Document:

<PAGE>   1
                                                                   EXHIBIT 10.4

                                PROMISSORY NOTE

<TABLE>
<CAPTION>
----------------- ------------- ------------- -------------- --------- ----------- ------------ ------------ --------------
     PRINCIPAL       LOAN DATE     MATURITY       LOAN NO.      CALL    COLLATERAL    ACCOUNT      OFFICER       INITIALS
<S>               <C>           <C>           <C>            <C>       <C>         <C>          <C>          <C>
    $750,000.00     03-06-2000    06-28-2000     4021395101                           4021395        JKG
----------------- ------------- ------------- -------------- --------- ----------- ------------ ------------ --------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
particular loan or item.
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

BORROWER: SOUTHERNBANK HOLDINGS, INC.        LENDER:  THE BANKERS BANK
          P.O. BOX 967                                2410 PACES FERRY ROAD
          BUFORD, GA  30515-0967                      600 PACES SUMMIT
                                                      ATLANTA, GA  30339

===============================================================================

<TABLE>
<S>                                <C>                           <C>
PRINCIPAL AMOUNT: $750,000.00      INITIAL RATE: 7.750%          DATE OF NOTE:   MARCH 6, 2000
</TABLE>

PROMISE TO PAY. SOUTHERNBANK HOLDINGS, INC. ("BORROWER") PROMISES TO PAY TO THE
BANKERS BANK ("LENDER"), OR ORDER, IN LAWFUL MONEY OF THE UNITED STATES OF
AMERICA, THE PRINCIPAL AMOUNT OF SEVEN HUNDRED FIFTY THOUSAND & 00/100 DOLLARS
($750,000.00) OR SO MUCH AS MAY BE OUTSTANDING, TOGETHER WITH INTEREST ON THE
UNPAID OUTSTANDING PRINCIPAL BALANCE OF EACH ADVANCE. INTEREST SHALL BE
CALCULATED FROM THE DATE OF EACH ADVANCE UNTIL REPAYMENT OF EACH ADVANCE.

PAYMENT. BORROWER WILL PAY THIS LOAN IN ONE PAYMENT OF ALL OUTSTANDING
PRINCIPAL PLUS ALL ACCRUED UNPAID INTEREST ON JUNE 28, 2000. IN ADDITION,
BORROWER WILL PAY REGULAR QUARTERLY PAYMENTS OF ACCRUED UNPAID INTEREST
BEGINNING MARCH 28, 2000, AND ALL SUBSEQUENT INTEREST PAYMENTS ARE DUE ON THE
SAME DAY OF EACH QUARTER AFTER THAT. Borrower will pay Lender at Lender's
address shown above or at such other place as Lender may designate in writing.
Unless otherwise agreed or required by applicable law, payments will be applied
first to accrued unpaid interest, then to principal, and any remaining amount
to any unpaid collection costs and late charges.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
from time to time based on changes in an index which is the Prime rate as
published in the Money Rates section of the Wall Street Journal. (the "Index").
If two or more rates exist, then the highest rate will prevail. Lender will
tell Borrower the current Index rate upon Borrower's request. Borrower
understands that Lender may make loans based on other rates as well. The
interest rate change will not occur more often than each day. THE INDEX
CURRENTLY IS 8.750% PER ANNUM. THE INTEREST RATE TO BE APPLIED TO THE UNPAID
PRINCIPAL BALANCE OF THIS NOTE WILL BE AT A RATE OF 1.000 PERCENTAGE POINT
UNDER THE INDEX, RESULTING IN AN INITIAL ANNUAL RATE OF SIMPLE INTEREST OF
7.750%. NOTICE: Under no circumstances will the interest rate on this Note be
more than the maximum rate allowed by applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by
Lender in writing, relieve Borrower of Borrower's obligation to continue to
make payments of accrued unpaid interest. Rather, they will reduce the
principal balance due.

LATE CHARGE. If a payment is 15 DAYS OR MORE LATE, Borrower will be charged
$100.00.

<PAGE>   2

03-06-2000                      PROMISSORY NOTE                         PAGE 2
Loan No. 4021395101               (Continued)

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform
when due any other term, obligation, covenant, or condition contained in this
Note or any agreement related to this Note, or in any other agreement or loan
Borrower has with Lender. (c) Borrower defaults under any loan, extension of
credit, security agreement, purchase or sales agreement, or any other
agreement, in favor of any other creditor or person that may materially affect
any of Borrower's property or Borrower's ability to repay this Note or perform
Borrower's obligations under this Note or any of the Related Documents. (d) Any
representation or statement made or furnished to Lender by Borrower or on
Borrower's behalf is false or misleading in any material respect either now or
at the time made or furnished. (e) Borrower becomes insolvent, a receiver is
appointed for any part of Borrower's property, Borrower makes an assignment for
the benefit of creditors, or any proceeding is commenced either by Borrower or
against Borrower under any bankruptcy or insolvency laws. (f) Any creditor
tries to take any of Borrower's property on or in which Lender has a lien or
security interest. This includes a garnishment of any of Borrower's accounts
with Lender. (g) Any guarantor dies or any of the other events described in
this default section occurs with respect to any guarantor of this Note. (h) A
material adverse change occurs in Borrower's financial condition, or Lender
believes the prospect of payment or performance of the Indebtedness is
impaired. (i) Lender in good faith deems itself insecure.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. Upon default, including failure
to pay upon final maturity, Lender, at its option, may also, if permitted under
applicable law, increase the variable interest rate on this Note 3.000
percentage points. The interest rate will not exceed the maximum rate permitted
by applicable law. Lender may hire or pay someone else to help collect this
Note if Borrower does not pay. Borrower also will pay Lender that amount. This
includes, subject to any limits under applicable law, Lender's, costs of
collection, including court costs and fifteen percent (15%) of the principal
plus accrued interest as attorneys' fees, it any sums owing under this Note are
collected by or through an attorney-at-law, whether or not there is a lawsuit,
and legal expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. If not prohibited by applicable law,
Borrower also will pay any court costs, in addition to all other sums provided
by law. THIS NOTE HAS BEEN DELIVERED TO LENDER AND ACCEPTED BY LENDER IN THE
STATE OF GEORGIA. SUBJECT TO THE PROVISIONS ON ARBITRATION, THIS NOTE SHALL BE
GOVERNED BY AND CONSTRUED in ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of twenty dollars
($20.00) or five percent (5%) of the face amount of the check, whichever is
greater, if Borrower makes a payment an Borrower's loan and the check or
preauthorized charge with which Borrower pays is later dishonored.

RIGHT OF SETOFF. Borrower grants to Lender a contractual possessory security
interest in, and hereby assigns, conveys, delivers, pledges, and transfers to
Lender all Borrower's right, title and interest in and to, Borrower's accounts
with Lender (whether checking, savings, or some other account), including
without limitation all accounts held jointly with someone else and all accounts

<PAGE>   3

03-06-2000                       PROMISSORY NOTE                         PAGE 3
Loan No. 4021395101                (Continued)

Borrower may open in the future, excluding however all IRA and Keogh accounts,
and all trust accounts for which the grant of a security interest would be
prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on this Note against any and
all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note, as well as directions for payment from Borrower's accounts, may be
requested orally or in writing by Borrower or by an authorized person. Lender
may, but need not, require that all oral requests be confirmed in writing. The
following party or parties are authorized to request advances under the line of
credit until Lender receives from Borrower at Lender's address shown above
written notice of revocation of their authority: D. ARNOLD TILLMAN, TYLER C.
MCCAIN AND M. LAUCH MCKINNON. Borrower agrees to be liable for all sums either:
(a) advanced in accordance with the instructions of an authorized person or (b)
credited to any of Borrower's accounts with Lender. The unpaid principal
balance owing on this Note at any time may be evidenced by endorsements on this
Note or by Lender's internal records, including daily computer print-outs.
Lender will have no obligation to advance funds under this Note if: (a)
Borrower or any guarantor is in default under the terms of this Note or any
agreement that Borrower or any guarantor has with Lender, including any
agreement made in connection with the signing of this Note; (b) Borrower or any
guarantor ceases doing business or is insolvent; (c) any guarantor seeks,
claims or otherwise attempts to limit, modify or revoke such guarantor's
guarantee of this Note or any other loan with Lender; (d) Borrower has applied
funds provided pursuant to this Note for purposes other than those authorized
by Lender; or (e) Lender in good faith deems itself insecure under this Note or
any other agreement between Lender and Borrower.

