<PAGE>   1





                                                                 EXHIBIT 10.7





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                     BEACH FIRST NATIONAL BANCSHARES, INC.

                             1997 STOCK OPTION PLAN





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                     BEACH FIRST NATIONAL BANCSHARES, INC.
                             1997 STOCK OPTION PLAN

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
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ARTICLE I

DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1

ARTICLE II

THE PLAN  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5

         2.1     Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5
         2.2     Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5
         2.3     Effective Date.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5

ARTICLE III

PARTICIPANTS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5

ARTICLE IV

ADMINISTRATION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5

         4.1     Duties and Powers of the Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5
         4.2     Interpretation; Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6
         4.3     No Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6
         4.4     Majority Rule  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6
         4.5     Company Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6

ARTICLE V

SHARES OF STOCK SUBJECT TO PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6

         5.1     Limitations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   6
         5.2     Antidilution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   7

ARTICLE VI

OPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8

         6.1     Types of Options Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8
         6.2     Option Grant and Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   8
</TABLE>





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<TABLE>
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         6.3     Optionee Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9
         6.4     $100,000 Limitation  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9
         6.5     Exercise Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9
         6.6     Exercise Period  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10
         6.7     Option Exercise  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10
         6.8     Reload Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
         6.9     Nontransferability of Option.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
         6.10    Termination of Employment or Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
         6.11    Employment Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
         6.12    Certain Successor Options  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
         6.13    Effect of Change in Control  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12

ARTICLE VII

RESTRICTED STOCK  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12

         7.1     Awards of Restricted Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
         7.2     Non-Transferability  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
         7.3     Lapse of Restrictions  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
         7.4     Termination of Employment  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
         7.5     Treatment of Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
         7.6     Delivery of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13

ARTICLE VIII

STOCK APPRECIATION RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13

         8.1     SAR Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
         8.2     Determination of Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
         8.3     Exercise of a SAR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
         8.4     Payment for a SAR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
         8.5     Status of a SAR under the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
         8.6     Termination of SARs  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
         8.7     No Shareholder Rights  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15

ARTICLE IX

STOCK CERTIFICATES  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15

ARTICLE X

TERMINATION AND AMENDMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16

         10.1    Termination and Amendment  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
         10.2    Effect on Grantee's Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
</TABLE>




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<TABLE>
<S>                                                                                                                   <C>
ARTICLE XI

RELATIONSHIP TO OTHER COMPENSATION PLANS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16

ARTICLE XII

MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16

         12.1    Replacement or Amended Grants  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
         12.2    Forfeiture for Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
         12.3    Plan Binding on Successors.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
         12.4    Singular, Plural; Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
         12.5    Headings, etc., No Part of Plan  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17
         12.6    Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17

Exhibit A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   i

SCHEDULE A  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  vi

SCHEDULE B  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
</TABLE>




                                     iii
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                     BEACH FIRST NATIONAL BANCSHARES, INC.
                             1997 STOCK OPTION PLAN

                                   ARTICLE I
                                  DEFINITIONS

         As used herein, the following terms have the following meanings unless
the context clearly indicates to the contrary:

                 "Award" shall mean a grant of Restricted Stock or an SAR.

                 "Board" shall mean the Board of Directors of the Company.

                 "Cause" shall mean theft or destruction of property of the
                 Company, a Parent, or a Subsidiary, disregard of Company rules
                 or policies, or conduct evincing willful or wanton disregard
                 of the interests of the Company.  Such determination shall be
                 made by the Committee based on information presented by the
                 Company and the Employee and shall be final and binding on all
                 parties hereto.

                 "Change in Control" shall mean the occurrence of either of the
                 following events:

                 (i)      A change in the composition of the Board of Directors
                          as a result of which fewer than one-half of the
                          incumbent directors are directors who either:

                          (A)     Had been directors of the Company 24 months
                                  prior to such change; or

                          (B)     Were elected, or nominated for election, to
                                  the Board of Directors with the affirmative
                                  votes of at least a majority of the directors
                                  who had been directors of the Company 24
                                  months prior to such change and who were
                                  still in office at the time of the election
                                  or nomination; or

                 (ii)     Any "person" (as such term is used in sections 13(d)
                          and 14(d) of the Exchange Act), other than any person
                          who is a shareholder of the Company on or before the
                          effective date of the Plan, by the acquisition or
                          aggregation of securities is or becomes the
                          beneficial owner, directly or indirectly, of
                          securities of the Company representing 50 percent or
                          more of the combined voting power of the Company's
                          then outstanding securities ordinarily (and apart
                          from rights accruing under special circumstances)
                          having the right to vote at elections of directors
                          (the "Base Capital Stock"); except that any change in
                          the relative beneficial ownership of the Company's
                          securities by any person resulting solely from a
                          reduction in the aggregate number of outstanding
                          shares of Base Capital





<PAGE>   7

                          Stock, and any decrease thereafter in such person's
                          ownership of securities, shall be disregarded until
                          such person increases in any manner, directly or
                          indirectly, such person's beneficial ownership of any
                          securities of the Company.

                 "Code" shall mean the United States Internal Revenue Code of
                 1986, including effective date and transition rules (whether
                 or not codified).  Any reference herein to a specific section
                 of the Code shall be deemed to include a reference to any
                 corresponding provision of future law.

                 "Committee" shall mean a committee of at least two Directors
                 appointed from time to time by the Board, having the duties
                 and authority set forth herein in addition to any other
                 authority granted by the Board; provided, however, that with
                 respect to any Options or Awards granted to an individual who
                 is also a Section 16 Insider, the Committee shall consist of
                 either the entire Board of Directors or a committee of at
                 least two Directors (who need not be members of the Committee
                 with respect to Options or Awards granted to any other
                 individuals) who are Non-Employee Directors, and all authority
                 and discretion shall be exercised by such Non-Employee
                 Directors, and references herein to the "Committee" shall mean
                 such Non-Employee Directors insofar as any actions or
                 determinations of the Committee shall relate to or affect
                 Options or Awards made to or held by any Section 16 Insider.
                 At any time that the Board shall not have appointed a
                 committee as described above, any reference herein to the
                 Committee shall mean a reference to the Board.

                 "Company" shall mean Beach First National Bancshares, Inc., a
                 South Carolina corporation.

                 "Director" shall mean a member of the Board and any person who
                 is an advisory or honorary director of the Company if such
                 person is considered a director for the purposes of Section 16
                 of the Exchange Act, as determined by reference to such
                 Section 16 and to the rules, regulations, judicial decisions,
                 and interpretative or "no-action" positions with respect
                 thereto of the Securities and Exchange Commission, as the same
                 may be in effect or set forth from time to time.

                 "Employee" shall mean an employee of the Employer.

                 "Employer" shall mean the corporation that employs a Grantee.

                 "Exchange Act" shall mean the Securities Exchange Act of 1934.
                 Any reference herein to a specific section of the Exchange Act
                 shall be deemed to include a reference to any corresponding
                 provision of future law.

                 "Exercise Price" shall mean the price at which an Optionee may
                 purchase a share of Stock under a Stock Option Agreement.




