Document:

INCENTIVE STOCK OPTION AWARD OF ALLIANCE BANCSHARES, INC. (00064839.DOC;1)

Exhibit 10.1

INCENTIVE STOCK OPTION AWARD

PURSUANT TO ALLIANCE BANCSHARES, INC.

1999 STOCK INCENTIVE PLAN

THIS AWARD is made as of the Grant Date by ALLIANCE BANCSHARES, 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, _____________, __________.

B.Type of Option: Incentive Stock Option.

C.Plan under which granted: Alliance Bancshares, Inc. 1999 Stock Incentive Plan.

D.Option Shares: All or any part of shares of the Company's common stock, $.10 par value per share (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 earlier 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); or (b) 90 days following the date the Optionee ceases to be an employee of the Company or Alliance National Bank; provided 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 Section 3 of the Terms and Conditions.

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

	
 
	
ALLIANCE BANCSHARES, INC.

By:________________________________________            Title:_______________________________

<PAGE>

TERMS AND CONDITIONS

TO THE

INCENTIVE STOCK OPTION AWARD

PURSUANT TO THE ALLIANCE BANCSHARES, INC.

1999 STOCK INCENTIVE PLAN

1.Exercise of Option. Subject to the provisions provided herein or in the Award made pursuant to the Alliance Bancshares, Inc. 1999 Stock Incentive Plan:

	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; and

	payment to the Company of the Exercise Price multiplied by the number of Option Shares being purchased (the "Purchase Price") as provided in Section 2.

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

2.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:

	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

	if and when the Common Stock becomes 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.

3.Vested Option Shares.

	The Option Shares shall become vested and exercisable, in twenty percent (20%) increments (a "Vesting Increment"), in accordance with this Section 3. The Optionee shall earn the right to exercise a Vesting Increment in each of the first five (5) full fiscal years beginning with the first full fiscal year commencing after the Grant Date (1) if the Optionee continues to be employed by the Company and/or Alliance National Bank (the "Bank") on the last day of that fiscal year; and (2) if both of the performance goals set forth in Clauses (i) and (ii) below are met for that fiscal year:

1

<PAGE>
(i) the Company shall meet or exceed 90% of the budgeted net income after tax and 90% of the budgeted deposit growth for the fiscal year based on the annual budget approved by the Board of Directors of the Company; and

(ii) the Bank shall maintain a regulatory examination rating of Camel 1 or 2 for that fiscal year.

(b) In the event the performance goals are not satisfied in any fiscal year so that the Optionee fails to earn the right to exercise the Vesting Increment for that fiscal year, the Committee may, in its discretion, permit that Vesting Increment to be earned with respect to the immediately succeeding fiscal year but only if the Optionee earns the right to exercise the Vesting Increment with respect to that immediately succeeding fiscal year. Notwithstanding any other provision herein, no more than two Vesting Increments may become exercisable with respect to any of the first five (5) full fiscal years.

(c) In the event one or more Vesting Increments have not become exercisable with respect to any prior fiscal year in accordance with Subsections (a) and (b) above, such Vesting Increment(s) shall become fully exercisable on the seventh (7th) anniversary of the Grant Date.

(d) A Vesting Increment shall become exercisable fifteen (15) days following the close of the fiscal year with respect to which it is earned.

(e)Notwithstanding any other provision herein, if the capital of the Company or the Bank falls below minimum requirements, as determined by the Office of the Comptroller of the Currency, the Federal Reserve Board, or any successor federal agency ("OCC") or the Georgia Department of Banking and Finance, the Company, at the direction of any such regulator, may require the Optionee to exercise the Option in whole or in part and, if the Optionee fails to exercise any portion of the Option as so directed, that portion of the Option shall be forfeited.

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 and of Option Shares. 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

2

<PAGE>
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 or consolidation, recapitalization, reclassification of shares or similar reorganization, 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 substitution of a new option in the similar manner as contemplated by the immediately preceding sentence; however, if the surviving entity does not agree to the 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.

(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.

3

<PAGE>

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.