ARBITRATION. LENDER AND BORROWER AGREE THAT ALL DISPUTES, CLAIMS AND
CONTROVERSIES BETWEEN THEM, WHETHER INDIVIDUAL, JOINT, OR CLASS IN NATURE,
ARISING FROM THIS NOTE OR OTHERWISE, INCLUDING WITHOUT LIMITATION CONTRACT AND
TORT DISPUTES, SHALL BE ARBITRATED PURSUANT TO THE RULES OF THE AMERICAN
ARBITRATION ASSOCIATION, UPON REQUEST OF EITHER PARTY. No act to take or
dispose of any collateral securing this Note shall constitute a waiver of this
arbitration agreement or be prohibited by this arbitration agreement. This
includes, without limitation, obtaining injunctive relief or a temporary
restraining order; invoking a power of sale under any deed of trust or
mortgage; obtaining a writ of attachment or imposition of a receiver; or
exercising any rights relating to personal property, including taking or
disposing of such property with or without judicial process pursuant to Article
9 of the Uniform Commercial Code. Any disputes, claims, or controversies
concerning the lawfulness or reasonableness of any act, or exercise of any
right, concerning any collateral securing this Note, including any claim to
rescind, reform, or otherwise modify any agreement relating to the collateral
securing this Note, shall also be arbitrated, provided however that no
arbitrator shall have the right or the power to enjoin or restrain any act of
any party. Judgment upon any award rendered by any arbitrator may be entered in
any court having jurisdiction. Nothing in this Note shall preclude any party
from seeking equitable relief from a court of competent jurisdiction. The
statute of limitations, estoppel, waiver, laches, and similar doctrines which
would otherwise be applicable in an action brought by a party shall be
applicable in any arbitration proceeding, and the commencement of an
arbitration proceeding shall be deemed the commencement of an action for these
purposes. The

<PAGE>   4

03-06-2000                       PROMISSORY NOTE                         PAGE 4
Loan No. 4021395101                (Continued)

Federal Arbitration Act shall apply to the construction, interpretation, and
enforcement of this arbitration provision.

ACCRUAL METHOD.  Interest will be calculated on an Actual/360 basis.

ACCRUAL METHOD.  INTEREST WILL BE CALCULATED ON AN ACTUAL/360 DAY BASIS.

     GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights
     or remedies under this Note without losing them. Borrower and any other
     person who signs, guarantees or endorses this Note, to the extent allowed
     by law, Waive Presentment, demand for payment, protest and notice of
     dishonor. Upon any change in the terms of this Note, and unless otherwise
     expressly stated in writing, no party who signs this Note, whether as
     maker, guarantor, accommodation maker or endorser, shall be released from
     liability. All such parties waive any right to require Lender to take
     action against any other party who signs this Note as provided in O.C.G.A.
     Section 10-7-24 and agree that Lender may renew or extend (repeatedly and
     for any length of time) this loan, or release any party or guarantor or
     collateral; or impair, fail to realize upon or perfect Lender's security
     interest in the collateral; and lake any other action deemed necessary by
     Lender without the consent of or notice to anyone. All such parties also
     agree that Lender may modify this loan without the consent of or notice to
     anyone other than the party with whom the modification is made.

     IN WITNESS WHEREOF, THIS NOTE HAS BEEN SIGNED AND SEALED BY THE
     UNDERSIGNED, WHO ACKNOWLEDGES A COMPLETED COPY HEREOF.

     BORROWER:

     SOUTHERNBANK HOLDINGS, INC.

<TABLE>
     <S>                                          <C>
     BY:                             (SEAL)       BY:                                (SEAL)
         ----------------------------                  -------------------------------
         D. ARNOLD TILLMAN, CEO                        M. LAUCH MCKINNON, PRESIDENT
</TABLE>

<PAGE>   5

03-06-2000                       PROMISSORY NOTE                         PAGE 5
Loan No. 4021395101                (Continued)

LENDER:

THE BANKERS BANK

BY:
   ---------------------------------------
   AUTHORIZED OFFICER

<PAGE>   6

                          FORM OF COMMERCIAL GUARANTY

<TABLE>
<CAPTION>
-------------- ------------ ------------ ------------ ----------- ------------ ------------ ------------ ------------
  PRINCIPAL     LOAN DATE    MATURITY     LOAN NO.       CALL     COLLATERAL     ACCOUNT      OFFICER     INITIALS
<S>            <C>          <C>          <C>          <C>         <C>          <C>          <C>          <C>
                                                                                 4021395        JKG
-------------- ------------ ------------ ------------ ----------- ------------ ------------ ------------ ------------
 References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
 particular loan or lien.
---------------------------------------------------------------------------------------------------------------------
</TABLE>

BORROWER:    SOUTHERNBANK HOLDINGS, INC.        LENDER:  THE BANKERS BANK
             P.O. BOX 967                                2410 PACES FERRY ROAD
             BUFORD, GA  30515-0967                      600 PACES FERRY SUMMIT
                                                         ATLANTA, GA  30339
GUARANTOR:

AMOUNT OF GUARANTY. The principal amount of this Guaranty is Seven Hundred
Fifty Thousand & 00/100 Dollars ($750,000.00).

GUARANTY. IN CONSIDERATION OF THE SUM OF FIVE DOLLARS ($5.00) AND OTHER GOOD
AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY OF WHICH ARE HEREBY
ACKNOWLEDGED BY GUARANTOR AND TO INDUCE LENDER TO MAKE LOANS OR OTHERWISE
EXTEND CREDIT TO BORROWER, OR TO RENEW OR EXTEND IN WHOLE OR IN PART ANY
EXISTING INDEBTEDNESS OF BORROWER TO LENDER, OR TO MAKE OTHER FINANCIAL
ACCOMMODATIONS TO BORROWER, JEFF S. TUCKER ("GUARANTOR") ABSOLUTELY AND
UNCONDITIONALLY GUARANTEES AND PROMISES TO PAY TO THE BANKERS BANK ("LENDER")
OR ITS ORDER, IN LEGAL TENDER OF THE UNITED STATES OF AMERICA, THE INDEBTEDNESS
(AS THAT TERM IS DEFINED BELOW) OF SOUTHERNBANK HOLDINGS, INC. ("BORROWER") TO
LENDER ON THE TERMS AND CONDITIONS SET FORTH IN THIS GUARANTY.

DEFINITIONS. The following words shall have the following meanings when used in
this Guaranty:

          BORROWER. The word "Borrower" means SouthernBank Holdings, Inc..

          GUARANTOR. The word "Guarantor" means Jeff S. Tucker.

          GUARANTY. The word "Guaranty" means this Guaranty made by Guarantor
          for the benefit of Lender dated March 6, 2000.

          INDEBTEDNESS. The word "Indebtedness" means the Note, including (a)
          all principal, (b) all interest, (c) all late charges, (d) all loan
          fees and loan charges, and (e) all collection costs and expenses
          relating to the Note or to any collateral for the Note. Collection
          costs and expenses include without limitation all of Lender's
          attorneys' fees and Lender's legal expenses, including court costs
          and fifteen percent (15%) of the principal plus accrued interest as
          attorneys' fees, if any sums owing under this Guaranty are collected
          by or through an attorney-at-law, whether or not suit is instituted,
          and attorneys' fees and legal expenses for bankruptcy proceedings
          (including efforts to modify or vacate any automatic stay or
          injunction), appeals, and any anticipated post-judgment collection
          services,

          LENDER. The word "Lender" means The Bankers Bank, its successors and
          assigns.

