Exhibit 10.2





                          SUMMARY OF MATERIAL TERMS OF
                             FOUR OAKS FINCORP INC.
                                 2008 BONUS PLAN



The  Company's  2008 Bonus Plan (the "Plan") is a  compensatory  plan,  which is
designed to align the interests of the Company's named  executive  officers with
the interests of its  stockholders by linking bonus amounts  directly to Company
performance. Named executive officers are eligible to receive cash bonuses under
the Plan based on the  Company's  (i) fee income,  (ii) average  loan  balances,
(iii) average  deposit  balances,  (iv) net interest  spread and (v) net income.
Targets for these five areas have been set for fiscal  2008,  and the  Company's
named executive  officers will be eligible for bonuses based on four tier target
levels set by the Company's  Compensation  Committee.  Actual bonus payments, if
any, will therefore vary depending on the Company's  actual fee income,  average
loan balance, average deposit balance, net interest spread and net income at the
end of fiscal 2008. In addition,  the Compensation  Committee has the discretion
to award cash bonuses or otherwise  increase,  reduce or eliminate  cash bonuses
that would otherwise be payable under the Plan in its sole discretion.