Document:

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT made and entered into on the 13th day of January, 1998,
by and between THE PEACHTREE BANK, a bank organized under the laws of the State
of Georgia (the "Bank"), and MONTY G. WATSON (hereinafter "Executive");

                              W I T N E S S E T H:

         WHEREAS, the Board of Directors of the Bank believe that it is in the
best interest of the Bank to arrange terms of employment for Executive so as to
reasonably induce Executive to remain in his capacities with the Bank for the
term hereof; and

         WHEREAS, Executive is willing to provide services to the Bank in
accordance with the terms and conditions hereinafter set forth;

         NOW, THEREFORE, for and in consideration of the mutual premises and
covenants herein contained, the parties hereto agree as follows:

         1.  EMPLOYMENT. For the Term of Employment, as hereinafter defined,
the Bank agrees to employ Executive as its President and Chief Executive
Officer and Executive agrees to accept such employment and to perform such
duties and functions as the Board of Directors of the Bank may assign to
Executive from time to time, but only administrative and managerial functions
commensurate with Executive's past experience and performance level. Executive
agrees to devote his full business time, attention, skill and efforts to the
business of the Bank, and shall perform his duties in a trustworthy and
businesslike manner, all for the purpose of advancing the interests of the Bank.

         2.  TERM OF EMPLOYMENT. The "Term of Employment" referred to in
Section 1 hereof and hereinafter shall be deemed to have commenced as of the
date first above mentioned and shall continue for a period of three (3) years,
unless sooner terminated pursuant to this Agreement, and shall include any
extension of the period of employment in accordance with this paragraph. The
period of employment shall automatically be extended without further action by
the parties for an additional twelve (12) full calendar months, beginning on the
third anniversary hereof, and on each succeeding anniversary thereafter,
respectively, unless (i) either party shall have served written notice upon the
other of its intention that this Agreement shall not be extended on or before
90 days prior to any such anniversary date, or (ii) the Executive's employment
hereunder shall have been terminated pursuant to Section 4 hereof. Failure to
renew this Agreement by the Bank if followed by the subsequent voluntary
termination of employment

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hereunder by the Executive prior to the end of the Term of Employment shall be
deemed a termination "without cause" under Section 4.3 below, effective as of
the date of the written notice of nonrenewal by the Bank for purposes of the
twelve (12) months severance compensation under Section 4.3 provided that the
severance compensation shall be reduced by any Base Salary paid after the
written notice of nonrenewal.

         3.  COMPENSATION.

             3.1  Base Salary. During the Term of Employment, Executive shall be
paid an annual base salary (hereinafter "Base Salary") of $125,000.00 which
shall be paid in equal installments in accordance with the Bank's normal pay
practices, but not less frequently than monthly. Executive's salary shall be
reviewed by the Board of Directors of Bank annually, and Executive shall be
entitled to receive annually an increase (but in no event a decrease) in such
amount, if any, as may be determined by the Board of Directors of the Bank.

             3.2.  Management Incentives and Discretionary Bonuses. During the
Term of Employment, the Executive shall be entitled, in an equitable manner
based on the terms of any bonus and incentive plans that have been approved, or
may from time to time be approved, by the Board of Directors, with all other key
management personnel of the Bank, to such incentives and discretionary bonuses
as may be authorized, declared and paid by the Board of Directors to the Bank's
key management employees. No other compensation provided for in this Agreement
shall be deemed a substitute for the Executive's right to such incentives and
discretionary bonuses when and as declared by the Board.

             3.3  Additional Benefits. During the Term of Employment, Executive
shall be provided with such employee benefits and benefit levels, including
health, life and disability insurance, the exclusive use of an automobile and a
club membership, etc. as may be provided by the Board of Directors of the Bank.
These benefits shall be provided and maintained at a level of not less than what
is in effect at the time this Agreement is executed.