                                      2
<PAGE>   8

                 "Fair Market Value" on any date shall mean (i) the closing
                 sales price of the Stock, regular way, on such date on the
                 national securities exchange having the greatest volume of
                 trading in the Stock during the thirty-day period preceding
                 the day the value is to be determined or, if such exchange was
                 not open for trading on such date, the next preceding date on
                 which it was open; (ii) if the Stock is not traded on any
                 national securities exchange, the average of the closing high
                 bid and low asked prices of the Stock on the over-the-counter
                 market on the day such value is to be determined, or in the
                 absence of closing bids on such day, the closing bids on the
                 next preceding day on which there were bids; or (iii) if the
                 Stock also is not traded on the over-the-counter market, the
                 fair market value as determined in good faith by the Board or
                 the Committee based on such relevant facts as may be available
                 to the Board, which may include opinions of independent
                 experts, the price at which recent sales have been made, the
                 book value of the Stock, and the Company's current and future
                 earnings.

                 "Grantee" shall mean a person who is an Optionee or a person
                 who has received an Award of Restricted Stock or an SAR.

                 "Incentive Stock Option" shall mean an option to purchase any
                 stock of the Company, which complies with and is subject to
                 the terms, limitations and conditions of Section 422 of the
                 Code and any regulations promulgated with respect thereto.

                 "Non-Employee Director" shall have the meaning set forth in
                 Rule 16b-3 under the Exchange Act, as the same may be in
                 effect from time to time, or in any successor rule thereto,
                 and shall be determined for all purposes under the Plan
                 according to interpretative or "no-action" positions with
                 respect thereto issued by the Securities and Exchange
                 Commission.

                 "Officer" shall mean a person who constitutes an officer of
                 the Company for the purposes of Section 16 of the Exchange
                 Act, as determined by reference to such Section 16 and to the
                 rules, regulations, judicial decisions, and interpretative or
                 "no-action" positions with respect thereto of the Securities
                 and Exchange Commission, as the same may be in effect or set
                 forth from time to time.

                 "Option" shall mean an option, whether or not an Incentive
                 Stock Option, to purchase Stock granted pursuant to the
                 provisions of Article VI hereof.

                 "Optionee" shall mean a person to whom an Option has been
                 granted hereunder.

                 "Parent"  shall mean any corporation (other than the Employer)
                 in an unbroken chain of corporations ending with the Employer
                 if, at the time of the grant (or modification) of the Option,
                 each of the corporations other than the Employer owns stock
                 possessing 50 percent or more of the total combined voting
                 power of the classes of stock in one of the other corporations
                 in such chain.




                                      3
<PAGE>   9

                 "Permanent and Total Disability" shall have the same meaning
                 as given to that term by Code Section 22(e)(3) and any
                 regulations or rulings promulgated thereunder.

                 "Plan" shall mean the Beach First National Bancshares, Inc.
                 1997 Stock Option Plan, the terms of which are set forth
                 herein.

                 "Purchasable" shall refer to Stock which may be purchased by
                 an Optionee under the terms of this Plan on or after a certain
                 date specified in the applicable Stock Option Agreement.

                 "Qualified Domestic Relations Order" shall have the meaning
                 set forth in the Code or in the Employee Retirement Income
                 Security Act of 1974, or the rules and regulations promulgated
                 under the Code or such Act.

                 "Reload Option" shall have the meaning set forth in
                 Section 6.8 hereof.

                 "Restricted Stock" shall mean Stock issued, subject to
                 restrictions, to a Grantee pursuant to Article VII hereof.

                 "Restriction Agreement" shall mean the agreement setting forth
                 the terms of an Award, and executed by a Grantee as provided
                 in Section 7.1 hereof.

                 "SAR" means a stock appreciation right, which is the right to
                 receive an amount equal to the appreciation, if any, in the
                 Fair Market Value of a share of Stock from the date of the
                 grant of the right to the date of its payment, all as provided
                 in Article VIII hereof.

                 "SAR Price" means the base value established by the Committee
                 for a SAR on the date the SAR is granted and which is used in
                 determining the amount of benefit, if any, paid to a Grantee.

                 "Section 16 Insider" shall mean any person who is subject to
                 the provisions of Section 16 of the Exchange Act, as provided
                 in Rule 16a-2 promulgated pursuant to the Exchange Act.

                 "Stock" shall mean the Common Stock, par value $1.00 per
                 share, of the Company or, in the event that the outstanding
                 shares of Stock are hereafter changed into or exchanged for
                 shares of a different stock or securities of the Company or
                 some other entity, such other stock or securities.

                 "Stock Option Agreement" shall mean an agreement between the
                 Company and an Optionee under which the Optionee may purchase
                 Stock hereunder, a sample form of which is attached hereto as
                 Exhibit A (which form may be varied by the Committee in
                 granting an Option).




                                      4
<PAGE>   10

                 "Subsidiary" shall mean any corporation (other than the
                 Employer) in an unbroken chain of corporations beginning with
                 the Employer if, at the time of the grant (or modification) of
                 the Option, each of the corporations other than the last
                 corporation in the unbroken chain owns stock possessing 50
                 percent or more of the total combined voting power of all
                 classes of stock in one of the other corporations in such
                 chain.


                                   ARTICLE II
                                    THE PLAN

         2.1     Name.  This Plan shall be known as "Beach First National
Bancshares, Inc. 1997 Stock Option Plan."

         2.2     Purpose.  The purpose of the Plan is to advance the interests
of the Company, its Subsidiaries and its shareholders by affording certain
employees and Directors of the Company and its Subsidiaries, as well as key
consultants and advisors to the Company or any Subsidiary, an opportunity to
acquire or increase their proprietary interests in the Company.  The objective
of the issuance of the Options and Awards is to promote the growth and
profitability of the Company and its Subsidiaries because the Grantees will be
provided with an additional incentive to achieve the Company's objectives
through participation in its success and growth and by encouraging their
continued association with or service to the Company.

         2.3     Effective Date.  The Plan shall become effective on April 30,
1997; provided, however, that if the shareholders of the Company have not
approved the Plan on or prior to the first anniversary of such effective date,
then all options granted under the Plan shall be non-Incentive Stock Options.


                                  ARTICLE III
                                  PARTICIPANTS

         The class of persons eligible to participate in the Plan shall consist
of all persons whose participation in the Plan the Committee determines to be
in the best interests of the Company which shall include, but not be limited
to, all Directors and employees, including but not limited to executive
personnel, of the Company or any Subsidiary, as well as key consultants and
advisors to the Company or any Subsidiary.


