Document:

<PAGE>   1

                                                                    EXHIBIT 10.8

                           FORM OF COMMERCIAL GUARANTY
<TABLE>
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<S>                 <C>          <C>         <C>         <C>     <C>            <C>          <C>            <C>
      PRINCIPAL     LOAN DATE    MATURITY    LOAN NO     CALL    COLLATERAL     ACCOUNT      OFFICER JKG    INITIALS
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</TABLE>

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.
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Borrower:    Sun Bancshares, Inc. (IO)          Lender:  THE BANKERS BANK
             P.O. Box 1359                               2410 PACES FERRY ROAD
             Murrells Inlet, SC  29578                   600 PACES SUMMIT
                                                         ATLANTA, GA 30339

Guarantor:

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

   AMOUNT OF GUARANTY. The principal amount of this Guaranty is Eighty Five
   Thousand & 00/100 Dollars ($85,000.00).

   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, ____________________("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 Sun Bancshares, Inc. (IO)
   ("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 Sun Bancshares, Inc. (IO)

         GUARANTOR.  The word "Guarantor" means                               .
                                               -------------------------------

         GUARANTY. The word "Guaranty" means this Guaranty made by Guarantor for
         the benefit of Lender dated January 26, 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 of 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.

         NOTE. The word "Note" means the promissory note or credit agreement
         dated January 26, 2000, IN THE ORIGINAL PRINCIPAL AMOUNT OF $850,000.00
         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 word "Related Documents" mean and include
         without limitation all promissory notes, credit agreements, loan
         agreements, environmental agreements, guarantees, 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 $85,000.00 PLUS ALL COSTS AND EXPENSES OF
   (A) ENFORCEMENT OF THIS GUARANTY AND (B) COLLECTION AND SALE OF ANY
   COLLATERAL SECURING THIS GUARANTY.

   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
   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.

<PAGE>   2

LOAN NO                       COMMERCIAL GUARANTY                        PAGE 2
                                   (CONTINUED)

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

   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 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 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 statue of limitation, 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 otherwise, or by any third party, on the Indebtedness
   and thereafter Lender is forced to 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.

<PAGE>   3

LOAN NO                       COMMERCIAL GUARANTY                        PAGE 3
                                   (CONTINUED)

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

   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 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 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 addressee as
         either party may designate to the other in writing. If 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,

<PAGE>   4

LOAN NO                       COMMERCIAL GUARANTY                        PAGE 4
                                   (CONTINUED)

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

         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 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 AUGUST 23, 1999.

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

GUARANTOR:

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

Signed, Sealed and Delivered in the presence of:

X
------------------------------------
   Unofficial Witness

------------------------------------
Notary Public                 County
              ---------------

             (NOTARY SEAL)

My Commission expires:
                       -----------------------
LENDER:

THE BANKERS BANK

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

===============================================================================
LASER PRO, REG. U.S. Pat. & T.M. Off., Ver. 3-24a(c) 1999 CFI ProServices, Inc.
All rights reserved. (GA-E320 E3.24 F3-24 FUTURUS, LN C1.OVL)<PAGE>   1
                                                                  EXHIBIT 10.44

October 25, 1999

Mr. Mike Reiff
1 Abbott Run Road
Cumberland, RI 02864

Dear Mike:

I am pleased to extend to you an offer of employment for the position of
Executive Vice President and Chief Operating Officer ("COO") of Verilink
Corporation. The terms and conditions of your employment will be as follows:

1.       Your employment will commence not later than November 29, 1999. You
         will report to the CEO, and will be a member of Verilink's Strategy
         Committee. At the time of your acceptance, Verilink will establish the
         Office of the President, consisting of the Company's CEO and COO. The
         Office of the President will be responsible for all business matters
         relating to Verilink. The COO will be responsible for the day-to-day
         operations of the Company, and may act for the CEO on all business
         operations matters. The CEO will be responsible for all Verilink
         matters, will focus on strategic issues, and will report to the
         Company's Board of Directors.

