Document:

EXHIBIT 10.1

STATE OF SOUTH CAROLINA             )
                                    )
COUNTY OF YORK                      )

SEPARATION AGREEMENT

         This Agreement is made and entered this 25th day of May 2001, by and
between J. A. Ferguson, Jr. (hereinafter "Employee") and RHBT Financial
Corporation (hereafter "Company"), a South Carolina corporation and holding
company for Rock Hill Bank & Trust, a South Carolina state-chartered bank
(hereafter "Bank"), on Company's behalf and on behalf of all others released
under Paragraph 4 hereof (all of which are hereinafter referred to and included
in the term "Released Parties" as that term is further defined in Paragraph 4
hereof):

                              W I T N E S S E T H:

         WHEREAS Employee and Employer entered into an Employment Agreement on
January 2, 2001; and

         WHEREAS Employee resigned his employment on May 17, 2001, effective
immediately; and

         WHEREAS Employee acknowledges that some obligations imposed upon him
under the terms of the parties' Employment Agreement survive termination of the
employment relationship; and

         WHEREAS Company has agreed to make payments to or on behalf of Employee
and to waive certain provisions of certain stock options previously granted him,
and Employee has acknowledged that he is not otherwise entitled to such waiver
or to such payments under the terms of the parties' Employment Agreement or
stock option agreements; and

         WHEREAS, in return for the waiver and payments, Employee has agreed
that he will release all claims he may have, if any, against the Released
Parties; and

         WHEREAS Employee has also agreed to maintain in confidence all
privileged past communications relating to litigation pending against Company
and Bank, and to maintain the confidentiality of any communications he may in
the future have with attorneys for Company or Bank which in any way relate to
such litigation; and

         WHEREAS the Company and other Released Parties have denied any
liability to Employee on the basis of any claims, asserted or unasserted,
whether involved in termination of his employment or otherwise; and

         WHEREAS this Agreement is not to be deemed an admission, finding or
indication for any purpose whatsoever that the Company or any of the Released
Parties have, at any time, including the present, acted contrary to the law or
violated the rights of Employee or any other person;

         NOW, THEREFORE, in reliance on the foregoing premises, and in exchange
for good and valuable consideration, the sufficiency and receipt of which is
hereby acknowledged, the parties hereto agree as follows:

         1. Effective May 18, 2001, Employee has resigned his employment
pursuant to section 4(d) of the parties' Employment Agreement of January 2,
2001. Employee and the Company agree that effective on the date of Employee's
resignation, the Employment Agreement is terminated, except that Sections 4(j)
through (n), 5, 6, 7, 8, 9, and 18 of the Employment Agreement shall survive
termination and remain binding on Employee.

         2. Company agrees to pay, and Employee agrees to accept, the property
and payments described in subsections a through d below. From any payments made
directly to Employee, appropriate amounts for applicable local, state and
federal deductions will be made. As to property conveyed to Employee and those
payments which are made to others on his behalf, the parties acknowledge that
such sums are not being paid net of taxes. The sums paid to or on behalf of
employee, as well as the fair market value of the vehicle, will be reported to
Employee on IRS Form W-2 in the year in which they are paid or conveyed. Company
will:

<PAGE>

a.                             Pay Employee's salary from June 1, 2001
                               through November 30, 2001 in the gross amount of
                               Ten Thousand Four Hundred Sixteen and 66/100
                               ($10,416.66) Dollars per month, payable to
                               Employee in accordance with the Company's regular
                               payroll dates established for 2001; and

b.                             Pay, on Employee's behalf, monthly dues,
                               in the amount of $195 per month, payable to the
                               Rock Hill Country Club on the 10th day of each
                               month through December 31, 2001, or until such
                               time as Employee resigns his membership,
                               whichever occurs first; and

c.                             Pay, on Employee's behalf, COBRA premiums
                               for continuation health insurance coverage,
                               payable on or before the due date to the
                               appropriate entity until May 31, 2002, or such
                               time as Employee is no longer eligible for COBRA
                               coverage, whichever occurs first; and

d.                             Immediately convey to Employee the title to the
                               company vehicle previously assigned to him.

         3. The Company has previously granted to Employee stock options for an
aggregate of 60,114 shares of common stock, of which 25,899 shares have vested
prior to the date hereof. These options were granted pursuant to four separate
stock option agreements, as described on the attached Schedule A. The Company
further agrees that, notwithstanding a provision to the contrary in the stock
option agreements, the options for these 25,899 shares shall remain exercisable
after the termination of Employee's employment and shall remain exercisable
through the expiration date set forth in the respective stock option agreement
and subject to the other terms specified in such agreement. Employee
acknowledges that the unvested stock options for the remaining 34,215 shares are
forfeited. Employee also acknowledges that, because of this change to the terms
of his stock option agreements, his options will not qualify as Incentive Stock
Options under the Internal Revenue Code.