                                   ARTICLE IV
                                 ADMINISTRATION

         4.1     Duties and Powers of the Committee.  The Plan shall be
administered by the Committee.  The Committee shall select one of its members
as its Chairman and shall hold its meetings at such times and places as it may
determine.  The Committee shall keep minutes of its meetings and shall make
such rules and regulations for the conduct of its business as it may




                                      5
<PAGE>   11

deem necessary.  The Committee shall have the power to act by unanimous written
consent in lieu of a meeting, and to meet telephonically.  In administering the
Plan, the Committee's actions and determinations shall be binding on all
interested parties.  The Committee shall have the power to grant Options or
Awards in accordance with the provisions of the Plan and may grant Options and
Awards singly, in combination, or in tandem.  Subject to the provisions of the
Plan, the Committee shall have the discretion and authority to determine those
individuals to whom Options or Awards will be granted and whether such Options
shall be accompanied by the right to receive Reload Options, the number of
shares of Stock subject to each Option or Award, such other matters as are
specified herein, and any other terms and conditions of a Stock Option
Agreement or Restriction Agreement.  The Committee shall also have the
discretion and authority to delegate to any Officer its powers to grant Options
or Awards under the Plan to any person who is an employee of the Company but
not an Officer or Director. To the extent not inconsistent with the provisions
of the Plan, the Committee may give a Grantee an election to surrender an
Option or Award in exchange for the grant of a new Option or Award, and shall
have the authority to amend or modify an outstanding Stock Option Agreement or
Restriction Agreement, or to waive any provision thereof, provided that the
Grantee consents to such action.

         4.2     Interpretation; Rules.  Subject to the express provisions of
the Plan, the Committee also shall have complete authority to interpret the
Plan, to prescribe, amend, and rescind rules and regulations relating to it, to
determine the details and provisions of each Stock Option Agreement, and to
make all other determinations necessary or advisable for the administration of
the Plan, including, without limitation, the amending or altering of the Plan
and any Options or Awards granted hereunder as may be required to comply with
or to conform to any federal, state, or local laws or regulations.

         4.3     No Liability.  Neither any member of the Board nor any member
of the Committee shall be liable to any person for any act or determination
made in good faith with respect to the Plan or any Option or Award granted
hereunder.

         4.4     Majority Rule.  A majority of the members of the Committee
shall constitute a quorum, and any action taken by a majority at a meeting at
which a quorum is present, or any action taken without a meeting evidenced by a
writing executed by all the members of the Committee, shall constitute the
action of the Committee.

         4.5     Company Assistance.  The Company shall supply full and timely
information to the Committee on all matters relating to eligible persons, their
employment, death, retirement, disability, or other termination of employment,
and such other pertinent facts as the Committee may require.  The Company shall
furnish the Committee with such clerical and other assistance as is necessary
in the performance of its duties.


                                   ARTICLE V
                        SHARES OF STOCK SUBJECT TO PLAN

         5.1     Limitations.  Subject to any antidilution adjustment pursuant
to the provisions of Section 5.2 hereof, the maximum number of shares of Stock
that may be issued hereunder shall




                                      6
<PAGE>   12

be 110,000.  Any or all shares of Stock subject to the Plan may be issued in
any combination of Incentive Stock Options, non-Incentive Stock Options,
Restricted Stock, or SARs, and the amount of Stock subject to the Plan may be
increased from time to time in accordance with Article X, provided that the
total number of shares of Stock issuable pursuant to Incentive Stock Options
may not be increased to more than 110,000 (other than pursuant to anti-dilution
adjustments) without shareholder approval.  Shares subject to an Option or
issued as an Award may be either authorized and unissued shares or shares
issued and later acquired by the Company.  The shares covered by any
unexercised portion of an Option that has terminated for any reason (except as
set forth in the following paragraph), or any forfeited portion of an Award,
may again be optioned or awarded under the Plan, and such shares shall not be
considered as having been optioned or issued in computing the number of shares
of Stock remaining available for option or award hereunder.

         If Options are issued in respect of options to acquire stock of any
entity acquired, by merger or otherwise, by the Company (or any Subsidiary of
the Company), to the extent that such issuance shall not be inconsistent with
the terms, limitations and conditions of Code section 422 or Rule 16b-3 under
the Exchange Act, the aggregate number of shares of Stock for which Options may
be granted hereunder shall automatically be increased by the number of shares
subject to the Options so issued; provided, however, that the aggregate number
of shares of Stock for which Options may be granted hereunder shall
automatically be decreased by the number of shares covered by any unexercised
portion of an Option so issued that has terminated for any reason, and the
shares subject to any such unexercised portion may not be optioned to any other
person.

         5.2     Antidilution.

                 (a)      If (x) the outstanding shares of Stock are changed
into or exchanged for a different number or kind of shares or other securities
of the Company by reason of merger, consolidation, reorganization,
recapitalization, reclassification, combination or exchange of shares, or stock
split or stock dividend, (y) any spin-off, spin-out or other distribution of
assets materially affects the price of the Company's stock, or (z) there is any
assumption and conversion to the Plan by the Company of an acquired company's
outstanding option grants, then:

                          (i)  the aggregate number and kind of shares of Stock
                 for which Options or Awards may be granted hereunder shall be
                 adjusted proportionately by the Committee; and

                          (ii)  the rights of Optionees (concerning the number
                 of shares subject to Options and the Exercise Price) under
                 outstanding Options and the rights of the holders of Awards
                 (concerning the terms and conditions of the lapse of any
                 then-remaining restrictions), shall be adjusted
                 proportionately by the Committee.

                 (b)      If the Company shall be a party to any reorganization
in which it does not survive, involving merger, consolidation, or acquisition
of the stock or substantially all the assets of the Company, the Committee, in
its discretion, may:




                                      7
<PAGE>   13


                          (i)  notwithstanding other provisions hereof, declare
                 that all Options granted under the Plan shall become
                 exercisable immediately notwithstanding the provisions of the
                 respective Stock Option Agreements regarding exercisability,
                 that all such Options shall terminate 30 days after the
                 Committee gives written notice of the immediate right to
                 exercise all such Options and of the decision to terminate all
                 Options not exercised within such 30-day period, and that all
                 then-remaining restrictions pertaining to Awards under the
                 Plan shall immediately lapse; and/or

                          (ii) notify all Grantees that all Options or Awards
                 granted under the Plan shall be assumed by the successor
                 corporation or substituted on an equitable basis with options
                 or restricted stock issued by such successor corporation.

                 (c)      If the Company is to be liquidated or dissolved in
connection with a reorganization described in Section 5.2(b), the provisions of
such Section shall apply.  In all other instances, the adoption of a plan of
dissolution or liquidation of the Company shall, notwithstanding other
provisions hereof, cause all then-remaining restrictions pertaining to Awards
under the Plan to lapse, and shall cause every Option outstanding under the
Plan to terminate to the extent not exercised prior to the adoption of the plan
of dissolution or liquidation by the shareholders, provided that,
notwithstanding other provisions hereof, the Committee may declare all Options
granted under the Plan to be exercisable at any time on or before the fifth
business day following such adoption notwithstanding the provisions of the
respective Stock Option Agreements regarding exercisability.

                 (d)      The adjustments described in paragraphs (a) through
(c) of this Section 5.2, and the manner of their application, shall be
determined solely by the Committee, and any such adjustment may provide for the
elimination of fractional share interests; provided, however, that any
adjustment made by the Board or the Committee shall be made in a manner that
will not cause an Incentive Stock Option to be other than an Incentive Stock
Option under applicable statutory and regulatory provisions.  The adjustments
required under this Article V shall apply to any successors of the Company and
shall be made regardless of the number or type of successive events requiring
such adjustments.


