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                                                                   EXHIBIT 10.1

                              SETTLEMENT AGREEMENT

         THIS SETTLEMENT AGREEMENT (the "AGREEMENT") is made as of April __
2004, by and among 1ST COMMUNITY BANK, a federal savings bank ("BANK"), its
parent corporation FAIRBANCO HOLDING COMPANY, INC. a Georgia corporation
("Fairbanco") and ___________________, a resident of the State of Georgia
("EXECUTIVE").

         WHEREAS, Bank is engaging in a full range of banking services in
Fulton and Fayette Counties, Georgia (the "BUSINESS") and Executive is an
executive officer of the Bank and Fairbanco; and

         WHEREAS, Fairbanco and United Community Banks, Inc., a Georgia
corporation (the "COMPANY") have entered into that certain Agreement and Plan of
Reorganization (the "ACQUISITION AGREEMENT") dated as of March 11, 2004, as
amended, whereby the Company has agreed to purchase Fairbanco and Bank through
the merger of Fairbanco with and into Company for cash and stock of the Company;
and

         WHEREAS, as a condition of the Acquisition Agreement, Executive has
agreed to terminate that certain Employment Agreement, dated November 13, 1997
by and between Executive and Bank (the "EMPLOYMENT AGREEMENT") in accordance
with the terms of this Agreement;

         NOW THEREFORE, in consideration of the premises and of the mutual
covenants, agreements, representations, warranties, benefits and obligations
contained in this Agreement, and of other good and valuable consideration (the
receipt and sufficiency of which are hereby acknowledged), the parties hereto
agree as follows:

1.       Executive and the Bank have agreed to terminate the Employment
         Agreement effective at the Closing Date (as defined in the Acquisition
         Agreement).

2.       In consideration for, and as a material inducement to enter into this
         Agreement and an appropriate release, Bank will provide Executive with
         the a payment of ______________ Dollars ($_________), gross, (the
         "SETTLEMENT PAYMENT") payable in three (3) payments of ______________
         Dollars ($_________) on each of the Closing Date, January 2, 2005 and
         January 2, 2006.

3.       This Agreement will be deemed to be a contract made under the laws of
         the State of Georgia, and for all purposes will be governed by and
         interpreted in accordance with the laws prevailing in the State of
         Georgia, without regard to principles of conflict of laws.

4.       Executive affirms that the only consideration for him or her signing
         this Agreement is that set forth in SECTION 2, that no other promise
         or agreement of any kind has been made to or with him or her by any
         person or entity to cause him or her to execute this document, and
         that he or she fully understands the meaning and intent of this
         Agreement, including but not limited to, its final and binding effect.

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         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.


                               1ST COMMUNITY BANK



                               By:
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                               EXECUTIVE



                               By:
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