         Throughout the Term of Employment, Executive shall also be entitled to
reimbursement for reasonable business expenses incurred by him in the
performance of his duties hereunder, as approved from time to time by the Board
of Directors of the Bank.

         4.  TERMINATION.

             4.12  Death or Disability. This Agreement may be terminated before
the expiration of the Term of Employment upon the occurrence of any one of the
following events:

                  (a)  Upon Executive's death, this Agreement shall terminate
             immediately. Any salary and any other amounts that may be due
             Executive from Bank at the time of his death (whether pursuant to
             benefits plans or otherwise) shall be paid to the executor or
             administrator of his estate.

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                  (b)  The Bank may terminate this Agreement upon Executive's
                  "Total Disability." As used in this Agreement, "Total
                  Disability" means any physical or mental disorder that
                  renders Executive incapable of performing his normal duties
                  and services under this Agreement for a period of one
                  hundred twenty (120) days in any consecutive twelve (12)
                  month period, as determined by a licensed physician selected
                  by mutual agreement of the Bank and the Executive or the
                  Executive's legal representative. If this Agreement is
                  terminated as a result of the Executive's "Total
                  Disability", the Executive's compensation hereunder shall
                  terminate and the Executive shall be paid in accordance with
                  such long-term disability plans of the Bank as may be in
                  effect. The Executive's compensation, title and status shall
                  continue during any such period of disability until the date
                  of termination except that the Bank may provide disability
                  insurance to cover the Executive during any part of such
                  disability period and the Bank's obligation for the
                  Executive's compensation for any such period shall be
                  reduced by the amount of any such insurance proceeds which
                  the Executive receives.

             4.2  For Cause. This Agreement may be terminated by the Board of
Directors of the Bank for cause for any of the following reasons:

                  (a)  failure of Executive to follow reasonable written
instructions or policies of the Board of Directors of the Bank;

                  (b)  gross negligence or willful misconduct of Executive
materially damaging to the business of the Bank;

                  (c)  conviction of Executive of a crime involving breach of
trust, moral turpitude, theft or fraud;

                  (d)  the willful failure by the Executive to perform
substantially his duties other than any failure resulting from incapacity due to
physical or mental illness;

                  (e)  willful commission of (A) acts involving dishonesty or
fraud with respect to the Bank or (B) acts causing harm to the Bank;

                  (f)  a willful misrepresentation by the Executive to the
stockholders or the Board of Directors of the Bank which causes substantial
injury to the Bank; or

                  (g)  a request by any state or federal authority regulating
the Bank that the Executive be removed from his office as President of the Bank.

For purposes of this Agreement, no act, or failure to act, on the part of the
Executive shall be considered "willful" unless done, or omitted to be done, by
him in good faith and without reasonable belief that his action or omission was
in the best interest of the Bank and the stockholders of the Company. The Bank
shall notify the Executive in writing of the specific reasons for the
termination for "Cause" and the Executive will be allowed thirty (30) days to

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reply in writing to the accusation before any termination for "Cause". If the
Employee is terminated for "Cause," he shall receive only his salary and any
other amounts due to him from the Bank (whether pursuant to benefit plans or
otherwise) through the date of termination.

            4.3  Without Cause. The Bank may immediately terminate this
Agreement at any time "without Cause" by giving the Executive written notice of
the termination date. If this Agreement is terminated pursuant to this provision
the Executive shall be paid severance compensation in an amount equal to his
annual "Base Salary" (as defined in Section 3.1) then in effect which shall be
paid over a twelve (12)-month period in such installments and intervals as if
the Executive had remained employed, and (ii) any other amounts owing to the
Executive by the Bank under this Agreement at such termination date. If this
Agreement is terminated "without cause," the Bank will continue all insurance
benefits in effect at such termination for the Executive and his dependents with
the Bank paying the same amount of premiums on behalf of the Executive and his
dependents as when the Executive was employed for a period of twelve (12)
months from the termination date or until such time as the Executive is employed
by another employer (which shall exclude self-employment), whichever period of
time is shorter. Anything in this Agreement to the contrary notwithstanding,
upon a termination without cause pursuant to this paragraph 4.3, Executive's
sole rights and remedies against the Bank arising out of any such termination of
his employment hereunder are to receive the severance compensation and the other
amounts and benefits as are explicitly set forth in this paragraph 4.3.