                                   ARTICLE VI
                                    OPTIONS

         6.1     Types of Options Granted.  The Committee may, under this Plan,
grant either Incentive Stock Options or Options which do not qualify as
Incentive Stock Options.  Within the limitations provided in this Plan, both
types of Options may be granted to the same person at the same time, or at
different times, under different terms and conditions, as long as the terms and
conditions of each Option are consistent with the provisions of the Plan.
Without limitation of the foregoing, Options may be granted subject to
conditions based on the financial performance of the Company or any other
factor the Committee deems relevant.




                                      8
<PAGE>   14

         6.2     Option Grant and Agreement.  Each Option granted hereunder
shall be evidenced by minutes of a meeting or the written consent of the
Committee and by a written Stock Option Agreement executed by the Company and
the Optionee.  The terms of the Option, including the Option's duration, time
or times of exercise, exercise price, whether the Option is intended to be an
Incentive Stock Option, and whether the Option is to be accompanied by the
right to receive a Reload Option, shall be stated in the Stock Option
Agreement.  No Incentive Stock Option may be granted more than ten years after
the earlier to occur of the effective date of the Plan or the date the Plan is
approved by the Company's shareholders.

         Separate Stock Option Agreements may be used for Options intended to
be Incentive Stock Options and those not so intended, but any failure to use
such separate agreements shall not invalidate, or otherwise adversely affect
the Optionee's interest in, the Options evidenced thereby.

         6.3     Optionee Limitations.  The Committee shall not grant an
Incentive Stock Option to any person who, at the time the Incentive Stock
Option is granted:

                 (a)      is not an employee of the Company or any of its
Subsidiaries; or

                 (b)      owns or is considered to own stock possessing at
least 10% of the total combined voting power of all classes of stock of the
Company or any of its Parent or Subsidiary corporations; provided, however,
that this limitation shall not apply if at the time an Incentive Stock Option
is granted the Exercise Price is at least 110% of the Fair Market Value of the
Stock subject to such Option and such Option by its terms would not be
exercisable after five years from the date on which the Option is granted.  For
the purpose of this subsection (b), a person shall be considered to own:  (i)
the stock owned, directly or indirectly, by or for his or her brothers and
sisters (whether by whole or half blood), spouse, ancestors and lineal
descendants; (ii) the stock owned, directly or indirectly, by or for a
corporation, partnership, estate, or trust in proportion to such person's stock
interest, partnership interest or beneficial interest therein; and (iii) the
stock which such person may purchase under any outstanding options of the
Employer or of any Parent or Subsidiary of the Employer.

         6.4     $100,000 Limitation.  Except as provided below, the Committee
shall not grant an Incentive Stock Option to, or modify the exercise provisions
of outstanding Incentive Stock Options held by, any person who, at the time the
Incentive Stock Option is granted (or modified), would thereby receive or hold
any Incentive Stock Options of the Employer and any Parent or Subsidiary of the
Employer, such that the aggregate Fair Market Value (determined as of the
respective dates of grant or modification of each option) of the stock with
respect to which such Incentive Stock Options are exercisable for the first
time during any calendar year is in excess of $100,000 (or such other limit as
may be prescribed by the Code from time to time); provided that the foregoing
restriction on modification of outstanding Incentive Stock Options shall not
preclude the Committee from modifying an outstanding Incentive Stock Option if,
as a result of such modification and with the consent of the Optionee, such
Option no longer constitutes an Incentive Stock Option; and provided that, if
the $100,000 limitation (or such other limitation prescribed by the Code)
described in this Section 6.4 is exceeded, the Incentive Stock Option, the
granting or modification of which resulted in the exceeding of such limit,
shall



                                      9
<PAGE>   15

be treated as an Incentive Stock Option up to the limitation and the excess
shall be treated as an Option not qualifying as an Incentive Stock Option.

         6.5     Exercise Price.  The Exercise Price of the Stock subject to
each Option shall be determined by the Committee.  Subject to the provisions of
Section 6.3(b) hereof, the Exercise Price of an Incentive Stock Option shall
not be less than the Fair Market Value of the Stock as of the date the Option
is granted (or in the case of an Incentive Stock Option that is subsequently
modified, on the date of such modification).

         6.6     Exercise Period.  The period for the exercise of each Option
granted hereunder shall be determined by the Committee, but the Stock Option
Agreement with respect to each Option intended to be an Incentive Stock Option
shall provide that such Option shall not be exercisable after the expiration of
ten years from the date of grant (or modification) of the Option.

         6.7     Option Exercise.

                 (a)      Unless otherwise provided in the Stock Option
Agreement or Section 6.6 hereof, an Option may be exercised at any time or from
time to time during the term of the Option as to any or all full shares which
have become Purchasable under the provisions of the Option, but not at any time
as to less than 100 shares unless the remaining shares that have become so
Purchasable are less than 100 shares.  The Committee shall have the authority
to prescribe in any Stock Option Agreement that the Option may be exercised
only in accordance with a vesting schedule during the term of the Option.

                 (b)      An Option shall be exercised by (i) delivery to the
Company at its principal office a written notice of exercise with respect to a
specified number of shares of Stock and (ii) payment to the Company at that
office of the full amount of the Exercise Price for such number of shares in
accordance with Section 6.7(c).  If requested by an Optionee, an Option may be
exercised with the involvement of a stockbroker in accordance with the federal
margin rules set forth in Regulation T (in which case the certificates
representing the underlying shares will be delivered by the Company directly to
the stockbroker).

                 (c)      The Exercise Price is to be paid in full in cash upon
the exercise of the Option and the Company shall not be required to deliver
certificates for the shares purchased until such payment has been made;
provided, however, that in lieu of cash, all or any portion of the Exercise
Price may be paid by tendering to the Company shares of Stock duly endorsed for
transfer and owned by the Optionee, or by authorization to the Company to
withhold shares of Stock otherwise issuable upon exercise of the Option, in
each case to be credited against the Exercise Price at the Fair Market Value of
such shares on the date of exercise (however, no fractional shares may be so
transferred, and the Company shall not be obligated to make any cash payments
in consideration of any excess of the aggregate Fair Market Value of shares
transferred over the aggregate Exercise Price); provided further, that the
Board may provide in a Stock Option Agreement (or may otherwise determine in
its sole discretion at the time of exercise) that, in lieu of cash or shares,
all or a portion of the Exercise Price may be paid by




                                      10
<PAGE>   16

the Optionee's execution of a recourse note equal to the Exercise Price or
relevant portion thereof, subject to compliance with applicable state and
federal laws, rules and regulations.

                 (d)      In addition to and at the time of payment of the
Exercise Price, the Optionee shall pay to the Company in cash the full amount
of any federal, state, and local income, employment, or other withholding taxes
applicable to the taxable income of such Optionee resulting from such exercise;
provided, however, that in the discretion of the Committee any Stock Option
Agreement may provide that all or any portion of such tax obligations, together
with additional taxes not exceeding the actual additional taxes to be owed by
the Optionee as a result of such exercise, may, upon the irrevocable election
of the Optionee, be paid by tendering to the Company whole shares of Stock duly
endorsed for transfer and owned by the Optionee, or by authorization to the
Company to withhold shares of Stock otherwise issuable upon exercise of the
Option, in either case in that number of shares having a Fair Market Value on
the date of exercise equal to the amount of such taxes thereby being paid, and
subject to such restrictions as to the approval and timing of any such election
as the Committee may from time to time determine to be necessary or appropriate
to satisfy the conditions of the exemption set forth in Rule 16b-3 under the
Exchange Act, if such rule is applicable.

