EMPLOYMENT AGREEMENT


THIS EMPLOYMENT  AGREEMENT  ("Agreement") made this 31st day of August,  1998 by
and between THE ANCHOR BANK, a South Carolina banking corporation with principal
offices located at 2002 Oak Street,  Myrtle Beach, South Carolina 29578 ("Bank")
and Chester A. Duke of Marion, South Carolina ("Employee").

                                    RECITALS:

A.       The  Employee  is, as of the date  hereof,  employed  by the Bank as an
         executive  officer  and the  Bank  desires  to  insure  the  Employee's
         continued employment with the Bank.

B.       The  Bank  and the  Employee  mutually  desire  that  their  employment
         relationship  be set forth  under  the  terms of a  written  employment
         agreement;

In consideration of the foregoing and of the promises and mutual  agreements set
forth  below,  and  other  good and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree
as follows :

1.       Employment.  The Bank agrees to employ the  Employee, and the Employee
agrees to serve the Bank,  on the terms and conditions, set forth herein.

2.       Term of  Employment.  The employment of the Employee by the Bank, as
provided under  Section 1, shall  commence  on the date hereof and end on 
August 31, 2001 (the "Initial Term") unless further extended or sooner 
terminated as hereinafter  provided. On August 31, 1999 and on August 31 of
each year thereafter,  the term  of the Employee's  employment hereunder shall 
be extended  automatically one (1) additional year,  unless prior to the date
of such automatic  extension the Bank shall have delivered to the Employee or
the Employee shall have delivered to the  Bank written notice that the term of 
the Employee's  employment  hereunder shall not be extended.

3.       Position and Duties. The Employee  shall serve as Vice Chairman of the
Bank and shall be responsible for all duties, authorities and responsibilities 
as set forth in the Bylaws of the Bank and  shall   assume   such   additional
responsibilities  and  authority  as may from time to time be assigned to him by
the Chief  Executive  Officer of the Bank or other  executive  designated by the
Board of Directors of the Bank. The Employee shall perform his  responsibilities
and duties in the best interests of the Bank and its stockholders.

4.       Place of Performance. In connection with the Employee's employment 
hereunder, the Employee  shall be based  initially at the Bank's office  located
in Marion, South  Carolina,  subject to reasonable  travel or  relocation 
necessary to the business of the Bank.

<PAGE>

5.       Compensation and Benefits. In consideration of the Employee's 
performance of his duties  hereunder,  the Bank shall  provide the Employee 
with the following compensation and benefits during the term of his employment
hereunder.

         a.       Base Salary.  Commencing on the first day after the Effective
                  Date,  and continuing for a period of three  (3)  years  
                  thereafter,  and for any  extended  term  hereof,  the 
                  Employee shall serve on a full-time basis as  Vice  Chairman  
                  of  the  Bank.  During  his  full-time   employment,
                  Employee shall receive a per annum salary of $185,000, payable
                  in equal installments in arrears on the last day of the month.
                  During  the  term  of the  Employee's  employment  under  this
                  Agreement,  the Bank's  Board of Directors  periodically  will
                  review and may increase (but not decrease) the Employee's base
                  salary  rate,  all  in  accordance   with  the  Bank's  salary
                  administration  policies and procedures in effect from time to
                  time; and each change in the Base Salary amount listed in this
                  Section  shall  become the new Base  Salary  amount.  The Bank
                  shall have no  obligation  to  increase  the  Employee's  base
                  salary  rate  at any  particular  time  or in  any  particular
                  amount,  and  any  such  increase  shall  be in the  sole  and
                  absolute discretion of the Chief Executive Officer of the Bank
                  or other executive designated by the Board of Directors of the
                  Bank.

