Document:

NEIGHBORS BANCSHARES, INC.
                           RESTRICTED STOCK AGREEMENT
                              (TIME-BASED VESTING)

     THIS  RESTRICTED STOCK AGREEMENT (the "Agreement") is made and entered into
as  of  ________________,  2002  (the  "Award  Date"),  by and between NEIGHBORS
BANCSHARES,  INC.  (the  "Company"),  a bank holding company organized under the
laws  of  the  State  of  Georgia,  and  PHILLIP  L.  BALDWIN  (the "Employee").

                                   BACKGROUND

     A.     The  Company  desires  to  grant  to the Employee a restricted stock
award to purchase shares of the Company's common stock, $.50 par value per share
(the  "Common  Stock") for the purpose of securing and retaining the services of
the  Employee  and promoting and increasing the Employee's personal interests in
the  welfare  of  the  Company.

     B.     The Board of Directors has authorized the grant to the Employee of a
restricted  stock  award  to  purchase  Common  Stock.

     C.     The  Company  and  the  Employee  wish  to confirm herein the terms,
conditions,  and  restrictions  of  the  restricted  stock  award.

     For  and  in  consideration of the premises, the mutual covenants contained
herein,  and  other  good  and valuable consideration, the parties hereto agree:

                                    SECTION 1
                                 AWARD OF SHARES

     1.1     Award  of Shares.  Subject to the terms, restrictions, limitations,
             ----------------
and  conditions  stated  herein,  the  Company  hereby  awards  to  the Employee
_______________  [3%  OF  SHARES  OF  COMMON  STOCK  SOLD  IN THE INITIAL PUBLIC
OFFERING]  shares  of  the  Common  Stock  (the  "Restricted  Shares").

     1.2     Vesting  of Restricted Shares.  The Restricted Shares shall vest or
             -----------------------------
be  forfeited  according  to the Vesting Schedule attached hereto as Schedule 1.
The  Restricted Shares which have become vested pursuant to the Vesting Schedule
are herein referred to as the "Vested Shares."  The date on which the Restricted
Shares  become  vested  shall  be  referred to herein individually as a "Vesting
Date"  and,  collectively,  as  "Vesting  Dates."

     1.3     Condition  to  Delivery  of  Restricted  Shares.
             -----------------------------------------------

          (a)     In  order  to  not forfeit the Restricted Shares, the Employee
     must  deliver  to the Company, within thirty (30) days after the earlier of
     (a)  the  date  on which any

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     Restricted  Shares  become  Vested Shares, or (b) the making of an election
     pursuant  to Code Section 83(b), as to all or any portion of the Restricted
     Shares,  either  cash  or  a  certified check payable to the Company in the
     amount  of  all  withholding  tax  obligations  (whether  federal, state or
     local),  imposed  on the Company by reason of the vesting of the Restricted
     Shares  or  the  making  of  an election pursuant to Code Section 83(b), as
     applicable,  except  as  provided  in  Section  1.3(b).

          (b)     If  the  Employee  does  not make an election pursuant to Code
     Section  83(b), in lieu of paying the withholding tax obligation in cash or
     by  certified  check,  as  described in Subsection 1.3(a), the Employee may
     elect  to  have  the actual number of Vested Shares reduced by the smallest
     number  of  whole shares of Common Stock which, when multiplied by the Fair
     Market  Value  of the Common Stock on the Vesting Date as determined by the
     Board  of Directors, is sufficient to satisfy the amount of the withholding
     tax  obligations  imposed  on  the  Company by reason of the vesting of the
     Restricted  Shares  (the  "Withholding  Election"). The Employee may make a
     Withholding  Election  only  if  both  of the following conditions are met:

          (1)     the  Withholding Election must be 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  Election,  in  substantially the form of Exhibit A
                                                                       ---------
     attached  hereto; and

          (2)     any  Withholding  Election  made will be irrevocable; however,
     the  Board of Directors may, in its sole discretion, disapprove and give no
     effect  to  any  Withholding  Election.

     1.4     Restricted Shares Held by the Share Custodian.  The Employee hereby
             ---------------------------------------------
authorizes and directs the Company to deliver to the Secretary of the Company or
such other officer of the Company as may be designated by the Board of Directors
(the  "Share Custodian") any stock certificate issued by the Company to evidence
Restricted Shares, as well as any stock certificate issuable to the Employee due
to  an  event described in Section 3.1 below. The Share Custodian shall hold any
such  stock  certificates  and  shall  deliver  a  stock  certificate  for  the
appropriate  number  of (i) Vested Shares to the Employee upon the occurrence of
each  Vesting  Date  provided  the  Company  has  satisfied  his withholding tax
obligation;  or  (ii)  Restricted  Shares  to the Company to the extent they are
forfeited  by  the  Employee.

     The  Employee  hereby  irrevocably  appoints  the  Share Custodian, and any
successor  thereto, as the true and lawful attorney-in-fact of the Employee with
full power and authority to execute any stock transfer power or other instrument
necessary  to  transfer  the  Restricted Shares and any other stock certificates
held  by  the Share Custodian to the Company in the name, place and stead of the
Employee.  The  term  of  such  appointment shall commence on the Award Date and
shall  continue  until  all  shares  of  Common Stock have been delivered to the
Employee  and  the  Company  in accordance with the terms of this Agreement. The
Employee  shall  complete  an

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<PAGE>
irrevocable  stock  power  in  favor of the Share Custodian in substantially the
form  of Exhibit B attached hereto to effect the provisions of this Section 1.4.
         ---------

     1.5     Rights  as  Stockholder.  The  Employee  shall  have no rights as a
             -----------------------
stockholder  with respect to any Restricted Shares until a stock certificate for
the shares is issued in the Employee's name.  Once any such stock certificate is
issued  and  delivered  to the Share Custodian, during the period that the Share
Custodian  holds  the  Restricted  Shares, the Employee shall be entitled to all
rights  associated  with  ownership of the Restricted Shares, except as follows:
(a)  if additional shares of Common Stock become issuable to the Employee due to
an event described in Section 3.1 below, any stock certificate representing such
shares  shall  be  delivered  to  the Share Custodian and those shares of Common
Stock  shall  be  subject  to  forfeiture  to  the  same extent as the shares of
Restricted  Shares  to  which they relate; (b) the Employee shall have no rights
inconsistent  with  the  terms  of  this  Agreement, such as the restrictions on
transfer  described  in  Section  2.2  below;  and (c) any cash dividends on the
Restricted Shares will be paid to the Employee only to the extent the Restricted
Shares  subsequently  become  Vested  Shares.

