NOTICE: THIS AGREEMENT IS SUBJECT TO ARBITRATION  PURSUANT TO THE SOUTH CAROLINA
        UNIFORM ARBITRATION ACT


                             STOCK OPTION AGREEMENT

         This Stock  Option  Agreement  is  entered  into as of this 14th day of
December,  1999, by and between J. Rodger Anthony,  ("Director") and Cornerstone
Bancorp, (the "Company").

         1. For and in  consideration  of the  Director's  time and  efforts  in
organizing  the  Company and its  subsidiary  Bank and the  Director's  personal
guarantee of a portion of the organizational  expense, the Company hereby grants
to  Director  the option to  purchase  4,000  shares of the common  stock of the
Company, subject to the terms and conditions hereof.

         2. In the event of exercise of this option, unless the shares have been
registered under the Securities Act of 1933, as amended, the Director represents
and warrants to the Company  that the shares  subject to option will be acquired
for  investment  and not with a view to  distribution  thereof and the  Director
acknowledges  that the  shares  received  will bear an  appropriate  restrictive
legend.

         3. The exercise price of the options granted hereby shall be $10.00 per
share.

         4. The options  granted  hereby may be exercised at any time after they
become  exercisable and prior to their  expiration by the tender of the exercise
price in cash for the shares to be purchased to the Chief  Financial  Officer of
the Company.

         5. If the Director has continuously served as a director of the Company
until the first anniversary of this Agreement, then options for one-third of the
shares subject to option shall become exercisable after such anniversary. If the
Director has  continuously  served as a director of the Company until the second
anniversary of this Agreement, then options for two-thirds of the shares subject
to option  shall be  exercisable  after such  anniversary.  If the  Director has
continuously  served as a director of the Company until the third anniversary of
this  Agreement,  then options for all of the shares  subject to option shall be
exercisable after such anniversary.

         6. Upon the removal, disqualification,  resignation or other failure of
the Director to remain a director of the Company the options hereby shall expire
six months after the Director's  departure from office.  All options  granted by
this Stock Option Agreement which have not previously  expired or been exercised
shall expire on the tenth anniversary of the date first above written.

         7. Nothing in this Stock Option  Agreement  shall give the Director any
rights of a  shareholder  of the  Company  prior to the  exercise of the options
granted hereby.

         8. This  option  is not  transferrable,  except  that upon the death or
disability  of the  Director  the  option  may be  exercised  by the  Director's
personal representative or, in the case of disability, legal guardian.

         9. The options  granted  hereby shall be treated as a number of options
to purchase one share of the common stock of the Company for the exercise price.
Options which are exercisable may be exercised in any combination  designated by
the  Director.  Notwithstanding  any other  provision  hereof,  no option may be
exercised for a fractional share.


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         10.  If the  outstanding  shares of common  stock of the  Company  then
subject to this  Agreement are  increased or  decreased,  or are changed into or
exchanged for a different number or kind of shares or securities, as a result of
one or  more  organizations,  recapitalizations,  stock  splits,  reverse  stock
splits,  stock dividends or the like,  appropriate  adjustments shall be made in
the number and/or kind of shares or securities  for which options may thereafter
be exercised.  Any such adjustment in outstanding  options shall be made without
changing the aggregate exercise price applicable to the unexercised  portions of
such options. Any such adjustment made by the Company shall be binding.

         11. Any dispute  arising  under this Stock  Option  Agreement  shall be
settled by binding  arbitration  conducted pursuant to the rules of the American
Arbitration Association then in effect.

         In witness whereof, the parties have caused this Stock Option Agreement
to be executed and delivered as of the date first above written.

                                            Cornerstone Bancorp


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

                                               Director


                                               ---------------------------------
                                               J. Rodger Anthony