         b.       Bonus and  Incentive  Compensation.  The Bank  shall pay to
                  the  Employee  with  respect  to each fiscal  year  during  
                  the  term of the  Employee's  employment  hereunder,  such 
                  cash bonus as the Chief Executive Officer the Bank or other  
                  executive  designated by the Board of Directors  of the Bank 
                  shall determine in his sole discretion;  provided,
                  however,  in no event  shall  this  paragraph  b. be deemed to
                  require  that any such bonus be paid with  respect to any such
                  fiscal year. In addition,  and without diminution of any other
                  compensation or benefit  provided for in this  Agreement,  the
                  Employee  may be  given  the  opportunity  to  participate  in
                  certain  incentive  compensation  plans that may be adopted by
                  the Bank or in such plans that may be adopted or  sponsored by
                  the Bank's parent  corporation,  Anchor Financial  Corporation
                  ("Anchor"),  which participation opportunity may be offered to
                  the Employee in the full discretion of Anchor and the Bank.

         c.       Expenses.  The  Bank,  as  applicable,   shall  reimburse  the
                  Employee for all proper and reasonable  out-of-pocket expenses
                  incurred  by the  Employee  in  his  performance  of  services
                  hereunder,  including  all such  expenses of travel and living
                  expense while away from home on business of the Bank, provided
                  that  such   expenses  are  incurred  and   accounted  for  in
                  accordance   with  the   regular   policies   and   procedures
                  established by the Bank from time to time.

         d.       Vacations.  The  Employee  shall be  entitled to the number of
                  vacation days in each calendar  year, and to  compensation  in
                  respect of earned  but unused  vacation  days,  determined  in
                  accordance  with the Bank's vacation plan as applicable to the
                  Employee, as well as to all paid holidays provided by the Bank
                  to its employees.

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<PAGE>

         e.       Automobile. The Bank shall provide an automobile for
                  Employee's use.

         f.       Dues.  The Bank shall pay Employee's  regular  monthly dues to
                  the Country Club of South Carolina.

6.       Compensation  and Benefits in the Event of Termination.  In the event
of the termination of the Employee's  employment by the Bank or by the Employee 
during the term of this Agreement, compensation and benefits shall be paid as 
set forth below.

         a.       Definitions.  For  purposes  of this  Agreement,  the  
                  following  terms  shall have the  meanings indicated:

                           (i) "Cause"  shall mean (A) the breach by Employee of
                  any material  provision of this Agreement,  provided that Bank
                  gives the  Employee  written  notice of such  failure and such
                  failure is not cured within thirty (30) days  thereafter;  (B)
                  the  willful  and   continued   failure  by  the  Employee  to
                  substantially  perform his duties under this Agreement  (other
                  than the  Employee's  inability  to  perform,  with or without
                  reasonable accommodation, resulting from his incapacity due to
                  physical or mental illness or impairment),  after a demand for
                  substantial performance is delivered to him by the Bank, which
                  demand  specifically   identifies  the  manner  in  which  the
                  Employee is alleged to have not  substantially  performed  his
                  duties; (C) the willful engaging by the Employee in misconduct
                  (criminal, immoral or otherwise) which is materially injurious
                  to the Bank, its officers, directors, shareholders, employees,
                  or  customers,  monetarily or  otherwise;  (D) the  Employee's
                  conviction of a felony; or (E) the commission in the course of
                  the  Employee's  employment of an act of fraud,  embezzlement,
                  theft  or  proven  dishonesty,  or any  other  illegal  act or
                  practice,  which would  constitute  a felony,  (whether or not
                  resulting in criminal  prosecution or conviction),  or any act
                  or practice which the Bank shall, in good faith,  deem to have
                  resulted in the Employee becoming  unbondable under the Bank's
                  "banker's blanket bond."