     1.6     Investment  Representations.  The  Employee  hereby  represents,
             ---------------------------
warrants,  covenants,  and  agrees  with  the  Company  as  follows:

          (a)     The  Restricted  Shares being acquired by the Employee will be
     acquired  for  the  Employee's own account without the participation of any
     other  person,  with  the  intent  of  holding  the  Restricted  Shares for
     investment and without the intent of participating, directly or indirectly,
     in  a  distribution of the Restricted Shares and not with a view to, or for
     resale  in  connection with, any distribution of the Restricted Shares, nor
     is  the  Employee  aware  of  the  existence  of  any  distribution  of the
     Restricted  Shares;

          (b)     The Employee is not acquiring the Restricted Shares based upon
     any  representation,  oral  or  written,  by any person with respect to the
     future  value  of, or income from, the Restricted Shares but rather upon an
     independent  examination  and  judgment as to the prospects of the Company;

          (c)     The  Restricted  Shares  were  not  offered to the Employee by
     means  of  publicly disseminated advertisements or sales literature, nor is
     the  Employee  aware  of  any  offers  made to other persons by such means;

          (d)     The  Employee  is  able  to  bear  the  economic  risks of the
     investment  in the Restricted Shares, including the risk of a complete loss
     of  the  Employee's  investment  therein;

          (e)     The Employee understands and agrees that the Restricted Shares
     will  be  issued  and  sold  to the Employee 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
     Securities  Act  of 1933 (the "1933 Act"), provided

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<PAGE>
     by  Sections  3(b)  and/or  4(2)  thereof  and  the  rules  and regulations
     promulgated  thereunder;

          (f)     The  Restricted  Shares  cannot  be  offered for sale, sold or
     transferred  by  the  Employee  other  than  pursuant  to: (i) an effective
     registration under the 1933 Act or in a transaction otherwise in compliance
     with  the  1933  Act;  and  (ii)  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;

          (g)     The  Company  will  be  under  no  obligation  to register the
     Restricted Shares or to comply with any exemption available for sale of the
     Restricted  Shares  without  registration or filing, and the information or
     conditions  necessary  to permit routine sales of securities of the Company
     under  Rule  144 of 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  Restricted  Shares;

          (h)     The  Employee  has  and  has  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.  The Employee has examined such of these documents as the Employee
     has  wished  and  is familiar with the business and affairs of the Company.
     The  Employee  realizes  that  the  purchase  of the Restricted Shares is a
     speculative investment and that any possible profit therefrom is uncertain;

          (i)     The  Employee  has 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. The Employee has received all information and data
     with  respect to the Company which the Employee has requested and which the
     Employee  has  deemed  relevant  in  connection  with the evaluation of the
     merits  and  risks  of  the  Employee's  investment  in  the  Company;

          (j)     The  Employee  has  such knowledge and experience in financial
     and  business matters that the Employee is capable of evaluating the merits
     and  risks  of  the  purchase  of  the  Restricted Shares hereunder and the
     Employee  is  able  to  bear  the  economic  risk  of  such  purchase;  and

          (k)     The  agreements,  representations,  warranties,  and covenants
     made  by  the  Employee herein extend to and apply to all of the Restricted
     Shares  of  the  Company issued to the Employee pursuant to this Agreement.
     Acceptance  by the Employee of the certificate representing such Restricted
     Shares  shall  constitute  a  confirmation  by  the  Employee that all such
     agreements, representations, warranties, and covenants made herein shall be
     true  and  correct  at  that  time.

                                        4
<PAGE>
                                    SECTION 2
               FORFEITURE AND RESTRICTIONS UPON RESTRICTED SHARES

     2.1     Forfeiture  Upon  Termination of Employment.  Upon a Termination of
             -------------------------------------------
Employment  with  the  Company  and/or  its affiliates for any reason prior to a
Vesting  Date, all Restricted Shares that have not become Vested Shares prior to
such  Termination  of  Employment shall be forfeited as of the effective date of
such  Termination  of  Employment.

     2.2     Restrictions  on Transfer of Restricted Shares.  The Employee shall
             ----------------------------------------------
effect  no  Disposition  of  Restricted  Shares prior to the date the shares are
delivered  to him by the Share Custodian; provided, however, that this provision
shall not preclude a transfer by will or the laws of descent and distribution in
the  event  of  the  death  of  the  Employee.

     2.3     Legends.  Any  stock certificate representing the Restricted Shares
             -------
issued  to  the  Share Custodian shall be endorsed with the following legend and
the  Employee  shall  not  effect  any transfer of the Restricted Shares without
first  complying  with  the  restrictions  on transfer described in such legend:

                             TRANSFER IS RESTRICTED

     THE  SECURITIES  EVIDENCED  BY  THIS  CERTIFICATE  ARE  SUBJECT  TO
     RESTRICTIONS  ON  TRANSFER  SET  FORTH IN A RESTRICTED STOCK AGREEMENT
     DATED  __________________,  A  COPY  OF  WHICH  IS  AVAILABLE FROM THE
     COMPANY.

     THE  SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER  THE  SECURITIES  ACT  OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
     TRANSFERRED,  ASSIGNED,  OR  HYPOTHECATED  UNLESS  (1)  THERE  IS  AN
     EFFECTIVE  REGISTRATION  UNDER  SUCH ACT COVERING SUCH SECURITIES, (2)
     THE  TRANSFER  IS  MADE  IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER
     SUCH ACT, OR (3) THE ISSUER RECEIVES AN OPINION OF COUNSEL, REASONABLY
     SATISFACTORY  TO  THE  COMPANY,  STATING  THAT  SUCH  SALE,  TRANSFER,
     ASSIGNMENT  OR  HYPOTHECATION  IS  EXEMPT  FROM  THE  REGISTRATION
     REQUIREMENTS  OF  SUCH  ACT.

     The  Employee  agrees  that  the Company may also endorse any other legends
required  by  applicable  federal  or  state  securities  laws.

     The  Company need not register a transfer of the Restricted Shares, and may
also  instruct  its  transfer agent, if any, not to register the transfer of the
Restricted  Shares  unless the conditions specified in the foregoing legends are
satisfied.

     2.4     Removal  of  Legend  and  Transfer  Restrictions.
             ------------------------------------------------

                                        5
<PAGE>
          (a)     The restrictions described in the first sentence of the legend
     set  forth  in Section 2.3 above and any related stop transfer instructions
     may  be  removed  and  the  Company  shall  issue  necessary  replacement
     certificates  without  that portion of the legend to the Employee as of the
     date  that  the  Share  Custodian  may deliver any such certificates to the
     Employee  pursuant  to  Section  1.4  above.

          (b)     The  restrictions  described  in  the  second  sentence of the
     legend  set  forth  in  Section  2.3  above  and  any related stop transfer
     instructions  may  be  removed  and  the  Company  shall  issue  necessary
     replacement certificates without that portion of the legend to the Employee
     if  the  shares  of  Common  Stock represented by the certificates: (i) are
     registered  under the 1933 Act and a prospectus meeting the requirements of
     Section  10 of the 1933 Act is available; (ii) at such time as permitted by
     Rule  144(k)  promulgated  under  the 1933 Act; or (iii) upon receipt of an
     opinion  of  counsel,  reasonably  satisfactory to the Company stating that
     such  sale,  transfer,  assignment  or  hypothecation  is  exempt  from the
     requirements  of  the  1933  Act.

                                    SECTION 3
                               GENERAL PROVISIONS

     3.1     Change  in  Capitalization.
             --------------------------

          (a)     If  the number of outstanding shares of the Common Stock shall
     be  increased  or  decreased as a result of a subdivision or combination of
     shares  or  the  payment  of  a stock dividend in shares of Common Stock to
     holders  of  outstanding  shares  of  Common Stock or any other increase or
     decrease  in  the  number of shares of Common Stock outstanding is effected
     without  receipt of consideration by the Company, an appropriate adjustment
     shall  be  made  by  the  Board  of  Directors  in  the  number and kind of
     Restricted  Shares such that the Employee's proportionate interest shall be
     maintained  as  before  the  occurrence  of the event. No fractional shares
     shall  be  issued  in  making  such adjustment. All adjustments made by the
     Board  of  Directors  under  this  Section  shall  be  final,  binding, and
     conclusive.