<PAGE>   7

          NOTE. The word "Note" means the promissory note or credit agreement
          dated March 6, 2000, IN THE ORIGINAL PRINCIPAL AMOUNT OF $750,000.00
          from Borrower to Lender, together with all renewals of, extensions
          of, modifications of, refinancings of, consolidations of, and
          substitutions for the promissory note or agreement. NOTICE TO
          GUARANTOR: THE NOTE EVIDENCES A REVOLVING LINE OF CREDIT FROM LENDER
          TO BORROWER.

          RELATED DOCUMENTS. The words "Related Documents" mean and include
          without limitation all promissory notes, credit agreements, loan
          agreements, environmental agreements, guaranties, security
          agreements, security deeds, mortgages, deeds of trust, and all other
          instruments, agreements and documents, whether now or hereafter
          existing, executed in connection with the Indebtedness.

MAXIMUM LIABILITY. THE MAXIMUM LIABILITY OF GUARANTOR UNDER THIS GUARANTY SHALL
NOT EXCEED AT ANY ONE TIME THE SUM OF THE PRINCIPAL AMOUNT OF $750,000.00, PLUS
ALL INTEREST THEREON, PLUS ALL OF LENDER'S COSTS, EXPENSES, AND ATTORNEYS' FEES
INCURRED IN CONNECTION WITH OR RELATING TO (A) THE COLLECTION OF THE
INDEBTEDNESS, (B) THE COLLECTION AND SALE OF ANY COLLATERAL FOR THE
INDEBTEDNESS OR THIS GUARANTY, OR (C) THE ENFORCEMENT OF THIS GUARANTY.
ATTORNEYS' FEES INCLUDE, WITHOUT LIMITATION, ATTORNEYS' FEES WHETHER OR NOT
THERE IS A LAWSUIT, AND IF THERE IS A LAWSUIT, ANY FEES AND COSTS FOR TRIAL AND
APPEALS.

The above limitation on liability is not a restriction on the amount of the
Indebtedness of Borrower to Lender either in the aggregate or at any one time.
If Lender presently holds one or more guaranties, or hereafter receives
additional guaranties from Guarantor, the rights of Lender under all guaranties
shall be cumulative. This Guaranty shall not (unless specifically provided
below to the contrary) affect or invalidate any such other guaranties. The
liability of Guarantor will be the aggregate liability of Guarantor under the
terms of this Guaranty and any such other unterminated guaranties.

NATURE OF GUARANTY. Guarantor intends to guarantee at all times the performance
and prompt payment when due, whether at maturity or earlier by reason of
acceleration or otherwise, of all Indebtedness within the limits set forth in
the preceding section of this Guaranty. THIS GUARANTY COVERS A REVOLVING LINE
OF CREDIT AND GUARANTOR UNDERSTANDS AND AGREES THAT THIS GUARANTEE SHALL BE
OPEN AND CONTINUOUS UNTIL THE LINE OF CREDIT IS TERMINATED AND THE INDEBTEDNESS
IS PAID IN FULL, AS PROVIDED BELOW.

DURATION OF GUARANTY. This Guaranty will take effect when received by Lender
without the necessity of any acceptance by Lender, or any notice to Guarantor
or to Borrower, and will continue in full force until all Indebtedness shall
have been fully and finally paid and satisfied and all other obligations of
Guarantor under this Guaranty shall have been performed in full. Release of any
other guarantor or termination of any other guaranty of the Indebtedness shall
not affect the liability of Guarantor under this Guaranty. A revocation
received by Lender from any one or more Guarantors shall not affect the
liability of any remaining Guarantors under this Guaranty. THIS GUARANTY COVERS
A REVOLVING LINE OF CREDIT AND IT IS SPECIFICALLY ANTICIPATED THAT FLUCTUATIONS
WILL OCCUR IN THE AGGREGATE AMOUNT OF INDEBTEDNESS OWING FROM BORROWER TO
LENDER. GUARANTOR SPECIFICALLY ACKNOWLEDGES AND AGREES THAT

<PAGE>   8

FLUCTUATIONS IN THE AMOUNT OF INDEBTEDNESS, EVEN TO ZERO DOLLARS ($0.00), SHALL
NOT CONSTITUTE A TERMINATION OF THIS GUARANTY. GUARANTOR'S LIABILITY UNDER THIS
GUARANTY SHALL TERMINATE ONLY UPON (A) TERMINATION IN WRITING BY BORROWER AND
LENDER OF THE LINE OF CREDIT, (B) PAYMENT OF THE INDEBTEDNESS IN FULL IN LEGAL
TENDER, AND (C) PAYMENT IN FULL IN LEGAL TENDER OF ALL OTHER OBLIGATIONS OF
GUARANTOR UNDER THIS GUARANTY.

GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, WITHOUT
NOTICE OR DEMAND AND WITHOUT LESSENING GUARANTOR'S LIABILITY UNDER THIS
GUARANTY, FROM TIME TO TIME: (A) TO MAKE ONE OR MORE ADDITIONAL SECURED OR
UNSECURED LOANS TO BORROWER, TO LEASE EQUIPMENT OR OTHER GOODS TO BORROWER, OR
OTHERWISE TO EXTEND ADDITIONAL CREDIT TO BORROWER; (B) TO ALTER, COMPROMISE,
RENEW, EXTEND, ACCELERATE, OR OTHERWISE CHANGE ONE OR MORE TIMES THE TIME FOR
PAYMENT OR OTHER TERMS OF THE INDEBTEDNESS OR ANY PART OF THE INDEBTEDNESS,
INCLUDING INCREASES AND DECREASES OF THE RATE OF INTEREST ON THE INDEBTEDNESS;
EXTENSIONS MAY BE REPEATED AND MAY BE FOR LONGER THAN THE ORIGINAL LOAN TERM;
(C) TO TAKE AND HOLD SECURITY FOR THE PAYMENT OF THIS GUARANTY OR THE
INDEBTEDNESS, AND EXCHANGE, ENFORCE, WAIVE, SUBORDINATE, FAIL OR DECIDE NOT TO
PERFECT, AND RELEASE ANY SUCH SECURITY, WITH OR WITHOUT THE SUBSTITUTION OF NEW
COLLATERAL; (D) TO RELEASE, SUBSTITUTE, AGREE NOT TO SUE, OR DEAL WITH ANY ONE
OR MORE OF BORROWER'S SURETIES, ENDORSERS, OR OTHER GUARANTORS ON ANY TERMS OR
IN ANY MANNER LENDER MAY CHOOSE; (E) TO DETERMINE HOW, WHEN AND WHAT
APPLICATION OF PAYMENTS AND CREDITS SHALL BE MADE ON THE INDEBTEDNESS; (F) TO
APPLY SUCH SECURITY AND DIRECT THE ORDER OR MANNER OF SALE THEREOF, INCLUDING
WITHOUT LIMITATION, ANY NONJUDICIAL SALE PERMITTED BY THE TERMS OF THE
CONTROLLING SECURITY AGREEMENT OR DEED OF TRUST, AS LENDER IN ITS DISCRETION
MAY DETERMINE; (G) TO SELL, TRANSFER, ASSIGN, OR GRANT PARTICIPATIONS IN ALL OR
ANY PART OF THE INDEBTEDNESS; AND (H) TO ASSIGN OR TRANSFER THIS GUARANTY IN
WHOLE OR IN PART,

GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants
to Lender that (a) no representations or agreements of any kind have been made
to Guarantor which would limit or qualify in any way the terms of this
Guaranty; (b) this Guaranty is executed at Borrower's request and not at the
request of Lender; (c) Guarantor has full power, right and authority to enter
into this Guaranty; (d) the provisions of this Guaranty do not conflict with or
result in a default under any agreement or other instrument binding upon
Guarantor and do not result in a violation of any law, regulation, court decree
or order applicable to Guarantor; (e) Guarantor has not and will not, without
the prior written consent of Lender, sell, lease, assign, encumber,
hypothecate, transfer, or otherwise dispose of all or substantially all of
Guarantor's assets, or any interest therein; (f) upon Lender's request,
Guarantor will provide to Lender financial and credit information in form
acceptable to Lender, and all such financial information which currently has
been, and all future financial information which will be provided to Lender is
and will be true and correct in all material respects and fairly present the
financial condition of Guarantor as of the dates the financial information is
provided; (g) no material adverse change has occurred in Guarantor's financial
condition since the date of the most recent financial statements provided to
Lender and no event has occurred which may materially adversely affect
Guarantor's financial condition; (h) no litigation, claim, investigation,
administrative proceeding or similar action (including those for unpaid taxes)
against Guarantor is pending or threatened; (i) Lender has made no
representation to Guarantor as to the creditworthiness of Borrower; and (j)
Guarantor has established adequate means of obtaining from Borrower on a
continuing basis

<PAGE>   9

information regarding Borrower's financial condition. Guarantor agrees to keep
adequately informed from such means of any facts, events, or circumstances
which might in any way affect Guarantor's risks under this Guaranty, and
Guarantor further agrees that, absent a request for information, Lender shall
have no obligation to disclose to Guarantor any information or documents
acquired by Lender in the course of its relationship with Borrower.

GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives
any right to require Lender (a) to continue lending money or to extend other
credit to Borrower; (b) to make any presentment, protest, demand, or notice of
any kind, including notice of any nonpayment of the Indebtedness or of any
nonpayment related to any collateral, or notice of any action or nonaction on
the part of Borrower, Lender, any surety, endorser, or other guarantor in
connection with the Indebtedness or in connection with the creation of new or
additional loans or obligations; (c) to resort for payment or to proceed
directly or at once against any person, including Borrower or any other
guarantor; (d) to proceed directly against or exhaust any collateral held by
Lender from Borrower, any other guarantor, or any other person; (e) to give
notice of the terms, time, and place of any public or private sale of personal
property security held by Lender from Borrower or to comply with any other
applicable provisions of the Uniform Commercial Code; (f) to pursue any other
remedy within Lender's power; or (g) to commit any act or omission of any kind,
or at any time, with respect to any matter whatsoever.

If now or hereafter (a) Borrower shall be or become insolvent, and (b) the
Indebtedness shall not at all times until paid be fully secured by collateral
pledged by Borrower, Guarantor hereby forever waives and relinquishes in favor
of Lender and Borrower, and their respective successors, any claim or right to
payment Guarantor may now have or hereafter have or acquire against Borrower,
by subrogation or otherwise, so that at no time shall Guarantor be or become a
"creditor" of Borrower within the meaning of 11 U.S.C. section 547(b), or any
successor provision of the Federal bankruptcy laws.

Guarantor also waives any and all rights or defenses arising by reason of (a)
the provisions of O.C.G.A. Section 10-7-24 concerning Guarantor's right to
require Lender to take action against Borrower or any "one action" or
"anti-deficiency" law or any other law which may prevent Lender from bringing
any action, including a claim for deficiency, against Guarantor, before or
after Lender's commencement or completion of any foreclosure action, either
judicially or by exercise of a power of sale; (b) any election of remedies by
Lender which destroys or otherwise adversely affects Guarantor's subrogation
rights or Guarantor's rights to proceed against Borrower for reimbursement,
including without limitation, any loss of rights Guarantor may suffer by reason
of any law limiting, qualifying, or discharging the Indebtedness; (c) any
disability or other defense of Borrower, of any other guarantor, or of any
other person, or by reason of the cessation of Borrower's liability from any
cause whatsoever, other than payment in full in legal tender, of the
Indebtedness; (d) any right to claim discharge of the Indebtedness on the basis
of unjustified impairment of any collateral for the Indebtedness; (e) any
statute of limitations, if at any time any action or suit brought by Lender
against Guarantor is commenced there is outstanding Indebtedness of Borrower to
Lender which is not barred by any applicable statute of limitations; or (f) any
defenses given to guarantors at law or in equity other than actual payment and
performance of the Indebtedness. If payment is made by Borrower, whether
voluntarily or other, or by any third party, on the Indebtedness and thereafter
Lender is forced to

<PAGE>   10

remit the amount of that payment to Borrower's trustee in bankruptcy or to any
similar person under any federal or State bankruptcy law or law for the relief
of debtors, the Indebtedness shall be considered unpaid for the purpose of
enforcement of this Guaranty.

Guarantor further waives and agrees not to assert or claim at any time any
deductions to the amount guaranteed under this Guaranty for any claim of
setoff, counterclaim, counter demand, recoupment or similar right, whether such
claim, demand or right may be asserted by the Borrower, the Guarantor, or both.

GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and
agrees that each of the waivers set forth above is made with Guarantor's full
knowledge of its significance and consequences and that, under the
circumstances, the waivers are reasonable and not contrary to public policy or
law. If any such waiver is determined to be contrary to any applicable law or
public policy, such waiver shall be effective only to the extent permitted by
law or public policy.

LENDER'S RIGHT OF SETOFF. In addition to all liens upon and rights of setoff
against the moneys, securities or other property of Guarantor given to Lender
by law, Lender shall have, with respect to Guarantor's obligations to Lender
under this Guaranty and to the extent permitted by law, a contractual
possessory security interest in and a right of setoff against, and Guarantor
hereby assigns, conveys, delivers, pledges, and transfers to Lender all of
Guarantor's right, title and interest in and to, all deposits, moneys,
securities and other property of Guarantor now or hereafter in the possession
of or on deposit with Lender, whether held in a general or special account or
deposit, whether held jointly with someone else, or whether held for
safekeeping or otherwise, excluding however all IRA, Keogh, and trust accounts.
Every such security interest and right of setoff may be exercised without
demand upon or notice to Guarantor. No security interest or right of setoff
shall be deemed to have been waived by any act or conduct on the part of Lender
or by any neglect to exercise such right of setoff or to enforce such security
interest or by any delay in so doing. Every right of setoff and security
interest shall continue in full force and effect until such right of setoff or
security interest is specifically waived or released by an instrument in
writing executed by Lender.

SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the
Indebtedness of Borrower to Lender, whether now existing or hereafter created,
shall be prior to any claim that Guarantor may now have or hereafter acquire
against Borrower, whether or not Borrower becomes insolvent. Guarantor hereby
expressly subordinates any claim Guarantor may have against Borrower, upon any
account whatsoever, to any claim that Lender may now or hereafter have against
Borrower. In the event of insolvency and consequent liquidation of the assets
of Borrower, through bankruptcy, by an assignment for the benefit of creditors,
by voluntary liquidation ' or otherwise, the assets of Borrower applicable to
the payment of the claims of both Lender and Guarantor shall be paid to Lender
and shall be first applied by Lender to the Indebtedness of Borrower to Lender.
Guarantor does hereby assign to Lender all claims which it may have or acquire
against Borrower or against any assignee or trustee in bankruptcy of Borrower;
provided however, that such assignment shall be effective only for the purpose
of assuring to Lender full payment in legal tender of the indebtedness. If
Lender so requests, any notes or credit agreements now or hereafter evidencing
any debts or obligations of Borrower to

<PAGE>   11

Guarantor shall be marked with a legend that the same are subject to this
Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender hereby
is authorized, in the name of Guarantor, from time to time to execute and file
financing statements and continuation statements and to execute such other
documents and to take such other actions as Lender deems necessary or
appropriate to perfect, preserve and enforce its rights under this Guaranty.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Guaranty:

         AMENDMENTS. This Guaranty, together with any Related Documents,
         constitutes the entire understanding and agreement of the parties as
         to the matters set forth in this Guaranty. No alteration of or
         amendment to this Guaranty shall be effective unless given in writing
         and signed by the party or parties sought to be charged or bound by
         the alteration or amendment.