                  (ii) "Change in Control" shall mean either:

                           (A) the acquisition,  directly or indirectly,  by any
                  "person"  (as such term is  defined  for  purposes  of Section
                  13(d)  and  14(d)  of the  Securities  Exchange  Act  of  1934
                  ("Exchange  Act")),  other  than by the  Bank,  Anchor  or any
                  subsidiary  controlled  by Anchor or any person so defined who
                  on the date of this  Agreement  is a  director  of the Bank or
                  Anchor,  or whose  shares  of stock  therein  are  treated  as
                  "beneficially  owned" (as such term is defined for purposes of
                  Rule 13d-3 of the Exchange Act) by any such  director,  of the
                  beneficial  ownership [as such term is defined for purposes of
                  Section  13(d) (1) of the Exchange  Act] of shares in the Bank
                  or Anchor which, when added to any other shares the beneficial
                  ownership of which is held by such acquiror,  shall have fifty
                  percent (50%) or more of the combined voting power of the Bank
                  or Anchor's then outstanding voting securities; or


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<PAGE>

                           (B) the  occurrence of any merger,  consolidation  or
                  reorganization  to which  the Bank or Anchor is a party and to
                  which the Bank or Anchor (or an entity  controlled by the Bank
                  or Anchor) is not a  surviving  entity,  or the sale of all or
                  substantially all of the assets of the Bank or Anchor.

                  The merger,  combination,  or  consolidation  of the Bank with
                  Anchor or any other  wholly owned  Subsidiary  of Anchor shall
                  not be construed as a Change in Control.

                  (iii) "Date of Termination"  shall mean: (A) if the Employee's
                  employment is  terminated by reason of his death,  his date of
                  death;  (B) if the  Employee's  employment is  terminated  for
                  Disability,  thirty (30) days after Notice of  Termination  is
                  given  (provided  that the Employee shall not have returned to
                  the performance of his duties as provided under  sub-paragraph
                  (iv) of this paragraph a; or (C) if the Employee's  employment
                  is  terminated by action of either party for any other reason,
                  the date  specified  in the Notice of  Termination;  provided,
                  however,  that if within  thirty (30) days after any Notice of
                  Termination  is given,  the  party  receiving  such  Notice of
                  Termination  notifies  the other  party that a dispute  exists
                  concerning the termination,  the Date of Termination  shall be
                  the date on which the dispute is finally  resolved,  either by
                  mutual  written  agreement  of  the  parties,  or  by a  final
                  judgment, order or decree of a court of competent jurisdiction
                  (the time for appeal  therefrom  having  expired and no appeal
                  having been perfected).

                  (iv)  "Disability"   shall  mean  the  Employee's  failure  to
                  satisfactorily  perform the essential  functions of his office
                  on  a  full-time  basis  for  one  hundred  and  eighty  (180)
                  consecutive days, with or without accommodation,  by reason of
                  the  Employee's  incapacity  resulting from physical or mental
                  illness or  impairment,  except where within fifteen (15) days
                  after Notice of Termination  is given  following such absence,
                  the Employee  shall have  returned to the  satisfactory,  full
                  time  performance  of  such  duties.   Any   determination  of
                  Disability  hereunder  shall be made by the Board of Directors
                  of the Bank in good faith and on the basis of the certificates
                  of at least three (3)  qualified  physicians  chosen by it for
                  such purpose,  one (1) of whom shall be the Employee's regular
                  attending physician.

                  (v) "Good Reason" shall mean either:

                           (A) Failure by the Bank to comply  with any  material
                           provision  of  this  Agreement,   provided  that  the
                           Employee  gives  the  Bank  (as  applicable)  written
                           notice of such  failure and such failure is not cured
                           within thirty (30) days thereafter;

                           (B) Failure by the Bank to obtain the  assumption  of
                           its   obligations   under  this   Agreement   by  any
                           successor;

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<PAGE>

                           (C) The failure by the Bank to comply with Section 5
                           of this Agreement; or

                           (D)  Any  purported  termination  of  the  Employee's
                           employment  by  action  of  the  Bank  which  is  not
                           effected pursuant to a Notice of Termination.