          (b)     In  the  event  of  a  merger  or consolidation, extraordinary
     dividend  (including  a  spin-off),  reorganization  or other change in the
     corporate  structure  of  the Company or the Common Stock or a tender offer
     for  shares  of  Common  Stock,  an appropriate adjustment may be made with
     respect  to the Restricted Shares such that other securities, cash or other
     property  may  be  substituted  for  the  Common Stock held by the Employee
     pursuant  to  this  Agreement.

          (c)     The  existence of this Agreement shall not affect 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

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     Stock or the rights thereof, the dissolution or liquidation of the Company,
     any sale or transfer of all or part of its business or assets, or any other
     corporate  act  or  proceeding.

     3.2     Governing  Laws.  This  Agreement  shall be construed, administered
             ---------------
and  enforced  according to the laws of the State of Georgia; provided, however,
that  no Restricted Shares shall be issued except, in the reasonable judgment of
the  Board  of  Directors,  in compliance with exemptions under applicable state
securities  laws  of  the  state in which the Employee resides, and/or any other
applicable  securities  laws.

     3.3     Successors.  This  Agreement shall be binding upon and inure to the
             ----------
benefit  of  the heirs, legal representatives, successors, and permitted assigns
of  the  parties.

     3.4     Notice.  All notices and other communications required or permitted
             ------
under  this  Agreement shall be in writing and shall be delivered by hand or, if
mailed,  shall  be  sent  via  the United States Postal Service, certified mail,
return  receipt requested or by overnight courier.  All notices hereunder may be
delivered  by  hand  or  overnight  courier,  in which event the notice shall be
deemed  effective  when  delivered.  All  notices and other communications under
this  Agreement shall be given to the parties hereto at the following addresses:

          (i)    If to the Company, to it at:

                 Neighbors  Bancshares, Inc.
                 11285  Elkins  Road
                 Building  E
                 Roswell,  GA  30076

         (ii)    If to the Employee, to him at:
                 __________________________
                 __________________________

Any  party  hereto  may  change  his  or  its address by advising the others, in
writing,  of  such  change  of  address.

     3.5     Severability.  In  the event that any one or more of the provisions
             ------------
or  portion  thereof contained in this Agreement 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 this Agreement, and this
Agreement  shall  be  construed  as  if  the  invalid,  illegal or unenforceable
provision  or  portion  thereof  had  never  been  contained  herein.

     3.6     Entire  Agreement.  This  Agreement  expresses  the  entire
             -----------------
understanding  and  agreement of the parties with respect to the subject matter.
This  Agreement may be executed in two or more counterparts, each of which shall
be  deemed  an  original  but  all  of  which  shall constitute one and the same
instrument.

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<PAGE>
     3.7     Violation.  Any Disposition of the Restricted Shares or any portion
             ---------
thereof  shall  be  a violation of the terms of this Agreement and shall be void
and  without  effect.

     3.8     Headings.  Paragraph  headings  used  herein are for convenience of
             --------
reference  only  and  shall  not  be  considered  in  construing this Agreement.

     3.9     Specific  Performance.  In  the  event  of any actual or threatened
             ---------------------
default  in,  or  breach of, any of the terms, conditions and provisions of this
Agreement,  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.

     3.10     No  Rights to Continued Retension.  The award of Restricted Shares
              ---------------------------------
hereunder shall not be construed as giving the Employee the right to a continued
service  relationship  with  the  Company.

                                    SECTION 4
                                   DEFINITIONS

     As  used  in  this  Agreement,  the capitalized words and phrases set forth
below  shall  have  the  meanings  thereafter  ascribed:

     4.1     "Bank"  means Neighbors Bank, a proposed state bank being organized
              ----
under  the  laws  of  the  State  of  Georgia.

     4.2     "Board  of  Directors" means the board of directors of the Company.
              --------------------

     4.3     "Change  in  Control"  means  any  one  of  the  following  events:
              -------------------

          (a)     the  acquisition by any person or persons acting in concert of
     the  then  outstanding  voting securities of either the Company or the Bank
     if, after the transaction, the acquiring person or persons owns controls or
     holds  the power to vote fifty percent (50%) or more of any class of voting
     securities  of  the  Company  or  the  Bank;

          (b)     within  any  twelve-month  period  (beginning  on or after the
     Effective  Date),  the  persons who were directors of either the Company or
     the  Bank 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 that any director who was not a director
     as  of  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  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;

                                        8
<PAGE>
          (c)     a  reorganization,  merger  or  consolidation, with respect to
     which  persons  who were the stockholders of either the Company or the Bank
     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  company's  then  outstanding voting
     securities;  or

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

     4.4     "Code" means the Internal Revenue Code of 1986, as amended, and the
              ----
rules  and  regulations  promulgated  thereunder.

     4.5     "Disability"  shall  mean  the inability of the Employee to perform
              ----------
the  material  duties  of his employment with the Company or, if applicable, any
affiliate  of  the  Company,  for  a  period  of three (3) consecutive months as
certified  by a physician chosen by the Company and reasonably acceptable to the
Employee.

     4.6     "Disposition"  means  any  conveyance,  sale, transfer, assignment,
              -----------
pledge  or  hypothecation,  whether  outright  or  as  security,  inter vivos or
testamentary,  with  or  without  consideration,  voluntary  or  involuntary.

     4.7     "Fair  Market  Value"  with  regard  to  a  date  means:
              -------------------

          (a)     the  price  at  which the Common Stock shall have been sold on
     that  date  or  the last trading date prior to that date as reported by the
     national  securities  exchange  selected by the Board of Directors on which
     the  shares  of Common Stock are then actively traded or, if applicable, as
     reported  by the National Association of Securities Dealers, Inc. Automated
     Quotation  System  (NASDAQ);

          (b)     if  such  market  information  is  not  published on a regular
     basis, the price of the Common Stock in the over-the-counter market on that
     date  or  the  last business day prior to that date as reported by (NASDAQ)
     or,  if  not  so  reported,  by  a generally accepted reporting service; or

          (c)     if  the  Common Stock is not publicly traded, as determined in
     good  faith by the Board of Directors with due consideration being given to
     (i) the most recent independent appraisal of the Company, if such appraisal
     is  not more than twelve months old and (ii) the valuation methodology used
     in  any  such  appraisal.

     For  purposes  of Paragraphs (a), (b), or (c) above, the Board of Directors
may use the closing price as of the applicable date, the average of the high and
low  prices  as  of  the  applicable date or for a period certain ending on such
date,  the price determined at the time the transaction

                                        9
<PAGE>
is  processed,  the  tender offer price for shares of Common Stock, or any other
method  which  the Board of Directors determines is reasonably indicative of the
fair  market  value.

     4.8     "Termination  of  Employment"  means  the  termination  of  the
              ---------------------------
employee-employer  relationship  between  the  Employee  and the Company and its
affiliates,  regardless  of the fact that severance or similar payments are made
to  the  Employee  for  any  reason,  including, but not by way of limitation, a
termination  by  resignation,  discharge,  death, Disability or retirement.  The
Board  of  Directors  shall, in its absolute discretion, determine the effect of
all  matters  and  questions relating to a Termination of Employment, including,
but  not  by  way  of  limitation,  the  question  of whether a leave of absence
constitutes  a  Termination  of  Employment.