         APPLICABLE LAW. This Guaranty has been delivered to Lender and
         accepted by Lender in the State of Georgia. Subject to the provisions
         on arbitration, this Guaranty shall be governed by and construed in
         accordance with the laws of the State of Georgia.

         ARBITRATION. LENDER AND GUARANTOR AGREE THAT ALL DISPUTES, CLAIMS AND
         CONTROVERSIES BETWEEN THEM, WHETHER INDIVIDUAL, JOINT, OR CLASS IN
         NATURE, ARISING FROM THIS GUARANTY OR OTHERWISE, INCLUDING WITHOUT
         LIMITATION CONTRACT AND TORT DISPUTES, SHALL BE ARBITRATED PURSUANT TO
         THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION, UPON REQUEST OF
         EITHER PARTY. No act to take or dispose of any Collateral shall
         constitute a waiver of this arbitration agreement or be prohibited by
         this arbitration agreement. This includes, without limitation,
         obtaining injunctive relief or a temporary restraining order; invoking
         a power of sale under any deed of trust or mortgage; obtaining a writ
         of attachment or imposition of a receiver; or exercising any rights
         relating to personal property, including taking or disposing of such
         property with or without judicial process pursuant to Article 9 of the
         Uniform Commercial Code. Any disputes, claims, or controversies
         concerning the lawfulness or reasonableness of any act, or exercise of
         any right, concerning any Collateral, including any claim to rescind,
         reform, or otherwise modify any agreement relating to the Collateral,
         shall also be arbitrated, provided however that no arbitrator shall
         have the right or the power to enjoin or restrain any act of any
         party. Judgment upon any award rendered by any arbitrator may be
         entered in any court having jurisdiction. Nothing in this Guaranty
         shall preclude any party from seeking equitable relief from a court of
         competent jurisdiction. The statute of limitations, estoppel, waiver,
         laches, and similar doctrines which would otherwise be applicable in
         an action brought by a party shall be applicable in any arbitration
         proceeding, and the commencement of an arbitration proceeding shall be
         deemed the commencement of an action for these purposes. The Federal
         Arbitration Act shall apply to the construction, interpretation, and
         enforcement of this arbitration provision.

         ATTORNEYS' FEES; EXPENSES. Guarantor agrees to pay upon demand all of
         Lender's costs and expenses, including attorneys' fees and Lender's
         legal expenses, incurred in connection with the enforcement of this
         Guaranty. Lender may pay someone else to help

<PAGE>   12

         enforce this Guaranty, and Guarantor shall pay the costs and expenses
         of such enforcement. Costs and expenses include all costs and expenses
         of collection, including fifteen percent (15%) of the principal plus
         accrued interest as attorneys' fees, if any sums owing under this
         Guaranty are collected by or through an attorney-at-law, whether or not
         there is a lawsuit, including attorneys' fees and legal expenses for
         bankruptcy proceedings (and including efforts to modify or vacate any
         automatic stay or injunction), appeals, and any anticipated
         post-judgment collection services. Guarantor also shall pay all court
         costs and such additional fees as may be directed by the court.

         NOTICES. All notices required to be given by either party to the other
         under this Guaranty shall be in writing, may be sent by telefacsimile
         (unless otherwise required by law), and shall be effective when
         actually delivered or when deposited with a nationally recognized
         overnight courier, or when deposited in the United States mail, first
         class postage prepaid, addressed to the party to whom the notice is to
         be given at the address shown above or to such other addresses as
         either party may designate to the other in writing. It there is more
         than one Guarantor, notice to any Guarantor will constitute notice to
         all Guarantors. For notice purposes, Guarantor agrees to keep Lender
         informed at all times of Guarantor's current address.

         INTERPRETATION. In all cases where there is more than one Borrower or
         Guarantor, then all words used in this Guaranty in the singular shall
         be deemed to have been used in the plural where the context and
         construction so require; and where there is more than one Borrower
         named in this Guaranty or when this Guaranty is executed by more than
         one Guarantor, the words "Borrower" and "Guarantor" respectively shall
         mean all and any one or more of them. The words "Guarantor,"
         Borrower," and "Lender" include the heirs, successors, assigns, and
         transferees of each of them. Caption headings in this Guaranty are for
         convenience purposes only and are not to be used to interpret or
         define the provisions of this Guaranty. If a court of competent
         jurisdiction finds any provision of this Guaranty to be invalid or
         unenforceable as to any person or circumstance, such finding shall not
         render that provision invalid or unenforceable as to any other persons
         or circumstances, and all provisions of this Guaranty in all other
         respects shall remain valid and enforceable. If any one or more of
         Borrower or Guarantor are corporations or partnerships, it is not
         necessary for Lender to inquire into the powers of Borrower or
         Guarantor or of the officers, directors, partners, or agents acting or
         purporting to act on their behalf, and any Indebtedness made or
         created in reliance upon the professed exercise of such powers shall
         be guaranteed under this Guaranty.

         WAIVER. Lender shall not be deemed to have waived any rights under
         this Guaranty unless such waiver is given in writing and signed by
         Lender. No delay or omission on the part of Lender in exercising any
         right shall operate as a waiver of such right or any other right. A
         waiver by Lender of a provision of this Guaranty shall not prejudice
         or constitute a waiver of Lender's right otherwise to demand strict
         compliance with that provision or any other provision of this
         Guaranty. No prior waiver by Lender, nor any course of dealing between
         Lender and Guarantor, shall constitute a waiver of any of Lender's
         rights or of any of Guarantor's obligations as to any future
         transactions. Whenever the consent of Lender is required under this
         Guaranty, the granting of such

<PAGE>   13

         consent by Lender in any instance shall not constitute continuing
         consent to subsequent instances where such consent is required and in
         all cases such consent may be granted or withheld in the sole
         discretion of Lender.

EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT
THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS
GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE
MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY." NO FORMAL
ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS
GUARANTY IS DATED MARCH 6, 2000.

IN WITNESS WHEREOF, THIS GUARANTY HAS BEEN SIGNED AND SEALED BY THE
UNDERSIGNED, WHO ACKNOWLEDGES A COMPLETED COPY HEREOF.

X                                           (SEAL)
 -------------------------------------------
     Guarantor

Signed, Sealed and Delivered in the presence of:

X                                           (SEAL)
 -------------------------------------------
     Unofficial Witness

--------------------------------------------

Notary Public,_______________________ County

                  (NOTARY SEAL)

My Commission expires:______________________

LENDER:

The Bankers Bank

By:
   -----------------------------------------
     Authorized Officer

<PAGE>   14

                             SCHEDULE OF GUARANTORS

James O. Andrews

James H. Daws

James E. Hinshaw, Sr.

Donald F. Jackson

Lewis A. Massey

Tyler C. McCain

M. Lauch McKinnon

D. Alan Najjar

D. Arnold Tillman, Jr.

Jeffrey S. Tucker

<PAGE>   15

                                          FORM OF CORPORATE RESOLUTION TO BORROW
<TABLE>
<CAPTION>
----------------- ------------- ------------- -------------- --------- ----------- ------------ ------------ --------------
     PRINCIPAL       LOAN DATE     MATURITY       LOAN NO.      CALL    COLLATERAL    ACCOUNT      OFFICER       INITIALS
<S>               <C>           <C>           <C>            <C>       <C>         <C>          <C>
    $750,000.00     03-06-2000    06-28-2000     4021395101                           4021395        JKG
---------------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
particular loan or item
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

BORROWER:    SOUTHERNBANK HOLDINGS, INC.        LENDER:   THE BANKERS BANK
             P.O. BOX 967                                 2410 PACES FERRY ROAD
             BUFORD, GA  30515-0967                       600 PACES SUMMIT
                                                          ATLANTA, GA  30339

===============================================================================

I, THE UNDERSIGNED SECRETARY OR ASSISTANT SECRETARY OF SOUTHERNBANK HOLDINGS,
INC. (THE "CORPORATION"), HEREBY CERTIFY THAT the Corporation is organized and
existing under and by virtue of the laws of the State of Georgia as a
corporation for profit, with its principal office at P.O. Box 967, BUFORD, GA
30515-0967, and is duly authorized to transact business in the State of
Georgia.

