or sales literature, nor am I aware of any offers made to other
      persons by such means;

    

    I
      am able
      to bear the economic risks of the investment in the Common Stock, including
      the
      risk of a complete loss of my investment therein;

    

    I
      understand and agree that the Common Stock will be issued and sold to me without
      registration under any state law relating to the registration of securities
      for
      sale, and will be issued and sold in reliance on the exemptions from
      registration under the 1933 Act, provided by Sections 3(b) and/or 4(2) thereof
      and the rules and regulations promulgated thereunder;

    

    
      
        
        

      

      
        Exhibit 1 –
Page 2 of 4

        
          

        

      

      
        
        

      

       

    

    The
      Common Stock cannot be offered for sale, sold or transferred by me other than
      pursuant to: (A) an effective registration under the 1933 Act or in a
      transaction otherwise in compliance with the 1933 Act; and (B) evidence
      satisfactory to the Company of compliance with the applicable securities laws
      of
      other jurisdictions. The Company shall be entitled to rely upon an opinion
      of
      counsel satisfactory to it with respect to compliance with the above
      laws;

    

    The
      Company will be under no obligation to register the Common Stock or to comply
      with any exemption available for sale of the Common Stock without registration
      or filing, and the information or conditions necessary to permit routine sales
      of securities of the Company under Rule 144 under the 1933 Act are not now
      available and no assurance has been given that it or they will become available.
      The Company is under no obligation to act in any manner so as to make Rule
      144
      available with respect to the Common Stock;

    

    I
      have
      and have had complete access to and the opportunity to review and make copies
      of
      all material documents related to the business of the Company, including, but
      not limited to, contracts, financial statements, tax returns, leases, deeds
      and
      other books and records. I have examined such of these documents as I wished
      and
      am familiar with the business and affairs of the Company. I realize that the
      purchase of the Common Stock is a speculative investment and that any possible
      profit therefrom is uncertain;

    

    I
      have
      had the opportunity to ask questions of and receive answers from the Company
      and
      any person acting on its behalf and to obtain all material information
      reasonably available with respect to the Company and its affairs. I have
      received all information and data with respect to the Company which I have
      requested and which I have deemed relevant in connection with the evaluation
      of
      the merits and risks of my investment in the Company;

    

    I
      have
      such knowledge and experience in financial and business matters that I am
      capable of evaluating the merits and risks of the purchase of the Common Stock
      hereunder and I am able to bear the economic risk of such purchase;
      and

    

    The
      agreements, representations, warranties and covenants made by me herein extend
      to and apply to all of the Common Stock of the Company issued to me pursuant
      to
      this Award. Acceptance by me of the certificate representing such Common Stock
      shall constitute a confirmation by me that all such agreements, representations,
      warranties and covenants made herein shall be true and correct at that
      time.

    

    I
      understand that the certificates representing the shares being purchased by
      me
      in accordance with this notice shall bear a legend referring to the foregoing
      covenants, representations and warranties and restrictions on transfer, and
      I
      agree that a legend to that effect may be placed on any certificate which may
      be
      issued to me as a substitute for the certificates being acquired by me in
      accordance with this notice. I further understand that capitalized terms used
      in
      this Notice of Exercise without definition shall have the meanings given to
      them
      in the Plan.

    

    
      
        
        

      

      
        Exhibit 1 –
Page 3 of 4

        
          

        

      

      
        
        

      

    

     

    
      	 	 	Very truly yours,
	 	 	 
	 	 	________________________________________
	 	 	 
	
              AGREED
                TO AND ACCEPTED:

            	 	 
	 	 	 
	SOUTHCREST FINANCIAL GROUP, INC.	 	 
	 	 	 
	By: _______________________________	 	 
	 	 	 
	Title:
              ______________________________	 	 
	 	 	 
	
              Number
                of Shares

              Exercised:
                __________________________

            	 	 
	 	 	 
	
              Number
                of Shares

              Remaining:
                _________________________

            	 	Date:
              _________________________________________

    

     

    
      
        
        

      

      
        Exhibit 1 –
Page 4 of 4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2

    

    NOTICE
      OF WITHHOLDING ELECTION

    SOUTHCREST
      FINANCIAL GROUP, INC. 2005 STOCK INCENTIVE PLAN

     

    TO:   SouthCrest
      Financial Group, Inc.

    

    FROM:_________________________________________       

    

    RE:  
Withholding
      Election

    

    This
      election relates to the Option identified in Paragraph 3 below. I hereby
      certify that:

    

    
      	(1)	
              My
                correct name and social security number and my current address are
                set
                forth at the end of this document.