                                       10
<PAGE>
     IN  WITNESS WHEREOF, the parties have executed and sealed this Agreement on
the  day  and  year  first  set  forth  above.

                                             NEIGHBORS  BANCSHARES,  INC.

                                             By: _______________________________

                                             Title: ____________________________
ATTEST:

____________________________

Title: _____________________

         [CORPORATE SEAL]

                                             EMPLOYEE

                                             _____________________________(SEAL)

                                       11
<PAGE>
                                    EXHIBIT A
                                    ---------

                         NOTICE OF WITHHOLDING ELECTION
                           NEIGHBORS BANCSHARES, INC.
                           RESTRICTED STOCK AGREEMENT

TO:          Neighbors  Bancshares,  Inc.

FROM:

RE:          Withholding  Election

     This election relates to the restricted stock award 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).

          [ ]  the original recipient of the restricted stock award.

          [ ]  the legal representative of the estate of the original recipient
               of the restricted stock award.

          [ ]  a legatee of the original recipient of the restricted stock
               award.

          [ ]  the legal guardian of the original recipient of the restricted
               stock award.

     (3)     The  restricted stock award pursuant to which this election relates
is  dated as of ___________, 2002 (the "Restricted Stock Agreement") in the name
of_________________  for  a  total  of  __________ shares of Common Stock.  This
election  relates  to ______ shares of Common Stock issuable upon the vesting of
the Restricted Shares, provided that the numbers set forth above shall be deemed
changed  as  appropriate  to  reflect  stock  splits  and  other  adjustments
contemplated  in  Section  3.1  of  the  Restricted  Stock  Agreement.

     (4)     I  hereby  elect  to  have  certain  of  the shares 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.

          The  fair  market  value  of  the shares to be withheld in addition to
$_________  in  cash  to  be  tendered  to  the  Company by the recipient of the
restricted  stock  award shall be equal to the minimum statutory tax withholding
requirement  under federal, state and local law in connection with the exercise.

                             Exhibit A - Page 1 of 2
<PAGE>
     (5)     This Withholding Election is made no later than the Tax Date and is
otherwise timely made pursuant to Section 1.3 of the Restricted Stock Agreement.

     (6)     I  understand  that  this  Withholding Election may not be revised,
amended  or  revoked  by  me  but  is subject to the disapproval of the Board of
Directors.

     (7)     I  further  understand  that,  if  this Withholding Election is not
disapproved  by  the  Board  of  Directors,  the Company shall withhold from the
Vested  Shares  a  whole  number  of  shares  of  Common  Stock having the value
determined  in  accordance  with  Paragraph  4  above.

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

Dated:     ________________________________

Signature:  _______________________________

___________________________________________
Name  (Printed)

___________________________________________
Street  Address

___________________________________________
City,  State,  Zip  Code

                             Exhibit A - Page 2of 2
<PAGE>
                                    EXHIBIT B
                                    ---------

                             IRREVOCABLE STOCK POWER

     FOR  VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to
Neighbors Bancshares, Inc., a Georgia corporation (the "Company"), ___ shares of
the  Common  Stock, $.50 par value, of the Company registered in the name of the
undersigned  on  the  stock  transfer  records of the Company and represented by
Stock  Certificate  No. ____________________ of the Company; and the undersigned
does hereby irrevocably constitute and appoint ________________________________,
his  attorney-in-fact,  to  transfer  the  aforesaid  shares on the books of the
Company, with full power of substitution; and the undersigned does hereby ratify
and  confirm  all that said attorney-in-fact lawfully shall do by virtue hereof.

Date:________________________              _____________________________________
                                                [NAME]

IN  THE  PRESENCE  OF:

_____________________________
     (Print  Name)

_____________________________
     (Signature)

                             Exhibit B - Page 1 of 1
<PAGE>
                                   SCHEDULE I
                          TO NEIGHBORS BANCSHARES, INC.
                             RESTRICTED STOCK AWARD

Vesting  Schedule
-----------------

A.     The  Restricted Shares shall become Vested Shares following completion of
the  years  of  service for the Company or any of its affiliates as indicated in
the  schedule  below.

   Percentage  of  Shares                        Years  of  Service
Which  are  Vested  Shares              after the Bank Opens for Business
--------------------------              ---------------------------------

         33  1/3%                                     1
         66  2/3%                                     2
         100%                                         3

B.     Notwithstanding  Part  A,  in  the  event  of  a  Change  in Control, the
Restricted  Shares  will be fully vested as of a date determined by the Board of
Directors  which is no less than thirty (30) days prior to the effective date of
a  Change  in  Control  if the Employee is employed by the Company or any of its
affiliates on the effective date of a Change in Control; provided, however, that
the accelerated vesting contemplated by this provision shall not be given effect
on  account  of  any Change in Control which becomes effective prior to the date
which  is  three  years  following  the  date  the  Bank  opens  for  business

C.     For  purposes  of  the  Vesting Schedule, the Employee shall be granted a
year  of service for each consecutive twelve-month period following the date the
Bank  opens  for Business and during which the Employee continues, at all times,
as  an  employee  of  the Company or any of its affiliates.  At such time as the
Employee  is  no longer an employee of the Company or any of its affiliates, the
Employee  will  cease  to  continue  vesting  in  the  Restricted Shares and any
remaining  Restricted  Shares  which  are  not Vested Shares shall be forfeited

                            Schedule 1 - Page 1 of 1
<PAGE>Exhibit  4.1

                           CERTIFICATE OF DESIGNATION
                                       OF
                   THE BLUEBOOK INTERNATIONAL HOLDING COMPANY
                     (SERIES C CONVERTIBLE PREFERRED STOCK)

Mark Josipovich certifies that he is the President and Secretary of The Bluebook
International  Holding  Company, a Delaware corporation (hereinafter referred to
as  the  "Company"),  and  that,  pursuant  to  the  Company's  Certificate  of
Incorporation,  as  amended, and Section 151 of the General Business Corporation
Law,  the  Board  of  Directors of the Company adopted the following resolutions
effective  as  of  August  19,  2002;  and  that  none of the shares of Series C
Convertible  Preferred Stock referred to in this Certificate of Designation have
been  issued.

--------------------------------------------------------------------------------

CREATION OF SERIES C CONVERTIBLE PREFERRED STOCK

1.     There  is  hereby  created  a  series  of  preferred  stock consisting of
4,997,950 shares and designated as the Series C Convertible Preferred Stock (the
"Preferred  Stock"),  having  the  voting  powers,  preferences,  relative,
participating,  limitations,  qualifications,  optional and other special rights
and  the qualifications, limitations and restrictions thereof that are set forth
below.