         5.  CHANGE IN CONTROL OF THE BANK OR THE COMPANY. In the event of a
"Change in Control" of the Bank during the Term of Employment, as defined
herein, and if as a result of any such Change in Control Executive either (i) is
terminated, during the Term of Employment, (except "for cause" as defined in
Section 4.2 above) from his employment hereunder and before he reaches age 65 or
(ii) has a "Change in Duties or Salary" as defined below and resigns, during the
Term of Employment, as a result of such change, then Executive shall be entitled
to receive severance compensation in an amount equal to his Base Salary then in
effect which shall be paid in a lump sum within 14 days following the date of
termination or resignation.

            For purposes of this Section 5, "Change in Control" of the Bank or
the Company shall mean:

                  (i) any transaction, whether by merger, consolidation, asset
            sale, tender offer, reverse stock split or otherwise, which results
            in the acquisition of beneficial ownership (as such term is defined
            under rules and regulations promulgated under the Securities
            Exchange Act of 1934, as amended) by any person or entity or any
            group of persons or entities acting in concert, with the exception
            of the Bank's or Company's Board of Directors or the Company's
            shareholders, of 50% or more of the outstanding shares of common
            stock of the Bank or the Company;

                  (ii) the sale of all or substantially all of the assets of the
            Bank or the Company; or

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                  (iii)  the liquidation of the Bank or the Company.

             For purposes of this Agreement, "Change in Duties or Salary" of
Executive shall mean any of: (i) a change in duties and responsibilities of
Executive from those duties and responsibilities of Executive for the Bank in
effect at the time a Change in Control occurs, which change results in the
assignment of duties and responsibilities inferior to those duties and
responsibilities of Bank at the time such Change in Control occurs; (ii) a
reduction in rate of annual salary from such rate in effect at the time of
Change in Control; or (iii) a change in the place of assignment of Bank from
Duluth, Georgia, to any other city or geographical location that is located
further than 25 miles from the principal office of the Bank of Duluth, Georgia.

         6.  NONCOMPETE AND NON-SOLICITATION COVENANTS.

             6.1  Definitions. In this Agreement the following terms shall have
the meanings set forth below:

                  (a)  Affiliate shall be used to indicate a relationship to a
specified person, firm, corporation, partnership, association or entity, and
shall mean any person, firm, corporation, partnership, association or entity
that, directly or indirectly or through one or more intermediaries, controls, is
controlled by or is under common control with such person, firm, corporation,
partnership, association or entity.

                  (b)  Applicable Period shall mean twelve (12) months
following the effective date of the termination of this Agreement.

                  (c)  Area shall mean the geographic area within 10 miles of
the Bank's principal location in Duluth, Georgia.

                  (d)  Competing Business shall mean a federally insured
financial institution.

                  (e)  Proprietary Information shall mean information with
respect to the Bank or its Affiliates which (i) derives economic value, actual
or potential, from not being generally known to or readily ascertainable by any
persons (outside the Bank or its Affiliates) who can obtain economic value from
its disclosure or use, and (ii) is the subject of efforts by the Bank or it's
Affiliates that are reasonable under the circumstances to maintain its secrecy
or confidentiality. Assuming the foregoing criteria are met, Proprietary
Information includes, but is not limited to, technical or nontechnical data
related to compilations, programs, methods, techniques, processes, finances,
actual or potential customers and suppliers, existing and future products, and
employees of the Bank or its Affiliates, and all physical embodiments of the
foregoing. Proprietary Information also includes information disclosed to the
Bank or its Affiliates by a third party which the Bank or its Affiliates are
obliged to treat as confidential.