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 the Bank.
4

<PAGE>

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 granted under a Non-Qualified Stock Option.

5

<PAGE>

EXHIBIT 1

NOTICE OF EXERCISE OF STOCK OPTION TO PURCHASE

COMMON STOCK OF ALLIANCE BANCSHARES, INC.

Name ____________________________

Address___________________________

___________________________
Date_______________________

Alliance Bancshares, Inc.

210-214 West Morris St.

Dalton, Georgia 30720

Attn: Corporate Secretary
Re:        Exercise of Incentive Stock Option Gentlemen:

Subject to acceptance hereof by Alliance Bancshares, Inc. (the "Company") and pursuant to the provisions of the Alliance Bancshares, Inc. 1999 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 _____________, _____. The purchase shall take place as of ___________, 200____ (the "Exercise Date").
On or before the Exercise Date, I will pay the applicable purchase price as follows:
[ ]by delivery of cash or a certified check for $ for the full purchase price payable to the order of Alliance Bancshares, Inc.

[ ]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 which 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.

[ ]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.

<PAGE>
[ ]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.

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;

<PAGE>

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.

<PAGE>

	
 
	
Very truly yours,

_____________________________________

	
AGREED TO AND ACCEPTED:

ALLIANCE BANCSHARES, INC.

By:___________________________________          Title:_____________________________
	
 

	
Number of Shares Remaining:________________
	
Date:__________________________________

<PAGE>EMPLOYMENT AGREEMENT - ALLGOOD (00063871.DOC;1)

Exhibit 10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") dated as of January ____, 1999 is made by and between the organizers of the bank (collectively the "Employer"), ALLIANCE NATIONAL BANK, which is a proposed national bank (the "Bank") , and CHARLES Y. ALLGOOD, an individual resident of Dalton, Whitfield County, Georgia (the "Executive").

The Employer is in the process of organizing the Bank, and the Executive has agreed to serve as President and Chief Executive Officer of the Bank. Upon organization of the Bank, the Employer and the Executive contemplate that this Agreement will be assigned by the Employer to the Bank and that the Bank will assume the duties of the Employer. Following such assignment, the term "Employer" as used herein from time to time shall refer to the Bank.

The Employer recognizes that the Executive's contribution to the growth and success of the Bank during its organization and initial years of operations will be a significant factor in the success of the Bank. The Employer desires to provide for the employment of the Executive in a manner which will reinforce and encourage the dedication of the Executive to the Bank and promote the best interests of the Bank and its shareholders. The Executive is willing to serve the Employer (and after the assignment of this Agreement, the Bank) on the terms and conditions herein provided. Certain terms used in this Agreement are defined in Section 17 hereof.

In consideration of the foregoing, the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1.    EMPLOYMENT. The Employer shall employ the Executive and the Executive shall serve the Employer, as President and Chief Executive Officer of the Bank upon the terms and conditions set forth herein. The Executive shall have such authority and responsibilities consistent with his position as are set forth in the Bank's bylaws or assigned by the Bank's Board of Directors (the "Board") from time to time. The Executive shall devote his full business time, attention, skill and efforts to the performance of his duties hereunder, except during period of illness or periods of vacation and leaves of absence consistent with Bank policy. The Executive may devote reasonable periods of service as a director or advisor to other organizations, to 

1

<PAGE>

charitable and community activities, provided that such activities do not materially interfere with the performance of his duties hereunder and are not in conflict or competitive with, or adverse to, the interest of the Bank.

2.   TERM. Unless terminated as provided herein, the

Executive's employment under this Agreement shall commence on

the date hereof and be for a term (the "Term") of five years.

3.    COMPENSATION AND BENEFITS.

(a)The Employer shall pay the Executive a salary at a

rate of not less than Ninety Thousand Dollars ($90,000.00)

per annum in accordance with the salary payment practices of

the Employer. The Board shall review the Executive's salary

at least annually and may increase the Executive's base

salary if it determines in its sole discretion that an

increase is appropriate.

(b)The Executive shall participate in any retirement,

welfare, deferred compensation, life and health insurance and

other benefit plans or programs of the Employer now or

hereafter applicable to the Executive or applicable generally

to employees of the Employer and as established by by-laws or

Board action.