                  (vi) "Notice of Termination" shall mean a written notice which
                  shall include the specific  termination  provision  under this
                  Agreement  relied  upon,  and shall  set  forth in  reasonable
                  detail the facts and circumstances  claimed to provide a basis
                  for  termination of the Employee's  employment.  Any purported
                  termination of the Employee's  employment  hereunder by action
                  of either party shall be  communicated by delivery of a Notice
                  of Termination to the other party.

                  (vii)  "Retirement"  shall mean  termination of the Employee's
                  employment  pursuant to the Bank's regular  retirement  policy
                  applicable to the position held by the Employee at the time of
                  such termination.

         b.       Termination For Cause, Disability,  Death, Retirement or Other
                  Than for Good Reason.  In the event the Employee's  employment
                  hereunder  is  terminated  (A) by action of the Bank for Cause
                  prior to or coincident  with or following a Change in Control;
                  (B) by  action of the  Employee  not for Good  Reason,  at any
                  time; or (C) by reason of the Employee's death,  Disability or
                  Retirement,  the following  compensation and benefits shall be
                  paid and provided the Employee (or his beneficiary):

                  (1) The Employee's  base salary provided under paragraph a. of
                  Section 5 through  the last day of the month in which the Date
                  of  Termination  occurs,  at the annual  rate in effect at the
                  time Notice of Termination is given (or death occurs),  to the
                  extent unpaid prior to such Date of Termination;

                  (2) Any bonus under  paragraph  b. of Section 5 which has been
                  awarded prior to the Date of Termination, to the extent unpaid
                  prior to such date;

                  (3) Any benefits to which the  Employee  (or his  beneficiary)
                  may be  entitled  as a result of such  termination,  under the
                  terms and conditions of the pertinent plans or arrangements in
                  effect  at  the  time  of  the  Notice  of  Termination  under
                  paragraph d. of Section 5; and

                  (4) Any amounts due the Employee  with respect to paragraph c.
                  or paragraph e. of Section 5 as of the Date of Termination.

         c.       Termination  for Good Reason or Other Than For Cause, 
                  Disability,  Death or  Retirement.  In the  event the 
                  Employee's  employment hereunder is terminated other  than  
                  by  reason  of  the  Employee's  death,   Disability  or
                  Retirement, and (A) by action


                                       5
<PAGE>


                  of the Employee coincident with, following,  or  prior  to a 
                  Change  in  Control  and for Good  Reason,  or  (B)  by  
                  action  of  the  Bank  coincident  with, following  or prior 
                  to a Change in Control  and other than for  Cause,  the  Bank
                  shall  pay and  provide  the  Employee  the  compensation  and
                  benefits  stipulated  under  subparagraph b.  immediately 
                  above; provided,  however, in addition thereto and  without
                  setoff,  the following  compensation shall be paid and
                  provided the Employee:

                  For the remaining  Initial Term or one year term thereafter of
                  this  Agreement,  (i) the Bank  shall  continue  to pay to the
                  Employee the Base Salary  provided  for in Section 5.a.  above
                  (at the  Employee's  Base  Salary  rate  provided  for in that
                  Section  immediately  prior to the Date of  Termination)  and,
                  (ii) at its sole cost and expense,  the Bank will  continue to
                  provide the  Employee  with the  insurance  coverages he would
                  have had had he  remained  as an  employee of the Bank or with
                  insurance coverages  substantially  equivalent thereto, or, at
                  the Bank's  request (and so long as such  coverage  reasonably
                  can be obtained by the Employee  himself),  the Employee  will
                  obtain  substantially   equivalent  insurance  coverages  from
                  insurance  companies  chosen by him and the Bank promptly will
                  reimburse  Employee for premium costs actually incurred by him
                  from time to time for the same.  If  termination  pursuant  to
                  this section c. shall occur  during the last twelve  months of
                  the term of this Agreement,  the Employee shall be entitled to
                  receive  the Base  Salary  pursuant  to  section  5a.  and the
                  insurance benefits discussed immediately above for a period of
                  twelve months subsequent to such termination.  The Base Salary
                  shall continue to be payable in equal  installments in arrears
                  on the last day of the month; provided, however if the payment
                  under  this  section,  either  alone or  together  with  other
                  payments  which the Employee has the right to receive from the
                  Bank,  would  constitute a "parachute  payment" (as defined in
                  Section 280G of the Internal  Revenue Code of 1986, as amended
                  (the "Code"),  such severance  payment shall be reduced to the
                  largest  amount as will result in no portion of the  severance
                  payment  under this Section 6 being  subject to the excise tax
                  imposed by Section 4999 of the Code or the  disallowance  of a
                  deduction to the Bank under Section 280G(a) of the Code.