REPURCHASE  PROVISIONS

2.     Beginning  on  the earlier of (a) the fourth anniversary of the date this
Certificate  is  filed  with  the  Delaware  Secretary  of State (the "Effective
Date"),  or  (b) a "Liquidation" (as defined in Section 4 below); and continuing
until  the  sixth  anniversary  of the Effective Date, the holder shall have the
absolute  right  to  require  the  Company to repurchase all or a portion of the
Preferred  Stock  then  outstanding at any time at a purchase price of $0.959241
per  share  (the "Repurchase Price"), by delivering notice in writing thereof to
the Company setting forth the number of shares of Preferred Stock to be redeemed
(the  "Redeemable  Stock"),  together with the original share certificate(s) for
such  Redeemable  Stock, duly endorsed to the Company, to be held in trust until
the  Repurchase  Price is paid to the holder pursuant to this Section 2.  Ninety
(90)  days following receipt of such notice (the "Redemption Date"), the Company
shall  redeem  the  Redeemable  Stock  at  the Repurchase Price in the following
amounts,  and on the following dates: one-third (1/3) of the Redeemable Stock on
the  Redemption Date, one-third (1/3) of the Redeemable Stock one hundred eighty
(180)  days following the Redemption Date, and one-third (1/3) of the Redeemable
Stock  three  hundred  sixty-five (365) days following the Redemption Date.  The
effective date of the repurchase shall be the date that the Company delivers the
Repurchase  Price  to the holder in the form of a certified check or bank draft.

CONVERSION  PROVISIONS

3.     The  holders  of  Preferred Stock shall have conversion rights as follows
(the  "Conversion  Rights"):

Conversion

     (a)  Right to Convert. Subject to paragraph (d) hereof, all Preferred Stock
          ----------------
          held  by  that holder shall be convertible at the option of the holder
          into  such  number  of  shares of common stock of the Company ("Common
          Stock")  as

<PAGE>
          is  calculated  by  the  Conversion Rate (as hereinafter defined). The
          Conversion  Rate,  subject  to adjustment as provided in paragraph (e)
          hereof, shall be one share of common stock for each share of Preferred
          Stock.  (as  adjusted  for  stock  splits,  stock  combinations, other
          recapitalizations  and  the  like).

     (b)  Method  of Conversion. In order to convert Preferred Stock into shares
          ---------------------
          of  Common  Stock,  a  holder  of  Preferred  Stock  shall

          (A)  complete,  execute  and  deliver to the Company and the Company's
               then  existing  Transfer  Agent,  currently  GLOBAL  SECURITIES
               TRANSFER,  INC. (the "Transfer Agent") the conversion certificate
               attached  hereto  as Schedule 1 (the "Notice of Conversion"), and

          (B)  surrender  the  original certificate or certificates representing
               the Preferred Stock being converted (the "Converted Certificate")
               to  the  Transfer  Agent.

          The  Notice  of  Conversion  shall  be effective and in full force and
          effect  for  a  particular  date  if  delivered to the Company and the
          Transfer  Agent  on  that  particular date prior to 5:00 p.m., pacific
          time, by facsimile transmission or otherwise, provided that particular
          date  is  a  business  day,  and  provided that the original Notice of
          Conversion and the Converted Certificate are delivered to and received
          by  the  Transfer Agent within three (3) business days thereafter, and
          that  particular  date  shall be referred to herein as the "Conversion
          Date".  The person or persons entitled to receive the shares of Common
          Stock  to  be issued upon conversion shall be treated for all purposes
          as  the  record holder or holders of such shares of Common Stock as of
          the  Conversion  Date.  If  the  original Notice of Conversion and the
          Converted  Certificate  are  not  delivered  to  and  received  by the
          Transfer Agent within three (3) business days following the Conversion
          Date,  the  Notice  of  Conversion shall become null and void as if it
          were  never  given and the Company shall, within two (2) business days
          thereafter,  instruct  the  Transfer  Agent to return to the holder by
          overnight  courier  any  Converted  Certificate  that  may  have  been
          submitted  in  connection  with any such conversion. In the event that
          any  Converted  Certificate submitted represents a number of shares of
          Preferred Stock that is greater than the number of such shares that is
          being  converted  pursuant  to  the  Notice of Conversion delivered in
          connection  therewith,  the Transfer Agent shall advise the Company to
          deliver  a  certificate representing the remaining number of shares of
          Preferred  Stock  not  converted.

     (c)  Absolute Obligation to Issue Common Stock. Upon receipt of a Notice of
          -----------------------------------------
          Conversion,  the  Company  shall  absolutely  and  unconditionally  be
          obligated  to  cause  a  certificate  or certificates representing the
          number  of  shares  of  Common  Stock  to which a converting holder of
          Preferred  Stock  shall  be  entitled as provided herein, which shares
          shall  constitute fully paid and non-assessable shares of Common Stock
          and  shall  be  issued  to,  delivered  by  overnight  courier to, and
          received  by such holder by the sixth (6th) business day following the
          Conversion  Date.  Such delivery shall be made at such address as such
          holder  may  designate  therefor in its Notice of Conversion or in its
          written  instructions  submitted  together  therewith.

                                        2
<PAGE>
     (d)  Minimum  Conversion.  No less than 1,000 shares of Preferred Stock may
          -------------------
          be converted at any one time by a particular holder, unless the holder
          then holds less than 1,000 shares and converts all such shares held by
          it  at  that  time.

Adjustments  to  Conversion  Rate

     (e)  Conversion  Adjustment  During  First Twelve (12) Months. In the event
          --------------------------------------------------------
          that  the  Company  issues additional Common Stock or other securities
          convertible  into  Common  Stock, except for "Excluded Stock" (defined
          below),  during  the  first twelve (12) months following the Effective
          Date,  the Conversion Rate shall be adjusted so that the initial price
          per  share  paid for the Series C Preferred, on an as-converted basis,
          shall equal the actual or implied price paid per share of Common Stock
          subsequently  issued,  on  an  as-converted  basis,  at  the time such
          additional  stock  is  issued  (the  "Subsequent  Sale  Price"),  by
          subtracting  one (1) from the Conversion Rate, then adding a fraction,
          the numerator of which is 0.959241 and the denominator of which is the
          Subsequent  Sale  Price,  stated  as  an  equation  as  follows:

                    X =    Y - 1 + (    0.959241 )
                                    -------------
                                          Z

          where Y is the then applicable Conversion Rate and Z is the Subsequent
          Sale Price. Notwithstanding the foregoing, no adjustment shall be made
          that  would  cause  the  Conversion  Rate to decrease. As used in this
          Section  3,  "Excluded  Stock"  shall  mean securities issued under an
          employee  stock  option  plan of the Company approved by the Company's
          Board  of  Directors,  or  securities issued in connection with a bona
          fide  acquisition  approved  by  the  Company's Board of Directors. An
          example of this calculation is set forth on Exhibit A attached hereto.
                                                      ---------

     (f)  Conversion  Adjustment  Following  First Twelve (12) Months. If at any
          -----------------------------------------------------------
          time  after  the  expiration  of  twelve  (12)  months  following  the
          Effective  Date,  the  Company issues additional Common Stock or other
          securities  convertible  into Common Stock, except for Excluded Stock,
          then  at the time the Series C Preferred is converted, Conversion Rate
          for  such Series C Preferred then being converted shall be adjusted so
          that  the initial price per share paid for such Series C Preferred, on
          an as-converted basis, shall equal the average actual or implied price
          paid per share of Common Stock subsequently issued, on an as-converted
          basis,  at  the  time  such  additional  stock is issued (the "Average
          Subsequent  Sale  Price"), by subtracting from the Conversion Rate one
          (1),  then  adding  a fraction, the numerator of which is 0.959241 and
          the  denominator of which is the Average Subsequent Sale Price, stated
          as  an  equation  as  follows:

                    X =    Y - 1 + (    0.959241 )
                                    -------------
                                          Z

          where  Y  is  the  then  applicable Conversion Rate (not including any
          previous  adjustments  made  pursuant to this paragraph 3(f)) and Z is
          the