(c)The Executive shall participate in the Bank's long-

term equity incentive program and be eligible for the grant

of stock options, restricted stock, and other awards

thereunder or under any similar plan adopted by the Bank. On

the date of the closing of the stock offering for the initial

capitalization of the Bank, or as soon thereafter as an

appropriate stock option plan is adopted by the Board, the

Bank shall grant to the Executive an option (the "Performance

Option") to purchase Twenty Five Thousand (25,000) shares of

Common Stock, but not to exceed 3.58% of the number of shares

sold in the offering. The award agreement for the Performance

Option shall provide that one-fifth of the shares subject to

the Performance Option will vest on the last day of each of

the first five fiscal years of the Bank after the Opening

Date, but only if the Executive remains employed by the Bank

on such date and the Bank has met the performance goals set

forth hereof for such year.

For each fiscal year after the Opening Date, and as a condition to the vesting of the shares subject to the Performance Option in such year (except in the event of a Change in Control), the Bank must meet or exceed the following performance criteria:

	the Bank shall meet or exceed 90% of the budgeted net income after tax and the budgeted deposit growth for each of the initial five (5) fiscal years of the Bank based on the annual budgets approved by the Board of the Bank for each such fiscal year;

2

<PAGE>
(ii) the Bank shall maintain a regulatory examination rating of Camel 1 or 2;

provided, however, that if the Bank does not meet the performance criteria for any year, the shares subject to the Performance Option for such year may vest on the following fiscal year end, in the sole discretion of the Board, if the Bank exceeds the performance criteria for the following year. The Board shall notify the Executive of any shares subject to the Performance Option vested hereunder within a reasonable period of time after the fiscal year end to which such options pertain. The good faith determination of the Board regarding whether the Bank met its yearly performance levels shall be conclusive.

In addition, the award agreement for the Performance Option will provide that (i) the Executive's option shall be qualified as an incentive stock option under the Internal Revenue Code of 1986, as amended (the "Code"); (ii) all options shall be exercisable at any time during the ten years following the date of the initial public offering at the price per share equal to the public offering price in the offering (subject to standard antidilution adjustments in the event of stock splits, dividends or combinations), which the parties agree is the fair market value of the Common Stock as of the date of Grant; and (iii) all options shall be nontransferable and nonassignable by the Executive or by any other person entitled hereunder to exercise any such rights; provided, however, that upon the death of the Executive any rights granted hereunder shall be transferable by the Executive's will or by applicable laws of descent and distribution. Nothing herein shall be deemed to preclude the granting to the Executive of warrants or options under a director option plan in addition to the options granted hereunder.

The Performance Option shall become immediately exercisable and shall become One Hundred Per Cent (100%) vested upon a Change of Control.
(d) The Executive may be eligible to receive a cash

bonus in an amount determined by the Board. The Executive

and other key personnel, as agreed by the Board, will

receive a bonus as set by the Board. The aforementioned

bonuses will be based upon certain performance levels or

criteria as set by the Board from time to time.

(e) Beginning upon the opening of the Bank, the

Employer shall provide the Executive with an automobile owned

or leased by the Employer of a make or model appropriate to

the Executive's status. The automobile will be used

primarily for business purposes and the Employer will pay

operating, maintenance and related expenses for the automobile.

(f) In addition, the Employer shall obtain a membership

in, and pay the dues pertaining to, an area country club

3

<PAGE>

approved by the executive committee and shall designate the

Executive as the authorized user of such membership for so

long as this agreement remains in force.

(g)  The Employer shall reimburse the Executive for

reasonable travel and other expenses related to the

Executive's duties which are incurred and accounted for in

accordance with the normal practices of the Employer.

