<PAGE>
 
                                                                          1-1-92
                                                                    Split Dollar


                      AMENDMENT OF EXECUTIVE INCOME PLAN
                          DEFERRED COMPENSATION PLAN
                          --------------------------


     AGREEMENT, made and entered into this 1st day of January, 1992, by and
between Richmond Federal Savings Bank, an Association duly organized and
existing under the laws of the State of North Carolina, and having its usual
place of business at 115 South Lawrence Street, Rockingham, North Carolina
(hereinafter sometimes called the "Association"), and Robert Larry Campbell,
currently residing at Rockingham, North Carolina (hereinafter called
"Executive).


     WITNESSETH THAT:


     WHEREAS, the Executive and the Association have entered into a Split Dollar
Agreement dated January 1, 1987, (hereinafter called the "Split Dollar
Agreement"); and

     NOW, THEREFORE, in consideration of the premises, and the services rendered
and to be rendered to the Association by the Executive, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the Association
and the Executive in accordance with Article X of the Split Dollar Agreement,
hereby agree to amend Paragraph four, Article I & III of said Agreement as more
fully explained below:

     AMENDMENT:


     In reference to paragraph four of the Split Dollar Agreement, SMA Life
Assurance Company policy #L542,689 has been increased to $375,000.


     1.01(a) The death benefit proceeds payable to the Executive's beneficiary
has been increased to $300,000.


     3.01 An amount equal to $300,000 shall be paid to the beneficiary.


     The Association and the Executive hereby agree that the Deferred
Compensation Agreement dated January 1, 1987 shall be deemed to include this
amendment.
<PAGE>
 
     IN WITNESS WHEREOF, the parties hereto have set their hands and seals this
22nd day of January, 1992.


                                         /s/ Robert Larry Campbell
                                        --------------------------------------
                                        Robert Larry Campbell


                                        RICHMOND FEDERAL SAVINGS BANK


                                        By: /s/ Stanley Vetter, M.D.
                                        --------------------------------------
                                              President

ATTEST:

 /s/ J. Martin Page
-------------------------------
Secretary


WITNESS:

 /s/ Karen M. Rickett
-------------------------------

 /s/ Angela U. Ammons
-------------------------------
<PAGE>
 
                                                                  Revised 1-1-92
                                                           Deferred Compensation



                       AMENDMENT OF EXECUTIVE INCOME PLAN
                           DEFERRED COMPENSATION PLAN
                           --------------------------

     AGREEMENT, made and entered into this 1st day of January, 1992, by and
between Richmond Federal Savings Bank, an Association duly organized and
existing under the laws of the State of North Carolina, and having its usual
place of business at 115 South Lawrence Street, Rockingham, North Carolina
(hereinafter sometimes called the "Association"), and Robert Larry Campbell,
currently residing at Rockingham, North Carolina (hereinafter called
"Executive).

WITNESSETH THAT:

     WHEREAS, the Executive and the Association have entered into a Deferred
Compensation Agreement dated January 1, 1987, (hereinafter called the "Deferred
Compensation Agreement"); and

     NOW, THEREFORE, in consideration of the premises, and the services rendered
and to be rendered to the Association by the Executive, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the Association
and the Executive in accordance with Article XI of the Deferred Compensation
Agreement, hereby agree to amend Article III & V of said Agreement as more fully
explained below:

     AMENDMENT:

     3.01(a)  Policy #S633,855 issued by SMA Life Assurance Company has been
increased to $2,500/mo. benefit.

     5.01(a)  The monthly retirement payment has been increased to two thousand,
five hundred and no/100 ($2,500).

     5.01(b)(1)  Monthly payments shall be two thousand, five hundred and no/100
($2,500).

     5.02(a)  The annual benefit amount used in calculating the accrued benefit
shall be $30,000.

The Association and the Executive hereby agree that the Deferred Compensation
Agreement dated January 1, 1987 shall be deemed to include this amendment.
<PAGE>
 
     IN WITNESS WHEREOF, the parties hereto have set their hands and seals this
22nd day of January, 1992.



                                         /s/ Robert Larry Campbell
                                        --------------------------------------
                                        Robert Larry Campbell



                                        RICHMOND FEDERAL SAVINGS BANK


                                        By: /s/ J. Stanley Vetter, M.D.
                                        --------------------------------------
                                            Chairman

ATTEST:

 /s/ J. Martin Page
--------------------------
Secretary



WITNESS:

 /s/ Karen M. Rickett
--------------------------

 /s/ Angela U. Ammons
--------------------------
<PAGE>
 
                               EXECUTIVE INCOME

                        DEFERRED COMPENSATION AGREEMENT

                                   INCLUDING

                  PAYMENT OF DISABILITY INCOME POLICY PREMIUMS

     AGREEMENT, made and entered into this 1st day of January, 1987 by and
between Richmond Federal Savings & Loan Association, a corporation duly
organized and existing under the laws of the State of North Carolina, and having
its usual place of business at 115 South Lawrence Street, Rockingham, North
Carolina (hereinafter sometimes called the "Corporation"), and Robert Larry
Campbell, currently residing at 115 Pinedale Drive, Rockingham, North Carolina
(hereinafter called "Executive").