                                        3
<PAGE>
          Average Subsequent Sale Price. The Average Subsequent Sale Price shall
          be  calculated  by  adding  the  total  actual  or  implied sale price
          received  by  the  Company for any securities received on or after the
          Effective  Date  (including the Series C Preferred) and dividing it by
          the  total number of shares of Common Stock issued or to be issued, on
          an  as-converted basis, as the result of securities issued on or after
          the Effective Date (including Series C Preferred). Notwithstanding the
          foregoing, no adjustment shall be made that would cause the Conversion
          Rate  to  decrease.  An  example  of  this calculation is set forth on
          Exhibit  B  attached  hereto.
          ----------

     (g)  Contingent Conversion Adjustment on Second Anniversary. If the Company
          ------------------------------------------------------
          realizes  gross  revenue  from  the sale of the Company's products and
          services,  plus  gross  profit from the sale of any other products, of
          less  than  $18,801,620 for the twelve-month period ending January 31,
          2005,  then  the  Conversion  Rate shall be increased by 12.35294%. As
          used  herein,  "gross  profit"  shall mean gross revenue less costs of
          goods  and  services  sold,  based  upon Generally Accepted Accounting
          Principals.

     (h)  Conversion  Adjustment Resulting from Series B. The initial Conversion
          ----------------------------------------------
          Rate  is based on the assumption that the 2,050 issued and outstanding
          shares of Series B Convertible Preferred Stock of the Company ("Series
          B  Preferred")  will convert into 1,227,540 shares of Common Stock. In
          the  event  that  at  the  time the Series C Preferred is converted to
          Common  Stock,  the total number of Common Stock issued as a result of
          the  conversion  of  Series  B  Preferred  exceeds 1,227,540, then the
          Conversion  Rate  shall  be adjusted to the then applicable Conversion
          Rate, plus a fraction stated as a decimal, the numerator of which is X
          (as  defined  below) and the denominator of which is 5,316,704. "X" is
          defined  as  follows:

                         0.163076  =    5,837,949 +  X
                                      --------------------------------
                                       35,798,900 + (Y - 1,227,450)

          where  "Y"  is  the total number of Common Stock issued as a result of
          the  conversion  of  Series  B  Preferred.

          An  example  of  this  calculation  is set forth on Exhibit C attached
                                                              ---------
          hereto.

     (i)  Reclassification, Exchange and Substitution. If the Common Stock to be
          -------------------------------------------
          issued  on conversion of the Preferred Stock shall be changed into the
          same or a different number of shares of the same or any other class or
          classes of stock, whether by capital reorganization, reclassification,
          reverse  stock  split  or  forward  stock  split  or stock dividend or
          otherwise  (other than a subdivision or combination of shares provided
          for  above),  the  holders  of  the  Preferred  Stock  shall, upon its
          conversion  be  entitled to receive, in lieu of the Common Stock which
          the holders would have become entitled to receive but for such change,
          a number of shares of the same or such other class or classes of stock
          that  would  have  been  subject to receipt by the holders if they had
          exercised  their  rights  of  conversion  of  the  Preferred  Stock
          immediately  before  that  change.

                                        4
<PAGE>
     (j)  Reorganizations,  Mergers, Consolidations or Sale of Assets. If at any
          -----------------------------------------------------------
          time  there  shall be a capital reorganization of the Company's common
          stock  (other  than  a  subdivision,  combination, reclassification or
          exchange of shares provided for elsewhere in this Section 3) or merger
          of  the Company into another corporation, or the sale of the Company's
          properties  and  assets  as,  or  substantially as, an entirety to any
          other  person, then, as a part of such reorganization, merger or sale,
          lawful  provision  shall  be made so that the holders of the Preferred
          Stock  receive  the  number  of shares of stock or other securities or
          property  of  the  Company,  or of the successor corporation resulting
          from  such  merger,  to  which holders of the Common Stock deliverable
          upon  conversion  of  the  Preferred Stock would have been entitled on
          such capital reorganization, merger or sale if the Preferred Stock had
          been  converted immediately before that capital reorganization, merger
          or  sale  to  the end that the provisions of this paragraph (including
          adjustment  of  the  number  of  shares  issued upon conversion of the
          Preferred  Stock)  shall  be  applicable  after  that  event as nearly
          equivalently  as  may  be  practicable.

     (k)  No  Impairment.  The Company will not, by amendment of its Articles of
          --------------
          Incorporation  or  through  any  reorganization,  recapitalization,
          transfer  of  assets,  merger,  dissolution,  or  any  other voluntary
          action, avoid or seek to avoid the observance or performance of any of
          the  terms  to  be observed or performed hereunder by the Company, but
          will  at all times in good faith assist in the carrying out of all the
          provisions  of  this Section 3 and in the taking of all such action as
          may  be  necessary  or  appropriate in order to protect the Conversion
          Rights  of  the  holders  of  the  Preferred Stock against impairment.

     (l)  Certificate  as to Adjustments. Upon the occurrence of each adjustment
          ------------------------------
          or  readjustment  of  the  Conversion Rate for any shares of Preferred
          Stock pursuant to paragraphs 3(e), (g), (i) or (j) hereof, the Company
          at  its expense shall promptly compute such adjustment or readjustment
          in  accordance  with  the terms hereof and prepare and furnish to each
          holder of Preferred Stock effected thereby a certificate setting forth
          such  adjustment  or readjustment and showing in detail the facts upon
          which  such  adjustment  or  readjustment is based. The Company shall,
          upon the written request at any time of any holder of Preferred Stock,
          furnish  or  cause  to  be furnished to such holder a like certificate
          setting  forth:  (i)  such  adjustments  and  readjustments;  (ii) the
          Conversion  Rate at the time in effect; and (iii) the number of shares
          of Common Stock and the amount, if any, of other property which at the
          time  would be received upon the conversion of such holder's shares of
          Preferred  Stock.

LIQUIDATION  PROVISIONS

4.     In  the  event  of  any  of  the  following  (each, a "Liquidation"): (a)
liquidation,  dissolution  or  winding  up  of the Company, whether voluntary or
involuntary, (b) sale of all, or substantially all, of the assets of the Company
to  a  party  not  controlled  by  or  under common control with, the Company or
holder,  or  (c) an acquisition or merger of the Company whereby more than fifty
percent  (50%)  of  the  control  of  the  Company is transferred to a party not
controlled  by  or  under common control with, the Company or holder; holders of
Preferred Stock (prior to conversion) shall be entitled to receive, prior to any
payments  received by the holders of Series B Convertible Preferred Stock or any
other equity stock, an amount equal to $0.959241 per share, plus any accrued and
unpaid

                                        5
<PAGE>
dividends.  After  the full preferential liquidation amount has been paid to, or
determined  and  set  apart  for  the  Preferred  Stock  and all other series of
preferred  stock  heretofore  or  hereafter  authorized  and issued, if any, the
remaining assets of the Company available for distribution to shareholders shall
be  distributed  ratably to the holders of the Common Stock, Preferred Stock and
any  other preferred stock, on an as-converted basis. In the event the assets of
the  Company  available for distribution to its shareholders are insufficient to
pay  the  full  preferential liquidation amount per share required to be paid to
the  holders  of  Company's  preferred stock, the entire amount of assets of the
Company  available  for  distribution  to shareholders shall be paid up to their
respective full liquidation amounts first to the holders of Series C Convertible
Preferred Stock, respectively, then to holders of Series B Convertible Preferred
Stock,  then  to  any  other  series of preferred stock hereafter authorized and
issued,  all of which amounts shall be distributed ratably among holders of each
such  series  of  preferred  stock,  and the Common Stock shall receive nothing.
Except as set forth above, a reorganization or any other consolidation or merger
of  the  Company with or into any other corporation, or any other sale of all or
substantially  all  of  the  assets  of the Company, shall not be deemed to be a
liquidation, dissolution or winding up of the Company within the meaning of this
Section  4,  and  the  Preferred Stock shall be entitled only to: (i) the rights
provided  in  any  agreement  or  plan  governing  the  reorganization  or other
consolidation,  merger  or sale of assets transaction; (ii) the rights contained
in the Delaware General Business Corporation Law; and (iii) the rights contained
in  other  Sections  hereof.