             6.2  Agreement Not to Compete. The Executive hereby agrees that
during his employment by the Bank, and for the Applicable Period thereafter, he
will not (except on behalf

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of, or with the prior written consent of, the Bank) for a Competing Business
located within the Area, either directly or indirectly, on his own behalf, or
in the service or on behalf of others, as a principal, partner, officer,
director, manager, supervisor, administrator, consultant, executive employee or
in any other capacity which involves the duties and responsibilities similar to
those undertaken for the Bank as described in Section 1, engage or participate
in, or control or own (other than ownership of less than five percent (5%) of
the outstanding voting securities of an entity whose voting securities are
traded on a national securities exchange or quoted on the National Association
of Securities Dealers, Inc. Automated Quotation System), a beneficial interest
in, any Competing Business.

            6.3  Agreement Not to Solicit Customers. The Executive agrees that
during his employment by the Bank and for the Applicable Period thereafter, he
will not, without the prior written consent of the Bank, either directly or
indirectly, on his own behalf or in the service or on behalf of others,
solicit, divert or appropriate, or attempt to solicit, divert or appropriate,
to any Competing Business any customer or client or actively sought prospective
customer or client of the Bank or any Affiliate located in the Area who was
serviced by or under the supervision of the Executive in the course of his
employment within the one (1) year period immediately prior to the termination
of the Executive's employment with the Bank.

            6.4  Agreement Not to Solicit Employees. The Executive agrees that
during his employment by the Bank and for the Applicable Period thereafter, he
will not, either directly or indirectly, on his own behalf or in the service or
on behalf of others, solicit, divert or hire away, or attempt to solicit, divert
or hire away, any person employed by the Bank or any of its Affiliates, whether
or not such employee is a full-time, a part-time or a temporary employee and
whether or not such employment is pursuant to a written agreement and whether or
not such employment is for a determined period or is at will.

         7.  OWNERSHIP AND PROTECTION OF PROPRIETARY INFORMATION.

             7.1  Confidentiality. All Proprietary Information and all physical
embodiments thereof received or developed by the Executive while employed by
the Bank are confidential to and are and will remain the sole and exclusive
property of the Bank. Except to the extent necessary to perform the duties
assigned to him by the Bank, the Executive will hold such Proprietary
Information in trust and strictest confidence, and will not use, reproduce,
distribute, disclose or otherwise disseminate the Proprietary Information or
any physical embodiments thereof and may in no event take any action causing or
fail to take the action necessary in order to prevent, any Proprietary
Information disclosed to or developed by the Executive to lose its character or
cease to qualify as Proprietary Information.

             7.2  Return of Property. Upon request by the Bank, and in any
event upon termination of the employment of the Executive with the Bank for any
reason, the Executive will promptly deliver to the Bank all property belonging
to the Bank, including, without limitation, all Proprietary Information (and
all physical embodiments thereof) then in his custody, control or possession.

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              7.3  Termination. The Executive shall maintain and observe the
obligations of confidentiality contained in this Agreement with respect to
Proprietary Information during the term of his employment with the Bank and at
all times following the termination of such employment for any reason
whatsoever.

          8.  INJUNCTIVE RELIEF. The Executive agrees that the covenants and
agreements contained in Sections 6 and 7 of this Agreement, and the subsections
of these Sections, are of the essence of this Agreement; that each of such
covenants is reasonable and necessary to protect and preserve the interests and
properties of the Bank and the business of the Bank; that the Bank is engaged in
and throughout the Area in the business of the Bank; that irreparable loss and
damage will be suffered by the Bank should the Executive breach any of such
covenants and agreements; and that, in addition to other remedies available to
it, the Bank shall be entitled to both temporary and permanent injunctions to
prevent a breach or contemplated breach by the Executive of any of such
covenants or agreements.

          9.  ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties hereto regarding employment of Executive, and supersedes
and replaces any prior agreement between the parties.