I FURTHER CERTIFY that at a meeting of the Directors of the Corporation, duly
called and held on __________________________, at which a quorum was present
and voting, or by other duly authorized corporate action in lieu of a meeting,
the following resolutions were

BE IT RESOLVED, that any TWO (2) of the following named officers, employees, or
agents of this Corporation, whose actual signatures are shown below:

<TABLE>
<CAPTION>
     NAMES                    POSITIONS           ACTUAL SIGNATURES
     -----                    ---------           -----------------
     <S>                      <C>                 <C>
     D. Arnold Tillman        CEO                 x
                                                   -----------------------

     M. Lauch McKinnon        President           x
                                                   -----------------------
</TABLE>

acting for and on behalf of the Corporation and as its act and deed be, and
they hereby are, authorized and empowered:

     BORROW MONEY. To borrow from time to time from The Bankers Bank
     ("Lender"), on such terms as may be agreed upon between the Corporation
     and Lender, such sum or sums OF money as in their judgment should be
     borrowed; however, not exceeding at any one time the amount OF SEVEN
     HUNDRED FIFTY THOUSAND & 00/100 DOLLARS ($750,000.00), in addition to such
     sum or sums of money as may be currently borrowed by the Corporation from
     Lender.

     EXECUTE NOTES. To execute and deliver to Lender the promissory note or
     notes, or other evidence of credit accommodations of the Corporation, on
     Lender's forms, at such rates of interest and on such terms as may be
     agreed upon, evidencing the sums of money so borrowed or any indebtedness
     of the Corporation to Lender, and also to execute and deliver to Lender
     one or more renewals, extensions, modifications, refinancings,
     consolidations, or substitutions for one or more of the notes, any portion
     of the notes, or any other evidence of credit accommodations.

<PAGE>   16

     GRANT SECURITY. To mortgage, pledge, transfer, endorse, hypothecate, or
     otherwise encumber and deliver to Lender, as security for the payment of
     any loans or credit accommodations so obtained, any promissory notes so
     executed (including any amendments to or modifications, renewals, and
     extensions of such promissory notes), or any other or further indebtedness
     of the Corporation to Lender at any time owing, however the same may be
     evidenced, any property now or hereafter belonging to the Corporation or
     in which the Corporation now or hereafter may have an interest, including
     without limitation all real property and all personal property (tangible
     or intangible) of the Corporation. Such property may be mortgaged,
     pledged, transferred, endorsed, hypothecated, or encumbered at the time
     such loans are obtained or such indebtedness is incurred, or at any other
     time or times, and may be either in addition to or in lieu of any property
     theretofore mortgaged, pledged, transferred, endorsed, hypothecated, or,
     encumbered.

     EXECUTE SECURITY DOCUMENTS. To execute and deliver to Lender the forms of
     mortgage, deed of trust, pledge agreement, hypothecation agreement, and
     other security agreements and financing statements which may be submitted
     by Lender, and which shall evidence the terms and conditions under and
     pursuant to which such liens and encumbrances . or any of them, are given;
     and also to execute and deliver to Lender any other written instruments,
     any chattel paper, or any other collateral, of any kind or nature, which
     they may in their discretion deem reasonably necessary or proper in
     connection with or pertaining to the giving of the liens and encumbrances.
     Notwithstanding the foregoing, any one of the above authorized persons may
     execute, deliver, or record financing statements.

     NEGOTIATE ITEMS. To draw, endorse, and discount with Lender all drafts,
     trade acceptances, promissory notes, or other evidences of indebtedness
     payable to or belonging to the Corporation in which the Corporation may
     have an interest, and either to receive cash for the same or to cause such
     proceeds to be credited to the account of the Corporation with Lender, or
     to cause such other disposition of the proceeds derived therefrom as they
     may deem advisable.

     FURTHER ACTS. in the case of lines of credit, to designate additional or
     alternate individuals as being authorized to request advances thereunder,
     and in all cases, to do and perform such other acts and things, to pay any
     and all fees and costs, and to execute and deliver such other documents
     and agreements as they may in their discretion deem reasonably necessary
     or proper in order to carry into effect the provisions of these
     Resolutions. The following person or persons currently are authorized to
     request advances and authorize payments under the line OF credit until
     Lender receives written notice of revocation of their authority: D.
     Arnold Tillman, Tyler C. McCain and M. Lauch McKinnon.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
Resolutions and performed prior to the passage of these Resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and Lender may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Lender. Any such notice
shall not affect any OF the Corporation's agreements or commitments in effect
at the time notice is given.

<PAGE>   17

BE IT FURTHER RESOLVED, that the Corporation will notify Lender in writing at
Lender's address shown above (or such other addresses as Lender may designate
from time to time) prior to any (a) change in the name of the Corporation, (b)
change in the assumed business name(s) of the Corporation, (c) change in the
management of the Corporation,, (d) change in the authorized signer(s), (e)
conversion of the Corporation to A new or different type of business entity, or
(f) change in any other aspect of the Corporation that directly or indirectly
relates to any agreements between the Corporation and Lender. No change in the
name of the Corporation will take effect until after Lender has been notified.

I FURTHER CERTIFY that the officers, employees, and agents named above are duly
elected, appointed, or employed by or for the Corporation, as the case may be,
and occupy the positions set opposite their respective names; that the
foregoing Resolutions now stand of record on the books of the Corporation; and
that the Resolutions are in full force and effect and have not been modified or
revoked in any manner whatsoever. The Corporation has no corporate seal, and
therefore, no seal is affixed to this certificate,

IN TESTIMONY WHEREOF, I HAVE HEREUNTO SET MY HAND AND SEAL ON MARCH 6, 2000 AND
ATTEST THAT THE SIGNATURES SET OPPOSITE THE NAMES LISTED ABOVE ARE THEIR
GENUINE SIGNATURES.

                                             CERTIFIED TO AND ATTESTED BY:

                                            X                            (SEAL)
                                             ----------------------------

                                            X                            (SEAL)
                                             ----------------------------<PAGE>   1
                                                                   EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement"), is made and entered into
effective as of December 1, 1999 by and among M. Lauch McKinnon, a resident of
the State of Georgia ("Employee"), SouthernBank, N.A., a proposed national
banking association ("Employer") and SouthernBank Holdings, Inc., a Georgia
corporation and sole shareholder of Employer ("Holdings").

                                  WITNESSETH:

         WHEREAS, Employer and Employee each deem it necessary and desirable,
for their mutual protection, to execute a written document setting forth the
terms and conditions of their employment relationship;

         NOW, THEREFORE, in consideration of the employment of Employee by
Employer, of the premises and the mutual promises and covenants contained
herein, and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

         1. Employment and Duties. Employer and Holdings hereby employ Employee
to serve as President and Chief Executive Officer of Employer and as President
of Holdings and to perform such other duties and responsibilities as
customarily performed by persons acting in such capacities. During the term of
this Agreement, Employee will devote his full time and effort to his duties
hereunder.

         2. Term. Subject to the provisions of Section 12 of this Agreement,
the period of Employee's employment under this Agreement shall be deemed to
have commenced as of the effective date hereof and shall continue for a period
of 12 calendar months thereafter (i) unless Employee dies before the end of
such 12 months or (ii) Employer is not successful in obtaining final opening
approvals (the "Final Approvals") from the Office of the Comptroller of the
Currency (the "OCC") and the Federal Deposit Insurance Corporation (the
"FDIC"). In either case, the period of employment shall continue until the end
of the month of Employee's death or

<PAGE>   2

the inability to obtain the OCC's and FDIC's Final Approvals. The said 12 month
period of employment shall automatically be extended for additional one year
terms without further action by the parties, commencing on the first year
anniversary of this Agreement and each one year anniversary thereafter. No such
automatic extension shall occur if either party shall, within 90 days prior to
any said anniversary, have served written notice upon the other of its
intention that this Agreement shall not be so extended.