4. TERMINATION.

(a) The Executive's employment under this Agreement may be terminated prior to the end of the Term only as follows:

(i) upon the death of the Executive;

     (ii)upon the disability of the Executive for a period of 90 days in any consecutive 120 day period which, in the opinion of the Board of Directors, renders him unable to perform the essential functions of his job and for which reasonable accommodation is unavailable. For purposes of this Agreement a "disability" is defined as a physical or mental impairment that substantially limits one or more major life activities, and a "reasonable accommodation" is one that does not impose an undue hardship on the Employer;

    (iii)by the Employer for Cause upon delivery of a Notice of Termination to the Executive;

     (iv)by the Executive for Good Reason upon delivery of a Notice of Termination to the Employer within a 90-day period beginning on the 30th day after an occurrence of a Change in Control or within a 90-day period beginning on the one year anniversary of the occurrence of a Change in Control;
(v)  by the Employer if its effort to organize the Bank is abandoned; and

(vi)by the Executive effective upon the 30th day after delivery of a Notice of Termination. If this occurs, all bonuses not paid shall be cancelled. The Board shall have the authority to dismiss him immediately upon receipt of the Executive's resignation and pay will cease immediately.

(b)If the Executive's employment is terminated because

of the Executive's death, the Executive's estate shall receive any sums due him as base salary and/or reimbursement of expenses through the end of the month during which death occurred, plus any bonus earned under the Bonus Plan through the date of death.

4

<PAGE>

	If the Executive's employment is terminated for

Cause as provided above, or if the Executive resigns (except

for a termination of employment pursuant Section 4(d), the

Executive shall receive any sums due him as base salary

and/or reimbursement of expenses through the date of such

termination. In such an event, all vested stock options must

be exercised within 90 days of termination or be forfeited.

	If the Executive's employment is terminated by the

Executive pursuant to clause (iv) of Section 4(a), in

addition to other rights and remedies available in law or

equity, the Executive shall be entitled to the following:

(i) the Employer shall pay the Executive in cash within fifteen days of the Termination Date severance compensation in an amount equal to three months compensation at his then current base salary, plus any bonus earned or accrued under any Bonus Plan through the Termination Date.

(ii) All stock options and stock appreciation rights granted to the Executive shall become immediately exercisable and shall become 100% vested. All options shall be exercisable at any time during ten years following the date of the initial public offering at a price per share equal to the public offering price in the offering (subject to standard antidilution adjustments in the event of stock splits, dividends or combinations), which the parties agree is the fair market value of the Common Stock as of the date of grant.

	With the exceptions of the provisions of this

Section 4, and the express terms of any benefit plan under

which the Executive is a participant, it is agreed that upon

termination of the Executive's employment hereto, the

Employer shall have no obligation to the Executive for, and

the Executive waives and relinquishes any further

compensation or benefits (exclusive of COBRA benefits).
	In the event that the Executive's employment is

terminated for any reason, the Executive shall (and does

hereby) tender his resignation as a director of the Employer

and effective as of the date of termination.
	The parties intend that the severance payments and

other compensation provided herein are reasonable compensation for the Executive's services to the Employer and shall not constitute "excess parachute payments" within the meaning of Section 280G of the Internal Revenue Code of 1986 and any regulations thereunder.

5.    OWNERSHIP OF WORK. The Employer shall own all Work Product arising during the course of the Executive's employment (prior, present or future). For purposes hereof "Work Product" shall mean all intellectual 

4

<PAGE>

property rights, including all Trade Secrets, U.S. and international copyrights, patentable inventions, and other intellectual property rights in any programming, documentation, technology or other work product that relates to the Employer, its business or its customers and that any employee conceives, develops, or delivers to the Employer at any time during his employment, during or outside normal working hours, in or away from the facilities of the Employer, and whether or not requested by the Employer. If the Work Product contains any materials, programming or intellectual property rights that the Executive conceived or developed prior to, and independent of, the Executive's work for the Employer, the Executive agrees to point out the pre-existing items to the Employer and the Executive grants the Employer a worldwide, unrestricted, royalty-free right including the right to sublicense such items. The executive agrees to take such actions and execute such further acknowledgments and assignments as the Employer may reasonably request to give effect to this provision.