                 (e)      The holder of an Option shall not have any of the
rights of a shareholder with respect to the shares of Stock subject to the
Option until such shares have been issued and transferred to the Optionee upon
the exercise of the Option.

         6.8     Reload Options.

         (a)     The Committee may specify in a Stock Option Agreement (or may
otherwise determine in its sole discretion) that a Reload Option shall be
granted, without further action of the Committee, (i) to an Optionee who
exercises an Option (including a Reload Option) by surrendering shares of Stock
in payment of amounts specified in Sections 6.7(c) or 6.7(d) hereof, (ii) for
the same number of shares as are surrendered to pay such amounts, (iii) as of
the date of such payment and at an Exercise Price equal to the Fair Market
Value of the Stock on such date, and (iv) otherwise on the same terms and
conditions as the Option whose exercise has occasioned such payment, except as
provided below and subject to such other contingencies, conditions, or other
terms as the Committee shall specify at the time such exercised Option is
granted; provided, that the shares surrendered in payment as provided above
must have been held by the Optionee for at least six months prior to such
surrender.

         (b)     Unless provided otherwise in the Stock Option Agreement, a
Reload Option may not be exercised by an Optionee (i) prior to the end of a
one-year period from the date that the Reload Option is granted, and (ii)
unless the Optionee retains beneficial ownership of the shares of Stock issued
to such Optionee upon exercise of the Option referred to above in Section
6.8(a)(i) for a period of one year from the date of such exercise.

         6.9     Nontransferability of Option.  No Option shall be transferable
by an Optionee other than by will or the laws of descent and distribution or,
in the case of non-Incentive Stock Options, pursuant to a Qualified Domestic
Relations Order.  During the lifetime of an Optionee,




                                      11
<PAGE>   17

Options shall be exercisable only by such Optionee (or by such Optionee's
guardian or legal representative, should one be appointed).

         6.10    Termination of Employment or Service.  The Committee shall
have the power to specify, with respect to the Options granted to a particular
Optionee, the effect upon such Optionee's right to exercise an Option of
termination of such Optionee's employment or service under various
circumstances, which effect may include immediate or deferred termination of
such Optionee's rights under an Option, or acceleration of the date at which an
Option may be exercised in full; provided, however, that in no event may an
Incentive Stock Option be exercised after the expiration of ten years from the
date of grant thereof.

         6.11    Employment Rights.  Nothing in the Plan or in any Stock Option
Agreement shall confer on any person any right to continue in the employ of the
Company or any of its Subsidiaries, or shall interfere in any way with the
right of the Company or any of its Subsidiaries to terminate such person's
employment at any time.

         6.12    Certain Successor Options.  To the extent not inconsistent
with the terms, limitations and conditions of Code section 422 and any
regulations promulgated with respect thereto, an Option issued in respect of an
option held by an employee to acquire stock of any entity acquired, by merger
or otherwise, by the Company (or any Subsidiary of the Company) may contain
terms that differ from those stated in this Article VI, but solely to the
extent necessary to preserve for any such employee the rights and benefits
contained in such predecessor option, or to satisfy the requirements of Code
section 424(a).

         6.13     Effect of Change in Control.  The Committee may determine, at
the time of granting an Option or thereafter, that such Option shall become
exercisable on an accelerated basis in the event that a Change in Control
occurs with respect to the Company (and the Committee shall have the discretion
to modify the definition of a Change in Control in a particular Option
Agreement).  If the Committee finds that there is a reasonable possibility
that, within the succeeding six months, a Change in Control will occur with
respect to the Company, then the Committee may determine that all outstanding
Options shall be exercisable on an accelerated basis.


                                  ARTICLE VII
                                RESTRICTED STOCK

         7.1     Awards of Restricted Stock.  The Committee may grant Awards of
Restricted Stock, which shall be governed by a Restriction Agreement between
the Company and the Grantee.  Each Restriction Agreement shall contain such
restrictions, terms, and conditions as the Committee may, in its discretion,
determine, and may require that an appropriate legend be placed on the
certificates evidencing the subject Restricted Stock.

         Shares of Restricted Stock granted pursuant to an Award hereunder
shall be issued in the name of the Grantee as soon as reasonably practicable
after the Award is granted, provided that the Grantee has executed the
Restriction Agreement governing the Award, the appropriate blank




                                      12
<PAGE>   18

stock powers and, in the discretion of the Committee, an escrow agreement and
any other documents which the Committee may require as a condition to the
issuance of such Shares.  If a Grantee shall fail to execute the foregoing
documents within any time period prescribed by the Committee, the Award shall
be void.  At the discretion of the Committee, Shares issued in connection with
an Award shall be deposited together with the stock powers with an escrow agent
designated by the Committee.  Unless the Committee determines otherwise and as
set forth in the Restriction Agreement, upon delivery of the Shares to the
escrow agent, the Grantee shall have all of the rights of a shareholder with
respect to such Shares, including the right to vote the Shares and to receive
all dividends or other distributions paid or made with respect to the Shares.

         7.2     Non-Transferability.  Until any restrictions upon Restricted
Stock awarded to a Grantee shall have lapsed in a manner set forth in Section
7.3, such shares of Restricted Stock shall not be transferable other than by
will or the laws of descent and distribution, or pursuant to a Qualified
Domestic Relations Order, nor shall they be delivered to the Grantee.

         7.3     Lapse of Restrictions.  Restrictions upon Restricted Stock
awarded hereunder shall lapse at such time or times (but, with respect to any
award to a Grantee who is also a Section 16 Insider, not less than six months
after the date of the Award) and on such terms and conditions as the Committee
may, in its discretion, determine at the time the Award is granted or
thereafter.

         7.4     Termination of Employment.  The Committee shall have the power
to specify, with respect to each Award granted to any particular Grantee, the
effect upon such Grantee's rights with respect to such Restricted Stock of the
termination of such Grantee's employment under various circumstances, which
effect may include immediate or deferred forfeiture of such Restricted Stock or
acceleration of the date at which any then-remaining restrictions shall lapse.

         7.5     Treatment of Dividends.  At the time an Award of Restricted
Stock is made the Committee may, in its discretion, determine that the payment
to the Grantee of any dividends, or a specified portion thereof, declared or
paid on such Restricted Stock shall be (i) deferred until the lapsing of the
relevant restrictions and (ii) held by the Company for the account of the
Grantee until such lapsing.  In the event of such deferral, there shall be
credited at the end of each year (or portion thereof) interest on the amount of
the account at the beginning of the year at a rate per annum determined by the
Committee.  Payment of deferred dividends, together with interest thereon,
shall be made upon the lapsing of restrictions imposed on such Restricted
Stock, and any dividends deferred (together with any interest thereon) in
respect of Restricted Stock shall be forfeited upon any forfeiture of such
Restricted Stock.