DIVIDEND  PROVISIONS

5.     The  holders  of  shares  of Preferred Stock shall be entitled to receive
dividends  as and when declared by the Company's Board of Directors in an amount
equal  to  that  which the holder would have received if the Preferred Stock had
been  converted  to  Common  Stock  pursuant  to  Section  3  above.

RESERVATION OF STOCK TO BE ISSUED UPON CONVERSION

6.     The  Company  shall  at all times reserve and keep available a sufficient
number of Common Stock out of its authorized but unissued shares of Common Stock
solely  for  the  purpose  of  effecting  the  conversion  of  the shares of the
Preferred Stock.  If at any time the number of authorized but unissued shares of
Common  Stock  shall  not  be  sufficient  to  effect the conversion of all then
outstanding  shares  of  the  Preferred  Stock, then, in addition to all rights,
claims and damages to which the holders of the Preferred Stock shall be entitled
to  receive  at  law  or in equity as a result of such failure by the Company to
fulfill  its obligations to the holders hereunder, the Company will take any and
all corporate or other action as may, in the opinion of its counsel, be helpful,
appropriate  or  necessary  to  increase  its  authorized but unissued shares of
Common  Stock  to such number of shares as shall be sufficient for such purpose.

NOTICES

7.     In  the  event  of  the  establishment  by the Company of a record of the
holders  of  any  class of securities for the purpose of determining the holders
thereof  who are entitled to receive any distribution, the Company shall mail to
each  holder  of  Preferred  Stock  at  least twenty (20) days prior to the date
specified therein a notice specifying the date on which any such record is to be
taken  for the purpose of such distribution and the amount and character of such
distribution.

8.     Any  notices required by the provisions hereof to be given to the holders
of  shares  of  Preferred Stock shall be deemed given if deposited in the United
States mail, postage

                                        6
<PAGE>
prepaid  and return receipt requested, and addressed to each holder of record at
its  address  appearing  on the books of the Company or to such other address of
such  holder  or  its  representative  as  such  holder  may  direct.

VOTING  PROVISIONS

9.     Except  as otherwise expressly provided or required by law, the Preferred
Stock  shall  have  the  same  voting rights as Common Stock, with each share of
Preferred  Stock  having  that  number of votes equal to the number of shares of
Common  Stock  such holder would receive if the Preferred Stock was converted to
Common Stock pursuant to Section 3 hereof on the record date.  The Company shall
not  take  the  following  actions without the consent of at least fifty percent
(50%) of the issued and outstanding shares of Preferred Stock, which consent may
be  obtained  in any manner in accordance with the Delaware Corporation Laws and
the  Company's  Articles  of  Incorporation  and  Bylaws:

     (a)     alter  the  rights  or  powers of the Preferred Stock in an adverse
manner;

     (b)     increase  the  authorized  number  of  shares of Preferred Stock in
excess  of  5,316,704;

     (c)     create  any  new  class  or  series  of  stock  or  any  other
securities  having  a preference over or on parity with the Preferred Stock with
respect  to redemption, voting, dividend or liquidation; provided, however, this
Section 9 shall not prohibit creating any class or series of stock with the same
voting  rights  as  Common  Stock;

     (d)     declare  or  pay  dividends;  or

     (e)     incur  indebtedness in an amount in excess of $2,000,000 during the
period  beginning  on the Effective Date and ending on the second anniversary of
the  Effective  Date.

PREEMPTIVE  RIGHTS

10.     Each  holder  of  Preferred  Stock  shall  have the right to acquire any
Common  Stock  or  other  securities  convertible  to Common Stock issued by the
Company,  except  for  "Non-Included  Securities"  (defined below) (collectively
"Equity  Securities"),  as nearly as practicable in proportion to the percentage
of  ownership  such  holder  has  in  the  Common  Stock  of  the Company, on an
as-converted  basis.  The  price  to each holder shall be no less favorable than
the  price at which such shares, securities, options or rights are to be offered
to  other  persons.  The  holders  of Preferred Stock entitled to the preemptive
right,  the  number  of  shares  for which they have a preemptive right, and the
manner  in  which such holder shall exercise such right shall be as set forth in
this  Section  10.  As  used herein, "Non-Included Securities" shall mean any of
the  following:  (i)  shares  of Common Stock (or options therefore) issuable or
issued  to  employees,  consultants  or  directors pursuant to an employee stock
option  plan  of  the Company approved by the Company's Board of Directors, (ii)
securities  issued  pursuant  to  a  conversion  or  exercise  of convertible or
exercisable securities, provided any such issuance made after the Effective Date
is  approved  by the Board of Directors without dissent, (iii) securities issued
in  connection  with  an  acquisition  of  the  Company,  whether  by  merger,
consolidation,  sale  of  assets,  sale  of exchange of stock, or otherwise, and
(iii)  securities  issued  or  issuable  in

                                        7
<PAGE>
connection  with  lease  lines,  bank  financing  or similar transactions with a
non-equity,  cash  raising purpose approved by the Company's Board of Directors.

     (a)  Determining Holders of Preferred Stock. The holders of Preferred Stock
          --------------------------------------
          entitled  to the preemptive right (each, a "Holder") and the number of
          shares  for  which such Holder shall have a preemptive right, shall be
          determined on the record date fixed by the Board of Directors not less
          than  ten  (10)  nor  more than sixty (60) days prior to the date such
          shares,  securities,  options  or  rights are issued to other persons.

     (b)  Exercising  Preemptive Right. The Company shall deliver written notice
          ----------------------------
          via  certified  U.S.  Mail  to  the  record  Holders  at  the  address
          maintained  in  the  Company's  record books (the "Preemption Notice")
          setting forth the material terms of an intended issuance of any Equity
          Securities. Each Holder shall have ten (10) days from the date of such
          Preemptive  Notice  to  deliver  written  notice to the Company of its
          election  to  purchase  its  proportionate  share  of  such  Equity
          Securities.  Such  Holder shall enter into any agreements with respect
          to  such Equity Securities and the purchase thereof as is entered into
          by  such other purchasers. In such event, the Company shall issue such
          Holder's  proportionate  share of the Equity Securities to such Holder
          in  exchange for the purchase price at the time of the issuance to the
          other purchasers. In the event that the material terms of the intended
          issuance  change  prior  to  issuance, the Company shall promptly give
          each  Holder written notice thereof in the same manner as the delivery
          of  the  Preemption  Notice, and each Holder shall reconfirm its prior
          election in writing within ten (10) days of such notice or such Holder
          shall  be  deemed  to  withdraw such Holder's election to purchase its
          proportionate  share  of  such  Equity  Securities.