6.PROTECTION OF TRADE SECRETS. The Executive agrees

to maintain in strict confidence and, except as necessary to

perform his duties for the Employer, the Executive agrees not

to disclose any Trade Secrets of the Employer during his

employment or following termination of his employment so long

as he is receiving compensation from the Employer, or for a

period of twelve (12) months following termination of the

Executive's employment pursuant to clause (vi) of Section

4(a). As provided by Georgia statutes, "Trade Secret" means information, including a formula, pattern, compilation, program, device, method, technique, process, drawing, cost data or customer list, that: (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
7.PROTECTION OF OTHER CONFIDENTIAL INFORMATION. In

addition, the Executive agrees to maintain in strict confidence and, except as necessary to perform his duties for the Employer, not to use or disclose any Confidential Business Information of the Employer during his employment and following termination of the Executive's employment so long as he is receiving compensation from the Employer, or for a period of twelve (12) months following termination of the Executive's employment pursuant to clause (vi) of Section 4(a). "Confidential Business Information" shall mean any internal, non-public information (other than Trade Secrets already addressed above) concerning the Employer's financial position and results of operations (including revenues, assets, net income, etc.); annual and long-range business plans; product or service plans; marketing plans and methods; training, educational and administrative manuals; customer and supplier information and purchase histories; and employee lists. The provisions of Sections 6 and 7 above shall also apply to protect Trade Secrets and Confidential Business Information of third parties provided to the Employer under an obligation of secrecy.

6

<PAGE>

       8.   RETURN OF MATERIALS. The Executive shall surrender

to the Employer, promptly upon its request and in any event

upon termination of the Executive's employment, all media,

documents, notebooks, computer program, handbooks, data

files, models, samples, price lists, drawings, customer

lists, prospect data, or other material of any nature

whatsoever (in tangible or electronic form) in the

Executive's possession or control, including all copies

thereof, relating to the Employer, its business, or its

customers. Upon request of the Employer, Executive shall

certify in writing compliance with the foregoing requirement.

	   RESTRICTIVE COVENANTS.

(a)NO SOLICITATION OF CUSTOMERS. During the

Executive's employment with the Employer and after

termination of the Executive's employment so long as he is

receiving compensation from the Employer, or for a period of

twelve (12) months following termination of the Executive's

employment pursuant to clause (vi) of Section 4(a), the

Executive shall not (except on behalf of or with the prior

written consent of the Employer), either directly or

indirectly, on the Executive's own behalf or in the service

or on behalf of others, (A) solicit, divert, or appropriate to

or for a Competing Business or (B) attempt to solicit,

divert, or appropriate to or for a Competing Business, any

person or entity that was a customer of the Employer on the

date of termination and is located in the Territory and with

whom the Executive has had material contact.

(b)NO RECRUITMENT OF PERSONNEL. During the Executive's

employment with the Employer and after termination of the

Executive's employment so long as he is receiving

compensation from the Employer, or for a period of twelve

(12) months following termination of the Executive's

employment pursuant to clause (vi) of Section 4(a), the

Executive shall not, either directly or indirectly, on the

Executive's own behalf or in the service or on behalf of others, (A) solicit, divert, or hire away, or (B) attempt to solicit, divert or hire away, to any Competing Business located in the Territory, any employee of or consultant to the Employer engaged or experienced in the Business, regardless of whether the employee or consultant is full-time or temporary, the employment or engagement is pursuant to written agreement or the employment is for a determined period or is at will.

(c) NON-COMPETITION AGREEMENT. During the Executive's employment with the Employer and after termination of the Executive's employment so long as 

7

<PAGE>

he is receiving compensation from the Employer, or for a period of twelve (12) months following termination of the Executive's employment pursuant to clause (vi) of Section 4(a), the Executive shall not (without the prior written consent of the Employer) compete with the Employer by, directly or indirectly, forming, serving as an organizer, director or officer of, or consultant to a depository financial institution or holding company therefor if such depository institution or holding company has one or more offices or branches located in the Territory.

10.  INDEPENDENT PROVISIONS. The provisions in each of

the above Sections 9(a), 9(b), and 9(c) are independent, and

the unenforceability of any one provision shall not affect

the enforceability of any other provision.