         7.6     Delivery of Shares.  Except as provided otherwise in Article
IX below, within a reasonable period of time following the lapse of the
restrictions on shares of Restricted Stock, the Committee shall cause a stock
certificate to be delivered to the Grantee with respect to such shares and such
shares shall be free of all restrictions hereunder.




                                      13
<PAGE>   19

                                  ARTICLE VIII
                           STOCK APPRECIATION RIGHTS

         8.1     SAR Grants.  The Committee, in its sole discretion, may grant
to any Grantee a SAR.  The Committee may impose such conditions or restrictions
on the exercise of any SAR as it may deem appropriate, including, without
limitation, restricting the time of exercise of the SAR to specified periods as
may be necessary to satisfy the requirements of Rule 16b-3.

         8.2     Determination of Price.  The SAR Price shall be established by
the Committee in its sole discretion.  The SAR Price shall not be less than
100% of Fair Market Value of the Stock on the date the SAR is granted for a SAR
issued in tandem with an Incentive Stock Option.

         8.3     Exercise of a SAR.  Upon exercise of a SAR, the Grantee shall
be entitled, subject to the terms and conditions of this Plan and the
Agreement, to receive the excess for each share of Stock being exercised under
the SAR of (i) the Fair Market Value of such share of Stock on the date of
exercise over (ii) the SAR Price for such share of Stock.

         8.4     Payment for a SAR.  At the sole discretion of the Committee,
the payment of such excess shall be made in (i) cash, (ii) shares of Stock, or
(iii) a combination of both.  Shares of Stock used for this payment shall be
valued at their Fair Market Value on the date of exercise of the applicable
SAR.

         8.5     Status of a SAR under the Plan.  Shares of Stock subject to an
Award of a SAR shall be considered shares of Stock which may be issued under
the Plan for purposes of Section 5.1 hereof, unless the Agreement making the
Award of the SAR provides that the exercise of such SAR results in the
termination of an unexercised Option for the same number of shares of Stock.

         8.6     Termination of SARs.  A SAR may be terminated as follows:

                 (a)      During the period of continuous employment with the
         Company, Parent or Subsidiary, a SAR will be terminated only if it has
         been fully exercised or it has expired by its terms.

                 (b)      Upon termination of employment, the SAR will
         terminate upon the earliest of (i) the full exercise of the SAR, (ii)
         the expiration of the SAR by its terms, and (iii) not more than three
         months following the date of employment termination; provided,
         however, should termination of employment (A) result from the death or
         Permanent and Total Disability of the Grantee, the period referenced
         in clause (iii) hereof shall be one year or (B) be for Cause, the SAR
         will terminate on the date of employment termination.  For purposes of
         the Plan, a leave of absence approved by the Company shall not be
         deemed to be termination of employment unless otherwise provided in
         the Agreement or by the Company on the date of the leave of absence.




                                      14
<PAGE>   20

                 (c)      Subject to the terms of the Agreement with the
         Grantee, if a Grantee shall die or become subject to a Permanent and
         Total Disability prior to the termination of employment with the
         Company, Parent or Subsidiary and prior to the termination of a SAR,
         such SAR may be exercised to the extent that the Grantee shall have
         been entitled to exercise it at the time of death or disability, as
         the case may be, by the Grantee, the estate of the Grantee or the
         person or persons to whom the SAR may have been transferred by will or
         by the laws of descent and distribution.

                 (d)      Except as otherwise expressly provided in the
         Agreement with the Grantee, in no event will the continuation of the
         term of a SAR beyond the date of termination of employment allow the
         Employee, or his beneficiaries or heirs, to accrue additional rights
         under the Plan, have additional SARs available for exercise, or
         receive a higher benefit than the benefit payable as if the SAR had
         been exercised on the date of employment termination.

         8.7     No Shareholder Rights.  The Grantee shall have no rights as a
shareholder with respect to a SAR.  In addition, no adjustment shall be made
for dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distributions or rights except as provided in Section 5.2 hereof.


                                   ARTICLE IX
                               STOCK CERTIFICATES

         The Company shall not be required to issue or deliver any certificate
for shares of Stock purchased upon the exercise of any Option granted hereunder
or any portion thereof, or deliver any certificate for shares of Restricted
Stock granted hereunder, prior to fulfillment of all of the following
conditions:

         (a)     The admission of such shares to listing on all stock exchanges
on which the Stock is then listed;

         (b)     The completion of any registration or other qualification of
such shares which the Committee shall deem necessary or advisable under any
federal or state law or under the rulings or regulations of the Securities and
Exchange Commission or any other governmental regulatory body;

         (c)     The obtaining of any approval or other clearance from any
federal or state governmental agency or body which the Committee shall
determine to be necessary or advisable; and

         (d)     The lapse of such reasonable period of time following the
exercise of the Option as the Board from time to time may establish for reasons
of administrative convenience.




                                      15
<PAGE>   21

         Stock certificates issued and delivered to Grantees shall bear such
restrictive legends as the Company shall deem necessary or advisable pursuant
to applicable federal and state securities laws.


                                   ARTICLE X
                           TERMINATION AND AMENDMENT

         10.1    Termination and Amendment.  The Board may at any time
terminate the Plan; provided, however, that the Board (unless its actions are
approved or ratified by the shareholders of the Company within twelve months of
the date that the Board amends the Plan) may not amend the Plan to:

                 (a)   Increase the total number of shares of Stock issuable
pursuant to Incentive Stock Options under the Plan, except as contemplated in
Section 5.2 hereof; or

                 (b)   Change the class of employees eligible to receive
Incentive Stock Options that may participate in the Plan.

         10.2    Effect on Grantee's Rights.  No termination, amendment, or
modification of the Plan shall affect adversely a Grantee's rights under a
Stock Option Agreement or Restriction Agreement without the consent of the
Grantee or his legal representative.


                                   ARTICLE XI
                    RELATIONSHIP TO OTHER COMPENSATION PLANS

         The adoption of the Plan shall not affect any other stock option,
incentive, or other compensation plans in effect for the Company or any of its
Subsidiaries; nor shall the adoption of the Plan preclude the Company or any of
its Subsidiaries from establishing any other form of incentive or other
compensation plan for employees or Directors of the Company or any of its
Subsidiaries.


                                  ARTICLE XII
                                 MISCELLANEOUS

         12.1    Replacement or Amended Grants.  At the sole discretion of the
Committee, and subject to the terms of the Plan, the Committee may modify
outstanding Options or Awards or accept the surrender of outstanding Options or
Awards and grant new Options or Awards in substitution for them.  However no
modification of an Option or Award shall adversely affect a Grantee's rights
under a Stock Option Agreement or Restriction Agreement without the consent of
the Grantee or his legal representative.