         10.  ASSIGNMENT. Neither of the parties hereto may assign this
Agreement without the prior written consent of the other party hereto.

         11.  SEVERABILITY. Each section and subsection of this Agreement
constitutes a separate and distinct understanding, covenant and
provision hereof. In the event that any provision of this Agreement shall
finally be determined to be unlawful, such provision shall be deemed to be
severed from this Agreement, but every other provision of this Agreement shall
remain in full force and effect.

         12.  GOVERNING LAW. This Agreement shall in all respects be
interpreted, construed and governed by and in accordance with the laws of the
State of Georgia.

         13.  RIGHTS OF THIRD PARTIES. Nothing herein expressed or implied is
intended to or shall be construed to confer upon or give to any person, firm or
other entity, other than the parties hereto and their permitted assigns, any
rights or remedies under or by reason of this Agreement.

         14.  AMENDMENT. This Agreement may not be amended orally but only by an
instrument in writing duly executed by the parties hereto.

         15.  NOTICES. Any notice or other document or communication permitted
or required to be given to Executive pursuant to the terms hereof shall be
deemed given if personally delivered to Executive or sent to him postage
prepaid, by registered or certified mail, at 5717 Fairly Hall Court, Norcross,
Georgia 30092, or at any such other address as Executive shall have notified the
Bank in writing. Any notice or other document or other communication permitted
or required to be given to the Bank pursuant to the terms hereof shall be deemed
given

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if personally delivered or sent to the Bank, postage prepaid, by registered or
certified mail, at 9570 Medlock Bridge Road, Duluth, Georgia 30096, or at such
other address as the Bank shall have notified Executive in writing.

         16.  WAIVER. The waiver by either party hereto of a breach of any
provision of this Agreement by the other shall not operate or be construed as a
waiver of any subsequent breach of the same or any other provision of this
Agreement by the breaching party.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered as of the day and year first above written.

                                       THE PEACHTREE BANK

           [BANK SEAL]

                                       By: /s/ John Howard
                                           -------------------------------------
                                           Chairman of the Board of Directors

Attest:

/s/ Kelly Johnson
    ----------------------------------
    Secretary

                                       EXECUTIVE

                                       By: /s/ Monty G. Watson           (SEAL)
                                           ------------------------------------
                                           Monty G. Watson

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                                                                    EXHIBIT 10.2

                      THE PB FINANCIAL SERVICES CORPORATION
                   1998 OUTSIDE DIRECTOR STOCK INCENTIVE PLAN

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                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                               PAGE

<S>     <C>                                                                                                    <C>
SECTION 1  DEFINITIONS............................................................................................1
   1.1   DEFINITIONS..............................................................................................1

SECTION 2  GENERAL PROVISIONS.....................................................................................2
   2.1   THE PURPOSE OF THE PLAN..................................................................................2
   2.2   STOCK SUBJECT TO THE PLAN................................................................................2
   2.3   ADMINISTRATION OF THE PLAN...............................................................................2
   2.4   ELIGIBILITY..............................................................................................2

SECTION 3  OPTION AWARDS..........................................................................................2
   3.1   GENERAL..................................................................................................2
   3.2   OPTION AWARDS............................................................................................2
   3.3   EXERCISE AND PAYMENT OF OPTION AWARDS....................................................................2
   3.4   NON-TRANSFERABILITY......................................................................................3

SECTION 4  MISCELLANEOUS PROVISIONS...............................................................................3
   4.1   CHANGES IN CAPITALIZATION; MERGER; LIQUIDATION...........................................................3
   4.2   RIGHT TO REMOVE DIRECTOR.................................................................................3
   4.3   RESTRICTIONS ON DELIVERY AND SALE OF SHARES; LEGENDS.....................................................3
   4.4   NON-ALIENATION OF BENEFITS...............................................................................4
   4.5   TERMINATION AND AMENDMENT OF THE PLAN....................................................................4
   4.6   CHOICE OF LAW............................................................................................4
   4.7   EFFECTIVE DATE OF PLAN...................................................................................4
</TABLE>