 

11.  SUCCESSOR; BINDING AGREEMENT. The rights and

obligations of this Agreement shall bind and inure to the

benefit of the surviving corporation in any merger or

consolidation in which the Employer is a party, or any

assignee of all or substantially all of the Employer's

business and properties. The Executive's rights and

obligations under this Agreement may not be assigned by him,

except that his right to receive accrued but unpaid

compensation, unreimbursed expenses and other rights, if any,

provided under this Agreement which survive termination of

this Agreement shall pass after death to the personal

representatives of his estate.

12.   NOTICE. For the purposes of this Agreement notices

and all other communications provided for in the Agreement

shall be in writing and shall be deemed to have been duly

given when personally delivered or sent by certified mail,

return receipt requested, postage prepaid, addressed to the

respective addresses last given by each party to the other;

provided however, that all notices to the Employer shall be

directed to the attention of the Employer with a copy to the

Corporate Secretary of the Employer. All notices and

communications shall be deemed to have been received on the

date of delivery thereof.
13.GOVERNING LAW. This Agreement shall be governed by

and construed and enforced in accordance with the laws of the State of Georgia without giving effect to the conflict of laws principles thereof. Any action brought by any party to this Agreement shall be brought and maintained in a court of competent jurisdiction in the State of Georgia.

     14.  NON-WAIVER. Failure of the Employer to enforce any

of the provisions of this Agreement or any rights with

respect thereto shall in no way be considered to be a waiver

of such provisions or rights, or in any way affect the

validity of this Agreement.

     15.  ENFORCEMENT. The Executive, agrees that in the

event of any breach of any covenant contained in Section

8

<PAGE>

9(a), 9(b) or 9(c), the Employer shall be entitled to obtain from a court of competent jurisdiction an injunction to restrain the breach or anticipated breach of any such covenant, and to obtain any other available legal, equitable, statutory, or contractual relief, including but not limited to monetary damages.

16.SAVING CLAUSE. The provisions of this Agreement

shall be deemed severable and the invalidity or

unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision or clause of this Agreement, or portion thereof, shall be held by any court or other tribunal of competent jurisdiction to be illegal, void, or unenforceable in such jurisdiction, the remainder of such provision shall not be thereby affected and shall be given full effect, without regard to the invalid portion. It is the intention of the parties that, if any court construes any provision or clause of this Agreement or any portion thereof, to be illegal, void or unenforceable because of the duration of such provision or the area or matter covered thereby, such court shall reduce the duration, area, or matter of such provision, and, in its reduced form, such provision shall then be enforceable and shall be enforced.
17.CERTAIN DEFINITIONS.

	"Business" shall mean the operation of a depository

financial institution, including, without limitation, the

solicitation and acceptance of deposits of money and

commercial paper, the solicitation and funding of loans and

the provision of other banking services, and any other

related business engaged in by the Employer as of the date of

termination or any other conduct or action by a lending

institution as permitted by Federal or State law now or in

the future.
	"Cause" shall consist of any of (A) the commission

by the Executive of a willful act (including, without limitation, a dishonest or fraudulent act) or a grossly negligent act, or the willful or grossly negligent omission to act by the Executive, which is intended to save, cause or is reasonably likely to cause material harm to the Employer (including harm to its business reputation), (B) the indictment of the Executive for the commission or perpetration by the Executive of any felony or any crime involving dishonesty, moral turpitude or fraud, (C) the material breach by the Executive of this Agreement that, if susceptible of cure, remains uncured ten days following written notice to the Executive of such breach, (D) the receipt of any form of notice, written or otherwise, that any regulatory agency having 

