Atlantic Southern Financial Group (ASFN)

Elements of Compensation

For the fiscal year ended December 31, 2007, the principal components of compensation for Named Executive Officers were:

·                  Base salary

·                  Cash incentive compensation

·                  Executive bonus

·                  Executive retirement benefits

·                  Perquisites and other personal benefits

Elements of Compensation

The Company’s executive compensation program includes the components listed below.

·                  Base Salary – fixed base pay that reflects each executive’s position, individual performance, experience, and expertise.

·                  Cash Incentive Compensation – pay that varies based on performance against annual business objectives; the Company communicates the associated performance metrics, goals, and award opportunities to the executives at the beginning of the year.

·                  Long-Term Incentives – equity-based awards, primarily stock options, with values determined by the Compensation Committee on a subjective basis.

·                  401(k) Retirement Savings Plan – pursuant to which employees (including our named executive officers) may defer portions of their base salaries, with the Company making matching contributions.

·                  Executive Retirement Benefits – the CEO and other NEOs have Supplemental Executive Retirement Plan agreements defined as a “Salary Continuation Agreement.”

·                  Other Compensation – perquisites consistent with industry practices in comparable banks, as well as broad-based employee benefits such as medical, dental, disability, and life insurance coverage. Certain executives also receive personal use of a Company owned vehicle, cell phone and laptop, club membership/dues, and board of director fees.