     WITNESSETH THAT:

     WHEREAS, the Executive is presently employed by the Corporation in the
position of Vice President, in which capacity his services have contributed to
the successful operation of the Corporation, and the Corporation and its
Directors believe it is in the best interest of the Corporation to retain the
services of the Executive; and

     WHEREAS, the Executive desires to enter into this agreement with the
Corporation under which, in consideration of services rendered and to be
rendered by him to the Corporation, it will agree to make certain payments to
him in the event of his retirement while in the employment of the Corporation
and will pay premiums on a disability income policy to be owned by the Executive
which will provide him with a monthly benefit in the event of his disability as
defined in the disability policy, all subject to the terms and conditions
hereof; and

     WHEREAS, the Directors of the Corporation have concluded and agreed that it
is in the best interests of the Corporation to enter into this agreement with
the Executive;

     NOW, THEREFORE, in consideration of the premises, and the services rendered
and to be rendered to the Corporation by the Executive, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the Corporation
and the Executive hereby mutually covenant and agree as follows:

                                   ARTICLE I
                   Retirement of Executive Following Age 65
                   ----------------------------------------

     1.01 The Corporation agrees that the Executive may retire from the active
and daily service of the Corporation on the day which is one day prior to the
first day of the month in which the Executive has his sixty-fifth (65th)
birthday. It is understood and agreed that with the consent of the directors of
the Corporation, the Executive may remain in the active and full-time employment
of the Corporation after his sixty-fifth (65th) birthday, and that the word
"retirement" as used in this
<PAGE>
 
agreement shall refer to the actual. retirement of the Executive, and that no
benefit shall be paid the Executive under this agreement until his actual
retirement from regular full-time employment in the Corporation, unless the
Executive and the Corporation shall otherwise mutually agree in writing.

     1.02  The Corporation agrees that commencing on the first payment date (as
defined in Section 5.02) after the date of the Executive's retirement, and on
each payment date thereafter for the term of this agreement, it will make
monthly retirement payments in the amount provided in Article V hereof. The
Corporation agrees to continue to make such monthly payments to the Executive
during his life for ten (10) years and until the Executive shall have received
one hundred and twenty (120) monthly payments; subject, however, to the
conditions and limitations provided for and set forth hereinbelow.

                                  ARTICLE II
                            Death During Retirement
                            -----------------------

     2.01  The Corporation agrees that if the Executive shall retire but shall
die before receiving any or all of the said monthly payments, as provided in
Section 1.02, it will continue to make such monthly retirement payments to the
designated beneficiary of the Executive who shall be living and entitled to
receive such payments on the then current monthly payment date.  If the
Executive retires, and dies after the expiration of said 120 month period, no
further payments shall be due or payable by the Corporation under this
agreement.

     2.02  As long as this Agreement is in force, the Executive shall be
entitled to specify, in accordance with the procedures set forth in Section
12.01, the beneficiary or beneficiaries of any payments remaining to be paid
under this agreement at the time of his death.

                                  ARTICLE III
                  Payment of Disability Income Policy Premiums
                  --------------------------------------------

     3.01(a)  The Corporation has caused SMA Life Assurance Company's
("Insurer") Sickness and Accident Disability Income Policy # S 573,315-00
("Policy") insuring the Executive to be in effect, the Corporation will pay the
premiums that may be required to keep the Policy in force.

     3.01(b)  A claim for benefits under the Policy shall be made directly with
the Insurer as provided in the Claims Procedure in Article VII of this
agreement. It shall be the Executive's responsibility to submit doctor's
statements or any other supporting documentation or information requested by the
Insurer at any time as to such Executive's disability. Proof of continued
disability must be furnished by the Executive upon request by the Insurer.

     3.01(c)  The Executive agrees that he shall rely solely and exclusively on
said policy to provide the disability benefit provided under this Article III
without recourse against the Corporation. The parties agree that the Insurer's
decision regarding the Executive's entitlement or continued entitlement to
disability benefits under said policy shall be binding and conclusive as between
the parties to the Agreement.
<PAGE>
 
     3.01(d)  It is the intention of the parties to this Agreement:

          (1)  That the benefits payable to the Executive under the provisions
of this Article III shall qualify as amounts received under an accident and
health plan meeting the requirements of Section 105 of the Internal Revenue Code
of 1954, as amended; and

          (2)  That the payment of premiums for the disability policy by the
Corporation shall qualify as contribution by an employer to an accident and
health plan under Section 106 of the said Internal Revenue Code.

     3.01(e)  For purposes of determining the Executive's eligibility for
retirement benefits under Article I of the Agreement, the Executive shall be
deemed to be in the "active and daily service" of the Corporation for the entire
period that he is disabled within the meaning of the disability income policy
including any elimination period contained therein.

                                  ARTICLE IV
                           Termination of Employment
                           -------------------------

     4.01  In the event that the Executive terminates his employment with the
Corporation voluntarily, or if he is discharged for dishonesty, fraud, gross
neglect of duties, intentional damage to the property of the Company or
intentional performance of any act materially inimical to the interest of the
Company or for other due cause as determined by the Directors of the Company
prior to his attaining age 65, no amounts shall be payable hereunder to him or
any other person.

     4.02  However, if the employment of the executive shall be terminated
without due cause, he shall have a vested interest in the accrued retirement
benefits as set forth in Section 4.03.

     4.03  Vesting shall be based on a full year of service with the Corporation
from the date of participation. There shall be no vesting until completion of
three (3) full years of service at which time the vesting percentage shall be
20. Thereafter, and for each additional one full year of service, the vesting
percentage shall increase by 20, except that at age 65 the percentage will be
100. The vesting percentage shall not be greater than 100. There shall be no
vesting for a partial year of service. All vested percentage shall be a
percentage of the accrued retirement benefit and will be paid starting at the
executive's normal retirement date in 120 monthly installments.

     4.04  Monthly payments shall be made on the first business day of each
calendar month until the employee or his beneficiary has received one hundred
twenty (120) monthly payments. However, at the discretion of the Board of
Directors the Corporation may elect to pay the present value of any monthly
payments due under this agreement in a lump sum to the employee or to his
beneficiary. The prime rate in effect at that time shall be used in determining
the present value of the payments.

           If monthly payments are elected by the Corporation under this
Section, the Board of Directors in its discretion, may elect to commence the
payments either on the first day of the thirteenth month after termination or at
age 65 of the employee.
<PAGE>
 
           Any benefits the employee would have been entitled to receive had he
lived shall be payable to the employee's beneficiary.

                                   ARTICLE V
                          Amount of Monthly Payments
                          --------------------------

     5.01(a)  The amount of each monthly retirement payment to be made by the
Corporation from its own funds and by its own check to the Executive or the
Executive's beneficiary, as provided for in this Section 1.02 shall be one
thousand six hundred sixty six dollars and sixty seven cents ($1666.67).