9

<PAGE>
jurisdiction over the Employer, intends to institute any form of formal or informal (e.g., a memorandum of understanding which relates to the Executive's performance) regulatory action against the Executive or the Employer that the Board of Directors determines in good faith, with the Executive abstaining from participating in the consideration of and vote on the matter, that the subject matter of such action involves acts or omissions by or under the supervision of the Executive or that termination of the Executive would materially advance the Employer's compliance with the purpose of the action or would materially assist the Employer in avoiding or reducing the restrictions or adverse effects to the Employer related to the regulatory action); (E) the exhibition by the Executive of a standard of behavior within the scope of his employment that is materially disruptive to the orderly conduct of the Employer's business operations (including, without limitation, substance abuse or sexual misconduct) to a level which, in the Board of Directors' good faith and reasonable judgment, with the Executive abstaining from participating in the consideration of and vote on the matter, is materially detrimental to the Employer's best interest, that, if susceptible of cure remains uncured ten days following written notice to the Executive of such specific inappropriate behavior; (F) the Executive is adjudicated bankrupt or the Executive files for voluntary bankruptcy; or (G) the failure of the Executive to devote his full business time and attention to his employment as provided under this Agreement.

(c) "Change of Control" shall mean the occurrence during the Term of any of the following events, unless such event is a result of a Non-Control Transaction:
(i)The individuals who, as of the date of this Agreement, are members of the Board of Directors of the Employer (the "Incumbent Board") cease for any reason to constitute at least two-thirds of the Board of Directors of the Employer, provided however that if the election, or nomination for election by the Employer's shareholders, of any new director was approved in advance by a vote of at least two thirds of the Incumbent Board, such new director shall, for purposes of this Agreement, be considered as a member of the Incumbent Board, provided, further, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule I4a-ll promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), or other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board of Directors of the Employer (a "Proxy Contest"), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest.

(ii)     An acquisition (other than directly from the Employer) of any voting securities of the Employer (the "Voting Securities") by any "Person" (as the term "person" is used for purposes of Section 13(d) or 14(d) of the Exchange Act) immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the combined 

10

<PAGE>
voting power of the Employer's then outstanding Voting Securities; provided, however, that in determining whether a Change in Control has occurred, Voting Securities which are acquired in a Non-Control Acquisition shall not constitute an acquisition which would cause a Change in Control.
[iii) Approval by the shareholders of the Employer of (i) a merger, consolidation, or reorganization involving the Employer, (ii) a complete liquidation or dissolution of the Employer, or (iii) an agreement for the sale or other disposition of all or substantially all of the assets of the Employer to any Person (other than a transfer to a Subsidiary).

(iv) A notice of an application is filed with the Federal Reserve Board (the "FRB") pursuant to Regulation "Y" of the FRB under the Change in Bank Control Act or the Bank Holding Company Act or any other bank regulatory approval (or Notice of no disapproval) is granted by the Federal Reserve, the OCC, the Federal Deposit Insurance Corporation, or any other regulatory authority for permission to acquire control of the Employer or any of its banking subsidiaries.

(d)"Competing Business" shall mean any business that, in whole or in part, is the same or substantially the same as the Business.

(e) "Good Reason" shall mean the occurrence after a Change on Control of any of the events or conditions described in subsections (i) through (v) hereof;
(i) a negative change in the Executive's status, title, position or responsibilities;

(ii) a reduction in the Executive's base salary or any failure to pay the Executive any compensation or benefits to which he is entitled within five days of the due date;

(iii) the Employer's requiring the Executive to be based at any place outside a 10-mile radius from the executive offices occupied by the Executive immediately prior to the Change of Control, except for reasonably required travel on the Employer's business which is not materially greater than such travel requirements prior to the Change in Control;

(iv) the failure by the Employer to (A) continue in
effect (without reduction in benefit level and/or reward opportunities) any material compensation or employee benefit plan in which the Executive was participating at any time within ninety days preceding the date of a Change in Control;

11

<PAGE>
(v) any material breach by the Employer of any material provision of this Agreement.

(f) "Territory" shall mean a radius of ten miles from (i) the main office of the Employer or (ii) any branch office of the Employer.

18. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof.

IN WITNESS WHEREOF, the Employer has caused this Agreement to be executed and its seal to be affixed hereunto by its Organizers, and the Executive has signed and sealed this Agreement, effective as of the date first above written.