         12.2    Forfeiture for Competition.  If a Grantee provides services to
a competitor of the Company or any of its Subsidiaries, whether as an employee,
officer, director,




                                      16
<PAGE>   22

independent contractor, consultant, agent, or otherwise, such services being of
a nature that can reasonably be expected to involve the skills and experience
used or developed by the Grantee while an Employee, then that Grantee's rights
under any Options outstanding hereunder shall be forfeited and terminated, and
any shares of Restricted Stock held by such Grantee subject to remaining
restrictions shall be forfeited, subject in each case to a determination to the
contrary by the Committee.

         12.3    Plan Binding on Successors.  The Plan shall be binding upon
the successors and assigns of the Company.

         12.4    Singular, Plural; Gender.  Whenever used herein, nouns in the
singular shall include the plural, and the masculine pronoun shall include the
feminine gender.

         12.5    Headings, etc., No Part of Plan.  Headings of Articles and
Sections hereof are inserted for convenience and reference; they do not
constitute part of the Plan.

         12.6    Interpretation.  With respect to Section 16 Insiders,
transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under the Exchange Act.  To the
extent any provision of the Plan or action by the Plan administrators fails to
so comply, it shall be deemed void to the extent permitted by law and deemed
advisable by the Plan administrators.


           *             *             *            *             *




                                      17
<PAGE>   23


                                        Exhibit A to
                                        Beach First National Bancshares, Inc.
                                        1997 Stock Option Plan -
                                        Form of Stock Option Agreement


                     BEACH FIRST NATIONAL BANCSHARES, INC.
                             STOCK OPTION AGREEMENT


         THIS STOCK OPTION AGREEMENT (this "Agreement"), entered into as of
this ____ day of ________, _____, by and between Beach First National
Bancshares, Inc., a South Carolina corporation (the "Company"), and
_________________ (the "Optionee").

         WHEREAS, on __________, 1997, the Board of Directors of the Company
adopted a stock option plan known as the "Beach First National Bancshares, Inc.
1997 Stock Option Plan" (the "Plan"), and recommended that the Plan be approved
by the Company's shareholders; and

         WHEREAS, the Committee has granted the Optionee a stock option to
purchase the number of shares of the Company's common stock as set forth below,
and in consideration of the granting of that stock option the Optionee intends
to remain in the employ of the Company; and

         WHEREAS, the Company and the Optionee desire to enter into a written
agreement with respect to such option in accordance with the Plan.

         NOW, THEREFORE, as an employment incentive and to encourage stock
ownership, and also in consideration of the mutual covenants contained herein,
the parties hereto agree as follows.

         1.  Incorporation of Plan.  This option is granted pursuant to the
provisions of the Plan and the terms and definitions of the Plan are
incorporated herein by reference and made a part hereof.  A copy of the Plan has
been delivered to, and receipt is hereby acknowledged by, the Optionee.

         2.  Grant of Option.  Subject to the terms, restrictions, limitations
and conditions stated herein, the Company hereby evidences its grant to the
Optionee, not in lieu of salary or other compensation, of the right and option
(the "Option") to purchase all or any part of the number of shares of the
Company's Common Stock, par value $1.00 per share (the "Stock"), set forth on
Schedule A attached hereto and incorporated herein by reference.  The Option
shall be exercisable in the amounts and at the time specified on Schedule A. The
Option shall expire and shall not be exercisable on the date specified on
Schedule A or on such earlier date as determined pursuant to Section 8, 9, or 10
hereof.  Schedule A states whether the Option is intended to be an Incentive
Stock Option.





                                      i
<PAGE>   24

         3.  Purchase Price.  The price per share to be paid by the Optionee
for the shares subject to this Option (the "Exercise Price") shall be as
specified on Schedule A, which price shall be an amount not less than the Fair
Market Value of a share of Stock as of the Date of Grant (as defined in Section
11 below) if the Option is an Incentive Stock Option.

         4.  Exercise Terms.  The Optionee must exercise the Option for at
least the lesser of 100 shares or the number of shares of Purchasable Stock as
to which the Option remains unexercised.  In the event this Option is not
exercised with respect to all or any part of the shares subject to this Option
prior to its expiration, the shares with respect to which this Option was not
exercised shall no longer be subject to this Option.

         5.  Option Non-Transferable.  No Option shall be transferable by an
Optionee other than by will or the laws of descent and distribution or, in the
case of non-Incentive Stock Options, pursuant to a Qualified Domestic Relations
Order.  During the lifetime of an Optionee, Options shall be exercisable only by
such Optionee (or by such Optionee's guardian or legal representative, should
one be appointed).

         6.  Notice of Exercise of Option.  This Option may be exercised by the
Optionee, or by the Optionee's administrators, executors or personal
representatives, by a written notice (in substantially the form of the Notice of
Exercise attached hereto as Schedule B) signed by the Optionee, or by such
administrators, executors or personal representatives, and delivered or mailed
to the Company as specified in Section 14 hereof to the attention of the
President or such other officer as the Company may designate.  Any such notice
shall (a) specify the number of shares of Stock which the Optionee or the
Optionee's administrators, executors or personal representatives, as the case
may be, then elects to purchase hereunder, (b) contain such information as may
be reasonably required pursuant to Section 12 hereof, and (c) be accompanied by
(i) a certified or cashier's check payable to the Company in payment of the
total Exercise Price applicable to such shares as provided herein, (ii) shares
of Stock owned by the Optionee and duly endorsed or accompanied by stock
transfer powers having a Fair Market Value equal to the total Exercise Price
applicable to such shares purchased hereunder, or (iii) a certified or cashier's
check accompanied by the number of shares of Stock whose Fair Market Value when
added to the amount of the check equals the total Exercise Price applicable to
such shares purchased hereunder.  Upon receipt of any such notice and
accompanying payment, and subject to the terms hereof, the Company agrees to
issue to the Optionee or the Optionee's administrators, executors or personal
representatives, as the case may be, stock certificates for the number of shares
specified in such notice registered in the name of the person exercising this
Option.

         7.  Adjustment in Option.  The number of Shares subject to this
Option, the Exercise Price and other matters are subject to adjustment during
the term of this Option in accordance with Section 5.2 of the Plan.





                                      ii
<PAGE>   25

         8.  Termination of Employment.

         (a) Except as otherwise specified in Schedule A hereto, in the event
of the termination of the Optionee's employment with the Company or any of its
Subsidiaries, other than a termination that is either (i) for cause, (ii)
voluntary on the part of the Optionee and without written consent of the
Company, or (iii) for reasons of death or disability or retirement, the
Optionee may exercise this Option at any time within 30 days after such
termination to the extent of the number of shares which were Purchasable
hereunder at the date of such termination.

         (b)  Except as specified in Schedule A attached hereto, in the event
of a termination of the Optionee's employment that is either (i) for cause or
(ii) voluntary on the part of the Optionee and without the written consent of
the Company, this Option, to the extent not previously exercised, shall
terminate immediately and shall not thereafter be or become exercisable.

         (c)  Unless and to the extent otherwise provided in Exhibit A hereto,
in the event of the retirement of the Optionee at the normal retirement date as
prescribed from time to time by the Company or any Subsidiary, the Optionee
shall continue to have the right to exercise any Options for shares which were
Purchasable at the date of the Optionee's retirement provided that, on the date
which is three months after the date of retirement, the Options will become
void and unexercisable unless on the date of retirement the Optionee enters
into a noncompete agreement with Beach First National Bancshares, Inc. and
continues to comply with such noncompete agreement.  This Option does not
confer upon the Optionee any right with respect to continuance of employment by
the Company or by any of its Subsidiaries.  This Option shall not be affected
by any change of employment so long as the Optionee continues to be an employee
of the Company or one of its Subsidiaries.