     5.01(b)  If the monthly payments are payable by the Company under Section
1.02 (concerning retirement), or Article II (concerning death during
retirement), the amount of each monthly payment shall be determined as of the
employees actual retirement date in the following manner:

          1.   If monthly payments are payable under Section 1.02, the amount of
each monthly payment shall be one thousand six hundred sixty six dollars and
sixty seven cents.

          2.   If monthly payments are payable to the employee's beneficiary
under Section 2.01, the amount of each monthly payment shall be the same as that
which would have been paid to the employee had he lived.

          3.   If monthly payments are payable by the Company under Section 4.02
(concerning termination of employment without cause) the amount of each monthly
payment shall be based on a percentage of the Employee's accrued benefit
determined as of the date of termination.

     5.02(c)  For purposes of the Article, the accrued benefit shall be the
result obtained under the following formula. The annual benefit of $20,000 shall
be multiplied by a fraction, the denominator of which shall be 65 minus the
Employee's age when he first became a participant in the plan and the numerator
of which shall be the number of full years of service with the Corporation. The
resulting figure shall them be multiplied by the vesting percentage to arrive at
the annual retirement benefit. The employee's age shall be his age at his last
birthday immediately prior to his becoming a participant in the plan. There
shall be no credit given for a partial year of service. Payments shall be made
on a monthly basis; the annual benefit shall be divided by 12 for this purpose.
However, the Board of Directors in its discretion may elect to pay the present
value of these payments in a lump sum as provided in Section 4.04.

                                  ARTICLE VI
            Employee Retirement Income Security Act of 1974 (ERISA)
            -------------------------------------------------------

     6.01 For purposes of ERISA, the Corporation will be the "Named Fiduciary"
and "Plan Administrator" of the plan for which this agreement is hereby
designated the written plan instrument.
<PAGE>
 
     6.02 The Corporation's Board of Directors may authorize a person or group
of persons to fulfill the responsibilities of the Corporation as Plan
Administrator. The Named Fiduciary or the Plan Administrator may employ others
to render advice with regard to its responsibility under the Plan. The Named
Fiduciary may also allocate fiduciary responsibilities to others and may
exercise any other powers necessary for the discharge of its duties to the
extent not in conflict with ERISA.

                                  ARTICLE VII
                                Claims Procedure
                                ----------------

     7.01 The following Claims Procedure shall control the determination of
benefit payments under this plan:

          (a)  Filing of a Claim for Benefits

               Any insured, beneficiary or other individual ("Claimant")
               entitled to benefits under the Plan or under a policy will file a
               claim request with the Plan Administrator with respect to
               retirement benefits under the plan and with the Insurer with
               respect to disability benefits under the disability income
               policy. The Plan Administrator will, upon written request of a
               claimant, make available copies of any claim forms or
               instructions provided by the Insurer or advise the Claimant where
               copies of such forms or instructions may be obtained.

          (b)  Denial of Claim

               A Claim for Benefits under the Plan will be denied if the
               Corporation determines that the claimant is not entitled to
               receive benefits under the Plan. Notice of a denial shall be
               furnished to the Claimant within a reasonable period of time
               after receipt of the Claim for Benefits by the Plan
               Administrator.

          (c)  Content of Notice

               The Plan Administrator shall provide within ninety (90) days to
               every Claimant who is denied a Claim for Benefits written notice
               setting forth, in a manner calculated to be understood by the
               Claimant, the following:

               1.  The specific reason or reasons for the denial;

               2.  Specific reference to pertinent Plan provisions on which the
                   denial is based;

               3.  A description of any additional material or information
                   necessary for the Claimant to perfect the claim, and any
                   explanation of why such material or information is necessary;
                   and
<PAGE>
 
               4.  An explanation of the Plan's Claim Review Procedure as set
                   forth below.

          (d)  Review Procedure

               The purpose of the Review Procedure is to provide a method by
               which a Claimant may have a reasonable opportunity to appeal a
               denial of a Claim to the Named Fiduciary for a full and fair
               review. To accomplish that purpose, the Claimant or his duly
               authorized representative:

               1.  May require a review upon written application to the Named
                   Fiduciary;

               2.  May review pertinent Plan documents; and

               3.  May submit issues and comments in writing.

               A Claimant (or his duly authorized representative) shall request
               a review by filing a written application for review with the
               Named Fiduciary at any time within sixty (60) days after receipt
               by the Claimant of written notice of the denial of his claim.

          (e)  Decision on Review

               A decision on review of a denied claim shall be made in the
               following manner:

               1.  The decision on review shall be made by the Named Fiduciary,
                   who may in his discretion hold a hearing on the denied claim.
                   Such decision shall be made promptly, and not later than
                   sixty (60) days after receipt of the request for review,
                   unless special circumstances (such as the need to hold a
                   hearing) require an extension of time for processing, in
                   which case a decision shall be rendered as soon as possible,
                   but not later than one hundred and twenty (120) days after
                   receipt of the request for review.

               2.  The decision on review shall be in writing and shall include
                   specific reasons for the decisions, written in a manner
                   calculated to be understood by the Claimant, and specific
                   references to the pertinent Plan provisions upon which the
                   decision is based.
<PAGE>
 
                                 ARTICLE VIII
                             Financing of Benefits
                             ---------------------

          8.01  All retirement benefits and policy premiums under the plan shall
be provided out of the general assets of the Corporation at the time such
benefits are to be made.  The parties agree that the Corporation is under no
obligation to set aside funds in advance of the time for payment, or to
otherwise provide security for its obligations under this Agreement.

          8.02  Retirement payments for the Plan shall be made out of the
general assets of the Corporation upon submission and approval of a Claim for
Benefits made pursuant to the Claims Procedure established as required by ERISA,
and set forth above.

                                   ARTICLE IX
                                 Governing Laws
                                 --------------

          9.01  This Agreement shall be governed by and construed in accordance
with the laws of North Carolina, where it is made and to be performed.  It sets
forth the entire agreement between the parties concerning the subject matter
thereof, and any amendment or discharge shall be made only in writing.  This
Agreement shall bind and benefit the parties and their legal representatives and
successors.