         4. In exchange for the foregoing payments and agreement to waive the
aforesaid provision of the stock option agreements, Employee, for himself, his
attorneys, his spouse or former spouse, children, his heirs, executors,
administrators and assigns, does hereby fully, finally and forever release the
Company and Rock Hill Bank & Trust, as well as their employee benefit plans,
plan administrators, predecessors, successors, assigns, present or former
affiliates, joint venturers, divisions, agents, directors, board members,
employees, officers, owners and shareholders and their heirs, executors,
administrators and assigns (all of whom are herein collectively referred to as
"Released Parties"), from any and all claims, demands, actions, causes of
actions, suits, damages, losses, expenses and attorney's fees of any kind and
every nature whatsoever, known or unknown, which he has or may have against any
of the Released Parties arising from or pertaining to any transaction, dealing,
employment relationship, employment agreement, conduct, act or omission, or any
other matter or event existing or occurring at any time prior to the date
hereof, including but not limited to matters arising from his employment with
Company or the cessation thereof. Further, and without in any way limiting the
foregoing, the claims waived and released by Employee include any possible or
alleged deprivation of rights under any employment discrimination statute or
based on any term or condition of his former employment, employment benefits or
promises, compensatory or punitive damages, as well as costs and attorneys' fees
of any and all counsel whom he has retained or whom he may in the future retain
in regard to those matters.

         5. Employee agrees also to maintain in absolute confidence all past and
future privileged communications with or in the presence of attorneys for
Company or Bank, whether relating to litigation pending against Company or Bank,
or otherwise.

         6. Employee represents and warrants that he has surrendered to the
Company all documents, including originals and all copies of any lists, books,
compilations, records and computer records, connected with the Company's
business, customers or suppliers, whether prepared by Employee or others, and
all other property belonging to the Company.

         7. Employee represents and warrants that no other person or entity is
entitled to assert any claim of any kind or character arising out of, or as a
consequence of, his employment with Company, termination of his employment with
Company or any benefits relating to this employment or its cessation.

         8. Employee acknowledges that the relationship created by this
Agreement is purely contractual and that no employer-employee relationship is
intended or may be inferred from the performance of the Company's obligations
under this Agreement.

         9. Employee understands and affirms that this Agreement does not
constitute an admission by the Company or any Released Party of a violation of
any statute, ordinance, constitutional provision, or common law right, and that
this Agreement shall not be deemed an admission, finding, or indication for any
purpose whatsoever that Company or any Released Party has at any time, including
the present, acted contrary to the law or violated the rights of Employee or any
other person.

<PAGE>

         10. All notices will be delivered by hand or by mail to Employee and
Company as follows

                  As to Employee:           J. A. Ferguson, Jr.
                                            2175 Eakle Drive
                                            Rock Hill, SC 29732

                  As to Company:            RHBT Financial Corporation
                                            Attn: Chief Executive Officer
                                            P. O. Box 12037
                                            Rock Hill, SC 29731

         11. This Agreement shall be construed in accordance with the laws of
the State of South Carolina. In addition, the parties agree that the state or
federal courts of the State of South Carolina shall have sole jurisdiction to
adjudicate any dispute that may arise under this Agreement.

         12. Employee affirms that the only consideration for his execution of
this Agreement are the terms stated herein, that this Agreement cannot be orally
changed or terminated, that there are no other promises or agreements of any
kind which have caused him to execute this instrument, and that he fully
understands the meaning and intent of it, including but not limited to its final
and binding effect.

                                       21

<PAGE>

         EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS AGREEMENT AND,
HAVING BEEN GIVEN ADEQUATE OPPORTUNITY TO SEEK THE ADVICE OF AN ATTORNEY OF HIS
CHOOSING, KNOWS AND UNDERSTANDS ITS CONTENTS AND EXECUTES IT AS HIS FREE ACT AND
DEED.

         IN WITNESS WHEREOF the undersigned have set their hands and seals the
date first written above.