         9.   Disabled Optionee.  In the event of termination of employment
because of the Optionee's becoming a Disabled Optionee, the Optionee (or his or
her personal representative) may exercise this Option, within a period ending
on the earlier of (a) the last day of the one year period following the
Optionee's death or (b) the expiration date of this Option, to the extent of
the number of shares which were Purchasable hereunder at the date of such
termination.

         10.  Death of Optionee.  Except as otherwise set forth in Schedule A
with respect to the rights of the Optionee upon termination of employment under
Section 8(a) above, in the event of the Optionee's death while employed by the
Company or any of its Subsidiaries or within three months after a termination
of such employment (if such termination was neither (i) for cause nor (ii)
voluntary on the part of the Optionee and without the written consent of the
Company), the appropriate persons described in Section 6 hereof or persons to
whom all or a portion of this Option is transferred in accordance with Section
5 hereof may exercise this Option at any time within a period ending on the
earlier of (a) the last day of the one year period following the Optionee's
death or (b) the expiration date of this Option.  If the





                                     iii
<PAGE>   26

Optionee was an employee of the Company at the time of death, this Option may
be so exercised to the extent of the number of shares that were Purchasable
hereunder at the date of death.  If the Optionee's employment terminated prior
to his or her death, this Option may be exercised only to the extent of the
number of shares covered by this Option which were Purchasable hereunder at the
date of such termination.

         11.  Date of Grant.  This Option was granted by the Board of Directors
of the Company on the date set forth in Schedule A (the "Date of Grant").

         12.  Compliance with Regulatory Matters.  The Optionee acknowledges
that the issuance of capital stock of the Company is subject to limitations
imposed by federal and state law and the Optionee hereby agrees that the
Company shall not be obligated to issue any shares of Stock upon exercise of
this Option that would cause the Company to violate law or any rule,
regulation, order or consent decree of any regulatory authority (including
without limitation the Securities and Exchange Commission) having jurisdiction
over the affairs of the Company.  The Optionee agrees that he or she will
provide the Company with such information as is reasonably requested by the
Company or its counsel to determine whether the issuance of Stock complies with
the provisions described by this Section 12.

         13.  Restriction on Disposition of Shares.  The shares purchased
pursuant to the exercise of an Incentive Stock Option shall not be transferred
by the Optionee except pursuant to the Optionee's will, or the laws of descent
and distribution, until such date which is the later of two years after the
grant of such Incentive Stock Option or one year after the transfer of the
shares to the Optionee pursuant to the exercise of such Incentive Stock Option.

         14.  Miscellaneous.

         (a)  This Agreement shall be binding upon the parties hereto and their
representatives, successors and assigns.

         (b)  This Agreement is executed and delivered in, and shall be
governed by the laws of, the State of South Carolina.

         (c)  Any requests or notices to be given hereunder shall be deemed
given, and any elections or exercises to be made or accomplished shall be
deemed made or accomplished, upon actual delivery thereof to the designated
recipient, or three days after deposit thereof in the United States mail,
registered, return receipt requested and postage prepaid, addressed, if to the
Optionee, at the address set forth below and, if to the Company, to the
executive offices of the Company at 1601 North Oak Street, Suite 305, Myrtle
Beach, South Carolina 29577.

         (d)  This Agreement may not be modified except in writing executed by
each of the parties hereto.




                                      iv
<PAGE>   27

         IN WITNESS WHEREOF, the Board of Directors of the Company has caused
this Stock Option Agreement to be executed on behalf of the Company and the
Company's seal to be affixed hereto and attested by the Secretary or an
Assistant Secretary of the Company, and the Optionee has executed this Stock
Option Agreement under seal, all as of the day and year first above written.

BEACH FIRST NATIONAL BANCSHARES, INC.      OPTIONEE


By:
   -------------------------               ---------------------------
     Name:                                 Name:
     Title:                                Address:


ATTEST:
                                           ________________________________
                                           ________________________________
______________________________
Secretary/Assistant Secretary

[SEAL]




                                      v
<PAGE>   28

                                   SCHEDULE A
                                       TO
                             STOCK OPTION AGREEMENT
                                    BETWEEN
                     BEACH FIRST NATIONAL BANCSHARES, INC.
                                      AND
                          _________________________
                              Dated:  ___________



1.       Number of Shares Subject to Option:  _____________________ Shares.

2.       This Option (Check one) [ ] is [ ] is not an Incentive Stock Option.

3.       Option Exercise Price:  $_______________ per Share.

4.       Date of Grant:  _____________________

5.       Option Vesting Schedule:

                 Check one:

                 ( )      Options are exercisable with respect to all shares on
                          or after the date hereof
                 ( )      Options are exercisable with respect to the number of
                          shares indicated below on or after the date indicated
                          next to the number of shares:

                                No. of Shares             Vesting Date
                                -------------             ------------



6.       Option Exercise Period:
         ----------------------
<TABLE>
<CAPTION>
                 Check One:
                 <S>      <C>
                 ( )      All options expire and are void unless exercised on or before               , 19  .
                                                                                        --------------    --
                 ( )      Options expire and are void unless exercised on or before the date indicated next to the number
                          of shares:
</TABLE>
                                No. of Shares             Expiration Date
                                -------------             ---------------


7.       Effect of Termination of Employment of Optionee (if different from
         that set forth in Sections 8 and 10 of the Stock Option Agreement):





<PAGE>   29

                                   SCHEDULE B

                               NOTICE OF EXERCISE


                 The undersigned hereby notifies Beach First National
Bancshares, Inc. (the "Company") of this election to exercise the undersigned's
stock option to purchase _________________  shares of the Company's common
stock, par value $1.00 per share (the "Common Stock"), pursuant to the Stock
Option Agreement (the "Agreement") between the undersigned and the Company
dated ______________ . Accompanying this Notice is (1) a certified or a
cashier's check in the amount of $__________ payable to the Company, and/or (2)
_______________ shares of the Company's Common Stock presently owned by the
undersigned and duly endorsed or accompanied by stock transfer powers, having
an aggregate Fair Market Value (as defined in the First Bancshares, Inc. 1997
Stock Option Plan) as of the date hereof of $__________________, such amounts
being equal, in the aggregate, to the purchase price per share set forth in
Section 3 of the Agreement multiplied by the number of shares being purchased
hereby (in each instance subject to appropriate adjustment pursuant to Section
5.2 of the Agreement).

                 IN WITNESS WHEREOF, the undersigned has set his hand and seal,
this ____ day of ____________, 19_.





                                       OPTIONEE [OR OPTIONEE'S
                                       ADMINISTRATOR,
                                       EXECUTOR OR PERSONAL
                                       REPRESENTATIVE]



                                       _______________________________________
                                       Name:
                                       Position (if other than Optionee):