[Signatures On The Following Page]

12

<PAGE>

	
Signed, sealed and delivered in the present of:

s/Linda K. Whittle          Witness
	
EMPLOYER:

ORGANIZERS OF ALLIANCE NATIONAL BANK

s/J. P. Tuner        (SEAL)

s/Richard Hunt       (SEAL)

s/Carl L. Griggs, Jr.(SEAL)

s/Murray W. Bandy    (SEAL)

s/G. Lamar Lyle      (SEAL)

s/William Combs      (SEAL)

	
Signed, sealed and delivered in the present of:

s/Linda K. Whittle          Witness
	
EXECUTIVE:

s/Charles Y. Allgood (SEAL)

 

 13

<PAGE>

ALLIANCE

NATIONAL BANK

September 12, 2002

Mr. Charles Y. Allgood

133 Huntington Road

Dalton, Georgia 30720

Reference: Employment Agreement dated January 1,1999

Dear Charles,

This letter will confirm our agreement to amend, effective as of September 1, 2002, the Employment Agreement dated January 1, 1999 (the "Agreement") between Alliance National Bank and Charles Y. Allgood as follows:

Delete from Article 3(a) of the Agreement the following language:

"An automobile owned or leased by the Employer to be provided to the Executive with the Employer to pay operating, maintenance and related expenses for the automobile."

Substitute it place of the above language the following provision:

"Beginning in the month of September, 2002 the Employer will pay the Executive a automobile allowance of Six Hundred Dollars ($600.00) per month in lieu of providing an automobile and paying related expenses."

This also confirms the change in your title from "President and Chief Executive Officer" to " Vice Chairman and Chief Executive Officer".

Except as specifically provided herein all other provisions of our Agreement dated January 1,1999 remain in full force and effect.

 <PAGE>

Please indicate your approval of this amendment by signing this letter in the space provided below.

Sincerely

ALLIANCE NATIONAL BANK

 

S/Jackson P. Turner, Chairman

Approved and accepted:

 

s/Charles Y. Allgood

Dated: 9-12-02

 <PAGE>

September 12, 2002

 

Mr. Charles Y. Allgood

133 Huntington Road

Dalton, Georgia 30720

Reference: Employment Agreement dated January 1, 1999

Dear Charles,

This letter will confirm our agreement to amend, effective as of September 1, 2002, the Employment Agreement dated January 1, 1999 (the "Agreement") between Alliance National Bank and Charles Y. Allgood as follows:

Delete from Article 3(a) of the Agreement the following language:

"An automobile owned or leased by the Employer to be provided to the Executive with the Employer to pay operating, maintenance and related expenses for the automobile."

Substitute it place of the above language the following provision:

"Beginning in the month of September, 2002 the Employer will pay the Executive a automobile allowance of Six Hundred Dollars ($600.00) per month in lieu of providing an automobile and paying related expenses."

This also confirms the change in your title from "President and Chief Executive Officer" to " Vice Chairman and Chief Executive Officer".

Except as specifically provided herein all other provisions of our Agreement dated January 1, 1999 remain in full force and effect.

<PAGE> 

Please indicate your approval of this amendment by signing this letter in the space provided below.

Approved and accepted:

 

 

s/Jackson P. Turner, Chairman

 

 

Approved and accepted:

 

 

s/Charles Y. Allgood

Dated: 9-02-02

<PAGE>

Alliance

National Bank

July 25, 2003

Mr. Charles Y. Allgood 133 Huntington Road Dalton, Georgia 30720
Reference: Employment Agreement dated January 1, 1999 (as amended September 12, 2002)

Dear Charles,

This letter will confirm our agreement to extend the term of the Employment Agreement dated January 1, 1999, as amended, (the "Agreement") between Alliance National Bank and Charles Y. Allgood until December 31, 2005.

Except as specifically provided herein all other provisions of our Agreement dated January 1, 1999, as amended, remain in full force and effect.

Please indicate your approval of this amendment by signing this letter in the space provided below.

Sincerely,

ALLIANCE NATIONAL BANK

 

s/Jackson P. Turner, Chairman

APPROVED AND ACCEPTED:

s/Charles Allgood Dated: July 25, 2003

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]