  WITNESSES:

  /s/ Patricia M. Stone                    /s/ J.A. Ferguson, Jr.
--------------------------                 ----------------------------------
                                               J.A. Ferguson, Jr.
  Senior Vice President

                                           RHBT Financial Corporation

  /s/ Herman E. Honeycutt                 By:      /s/ Elvin F. Walker
--------------------------                   --------------------------------
                                             Its Chairman

  /s/ Jerry S. Padgett
--------------------------

                                       22Exhibit 10.16.4

               Exhibit  - Promissory Note with Compass Bank for $17MM

                                 PROMISSORY NOTE

$17,000,000
                                                                 April 25, 2001

                                                                Atlanta, Georgia

         FOR VALUE RECEIVED, the undersigned ROBERTS PROPERTIES RESIDENTIAL,
L.P., a Georgia limited partnership (the "Borrower"), hereby promises to pay to
the order of COMPASS BANK (the "Lender"), at P.O. Box 10566, Birmingham, Alabama
35296, or at such other place as Lender may direct, in lawful money of the
United States of America constituting legal tender in payment of all debts and
dues, public and private, together with interest thereon calculated at the rate
and in the manner set forth herein, the principal amount of SEVENTEEN MILLION
AND N0/100 DOLLARS ($17,000,000), or so much thereof as may be advanced and
outstanding hereunder. Payment of principal and interest shall be in accordance
with the following provisions:

         1.       Interest.

                  (a) The applicable interest rate (the "Applicable Rate") under
         this Note shall be an adjustable rate per annum equal to 150 basis
         points (1.50%) in excess of the 30 day "LIBOR" rate (as defined herein)
         from time to time in effect. "LIBOR" refers to the London Interbank
         Offered Rate for the stated period as published on the date of
         determination of the interest rate (or in the event no such quotation
         is available on such date, as quoted on the day most immediately
         preceding the date of determination on which such a quotation was
         available). The Applicable Rate payable under this Section 1(a) will be
         set on the date hereof, and shall be subject to change on the same day
         of each month hereafter (the "Interest Adjustment Dates") while any
         amount of principal is unpaid. On each Interest Adjustment Date, the
         interest rate will be raised or lowered to reflect changes in the LIBOR
         rate. In the event that at any time during the term of this Note, the
         LIBOR ceases to be published and is no longer ascertainable, the term
         "LIBOR rate" shall mean a substitute and comparable rate selected by
         Lender in its sole discretion.

                  (b) Interest on all principal amounts outstanding from time to
         time hereunder shall be calculated on the basis of a 360-day year
         applied to the actual number of days upon which principal is
         outstanding, by multiplying the product of the principal amount
         outstanding and the respective Applicable Rate set forth herein by the
         actual number of days elapsed, and dividing by 360. In no event shall
         the rate of interest calculated hereunder exceed the maximum rate
         allowed by law. Any principal amounts outstanding hereunder after
         maturity or earlier acceleration of this Note shall bear interest at a
         floating rate equal to two percentage points (2%) in excess of Compass
         Bank Prime until paid. Each change in the interest rate resulting from
         a change in "Compass Bank Prime" shall become effective on the day on
         which such change in "Compass Bank Prime" occurs. "Compass Bank Prime",
         as used herein, is a reference rate established by the Lender for use
         in computing and adjusting interest, is subject to increase, decrease,
         or change at the Lender's discretion, and is only one of the reference
         rates or indices that Lender uses.
<PAGE>

         Borrower acknowledges that the Lender may lend to others at rates of
         interest at, or greater or less than, "Compass Bank Prime" or the rate
         provided herein.

         2.       Payment.

         (a)      From April 25, 2001 through March 31, 2004. Borrower
                  promises to pay interest monthly on or before the fifth (5th)
                  day of each month, on the principal amount owing hereunder
                  from time to time, computed daily in the manner and at the
                  Applicable Rate set forth in Section 1 above; the first such
                  interest payment shall be due and payable on May 5, 2001 with
                  the final payment due on April 5, 2004.

         (b)      From April 1, 2004 through the Maturity Date
                  (hereinafter defined). Borrower shall make principal and
                  interest payments in monthly installments on the fifth (5th)
                  day of each month, commencing on the fifth (5th) day of May,
                  2004, based on the Applicable Rate, the principal amount owing
                  hereunder from time to time, and a thirty (30) year
                  amortization schedule.

         (c)      All unpaid principal, interest and other charges shall
                  be due and payable in full on April 25, 2008 (the "Maturity
                  Date").

         3. Prepayment. This Note may be prepaid in whole or in part without
penalty, provided that any partial prepayment shall be in integral multiples of
$10,000, and shall be accompanied by an amount equal to all accrued interest and
other charges on the amount so prepaid.

         4. Loan Documents. The indebtedness evidenced hereby is secured by,
inter alia the Construction Loan Agreement executed by Borrower in favor of
Lender as of the date hereof (the "Loan Agreement"), the Future Advance Deed to
Secure Debt, Assignment of Rents and Leases and Security Agreement on real
property (the "Property") located in Gwinnett County, Georgia, from Borrower to
Lender dated as of the date hereof, and the other documents or instruments
evidencing or securing the Loan (collectively, the "Loan Documents").

         This Note is included in the indebtedness referred to in the Loan
Documents and is entitled to the benefits of those documents, but neither this
reference to those documents nor any provisions thereof shall affect or impair
the absolute and unconditional obligations of the Borrower to pay the principal
of and interest on this Note when due.