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                      THE PB FINANCIAL SERVICES CORPORATION
                   1998 OUTSIDE DIRECTOR STOCK INCENTIVE PLAN

                              SECTION 1 DEFINITIONS

         1.1 Definitions. Whenever used herein, the masculine pronoun shall be
deemed to include the feminine, and the singular to include the plural, unless
the context clearly indicates otherwise, and the following capitalized words and
phrases are used herein with the meaning thereafter ascribed:

                  (a)      "Board of Directors" means the board of directors of
the Company.

                  (b)      "Code" means the Internal Revenue Code of 1986, as
amended.

                  (c)      "Committee" means a committee of the Board of
Directors or, in lieu of the designation of any such committee, the Board of
Directors.

                  (d) "Company" means The PB Financial Services Corporation, a
Georgia corporation.

                  (e)      "Director" means a member of the Board of Directors.

                  (f)      "Disability" means that condition described in Code
Section 22(e)(3), as amended from time to time. In the event of a dispute, the
determination of Disability shall be made by the Board of Directors and shall be
supported by advice of a physician competent in the area to which such
Disability relates.

                  (g)      "Eligible Director" means a Director who is not an
Employee.

                  (h)      "Employee" means any person who is employed by the
Company or an affiliate for purposes of the Federal Insurance Contributions Act.

                  (i)      "Fair Market Value" refers to the determination of
the value of a share of Stock. If the Stock is actively traded on any national
securities exchange or any Nasdaq quotation or market system, Fair Market Value
shall mean the closing price at which shares of Stock shall have been sold on
the most recent trading date immediately prior to the date of determination, as
reported by any such exchange or system selected by the Committee on which the
shares of Stock are then traded. If the shares of Stock are not actively traded
on any such exchange or system, Fair Market Value shall mean the arithmetic mean
of the bid and asked prices for the shares of Stock on the most recent trading
date or dates within a reasonable period prior to the determination date as
reported by such exchange or system. If there are no bid and asked prices within
a reasonable period or if the shares of Stock are not traded on any exchange or
system as of the determination date, Fair Market Value shall mean the fair
market value of a share of Stock as determined by the Committee taking into
account such facts and circumstances deemed to be material by the Committee to
the value of the Stock in the hands of the Eligible Director.

                  (j)      "Option" means a non-qualified stock option granted
under the Plan to buy shares of Stock as set forth in Plan Section 3.

                  (k)      "Option Exercise Price" refers to the per share
purchase price for Stock subject to each Option granted under Section 3 and that
per share purchase price shall be one hundred percent (100%) of the Fair Market
Value of the Stock as of the date the Option is granted.

<PAGE>   4

                  (l)      "Plan" means The PB Financial Services Corporation
1998 Outside Director Stock Incentive Plan.

                  (m)      "Stock" means the Company's common stock, $5.00 par\
value.

                  (n)      "Stock Option Agreement" means an agreement between
the Company and an Eligible Director or other documentation evidencing an award
of an Option.

                          SECTION 2 GENERAL PROVISIONS

         2.1      The Purpose of the Plan. The Plan is intended to provide
incentive to Eligible Directors to stimulate their efforts toward the success of
the Company and to manage the business of the Company in a manner that will
provide for the long-term growth and profitability of the Company. Accordingly,
the Plan is intended to promote a close identity of interests among the Company,
Eligible Directors and its stockholders, as well as to provide a means to retain
well-qualified directors.

         2.2      Stock Subject to the Plan. Subject to adjustment in accordance
with Section 4.1, 157,612 shares of Stock (the "Maximum Plan Shares") are hereby
reserved exclusively for issuance pursuant to Options. At no time shall the
aggregate of (a) shares of Stock issuable pursuant to outstanding Options; and
(b) shares of Stock issued pursuant to Options exceed the Maximum Plan Shares.
If an Option expires or terminates for any reason without being exercised in
full, the unpurchased shares subject to such Option shall again be available for
purposes of the Plan.