     (c)  Termination.  All  rights set forth in this Section 10 shall terminate
          -----------
          upon  the  public offering by the Company of any Common Stock pursuant
          to  a registration statement filed with the SEC in accordance with the
          Securities  Act,  provided  the  Company includes is such registration
          statement  the  Common  Stock  issued upon conversion of the Preferred
          Stock  prior to the date such registration statement is filed with the
          SEC.

     (d)  Presumption  of  Compliance.  In order to facilitate future reviews of
          ---------------------------
          the  books  and  records of the Company, there shall be an irrefutable
          presumption  that  this Section 10 has been fully complied with by the
          Company:  (a)  absent  a  filing  by any shareholder with the SEC (for
          instance,  on a Schedule 13D) within 180 days following the end of any
          fiscal  year  of  a document stating its belief that it was not issued
          the  securities  that it was entitled to during such fiscal year, with
          respect  to  all  issuances  during  such  year,  and  (b)  absent the
          institution of litigation against the Company by any shareholder prior
          thereto,  180 days following

                                        8
<PAGE>
          the last date on which there has been any Preferred Stock outstanding,
          with  respect  to  all  issuances.

                         [signature begins on next page]

                                        9
<PAGE>
IN  WITNESS  WHEREOF,  the Company has caused this Certificate of Designation of
Series  C  Convertible  Preferred Stock to be duly executed by its President and
attested  to  by  its  Secretary  this 19th day of August, 2002, who, by signing
their  names hereto, acknowledge that this Certificate of Designation is the act
of the Company and state to the best of their knowledge, information and belief,
under the penalties of perjury, that the above matters and facts are true in all
material  respects.

               THE BLUEBOOK INTERNATIONAL HOLDING COMPANY,
               A DELAWARE CORPORATION

               -------------------------------------
               Mark Josipovich, President

               -------------------------------------
               Mark Josipovich, Secretary

                                       10
<PAGE>
                                   SCHEDULE 1

                             CONVERSION CERTIFICATE
                   THE BLUEBOOK INTERNATIONAL HOLDING COMPANY
                      SERIES C CONVERTIBLE PREFERRED STOCK

The  undersigned  holder  (the  "Holder")  is  surrendering  to  THE  BLUEBOOK
INTERNATIONAL  HOLDING  COMPANY,  a Delaware corporation (the "Company"), one or
more certificates representing shares of Series C Convertible Preferred Stock of
the  Company (the "Preferred Stock") in connection with the conversion of all or
a  portion of the Preferred Stock into shares of Common Stock, $0.0001 par value
per  share,  of  the  Company  (the  "Common  Stock")  as  set  forth  below.

1.     The Holder understands that the Preferred Stock was issued by the Company
pursuant  to  the  exemption for registration under the United States Securities
Act  of  1933,  as  amended  (the  "Securities  Act"),  provided by Regulation D
promulgated  thereunder.

2.     The  Holder  represents  and  warrants  that  all offers and sales of the
Common  Stock  issued  to the Holder upon such conversion of the Preferred Stock
shall  be  made  (a)  pursuant  to an effective registration statement under the
Securities  Act, (in which case the Holder represents that a prospectus has been
delivered)  (b)  in  compliance  with  Rule  144,  or (c) pursuant to some other
exemption  from  registration.

     Number of Shares of Preferred Stock being Converted:
                                                         -----------------

     Applicable Conversion Rate:
                                ------------------------------------------

     Number of Shares of Common Stock To be issued:
                                                   -----------------------

     Conversion Date:
                     -----------------------------------------------------

     Delivery  instructions  for  certificates  of  Common  Stock  and  for  new
     certificates  representing  any  remaining  shares  of  Preferred  Stock:

     ---------------------------------------------------------------------

     ---------------------------------------------------------------------

     ---------------------------------------------------------------------

     ---------------------------------------------------------------------

                                   ---------------------------------------
                                   Name of Holder - Printed

                                   ---------------------------------------
                                   Signature of Holder

<PAGE>
                                    EXHIBIT A
                                    ---------

EXAMPLE  -  Assume  that six months after the Effective Date, the Company issued
1000  Shares  of  Series  D  Convertible Preferred Stock at a price of $0.80 per
share,  each  share  convertible into one share of Common Stock.  Assume further
that  the  then  existing  Conversion  Rate  is  1.

Formula for New Conversion Rate:

     X  =    Y - 1 + (    0.959241)
                     --------------
                           Z

     X  =    1 - 1 + (    0.959241)
                     --------------
                         0.80

     X  =    0 + 1.1990512

     X  =    1.1990512

where  Y  is  the  then  applicable Conversion Rate and Z is the Subsequent Sale
Price.

<PAGE>
                                    EXHIBIT B
                                    ---------

EXAMPLE  -  Assume  that  all  5,316,704  shares of Series C Preferred have been
issued.  Assume  further  that  eighteen  months  after  the Effective Date, the
Company  issued  1,000,000  Shares  of Series D Convertible Preferred Stock at a
price of $0.50 per share, each share convertible into one share of Common Stock.
Assume  further  that  twenty-four  (24)  months  after  the Effective Date, the
Company  issued  1,000,000  Shares  of Series D Convertible Preferred Stock at a
price of $1.00 per share, each share convertible into one share of Common Stock.
Assume  further  that  the  then  existing  Conversion  Rate  is  1.

Formula for New Conversion Rate:

     X  =    Y - 1 + (    0.959241)
                     --------------
                            Z

     X  =    1 - 1 + (    0.959241  ) / 5,100,000 +   500,000 + 1,000,000
                                        ---------------------------------
                                        5,316,704 + 1,000,000 + 1,000,000

     X  =    0 + (    0.959241 ) /  6,600,000
                                    ---------
                                    7,316,704

     X  =    0 + (    0.959241 )
                 ---------------
                    0.9020455

     X  =    1.0634064

where  Y  is the then applicable Conversion Rate and Z is the Average Subsequent
Sale  Price.

<PAGE>
                                    EXHIBIT C

EXAMPLE - Assume the 2050 Shares of Series B Preferred are converted into
3,000,000 shares of Common Stock rather than 1,227,450 shares of Common Stock
prior to the date the Series C Preferred are converted into shares of Common
Stock.

Formula  for  New  Conversion  Rate:

0.1507 =              5,316,704  +  X
                      ----------------------------
                      35,277,654 + (Z - 1,227,450)

0.1507 =              5,316,704  +  X
                      ----------------------------
                      35,277,654 +  1,772,550

0.1507 =              5,316,704 + X
                      ----------------------------
                      37,050,204

37,050,204 (0.1507) = 37,050,204    (      5,316,704  +  X)
-------------------   ----------    -----------------------
         1                1             (37,050,204 )

         5,583,466  =  5,316,704 + X

                 X  =    266,762

The new conversion rate is calculated as  1  + 266,762  =  1.0501743
                                               -------
                                      5,316,704

PROOF:
                         5,316,704 +   266,762
                        ------------------------------------
          X  =          35,277,654 + (3,000,000 - 1,227,450)

                         5,583,466
                        ----------
          X  =          37,050,204

          X  =          0.1507  or  15.07%
                                    ======

<PAGE>

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