                                   ARTICLE X
                          Not a Contract of Employment
                          ----------------------------

          10.01  This agreement shall not be deemed to constitute a contract of
employment between the parties, nor shall any provision restrict the right of
the Corporation to discharge the Executive.

                                   ARTICLE XI
                            Amendment or Termination
                            ------------------------

          11.01  No beneficiary under this Agreement shall obtain any vested
right to have this agreement continued in force, and it may be amended or
modified in whole or in part by the Executive and the Corporation in writing at
any time without the consent of said beneficiary.

                                  ARTICLE XII
                               Further Provisions
                               ------------------

          12.01  The term "beneficiary" as used herein shall mean any person or
trust, or combination thereof, last designated by the Executive in writing and
filed with the Corporation by the Executive during his lifetime upon a
Nomination of Beneficiary form provided by the Corporation.  Any such
designation or designations of beneficiary shall be revocable at any time or
times without the consent of any beneficiary, whether now living or born
thereafter, by written designations of beneficiaries made by the Executive and
similarly filed by him with the Corporation during his lifetime.  In the absence
of or failure of designated beneficiaries, the executor(s) or administrator(s)
of the Executive shall be his beneficiary.
<PAGE>
 
          12.02  It is agreed that neither the Executive nor any beneficiary
hereunder shall have any right to commute, sell, assign, transfer or otherwise
convey the right to receive any payments hereunder, which payments and the right
thereto are expressly declared to be nonassignable and nontransferable, and in
the event of any attempted assignment or transfer, this Agreement shall
terminate and the Corporation shall have no further liability hereunder.

          12.03  The Corporation agrees that it will not merge or consolidate
with another Corporation or organization, or permit its business activities to
be taken over by any other organization unless and until the succeeding or
continuing Corporation or other organization shall expressly assume the rights
and obligations of the Corporation herein set forth.

          12.04  This agreement shall be executed in duplicate, each copy of
which when so executed and delivered shall be an original, but both copies
shall, together, constitute one and the same instrument.

          IN WITNESS WHEREOF, the parties hereto have set their hands and seals
this 1st day of January, 1987.


                                   /s/   Robert Larry Campbell
                                 --------------------------------------------
                                 ROBERT LARRY CAMPBELL


                                 RICHMOND FEDERAL SAVINGS & LOAN
                                 ASSOCIATION

                                 By:   /s/   Buena Vista Coggin
                                    -----------------------------------------
                                       BUENA VISTA COGGIN, PRESIDENT

ATTEST:

  /s/   Arlie S. Baldwin
------------------------------
SECRETARY


WITNESS:

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

------------------------------ 
<PAGE>
 
                             EXECUTIVE INCOME PLAN
                             ---------------------



                            DESCRIPTION OF BENEFITS
                            -----------------------


                                      FOR
                                      ---


                                 LARRY CAMPBELL
                                 --------------



                                 DEATH BENEFIT
                                 -------------

$200,000 to the family if death occurs prior to retirement.
Death Benefit is income tax free and may be estate tax free.



                               DISABILITY BENEFIT
                               ------------------

$17,796 per year of disability income payable upon permanent disability until
retirement age is reached.



                               RETIREMENT BENEFIT
                               ------------------

$20,000 per year of retirement income payable at retirement for 10 years to you
and/or family.
<PAGE>
 
                                EXECUTIVE INCOME
                             SPLIT DOLLAR AGREEMENT


          AGREEMENT, made and entered into this 1st day of January, 1997 by and
between Richmond Federal Savings & Loan Association, a corporation duly
organized and existing under the laws of the State of North Carolina, and having
it usual place of business at 115 South Lawrence Street, Rockingham, North
Carolina (hereinafter sometimes called "Corporation"), and Robert Larry Campbell
currently residing at 115 Pinedale Drive, Rockingham, North Carolina
(hereinafter called "Executive").


          WITNESSETH THAT:


          WHEREAS, the Executive is presently employed by the Corporation in the
position of Vice President, in which capacity his services nave contributed to
the successful operation of the Corporation, and the Corporation and its
Directors believe it is in the best interest of the Corporation to retain the
services of the Executive; and


          WHEREAS, the Corporation is desirous of assisting the Executive in
paying for a pre-retirement life insurance benefit; and


          WHEREAS, the Corporation has determined that this insurance can best
be  provided under a "split dollar" arrangement and the Corporation has applied
for insurance Policy No. L 392,179-00 (the "policy") issued by SMA Life (the
"Insurer") in the face amount of $225,000 on the Executive's life; and


          WHEREAS, the Corporation and the Executive agree to make said
insurance policy subject to this split dollar agreement.


          NOW, THEREFORE, in consideration of the premises, and the services to
be rendered to the Corporation by the Executive, and for other good and valuable
consideration, receipt of which is hereby acknowledged, the Corporation and the
Executive hereby mutually covenant and agree as follows:

                                   ARTICLE I
                   Policy Ownership and Dividend Application
                   -----------------------------------------

          1.01  The Policy has been issued to the Corporation as the owner
thereof.  The Corporation will have and may exercise all ownership rights in the
policy except as provided hereafter:
<PAGE>
 
                (a) As long as this Agreement is in force, the Executive shall
                    be entitled to specify in writing to the Corporation, the
                    beneficiary or beneficiaries and the mode of payment thereto
                    of an amount of death benefit proceeds payable under the
                    policy equal to $200,000. The Corporation agrees that upon
                    receipt of such written request, it will immediately take
                    such action as is necessary to evidence any such change in
                    the Executive's desired beneficiary designation which change
                    shall become effective as provided in the policy;

                (b) The Corporation will not, without the written consent of the
                    Executive, assign its rights in the policy other than for
                    purposes of obtaining a loan against the policy as provided
                    in paragraph (c) below;

                (c) The Corporation will have the right (i) to borrow from the
                    Insurer and to secure that loan by the policy for any
                    purpose including, but not limited to, borrowing for the
                    purpose of paying premiums without giving notice to the
                    employee, and (ii) to make partial withdrawals of the policy
                    surrender value; provided, however, that if the exercise of
                    such rights would reduce the death benefit payable to the
                    Executive's beneficiary pursuant to Section 3.01(a), then
                    such rights shall be exercisable by the Corporation only
                    with the written consent of the Executive.

