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                                                                     EXHIBIT 4.8

                    AGREEMENT AS TO EXPENSES AND LIABILITIES

         This Agreement as to Expenses and Liabilities (the "Agreement"), dated
as of ___________, 2003, is between Southern Community Financial Corporation, a
North Carolina corporation (the "Company"), and Southern Community Capital Trust
II, a Delaware statutory trust (the "Trust").

         WHEREAS, the Trust intends to issue common securities (the "Common
Securities") to, and receive ____% Deferrable Interest Junior Subordinated
Debentures due December 31, 2033 (the "Debentures") from, the Company and to
issue and sell ____% Cumulative Trust Preferred Securities (the "Preferred
Securities") with such powers, preferences and special rights and restrictions
as are set forth in the Amended and Restated Trust Agreement of the Trust dated
as of _________, 2003, as the same may be amended from time to time (the "Trust
Agreement"); and

         WHEREAS, the Company will directly or indirectly own all of the Common
Securities of the Trust and will issue the Debentures.

         NOW, THEREFORE, in consideration of the purchase by each holder of the
Preferred Securities, which purchase the Company hereby agrees shall benefit the
Company and which purchase the Company acknowledges will be made in reliance
upon the execution and delivery of this Agreement, the Company, including in its
capacity as holder of the Common Securities, and the Trust hereby agree as
follows:

                                    ARTICLE I

         SECTION 1.01. GUARANTEE BY THE COMPANY. Subject to the terms and
conditions hereof, the Company, including in its capacity as holder of the
Common Securities, hereby irrevocably and unconditionally guarantees to each
person or entity to whom the Trust is now or hereafter becomes indebted or
liable (the "Beneficiaries") the full payment, when and as due, of any and all
Obligations (as hereinafter defined) to such Beneficiaries. As used herein,
"Obligations" means any costs, expenses or liabilities of the Trust other than
obligations of the Trust to pay to holders of any Preferred Securities or other
similar interests in the Trust the amounts due such holders pursuant to the
terms of the Preferred Securities or such other similar interests, as the case
may be. This Agreement is intended to be for the benefit of, and to be
enforceable by, all such Beneficiaries, whether or not such Beneficiaries have
received notice hereof.

         SECTION 1.02. TERM OF AGREEMENT. This Agreement shall terminate and be
of no further force and effect upon the later of: (a) the date on which full
payment has been made of all amounts payable to all holders of all the Preferred
Securities (whether upon redemption, liquidation, exchange or otherwise); or (b)
the date on which there are no Beneficiaries remaining; provided, however, that
this Agreement shall continue to be effective or shall be reinstated, as the
case may be, if at any time any holder of Preferred Securities or any
Beneficiary must restore payment of any sums paid under the Preferred
Securities, under any

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Obligation, under the Preferred Securities Guarantee Agreement dated the date
hereof by the Company and Property Trustee as Guarantee Trustee (as defined in
the Preferred Securities Guarantee Agreement) or under this Agreement, for any
reason whatsoever. This Agreement is continuing, irrevocable, unconditional and
absolute.

         SECTION 1.03. WAIVER OF NOTICE. The Company hereby waives notice of
acceptance of this Agreement and of any Obligation to which it applies or may
apply, and the Company hereby waives presentment, demand for payment, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

         SECTION 1.04. NO IMPAIRMENT. The obligations, covenants, agreements and
duties of the Company under this Agreement shall in no way be affected or
impaired by reason of the happening from time to time of any of the following:

                  (a)      the extension of time for the payment by the Trust of
         all or any portion of the Obligations or for the performance of any
         other obligation under, arising out of, or in connection with, the
         Obligations;

                  (b)      any failure, omission, delay or lack of diligence on
         the part of the Beneficiaries to enforce, assert or exercise any right,
         privilege, power or remedy conferred on the Beneficiaries with respect
         to the Obligations or any action on the part of the Trust granting
         indulgence or extension of any kind; or

                  (c)      the voluntary or involuntary liquidation,
         dissolution, sale of any collateral, receivership, insolvency,
         bankruptcy, assignment for the benefit of creditors, reorganization,
         arrangement, composition or readjustment of debt of, or other similar
         proceedings affecting, the Trust or any of the assets of the Trust. The
         Beneficiaries shall not be obligated to give notice to, or obtain the
         consent of, the Company with respect to the happening of any of the
         foregoing.

         SECTION 1.05. ENFORCEMENT. A Beneficiary may enforce this Agreement
directly against the Company, and the Company waives any right or remedy to
require that any action be brought against the Trust or any other person or
entity before proceeding against the Company.

                                   ARTICLE II

         SECTION 2.01. BINDING EFFECT. All guarantees and agreements contained
in this Agreement shall bind the successors, assigns, receivers, trustees and
representatives of the Company and shall inure to the benefit of the
Beneficiaries.

         SECTION 2.02. AMENDMENT. So long as there remains any Beneficiary or
any Preferred Securities outstanding, this Agreement shall not be modified or
amended in any manner adverse to such Beneficiary or to the holders of the
Preferred Securities.

         SECTION 2.03. NOTICES. Any notice, request or other communication
required or permitted to be given hereunder shall be given in writing by
delivering the same by facsimile transmission (confirmed by mail) or by
registered or certified mail, addressed as follows (and if so given, shall be
deemed given when mailed):

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                  Southern Community Capital Trust II
                  c/o Wilmington Trust Company
                  Rodney Square North
                  1100 North Market Street
                  Attention: Corporate Trust Services

                  Southern Community Financial Corporation
                  4605 Country Club Road
                  Winston-Salem, NC 27012
                  Attention: F. Scott Bauer

         SECTION 2.04. GOVERNING LAW. This Agreement shall be governed by and
construed and interpreted in accordance with the laws of the State of North
Carolina (without regard to conflict of laws principles).

         THIS AGREEMENT is executed as of the day and year first above written.

                                    SOUTHERN COMMUNITY FINANCIAL
                                    CORPORATION

                                    By:_______________________________________
                                       F. Scott Bauer
                                       President, Chief Executive Officer and
                                       Chairman of the Board of Directors

                                    SOUTHERN COMMUNITY CAPITAL TRUST II

                                    By:_______________________________________
                                       F. Scott Bauer, Administrative Trustee

                                    By:_______________________________________
                                       Richard Cobb, Administrative Trustee

                                    By:_______________________________________
                                       Jeff T. Clark, Administrative Trustee

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