         5. Events of Default. Upon the occurrence of any one or more of the
following events ("Events of Default"):

                  (a) Failure to make any payment of the principal of or
         interest on this Note when and as the same becomes due and payable and
         such default is not cured within three (3) days after receipt of
         written notice thereof; and

                                       2

<PAGE>

                  (b) The occurrence of any default or event of default
         specified in the Loan Documents, or in any other instrument executed in
         connection with or securing this Note which is not cured within any
         cure period provided with respect thereto (if any),

then, or at any time thereafter during the continuance of any such event, the
holder may, with or without notice to the Borrower, declare this Note and
indebtedness evidenced hereby to be forthwith due and payable, whereupon this
Note and the indebtedness evidenced hereby shall become forthwith due and
payable, both as to principal and interest, without presentment, demand,
protest, or other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in any of the Loan Documents or in any other
instrument executed in connection with or securing this Note to the contrary
notwithstanding.

         6. Waivers. Borrower hereby waives demand, presentment for payment,
notice of dishonor, protest, and notice of protest and diligence in collection
or bringing suit and agrees that the holder hereof may accept partial payment,
or release or exchange security or collateral, without discharging or releasing
any unreleased collateral or the obligations evidenced hereby. Borrower further
waives any and all rights of exemption, both as to personal and real property,
under the constitution or laws of the United States, the State of Georgia, or
any other state.

         7. Late Fee. Any scheduled payment of principal and or interest which
is not paid within ten (10) days from the date due will be subject to a late
charge of five percent (5%) of such scheduled payment.

         8. Attorneys' Fees. Borrower agrees to pay reasonable attorneys' fees
and costs actually incurred by the holder hereof in collecting to collect this
Note, whether by suit or otherwise. Whenever reference is made to the payment of
"reasonable attorney's fees" or words of similar import in this Note the same
shall mean and refer to the payment of actual attorney's fees incurred based
upon the attorney's normal hourly rate and the number of hours worked, and not
the statutory attorney's fees defined in O.C.G.A. ss. 13-1-11.

         9. Miscellaneous. As used herein, the terms "Borrower", "Lender" and
"holder" shall be deemed to include their respective successors, legal
representatives and assigns, whether by voluntary action of the parties or by
operation of law. This Note is given under the seal of all parties hereto, and
it is intended that this Note is and shall constitute and have the effect of a
sealed instrument according to law. This Note has been negotiated, and is being
executed and delivered in the State of Georgia, or if executed elsewhere, shall
become effective upon the Lender's receipt and acceptance of the executed
original of this Note in the State of Georgia; provided, however, that the
Lender shall have no obligation to give, nor shall Borrower be entitled to
receive, any notice of such acceptance for this Note to become a binding
obligation of Borrower. Borrower hereby submits to jurisdiction in the State of
Georgia. This Note shall be governed by and be construed in accordance with the
laws of the State of Georgia. It is intended, and the Borrower and the holder
hereof specifically agree, that the laws of the State of Georgia governing
interest shall apply to this Note and to this transaction. This Note may not be
modified except by written agreement signed by the Borrower and the holder
hereof, or by their respective successors or assigns. Time is of the essence of
this Note.

                                       3
<PAGE>

         10. Avoidance Of Usury. If from any circumstances whatsoever,
fulfillment of any provision of this Note or of any other instrument evidencing
or securing the indebtedness evidenced hereby, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
presently prescribed by any applicable usury statute or any other applicable
law, with regard to obligations of like character and amount, then ipso facto,
the obligation to be fulfilled shall be reduced to the limit of such validity,
so that in no event shall any exaction be possible under this Note or under any
other instrument evidencing or securing the indebtedness evidenced hereby, that
is in excess of the current limit of such validity, but such obligations shall
be fulfilled to the limit of such validity. In determining whether or not the
rate of interest hereunder exceeds the highest lawful rate, Maker and Holder
agree and intend that all sums paid hereunder which are deemed interest for the
purposes of determining usury, shall be prorated, allocated or spread in equal
parts over the longest period of time permitted under the applicable laws of the
State of Georgia.

         IN WITNESS WHEREOF, Borrower has caused this Note to be executed,
sealed and delivered as of the date first set forth above.

                          ROBERTS PROPERTIES RESIDENTIAL, L.P.,
                          a Georgia limited partnership

                          By:      ROBERTS REALTY INVESTORS, INC.,
                                   a  Georgia corporation, its
                                   general partner

                                   By:   /s/ Charles R. Elliott
                                         ---------------------------------------
                                   Title:  Chief Financial Officer

                                            [CORPORATE SEAL]

                                       4

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