          1.02  Except as provided in paragraph 1.01 above, the Corporation
agrees with the Executive that so long as this agreement is in force; it will
not exercise any rights under the policy which will compromise or reduce the
death benefit payable to the Executive's beneficiary.

          1.03  Dividends payable under the policy, if any, will be applied as
provided in the application of the policy.

          1.04  As between the Executive and the Corporation, this agreement
shall take precedence over any provisions of the policy (including any  riders,
amendments and attachments thereto) in case of a conflict between the terms of
the policy and this agreement.

                                   ARTICLE II
                              Payment of Premiums
                              -------------------

          2.01  As long as this agreement is in force, the Executive and the
Corporation agree to share in the payment of the premiums on said policy of
insurance in such amounts and in the manner set forth below:

                (a) Unless paragraph (b) applies, the Executive's share of the
                    annual premium shall be that portion of the annual premium
                    due on the policy that is equal to the amount of the
                    economic benefit that would be taxable to the Executive but
                    for the pay-merit by the Executive of such amount based upon
                    an amount of insurance protection equal to the Executive's
                    death benefit specified in
<PAGE>
 
                    Article 1.  The Corporation shall pay the balance of each 
                    such annual premium.

                (b) If the policy is a flexible premium contract such that
                    premiums may be varied as to the amount and timing of
                    premium payments, then the Executive shall be required to
                    make an annual premium contribution in an amount determined
                    in accordance with paragraph (a) above, beginning on the
                    policy issue date and continuing thereafter on the
                    anniversary of such date. The Corporation shall pay premiums
                    at such times and in such amounts as it may determine in its
                    sole discretion.

          2.02  The amount of economic benefit that would be taxable to the
Executive shall be computed in accordance with the Insurer's current published
rate per $1000 of insurance protection for Individual 1-year term life insurance
available to all standard risks as provided in Revenue Ruling 66-110, 1966-1
C.B.12.

          2.03  In order to facilitate the payment of premiums on the policy, it
is agreed that the Corporation in the first policy year, and in each year
thereafter and as long as this agreement is in force, shall forward the total
amount of the premium then currently due and payable on the policy directly to
the Insurer and, immediately thereafter, it shall indicate in the appropriate
Corporate records that the annual sum payable by the Executive as provided for
above in Section 2.01, shall be added to his annual salary or compensation.

                                  ARTICLE III
                             Beneficiary Provisions
                             ----------------------

          3.01  If the Executive dies while this agreement is in force, the
policy death benefit shall be divided as follows:

                (a) An amount equal to $200,000 shall be paid to the beneficiary
                    or beneficiaries then specified by the Executive as provided
                    in Section 1.01(a), above but subject to the provisions of
                    Section 1.01(c).

                (b) The balance of said policy death benefit, if any shall be
                    paid to the Corporation.

          3.02  It is agreed by the parties hereto that no beneficiary shall
have any right to reimbursement or contribution from the estate of the Executive
or from the Corporation with respect to the amount collected by this Corporation
under said policy.

          3.03  If the Executive shall die while this agreement is in force, the
Corporation agrees to take such action as may be necessary to obtain payment
from the insurer of the amounts payable under said policy to the beneficiaries
designated therein.
<PAGE>
 
                                  ARTICLE IV
                           Termination of Agreement
                           ------------------------

          4.01  This agreement shall automatically terminate upon the happening
of any of the following events:

                (a) The Executive's termination of employment voluntarily, or
          his discharge for any reason prior to death. The Executive's total
          disability shall not be considered a termination of employment. Total
          disability shall have the same meaning as under the waiver of premium
          rider acquired or available with the policy.

                (b) Express termination of this agreement by either the
          Corporation or the Executive at any time upon 30 days written notice
          to the other.

                (c) On the day prior to the date of the Executive's retirement,
          which retirement date shall be the day prior to the first day of the
          month in which the insured has his sixty-fifth (65th) birthday. It is
          understood and agreed that with the consent of the Directors of the
          Corporation, the Executive may remain in the active and full-time
          employment after the above stated retirement date, and the retirement
          date as used in this agreement shall refer to the actual retirement
          date of the Executive. The retirement date shall be specified on a
          Policy Contract Change Form provided by the Insurer.

                (d) Death of the Executive, subject, however to the provisions
          of Article III.

                (e) Lapse or termination of the Policy.

          4.02  Upon termination of this agreement under Section 4.01 (a), (b),
or (c), the Corporation shall become sole owner of the policy unless otherwise
agreed by the parties.

                                   ARTICLE V
                                 Reorganization
                                 --------------

          5.01  The Corporation agrees that it will not merge or consolidate
with another corporation or organization, or permit its business activities to
be taken over by any other organization unless and until the succeeding or
continuing corporation or other organization shall expressly assume the rights
and obligations of the Corporation herein set forth.

                                   ARTICLE VI
                                 Governing Laws
                                 --------------

          6.01  This Agreement shall be governed by and construed in accordance
with the laws of North Carolina, where it is made and to be performed.  It sets
forth the entire agreement between the parties concerning the subject matter
thereof, and any amendment shall be made only in writing. This Agreement shall
bind and benefit the parties and their legal representatives and successors.
<PAGE>
 
                                 ARTICLE VII
                         Not a Contract  of Employment
                         ------------------------------

          7.01  This Agreement shall not be deemed to constitute a contract of
employment between the parties, nor shall any provisions restrict the right of
the Corporation to discharge the Executive.

                                  ARTICLE VIII
           Employment Retirement Income Security Act of 1984 (ERISA)
           ---------------------------------------------------------

          8.01  For the purposes of ERISA, the Corporation shall be the "Named
Fiduciary" and "Plan Administrator" of the split dollar life insurance plan for
which this agreement is hereby designated the written plan instrument.