            

    

    

    
      	(2)	
              I
                am (check one, whichever is
                applicable).

            

    

    

    
      	 	
              o

            	
              the
                original recipient of the Option.

            

    

    

    
      	 	
              
                o

              

            	
              the
                legal representative of the estate of the original recipient of the
                Option.

            

    

    

    
      	 	
              
                o

              

            	
              a
                legatee of the original recipient of the
                Option.

            

    

    

    
      	 	
              
                o

              

            	
              the
                legal guardian of the original recipient of the
                Option.

            

    

    

    
      	(3)	
              The
                Option to which this election relates was issued under the SouthCrest
                Financial Group, Inc. 2005 Stock Incentive Plan (the “Plan”) in the name
                of _________________________ for the purchase of a total of
                _______________ shares of Common Stock of the Company. This election
                relates to _______________ shares of Common Stock issuable upon exercise
                of the Option, provided that the numbers set forth above shall be
                deemed
                changed as appropriate to reflect the applicable Plan
                provisions.

            

    

    

    
      	(4)	
              In
                connection with any exercise of the Option with respect to the Common
                Stock, I hereby elect: 

            

    

    

    
      	 	
              
                o

              

            	
              to
                have certain of the shares otherwise issuable pursuant to the exercise
                withheld by the Company for the purpose of having the value of the
                shares
                applied to pay federal, state, and local, if any, taxes arising from
                the
                exercise.

            

    

    

    
      	 	
              
                o

              

            	
              to
                tender shares held by me for a period of at least six (6) months
                prior to
                the exercise of the Option for the purpose of having the value of
                the
                shares applied to pay such taxes.

            

    

    

    The
      shares to be withheld or tendered, as applicable, shall have, as of the Tax
      Date
      applicable to the exercise, a Fair Market Value equal to the minimum statutory
      tax withholding requirement under federal, state, and local law in connection
      with the exercise.

    

    
      
        
        

      

      
        Exhibit 2 –
Page 1 of 2

        
          

        

      

      
        
        

      

    

     

    
      	(5)	
              This
                Withholding Election is made no later than the Tax Date and is otherwise
                timely made pursuant to the Plan.

            

    

    

    
      	(6)	
              I
                understand that this Withholding Election may not be revised, amended
                or
                revoked by me.

            

    

    

    
      	(7)	
              The
                Plan has been made available to me by the Company. I have read and
                understand the Plan and I have no reason to believe that any of the
                conditions to the making of this Withholding Election have not been
                met.

            

    

    

    
      	(8)	
              Capitalized
                terms used in this Notice of Withholding Election without definition
                shall
                have the meanings given to them in the
                Plan.

            

    

     

     

    
      
        	Dated: _______________________	 	_____________________________________
	 	 	Signature
	 	 	 
	_________________________	 	_____________________________________
	Social Security Number  	 	Name (Printed)
	 	 	 
	 	 	_____________________________________
	 	 	Street Address
	 	 	 
	 	 	_____________________________________
	 	 	City, State, Zip
                Code

      

      

      
        
          
          

        

        
          Exhibit 2
            – Page 2 of 2

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      1

    VESTING
      SCHEDULE

    NONQUALIFIED
      STOCK OPTION AWARD

    ISSUED
      PURSUANT TO THE

    SOUTHCREST
      FINANCIAL GROUP, INC. 2005 STOCK INCENTIVE PLAN

     

    
      	
              A.

            	
              The
                Option Shares shall become vested Option Shares following completion
                of
                the years of service as an employee of the Company or any Affiliate
                as
                indicated in the schedule below.

            

    

     

    
      
        	
                Percentage
                  of Option Shares 

                Which
                  are Vested Shares

              	 	
                Years
                  of Service after the 

                Grant
                  Date

              
	
              	 	
              
	
              	 	
              
	
              	 	
                 

                 

                 

              

      

    

    

    
      	
              B.

            	
              Notwithstanding
                the foregoing, in the event of a Change in Control, 100% of the Option
                Shares shall become vested Option Shares immediately prior to such
                Change
                in Control.

            

    

    

    
      	
              C.

            	
              For
                purposes of the Vesting Schedule, Optionee shall be granted a year
                of
                service for each twelve-consecutive-month period following the Vesting
                Commencement Date and during which Optionee continues, at all times,
                as an
                employee of the Company or any Affiliate. No credit shall be given
                for a
                partial year of service.

            

    

     

    
      
        
        

      

      
        Schedule 1
          – Page 1 of 1

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