         3. Compensation. For all services to be rendered by Employee during
the term of this Agreement, Employer shall pay Employee in accordance with the
terms set forth in Exhibit A, net of applicable withholdings, payable in
semi-monthly installments.

         4. Expenses. So long as Employee is employed hereunder, Employee is
entitled to receive reimbursement for, or seek payment directly by Employer of,
all reasonable expenses which are consistent with the normal policy of Employer
in the performance of Employee's duties hereunder, provided that Employee
accounts for such expenses in writing.

         5. Employee Benefits. So long as Employee is employed hereunder,
Employee shall be entitled to participate in the various employee benefit
programs adopted by Employer and Holdings from time to time.

         6. Vacation. Employee shall be entitled to the greater of either three
weeks annual vacation or the number of weeks of annual vacation provided to
executive officers in any employee policy handbook adopted by Employer during
the term of this Agreement.

         7. Confidentiality. In Employee's position as an employee of Employer,
Employee has had and will have access to confidential information, trade
secrets and other proprietary information of vital importance to Employer and
Holdings and has and will also develop relationships with customers, employees
and others who deal with Employer or Holdings which are of value to Employer
and Holdings. Employer requires, as a condition to Employee's employment with
Employer, that Employee agree to certain restrictions on Employee's use of the
proprietary information and valuable relationships developed during Employee's
employment

                                       2
<PAGE>   3

with Employer. In consideration of the terms and conditions contained herein,
the parties hereby agree as follows:

                  7.1 Employer and Employee mutually agree and acknowledge that
Employer and Holdings may entrust Employee with highly sensitive, confidential,
restricted and proprietary information concerning various Business
Opportunities (as hereinafter defined), customer lists, and personnel matters.
Employee acknowledges that he shall bear a fiduciary responsibility to Employer
and Holdings to protect such information from use or disclosure as an essential
incident of Employee's employment with Employer.

                  7.2 For the purposes of this Section 7, the following
definitions shall apply:

                           7.2.1 "Trade Secret" shall mean the identity and
addresses of customers of Employer or Holdings, the whole or any portion or
phase of any scientific or technical information, design, process, procedure,
formula or improvement that is valuable and secret (in the sense that it is not
generally known to competitors of Employer or Holdings) and which meets the
definition of a "trade secret" under Georgia law pursuant to the Georgia Trade
Secrets Act.

                           7.2.2 "Confidential Information" shall mean any data
or information, other than Trade Secrets, which is material to Employer or
Holdings and not generally known by the public. Confidential Information shall
include, but not be limited to, Business Opportunities of Employer or Holdings
(as hereinafter defined), the details of this Agreement, Employer's or
Holdings' business plans and financial statements and projections, information
as to the capabilities of Employer's or Holdings' employees, their respective
salaries and benefits and any other terms of their employment and the costs of
the services Employer or Holdings may offer or provide to the customers it
serves, to the extent such information is material to Employer or Holdings and
not generally known by the public.

                           7.2.3 "Business Opportunities" shall mean any
specialized information or plans of Employer or Holdings concerning the
provision of financial services to the public, together with all related
information concerning the specifics of any contemplated financial

                                       3
<PAGE>   4

services regardless of whether Employer has contacted or communicated with such
target person or business.

                           7.2.4 Notwithstanding the definitions of Trade
Secrets, Confidential Information, and Business Opportunities set forth above,
Trade Secrets, Confidential Information, and Business Opportunities shall not
include any information:

                                    (i) that is or becomes generally known to
the public;

                                    (ii) that is already known by Employee or
is developed by Employee after termination of employment through entirely
independent efforts;

                                    (iii) that Employee obtains from an
independent source having a bona fide right to use and disclose such
information;

                                    (iv) that is required to be disclosed by
law, except to the extent eligible for special treatment under an appropriate
protective order; or

                                    (v) that Employer's or Holdings' Board of
Directors approves for release.

                  7.3 Employee shall not, without the prior approval of
Employer's or Holdings' Board of Directors, during his employment with Employer
and for so long thereafter as the information or data remain Trade Secrets, use
or disclose, or negligently permit any unauthorized person who is not an
employee of Employer or Holdings to use, disclose, or gain access to, any Trade
Secrets.

                  7.4 Employee shall not, without the prior written consent of
Employer or Holdings, during his employment with Employer and for a period of
12 months thereafter as long as the information or data remain competitively
sensitive, use or disclose, or negligently permit any unauthorized person who
is not employed by Employer or Holdings to use, disclose, or gain access to,
any Confidential Information to which the Employee obtained access by virtue of
his employment with Employer, except as provided in Section 7.2.4 of this
Agreement.

                                       4
<PAGE>   5

         8. Observance of Security Measures. During Employee's employment with
Employer, Employee is required to observe all security measures adopted to
protect Trade Secrets, Confidential Information and Business Opportunities.

         9. Return of Materials. Upon the request of Employer or Holdings and,
in any event, upon the termination of his employment with Employer, Employee
shall deliver to Employer all memoranda, notes, records, manuals or other
documents, including all copies of such materials containing Trade Secrets or
Confidential Information, whether made or compiled by Employee or furnished to
him from any source by virtue of his employment with Employer.

         10. Severability. Employee acknowledges and agrees that the covenants
contained in Sections 7 through 9 and Section 14 of this Agreement shall be
construed as covenants independent of one another and distinct from the
remaining terms and conditions of this Agreement, and severable from every
other contract and course of business by and among Employer, Holdings and
Employee, and that the existence of any claim, suit or action by Employee
against Employer and/or Holdings, whether predicated upon this Agreement or any
other agreement, shall not constitute a defense to Employer's or Holdings'
enforcement of any covenant contained in Sections 7 through 9 and Section 14 of
this Agreement.

         11. Specific Performance. Employee acknowledges and agrees that the
covenants contained in Sections 7 through 9 and Section 14 of this Agreement
shall survive any termination of employment, as applicable, with or without
Cause (as hereinafter defined), at the instigation or upon the initiative of
any party. Employee further acknowledges and agrees that the ascertainment of
damages in the event of Employee's breach of any covenant contained in Sections
7 through 9 and Section 14 of this Agreement would be difficult, if at all
possible. Employee therefore acknowledges and agrees that Employer and Holdings
shall be entitled in addition to and not in limitation of any other rights,
remedies, or damages available to Employer and Holdings in arbitration, at law
or in equity, upon submitting whatever affidavit the law may require, and
posting any necessary bond, to have a court of competent jurisdiction enjoin
Employee from committing any such breach.

                                       5
<PAGE>   6

         12. Termination.

                  12.1 Employee's employment hereunder may be terminated under
the following circumstances:

                           12.1.1 At the election of Employer, for Cause.

                           12.1.2 At the election of Employee, for Good Reason.

                           12.1.3 Upon Employee's death, or, at the election of
either party, upon Employee's disability as determined in accordance with the
standards and procedures under Employee's then-current long-term disability
insurance coverage provided by Employer, or, if such disability insurance
coverage provided by Employer is not then in place, upon Employee's disability
resulting in inability to perform the duties described in Section 1 of this
Agreement for a period of 180 consecutive days.

                  12.2 "Cause" shall mean (i) conduct by Employee that amounts
to fraud, material dishonesty, gross negligence or willful misconduct in the
performance of his duties hereunder; (ii) the conviction (from which no appeal
may be, or is, timely taken) of Employee of a felony; (iii) initiation of
suspension or removal proceedings against Employee by federal or state
regulatory authorities acting under lawful authority pursuant to provisions of
federal or state law or regulation which may be in effect from time to time;
(iv) knowing violation of federal or state banking laws or regulations ; or (v)
refusal to perform a duly authorized directive of Employer's Board of
Directors.

                  12.3 "Good Reason" shall mean a material diminution in
Employee's office, title, reporting requirements, lending authority, duties or
responsibilities hereunder or upon material breach of this Agreement by
Employer.