          8.02  The Corporation's Board of Directors may authorize a person or
group of persons to fulfill the responsibilities of the Corporation as Plan
Administrator.  The Named Fiduciary or the Plan Administrator may employ others
to render advice with regard to its responsibilities under the Plan.  The Named
Fiduciary may also allocate fiduciary responsibilities to others and may
exercise any other powers necessary for the discharge of its duties to the
extent not in conflict with ERISA.

                                   ARTICLE IX
                                Claims Procedure
                                ----------------

          9.01  The following Claims Procedures shall control the determination
of benefit payments under this Plan:

(a)  Any insured, beneficiary or other individual ("claimant") entitled to
     benefits under the plan or under the policy shall file a claim request with
     the Plan Administrator with respect to benefits under the Plan and with the
     Insurer with respect to benefits under the policy.  The Plan Administrator
     shall, upon written request of a claimant, make available copies of any
     claim forms instructions provided by the insurer or advise the Claimant
     where copies of such forms or instructions may be obtained.

(b)  Denial of Claim

     A Claim for Benefits under the Plan shall be denied if the Corporation
     determines that the claimant is not entitled to receive benefits under the
     Plan. Notice of the denial shall be furnished to the Claimant within a
     reasonable period of time after receipt of the Claim for Benefits by the
     Plan Administrator. In the case of benefits which are provided under the
     policy, the initial decision on the claims shall be made by the Insurer.

(c)  Content of Notice

     The Plan Administrator shall provide within ninety (90) days to every
     Claimant who is denied a Claim for Benefits written notice setting forth,
     in a manner calculated to be understood by the Claimant, the following:
<PAGE>
 
     1.  The specific reason or reasons for the denial;

     2.  Specific reference to pertinent Plan provisions on which the denial is
         based;

     3.  A description of any additional material or information necessary for
         the Claimant to perfect the claim, and an explanation of why such
         material or information is necessary; and

     4.  An explanation of the Plan's Claim Review Procedure as set forth below.

(d)  Review Procedure

     The purpose of the Review Procedure is to provide a method by which a
     Claimant may have a reasonable Opportunity to appeal a denial of a Claim to
     the Named Fiduciary for a full and fair review. To accomplish that purpose,
     the Claimant or his duly authorized representative:

     1.  May require a review upon written application to the Named Fiduciary;

     2.  May review pertinent Plan documents; and

     3.  May submit issues and comments in writing.

         A Claimant (or his duly authorized representative) shall request a
         review by filing a written application for review with the Named
         Fiduciary at any time within sixty (60) days after receipt by the
         Claimant of written notice of the denial of his claim.

(e)  Decision of Review

     A decision on review of a denied claim shall be made in the following
     manner:

     1.  The decision on review shall be made by the Named Fiduciary, who may in
         his discretion hold a hearing on the denied claim. Such decision shall
         be made promptly, and not later than sixty (60) days after receipt of
         the request for review, unless special circumstances (such as the need
         to hold a hearing) require an extension of time for processing, in
         which case a decision shall be rendered as soon as possible, but not
         later than one hundred and twenty (120) days after receipt of the
         request for review.

     2.  The decision on review shall be in writing and shall include specific
         reasons for the decision, written in a manner calculated to be
         understood by the Claimant, and specific references to the pertinent
         Plan provisions upon which the decision is based.
<PAGE>
 
                                   ARTICLE X
                                   Amendment
                                   ---------

          10.01  No beneficiary under the policy shall obtain any vested right
to have this agreement continued in force and it may be amended or modified in
whole or in part by the Executive and the Corporation in writing at any time
without the consent of said beneficiary.


          IN WITNESS WHEREOF, the parties hereto have set their hands and seals
this 1st day of January 1 1987.


                                   /s/  Robert Larry Campbell
                                 --------------------------------------------
                                 Robert Larry Campbell


                                 RICHMOND FEDERAL SAVINGS BANK


                                 By:   /s/  Buena Vista Coggin
                                    -----------------------------------------
                                       Buena Vista Coggin, President

ATTEST:

 /s/  Arlie S. Baldwin
--------------------------
Secretary


WITNESS:

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

--------------------------
<PAGE>
 
                                  SPLIT DOLLAR

                              LIFE INSURANCE PLAN

                            SUMMARY PLAN DESCRIPTION

The Split Dollar Life Insurance Plan provides your beneficiary with a stated
death benefit in the event of your death while this plan is in effect.  The plan
terminates and no death benefit will be provided if you cease to be employed by
this company for any reason or if you retire.

This Summary describes the Split Dollar life insurance agreement entered into
between you and this company on January 1, 1987.  This Summary Plan Description
is only a summary of the key provisions of the Plan.  In case of any differences
between the Summary Plan Description and the actual Agreement, the actual
Agreement will govern.

The following represents a description of the plan in terms which are easy to
understand.  For simplification, technical language has been avoided as much as
possible.

                                  ELIGIBILITY
                                  -----------

Eligibility to participate in this Plan is selective.  The employer retains
absolute discretion to determine which employees will be allowed to participate
in the plan.  Furthermore, the employer may terminate the plan at its discretion
at any time.

The sole benefit provided under this plan is the right to name a beneficiary of
a stipulated portion of the proceeds of an insurance policy on your life.  You
may assign this right to third parties if you so desire.

The following events will automatically terminate the plan:

1.  if your employment with the employer is terminated prior to retirement; or

2.  on the day specified on a Policy Contract Change (Form 200) provided by the
    insurer (the day which is one day prior to the date specified as your
    retirement date); or

3.  Express termination of the plan by either you or the employer at any time
    upon thirty (30) days written notice to the other; or

4.  On the day prior to the date of your retirement, which is one day prior to
    the first day of the month in which you will attain your 65th birthday.
    However, you may, with the consent of the Board of Directors, remain in
    active and daily service of the employer beyond age 65; and in that event,
    the term "retirement" date shall mean the date of your actual retirement; or

5.  Upon the payment to your designated beneficiary of the death benefit payable
    under the plan, or
<PAGE>
 
6.  Lapse or termination of the insurance policy.

                  EMPLOYEE CONTRIBUTION/PURCHASE OF INSURANCE
                  -------------------------------------------

As part of this plan, you have agreed to undergo a medical exam and take all
action necessary for the employer to obtain a contract of insurance on your
life.  You understand that the amount of insurance purchased may be greater than
the proceeds payable to your beneficiary.  Furthermore, all such proceeds in
excess of your stipulated death benefit will belong to the employer.  The amount
of your stipulated death benefit will not be changed or reduced without your
consent, subject, however, to the right of the company to unilaterally terminate
the plan in its entirety.