2.       Your base compensation will initially be $9,615.38 paid bi-weekly
         (annualized salary of $250,000.00). Executive compensation is reviewed
         annually after the end of Verilink's June 30 fiscal year end. Any
         increase in salary is at the discretion of the CEO with approval of
         Compensation Committee of the Board of Directors.

3.       You will receive such benefits as are customarily granted to Verilink
         employees. You will receive personal time off (PTO) in accordance with
         Verilink's existing policy. PTO initially accrues at the rate of
         1 1/2 days per month of employment, and may be used for vacation,
         illness, personal business, etc. Verilink confirms that any conditions
         covered by your existing health insurance will be covered by
         Verilink's health insurance, commencing on the first day of your
         employment, provided that you obtain a Certificate of Coverage
         evidencing your existing coverage. Attachment 1 sets forth additional
         benefits currently available to Verilink executive officers. Please
         note that executive officers do not participate
<PAGE>   2

Mike Reiff
October 25, 1999
Page 2

         in the profit sharing plan. Executive officer benefits are subject to
         review from time-to-time by the Compensation Committee of the Board of
         Directors.

4.       Contingent upon your acceptance of this offer of employment, and
         subject to the Board of Directors' approval, Verilink will grant you a
         Non-Qualified Stock Option which gives you the right to purchase,
         under terms stated in your Stock Option Agreement, 350,000 shares of
         Verilink Common Stock at the fair market value of that stock as
         determined by the Board of Directors on the first day of your
         employment by Verilink. Vesting will occur over 4 years at the rate of
         2.08% (1/48th) at the end of each month, assuming continuous
         employment. On each anniversary of your employment, Verilink expects
         to grant you an option to purchase an additional 89,500 shares of
         Verilink Common Stock at the then existing fair market value of that
         Stock, vesting after four years of continuous employment after each
         such grant.

5.       You will be eligible for participation in Verilink's Management
         Incentive Plan for fiscal 2000 (July 1, 1999 - June 30, 2000) and
         thereafter. The Plan will provide for a target potential payout to you
         of 50% of your base salary upon achievement of your objectives under
         the Plan, but in no event less than a guaranteed payment to you for
         fiscal 2000 of $50,000, which payment shall be made at the end of
         three months of employment by Verilink.

6.       If you terminate your employment (i) on or before one (1) year from
         the date of your employment, (ii) subsequent to Graham Pattison no
         longer being employed by the company; or (iii) if at any time, your
         employment is terminated by Verilink other than for cause, or you
         terminate your employment for good reason, you will receive one (1)
         year's base salary and applicable benefits, including COBRA costs, for
         a period of one (1) year. If such termination occurs after a change in
         control, you will also receive such additional benefits as are
         provided in the Verilink Change of Control Severance Benefits
         Agreement (Attachment 2). At Verilink's option, the foregoing
         severance may be paid as salary continuation or as a lump sum. For
         purposes of this paragraph, "cause" shall be defined as any act or
         failure to act involving dishonesty towards Verilink; unethical
         business practices; embezzlement or misappropriation of corporate
         funds, property or proprietary information; unreasonable and
         willful refusal to perform the duties required by Verilink; willful
         breach of this Agreement or habitual neglect of duties and
         responsibilities, other than due to illness or disability; aiding and
         abetting a competitor; or participation in any fraud or any criminal
         activities. "Good reason" shall be defined as set forth in section 6.4
         (a) of Attachment 2.
<PAGE>   3

Mike Reiff
October 25, 1999
Page 3

7.       Verilink understands that you intend to maintain your principal
         residence in Rhode Island. Verilink shall reimburse you for your
         commuting costs between Rhode Island and Alabama, including the tax
         impact of such reimbursement. To the extent possible, you shall
         combine such commuting with business trips to reduce the cost to
         Verilink. For the earlier of a period of six months or until you
         purchase a second residence in Alabama, Verilink shall provide you
         with a furnished apartment at no cost to you. In lieu of reimbursement
         for relocation costs, Verilink shall also provide you with a payment
         of $50,000 for relocation costs, including moving expenses, real
         estate taxes, insurance and similar costs. Verilink shall reimburse
         you for income taxes on the portion of the cost of the apartment and
         the relocation payment, including the amount of the reimbursement you
         are unable to deduct for tax purposes.