                  12.4 If this Agreement is terminated either (i) by Employer
at any time for any reason other than for Cause, (ii) by Employee for Good
Reason or (iii) upon Employer's material breach of this Agreement, then
Employer shall pay to Employee as Employee's sole remedy hereunder the
compensation and benefits provided in this Agreement for a term equal to 12
months, as if no termination occurred.

                                       6

<PAGE>   7

                  12.5 If the Agreement is terminated for Cause, Employee shall
receive no further compensation or benefits, other than Employee's Base Salary
and other compensation as accrued through the date of termination for Cause.

         13. Notices. All notice provided for herein shall be in writing and
shall be deemed to be given when delivered in person or deposited in the United
States Mail, registered or certified, return receipt requested, with proper
postage prepaid and addressed as follows:

      Employer and Holdings:             SouthernBank Holdings, Inc.
                                         Post Office Box 218
                                         Cartersville, Georgia  30120
                                         Attn:  D. Arnold Tillman, Chairman

      with a copy to:                    Troutman Sanders LLP
                                         600 Peachtree Street, N.E., Suite 5200
                                         Atlanta, Georgia  30308-2216
                                         Attn:  Thomas O. Powell, Esquire

      Employee:                          M. Lauch McKinnon
                                         3124 Waterfront Drive
                                         Chattanooga, Tennessee  37419

      with a copy to:                    Powell, Goldstein, Frazer & Murphy
                                         191 Peachtree Street, Suite 1600
                                         Atlanta, Georgia  30303
                                         Attn:  Kathryn L. Knudson, Esquire

         14. Covenant Not to Compete and Not to Solicit.

                  14.1 For purposes of this Section 14, Employer and Employee
conduct the following business in the following geographic areas:

                           14.1.1 Employer is engaged in the business of
transacting business as a bank which accepts deposits, makes loans, cashes
checks and otherwise engages in the business of banking (collectively, the
"Business of Employer").

                           14.1.2 Employer actively conducts business in a
certain geographic area of Georgia from its office located at Georgia Highway
20 and the Mall of Georgia, Buford, Georgia 30515 (the "Main Office").

                                       7
<PAGE>   8

                           14.1.3 Employee will establish business
relationships and performs the duties described in Section 1 of this Agreement
in the geographic area covered by a circle having a radius of 50 miles from the
Main Office, and will work primarily in such area while in the employ of
Employer.

                  14.2 Employee covenants and agrees that for a period of one
year after the termination of this Agreement for any reason other than
non-renewal of this Agreement by Employer or Holdings on any anniversary date
or pursuant to Section 12.1.2 of this Agreement, Employee shall not, directly
or indirectly, as principal, agent, trustee, consultant or through the agency
of any financial institution, corporation, partnership, association, trust or
other entity or person, on Employee's own behalf or for others, provide the
duties described in Section 1 of this Agreement for any entity or person
conducting the Business of Employer within the geographic area covered by a
circle having a radius of 50 miles from the Main Office.

                  14.3 During the term of this Agreement and for a period of
one year after the termination of this Agreement for any reason other than
non-renewal of this Agreement by Employer or Holdings on any anniversary date
or pursuant to Section 12.1.2 of this Agreement, Employee will not enter into,
and will not participate in, any plan or arrangement to cause any employee of
Employer to terminate his or her employment with Employer, and, Employee agrees
that for a period of at least two years after the termination of employment by
any employee of Employer, Employee will not hire such employee in connection
with any business initiated by Employee or any other person, firm or
corporation. Employee further agrees that information as to the capabilities of
Employer's employees, their salaries and benefits, and any other terms of their
employment is Confidential Information and proprietary to Employer.

                  14.4 Employee and Employer shall periodically amend this
Agreement by updating the address referenced in Section 14.1.2 of this
Agreement so that it at all times lists the then current geographic area served
by Employer for which Employee performs the duties described in Section 1 of
this Agreement.

                                       8
<PAGE>   9

                  14.5 Notwithstanding any provision herein to the contrary,
the covenant not to compete and not to solicit set forth in Sections 14.2 and
14.3 shall be null and void in the event either (i) this Agreement is not
renewed by Employer or Holdings on any anniversary date or (ii) terminated by
Employee pursuant to Section 12.1.2 of this Agreement.

         15. Miscellaneous.

                  15.1 This Agreement, together with Exhibit A, constitutes and
expresses the whole agreement of the parties in reference to the employment of
Employee by Employer, and there are no representations, inducements, promises,
agreements, arrangements, or undertakings oral or written, between the parties
other than those set forth herein.

                  15.2 This Agreement shall be governed by the laws of the
State of Georgia.

                  15.3 Should any clause or any other provision of this
Agreement be determined to be void or unenforceable for any reason, such
determination shall not affect the validity or enforceability of any clause or
provision of this Agreement, all of which shall remain in full force and
effect.

                  15.4 Time is of the essence in this Agreement.

                  15.5 This Agreement shall be binding upon and enure to the
benefit of the parties hereto and their successors and assigns. This Agreement
shall not be assignable by Employee without the prior written consent of
Employer.

                  15.6 This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which taken together shall
constitute but a single instrument.

                                       9
<PAGE>   10

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

<TABLE>

<S>                                      <C>
                                         "Employee"

/s/ Thomas O. Powell                     /s/ M. Lauch McKinnon           (SEAL)
---------------------------------        --------------------------------------
Witness                                  M. Lauch McKinnon

ATTEST:                                  "Employer"

                                         SouthernBank, N.A.

By:      /s/ Tyler C. McCain             /s/ D. Arnold Tillman
   ------------------------------        --------------------------------------
     Tyler C. McCain, Secretary          D. Arnold Tillman, Chairman

           (BANK SEAL)

ATTEST:                                  "Holdings"

                                         SOUTHERNBANK HOLDINGS, INC.

By:      /s/ Tyler C. McCain             /s/ D. Arnold Tillman
   ------------------------------        --------------------------------------
     Tyler C. McCain, Secretary          D. Arnold Tillman, Chairman

         (CORPORATE SEAL)
</TABLE>

                                      10
<PAGE>   11

                                   Exhibit A
                      to Employment Agreement By and Among
             M. Lauch McKinnon, Southern Bank, N.A. (proposed) and
                          SouthernBank Holdings, Inc.

                             Employee Compensation

Capitalized terms used herein and not defined shall have the meanings set forth
in the Employment Agreement.

BASE SALARY: $90,000 per year until the date of the opening of SouthernBank,
N.A. (the "Bank") then increasing to $120,000 per year thereafter subject to
annual increases in an amount equal to such amount as the Board of Directors in
its discretion shall determine to be appropriate under the circumstances after
review of Employee's performance.

OPTION PLANS: Assuming shareholder approval of that certain incentive stock
option plan of SouthernBank Holdings, Inc. ("Holdings"), ten year incentive
stock options to acquire 25,000 shares of Holdings Common Stock granted at the
initial offering price of Holdings' common stock, vesting over 5 years, at 20%
per year for each year of continued employment thereafter. The option shall be
granted as an option qualified under Section 422 of the Internal Revenue Code
of 1986, as amended, subject to the approval of the shareholders of Holdings.

BONUSES:

         (1) Annual. Payable each January, based on a performance matrix
established against budgets and approved by the Bank's Board of Directors; and

         (2) Bank Opening. The Bank will pay Employee a one time bonus of
$15,000 on June 30, 2000 if the Bank has opened for business on or before May
31, 2000.

AUTO ALLOWANCE: The Bank will provide an automobile allowance of $7,000 per
year payable in 12 equal monthly payments of $584 per month on the first day of
each month.

CLUB MEMBERSHIP: Employee's initiation fee and current monthly dues for a
private country club and a private dining club as determined to be appropriate
by the Bank's Board of Directors.

INSURANCE: Employee's and his dependents' hospitalization, and dental, any
other insurance plans as adopted by the Bank's Board of Directors for employees
of the Bank.

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