Your have also agreed to contribute to the premium payments for the policy of
insurance on your life.  The monies necessary for your contribution, however,
will be provided by the corporation and will be taxable to you as additional
compensation.  You have no right in any monies so contributed and will not be
entitled to a refund of such monies at any time.  The amount of your
contribution is stipulated in the split dollar agreement and will increase each
year.

                                CLAIMS PROCEDURE
                                ----------------

If you are not satisfied with a decision made as to your benefits under the plan
and wish to make a claim, the following information about the Plan's Claims
Procedure is intended to help you:

1.  Claims Fiduciary - The Plan Administrator is Richmond Federal Savings & Loan
    ----------------                                                            
    Association.

2.  Claim for Benefits - A claim for benefits under the Plan should be made in
    ------------------                                                        
    writing to the Plan Administrator.

3.  Notice of Claim Denial - If your claim for benefits is turned down, wholly
    ----------------------                                                    
    or partially, the Plan Administrator will notify you within ninety (90) days
    after you file your claim. The notice of denial will be in clear,
    understandable language and will give the reasons why your claim was turned
    down. You will be informed of the Plan Provisions on which the decision was
    based and will be told what additional information or material you need to
    support the claim.

4.  Request for Review of Claim Denial - If your claim is turned down, you may
    ----------------------------------                                        
    request a full and fair review of a denial of your claim for benefits. You
    must make this request of the Plan Administrator in writing within sixty
    (60) days after you receive denial.

5.  Final Decision -  The final written decision of the Plan Administrator will
    --------------                                                             
    be delivered to you within sixty (60) days of his receipt of your appeal.
    This period may be extended if circumstances make it necessary.
<PAGE>
 
Employer's Name, Address and Identification Number:

    Richmond Federal Savings & Loan Association
    115 South Lawrence Street
    Rockingham, North Carolina 28379
    EIN:  56-0377020

Type of Administration:

    Split Dollar Insurance Plan - Insurance Contract. Plan Administrator and
    ---------------------------
    agent for service of legal process:

    Richmond Federal Savings & Loan Association
    115 South Lawrence Street
    Rockingham, North Carolina 28379
    Telephone:   (919) 895-6046

Your Rights as a Participant
----------------------------

As a participant in the Plans you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (ERISA).  However, you
should be aware that the split dollar plan as a welfare plan covering fewer than
100 participants is exempt from many of the reporting and disclosure
requirements of those specific rights.  Additionally, the deferred compensation
plan, as an unfunded plan of deferred compensation for a select group of
management or highly paid employees, is exempt from the full reporting and
disclosure requirements where the alternative compliance procedure allowed for
by the Secretary of Labor has been followed.

In addition to creating rights for plan participants, ERISA imposes duties upon
the people who are responsible for the operation of the employee benefit plan.
The people who operate your plan, called "fiduciaries" and "administrators" of
the plan, have a duty to do so prudently and in the interest of you and other
plan participants and beneficiaries.  No one, including your employer or any
other person, may terminate your employment or otherwise discriminate against
you in any way to prevent you from obtaining a benefit or exercising your rights
under ERISA. If your claim for a benefit is denied in whole or in part you must
receive a written explanation of the reason for the denial. You have the right
to have the plan administrator review and reconsider your claim.  Under ERISA,
there are steps you can take to enforce the above rights.  For instance, if you
request materials from the plan administrator and do not receive them within 30
days, you may file suit in a federal court.  In such a case, the court may
require the plan administrator to provide the materials and pay you up to $100 a
day until you receive the materials, unless the materials were not sent because
of reasons beyond the control of the administrator.  If you have a claim for
benefits which is denied or ignored, in whole or in part, you may file suit in a
state or federal court.  If the plan fiduciaries misuse the plan's money, or if
you are discriminated against for asserting your rights, you may seek assistance
from the U.S. Department of Labor, or you may file suit in a federal court. The
court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and
fees.  If you lose, the court may order you to pay these costs and fees,
<PAGE>
 
for example, if it finds your claim is frivolous.  If you have any questions,
about your plan, you should contact the plan administrator.  If you have any
questions about this statement or about your rights under ERISA, you should
contact the nearest Area Office of the U.S. Labor-Management Services
Administration, Department of Labor.
<PAGE>
 
FORM 200 (2/83)                  [_] State Mutual Life Insurance Company of
                                     America
                                 [X] SMA Life Assurance Company
POLICY CONTRACT CHANGE                           Members of THE AMERICA GROUP
                                                  Worcester, Massachusetts 01605
================================================================================
            NOTE: SEE REVERSE SIDE FOR PROPER ENTRY AND INSTRUCTIONS
--------------------------------------------------------------------------------
INSURED                      POLICY(IES)                     AGENCY
                                            L392,179
R. LARRY CAMPBELL                                            CHARLOTTE    014
                             ENTER CONSECUTIVE NO. ONLY
================================================================================
                 AGENCY DATA (Required for change in plan only)
--------------------------------------------------------------------------------
GENERAL AGENT                WRITING AGENT
 
JEFF LYONS, CLU                RONALD W. ERICKSON, CLU
--------------------------------------------------------------------------------

in regard to the above-mentioned policy(ies) the undersigned (requests) the
following:   amendment thereto:

The undersigned corporation will be the owner of the policy applied for and will
have the right on its sole signature without the consent of any person to sell,
surrender, exercise the exchange option, if any, make policy loans, pledge or
assign the policy absolutely or as security for a loan.