8.       Verilink shall provide you with a housing assistance loan of
         $300,000.00 in accordance with Attachment 3. This Note will be secured
         by a second deed of trust on the Alabama property you intend to
         purchase. The Note will bear no interest. In the event you sell your
         property in Alabama for less than you paid for that property, after
         deducting costs of sale, the principal balance of the Note shall be
         reduced by such amount. Verilink shall reimburse you for any tax
         liability resulting from such forgiveness.

9.       Verilink shall provide you with an additional loan of $300,000.00 in
         accordance with Attachment 4. The outstanding principal balance of
         that loan will be repaid by you upon the earlier of (i) your leaving
         the Company for any reason, provided, however, that, for the purposes
         of this paragraph (i) 50% of the loan will be forgiven for each full
         year that you remain employed by Verilink; or (ii) within one (1) year
         after the value of your exercisable Verilink stock options exceeds
         $2,000,000 (fair market value of stock subject to exercisable options
         less total exercise price of such options). Interest shall be
         forgiven. Verilink shall reimburse you for any tax liability resulting
         from forgiveness of the principal of this loan.

10.      Subject to any severance benefits described in this letter, your
         employment with Verilink is voluntarily entered into and is for no
         specific period. As a result, you are free to resign at any time, for
         any reason or for no reason. Similarly, Verilink is free to conclude
         its at-will employment relationship with you at any time, with or
         without cause.

11.      In the event of any dispute or claim relating to or arising out of our
         employment relationship, you and Verilink agree that all such disputes
         shall be fully and finally
<PAGE>   4

Mike Reiff
October 25, 1999
Page 4

         resolved by binding arbitration conducted by the American Arbitration
         Association in Huntsville, Alabama. However, we agree that this
         arbitration provision shall not apply to any dispute or claims
         relating to or arising out of the misuse or misappropriation of the
         Company's trade secrets or proprietary or confidential information, or
         to enforcement of your rights under the Change of Control Severance
         Benefits Agreement.

12.      This offer of employment is contingent upon the following:

         (a)      A completed employment application.

         (b)      Full compliance with the Immigration Reform and Control Act
                  of 1986, which requires new employees to provide
                  documentation/identification to establish both identity and
                  work authorization within three (3) days of your employment.

         (c)      On your date of hire, you will be required to sign a Verilink
                  Confidentiality Agreement (Attachment 5) as part of your
                  total employment package.

         (d)      If you will be driving your personal automobile for company
                  business on a regular basis, you will be required to provide
                  proof of personal auto insurance.

         If you have any questions regarding the nature of any of this
         documentation, please contact the Human Resources Department.

13.      This letter, together with all attachments hereto, set forth the terms
         of your employment with Verilink and supersede any prior
         representations or agreements, whether written or oral. This letter
         may not be modified or amended except by an instrument in writing,
         signed by Verilink and by you.

14.      If you accept this offer, Verilink intends to publicly announce that
         acceptance at its Annual Meeting of Stockholders on November 16, 1999.

We will be pleased to have you join the Verilink team, and we look forward to
your participation in our continued success.
<PAGE>   5

Mike Reiff
October 25, 1999
Page 5

This offer remains effective until November 9, 1999. Please acknowledge your
acceptance by signing this letter and returning it to me at your earliest
convenience.

Sincerely,

VERILINK CORPORATION

/s/ Graham G. Pattison

Graham G. Pattison
President and CEO

I accept the foregoing offer:

 /s/ Mike Reiff
----------------------------
Mike Reiff

Date: 11/09/99
     -----------------------

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