         2.3      Administration of the Plan. The Plan shall be administered by
the Committee. Subject to the provisions of the Plan, the Committee shall have
full and conclusive authority to interpret the Plan; to prescribe, amend and
rescind rules and regulations relating to the Plan; to determine the terms and
provisions of the respective Stock Option Agreements consistent with the
provisions of the Plan and to make all other determinations necessary or
advisable for the proper administration of the Plan. The Committee's decisions
shall be final and binding on all Eligible Directors.

         2.4      Eligibility. Only Eligible Directors are eligible to receive
awards pursuant to Section 3.2.

                            SECTION 3 OPTION AWARDS

         3.1      General. Each Option contemplated by this Section 3 shall be
evidenced by a Stock Option Agreement which shall incorporate the applicable
terms of the Plan. The terms of each Stock Option Agreement shall provide: (a)
that the per share purchase price for each share of Stock subject to the Option
shall be the Option Exercise Price; and (b) that the Option shall expire upon
the earlier of the tenth (10th) anniversary following the date of grant or sixty
(60) days from the date the Director ceases to serve upon the Board of Directors
and the board of directors of any affiliate for any reason.

         3.2      Option Awards. Each Eligible Director shall be granted an
Option to purchase shares of Stock at such time and upon such terms as
determined by the Board of Directors in its sole discretion.

         3.3      Exercise and Payment of Option Awards. All Options may be
exercised to the extent vested. All Options may be exercised only by written
notice to the Company. Payment for all shares of Stock purchased pursuant to
exercise of an Option shall be made (a) in cash; (b) by delivery to the Company
of a number of shares of Stock which have been beneficially owned by the
Eligible Director for at least six (6) months prior to the date of exercise
having an aggregate Fair Market Value of not less than the product of the
exercise price multiplied by the number of shares the Eligible Director intends
to purchase upon exercise of the Option on the date of delivery; or (c) to the
extent available, in a cashless exercise through a broker. Payment shall be made
at the time that the Option or any part thereof is

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<PAGE>   5

exercised, and no shares shall be issued or delivered upon exercise of an Option
until full payment has been made by the Eligible Director. The holder of an
Option, as such, shall have none of the rights of a stockholder.

         3.4      Non-Transferability. An Option shall not be transferable or
assignable except by will or by the laws of descent and distribution and shall
be exercisable, during the Eligible Director's lifetime, only by the Eligible
Director, or in the event of the Eligible Director's Disability, by his or her
legal representative.

                       SECTION 4 MISCELLANEOUS PROVISIONS

         4.1      Changes in Capitalization; Merger; Liquidation

                  (a)      The number of shares of Stock reserved with respect
to Options that may be granted under the Plan, the number of shares of Stock
reserved for issuance upon the exercise of each outstanding Option, and the
exercise price of each outstanding Option shall be proportionately adjusted for
any increase or decrease in the number of issued shares of Stock resulting from
a subdivision or combination of shares or the payment of an ordinary stock
dividend in shares of Stock to holders of outstanding shares of Stock or any
other increase or decrease in the number of shares of Stock outstanding effected
without receipt of consideration by the Company.

                  (b)      If the Company shall be the surviving corporation in
any merger or consolidation, extraordinary dividend (including a spin-off),
reorganization or other change in the corporate structure of the Company or its
Stock, an appropriate adjustment shall be made in each Stock Option Agreement
such that the Eligible Director shall be entitled to purchase or receive the
number and class of securities to which a holder of the number of shares of
Stock subject to the Stock Option Agreement at the time of such transaction
would have been entitled to receive as a result of such transaction, and a
corresponding adjustment shall be made in the exercise price of each outstanding
Option. A dissolution or liquidation of the Company shall cause Options to
terminate as to any portion thereof not exercised as of the effective date of
the dissolution or liquidation. In the event of a sale of substantially all the
Stock or property of the Company or the merger or consolidation of the Company
into another corporation where the survivor does not agree to the assumption of
the Options, each Option shall be terminated in consideration of the payment to
the Eligible Directors of the difference between the then Fair Market Value of
the Stock subject to the unexercised portion of the Option and the aggregate
Option Exercise Price.