The owner will not change the beneficiary as set forth in paragraph (a), below,
without the consent of the insured.  The insured's right to consent shall
terminate on the earlier of (1) the day prior to July 1, 2009 or (2) the
insured's termination of employment in the undersigned corporation, at which
time the owner shall become the beneficiary and the owner shall have the right
thereafter to change the beneficiary.  This shall not prevent the owner from
exercising any of the other aforesaid rights under the policy upon its sole
signature even when the effect is to terminate the beneficiary's interest in the
policy.

At the death of the insured prior to the earlier of July 1, 2009 or the
insured's termination of employment, the death benefit payable under the policy
will be divided as follows:

(a)  an amount equal to $200,000, or all of the proceeds if less than $200,000,
     shall be paid to Barbara B. Campbell, spouse of the insured, if living,
     otherwise the executors or administrators of the estate of the insured, and

(b)  the balance of the proceeds (less any indebtedness and/or withdrawals under
     the policy, and subject to the claims of any assignee) shall be paid to the
     owner.

On the earlier of the date of July 1, 2009 or the insured's termination of
employment and thereafter this Policy Contract Change, Form 200, shall no longer
be in effect and the provisions hereof shall become null and void.

Neither the insured nor the beneficiary designated by the insured shall on the
earlier of the date of July 1, 2009 or termination of employment and thereafter
have any right, title or interest in and to the policy or any riders attached
thereto.

The undersigned corporation shall on the earlier of the date of July 1, 2009 or
the insured's termination of employment and thereafter become the sole
beneficiary of the entire basic policy and any rider attached thereto unless
another beneficiary has been named by the owner.

SMA Life Assurance Company will be entitled to rely upon an affidavit by the
owner as to the amount of death benefit to which it is entitled and as to its
rights to name or change beneficiaries as to all or any part of the proceeds and
said SMA Life will be fully released and discharged of any liability for any
action taken in reliance upon such affidavit.

If this application is for the conversion, split or exchange of the policy the
beneficiary(ies) revocable or irrevocable, as the case may be, and the mode of
payment under the new policy(ies) shall be the same as currently in effect in
the policy to which this application relates.

The above change shall become effective upon the receipt and acceptance of this
request by the Company or its Office.

--------------------------------------------------------------------------------
COLLATERAL ASSIGNEE'S SIGNATURE,     OWNER'S SIGNATURE
 IF APPLICABLE
                                     RICHMOND FEDERAL SAVINGS & LOAN ASSOCIATION
                                     /s/   Buena Vista Coggin, President
 
--------------------------------------------------------------------------------
BENEFICIARY'S SIGNATURE, IF          SIGNED AT                 DATE
 APPLICABLE
                                     ROCKINGHAM, NC               11-25-86
 
--------------------------------------------------------------------------------
                    THIS SPACE RESERVED FOR OFFICE ENTRIES
--------------------------------------------------------------------------------



================================================================================
--------------------------------------------------------------------------------
<PAGE>
 
                           NOMINATION OF BENEFICIARY


TO:  Richmond Federal Savings & Loan Association (hereinafter called the
     "Corporation")


I, Robert Larry Campbell, in accordance with the right granted to me in Section
2.01 of the agreement between me and the Corporation dated January 1, 1987 do
hereby nominate as beneficiary thereunder in the event of my death:

                          Barbara B. Campbell, Spouse

still reserving the privilege of changing the Beneficiary herein named at any
time or times without the consent of any such Beneficiary -

This nomination is made upon the following terms and conditions:

1. The word Beneficiary as used herein shall include the plural, wherever the
   contract so permits.

2. If any sole Beneficiary who is then receiving monthly payments hereunder and
   under said agreement shall not be living on any monthly payment date provided
   for in said agreement, any and all remaining monthly payments shall be made
   payable to the next beneficiary in the order named above unless the executors
   or administrators of such sole Beneficiary are named as Beneficiaries
   hereinabove.

3. If more than one Beneficiary is named either individually or as a class,
   monthly payments shall be made equally to such Beneficiaries unless otherwise
   provided hereinabove. If any such Beneficiaries die while receiving monthly
   payments under said agreement, any and all remaining payments shall be made
   equally to the surviving Beneficiaries of such designation or class or all to
   the sole survivor of them unless otherwise provided hereinabove. If all of
   such Beneficiaries shall die, any and all remaining payments shall be made to
   the next Beneficiary in the order named hereinabove.

4. If none of the Beneficiaries named hereinabove is living on any said monthly
   payment date, any and all remaining payments shall be made to my executors or
   administrators, or upon their written request, to any person or persons so
   designated by them.

5. If any such monthly payments shall be payable upon any trust, the Corporation
   shall not be liable to see to the application by the Trustee of any payment
   hereunder at any time, and may rely upon the sole signature of the Trustee to
   any receipt, release or waiver, or to any transfer or other instrument to
   whomsoever made purporting to affect this nomination or any right hereunder.

This nomination shall be executed in duplicate, but it shall not be valid unless
one copy thereof is filed and receipt thereof acknowledged thereon by the
Corporation during my lifetime.  Any revocation or change of the Nomination of
Beneficiary shall not be valid unless it is filed with and receipt thereof is
acknowledged thereon by the Corporation during my lifetime, and any loss or
destruction of any copy retained by me shall NOT constitute a revocation or
change of this nomination.

This nomination cancels and supersedes any Nomination of Beneficiary heretofore
made by me with respect to said agreement and the right to receive payments
thereunder.
<PAGE>
 
Date:   January 1, 1987            /s/  Robert Larry Campbell
                                 --------------------------------------------
                                 ROBERT LARRY CAMPBELL



The Corporation hereby acknowledges receipt of the above Nomination of
Beneficiary this 1st day of January, 1987.


                            RICHMOND FEDERAL SAVINGS & LOAN
                                ASSOCIATION


                            By:   /s/  Arlie S. Baldwin
                               ----------------------------------------------
                                  SECRETARY