                  (c)      The existence of the Plan and the Options granted
pursuant to the Plan shall not affect in any way the right or power of the
Company to make or authorize any adjustment, reclassification, reorganization or
other change in its capital or business structure, any merger or consolidation
of the Company, any issue of debt or equity securities having preferences or
priorities as to the Stock or the rights thereof, the dissolution or liquidation
of the Company, any sale or transfer of all or any part of its business or
assets, or any other corporate act or proceeding.

         4.2      Right to Remove Director. Nothing in the Plan or in any
Stock Option Agreement shall confer upon any Eligible Director the right to
continue as a member of the Board of Directors or affect the right of the
Company or any affiliate to terminate an Eligible Director's directorship at any
time.

         4.3      Restrictions on Delivery and Sale of Shares; Legends. Each
Option is subject to the condition that if at any time the Committee, in its
discretion, shall determine that the listing, registration or qualification of
the shares of Stock covered by such Option upon any securities exchange or under
any state or federal law is necessary or desirable as a condition of or in
connection with the granting of such Option or the purchase or delivery of
shares of Stock thereunder, the delivery of any or all shares pursuant to such

                                      -3-

<PAGE>   6

Option may be withheld unless and until such listing, registration or
qualification shall have been effected. If a registration statement is not in
effect under the Securities Act of 1933 or any applicable state securities laws
with respect to the shares of Stock purchasable or otherwise deliverable under
Options then outstanding, the Eligible Director shall, as a condition of
exercise of any Option or as a condition to any other delivery of Stock pursuant
to an Option, represent, in writing, that the shares received pursuant to the
Option are being acquired for investment and not with a view to distribution and
agree that the shares will not be disposed of except pursuant to an effective
registration statement, unless the Company shall have received an opinion of
counsel satisfactory to the Company that such disposition is exempt from such
requirement under the Securities Act of 1933 and any applicable state securities
laws. The Company may include on certificates representing shares of Stock
delivered pursuant to an Option such legends referring to the foregoing
representations or restrictions or any other applicable restrictions on resale
as the Company, in its discretion, shall deem appropriate.

         4.4      Non-alienation of Benefits Other than as specifically provided
with regard to the death of an Eligible Director, no benefit under the Plan
shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or charge; and any attempt to do so shall be
void. No such benefit shall, prior to receipt by the Eligible Director, be in
any manner liable for or subject to the debts, contracts, liabilities,
engagements or torts of the Eligible Director.

         4.5      Termination and Amendment of the Plan. The Board of Directors
at any time may amend or terminate the Plan without stockholder approval;
provided, however, that the Board of Directors may condition any amendment on
the approval of stockholders of the Company if such approval is necessary or
advisable with respect to tax, securities or other applicable laws. No
termination, modification or amendment of the Plan, without the consent of an
Eligible Director who has been awarded an Option shall adversely affect the
rights of that Eligible Director under such Option.

         4.6      Choice of Law. The laws of the State of Georgia shall govern
the Plan, to the extent not preempted by federal law.

         4.7      Effective Date of Plan. The Plan shall become effective as of
December 14, 1998.

         IN WITNESS WHEREOF, the Company has caused this Plan to be executed as
of December 14, 1998.

                             THE PB FINANCIAL SERVICES CORPORATION

                                   By:
                                      ----------------------------------------

                                   Print Name:
                                              --------------------------------
[CORPORATE SEAL]
                                   Title:
                                         --------------------------------------

ATTEST:

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

Print Name:
           ----------------------
Secretary

                                      -4-

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