7.       Confidentiality.

         a.       The Employee  recognizes  that his activities on behalf of the
                  Bank require considerable responsibility and trust. Relying on
                  the  ethical  responsibilities  and  undivided  loyalty of the
                  Employee,   the  Bank  has  and  will  and   Anchor   and  its
                  Subsidiaries  will in the future  entrust  the  Employee  with
                  highly  sensitive  confidential,  restricted  and  proprietary
                  information  involving  Confidential  Information  (as defined
                  below).

         b.       For the purposes of this Agreement, "Confidential Information"
                  means any data or  information,  that is material to the Bank,
                  Anchor or the Subsidiaries of Anchor,  and 

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<PAGE>

                  not generally known by the public.  To the extent consistent 
                  with the foregoing definition, Confidential Information 
                  includes (without limitation):

                  i.       the   sales   records,   circulation,    profit   and
                           performance   reports,   pricing  manuals,   training
                           manuals,  selling and pricing  procedures,  financing
                           methods of the Bank,  Anchor or the  Subsidiaries  of
                           Anchor,  and all other business  records of the Bank,
                           Anchor or the Subsidiaries of Anchor;

                  ii.      the  identities of the customers of the Bank,  Anchor
                           or  the   Subsidiaries  of  Anchor,   their  specific
                           demands,    and   their   current   and   anticipated
                           requirements for the products of the Bank,  Anchor or
                           the Subsidiaries of Anchor.

                  iii.     the business plans and internal financial  statements
                           and   projections   of  the   Bank,   Anchor  or  the
                           Subsidiaries of Anchor; and

                  iv.      the specifics of any specialized products or services
                           of the Bank,  Anchor or the  Subsidiary of Anchor may
                           offer or provide to its customers.

         c.       The  Employee  recognizes  the  proprietary  and  sensitive  
                  nature of the Bank,  Anchor and its Subsidiaries' Confidential
                  Information.  The  Employee  agrees  to abide by all of the 
                  Bank and  Anchor's  rules  and  procedures  designed  to  
                  protect  their  Confidential  Information  and to  preserve  
                  and  maintain  all  such  information  in  strict   confidence
                  during  the  Employee's engagement with the Bank and as long 
                  thereafter as the Confidential  Information  remains, in the
                  sole  opinion of the Bank,  Anchor and its  Subsidiaries,  
                  proprietary  and  confidential  to the Bank,  Anchor and its  
                  Subsidiaries.  The  Employee  agrees not to use,  disclose or 
                  in any other way use or disseminate  any  Confidential  
                  Information  to any person not properly  authorized by
                  the Bank, Anchor or the Subsidiaries of Anchor.

8.       Return of Materials. Upon the request of the Bank, and in any event, 
upon the termination of the Employee's employment,  the Employee must return to 
the Bank,  Anchor or the  Subsidiaries  of Anchor  and leave at the  disposal  
of the Bank,  Anchor or the Subsidiaries of Anchor, all memoranda,  notes,  
records, and other  documents pertaining to the business of the Bank, Anchor and
the Subsidiaries of  Anchor,  or the  Employee's  specific  duties for such 
entities  (including  all  copies of such materials). The Employee must also 
return to the Bank, Anchor and the  Subsidiaries of Anchor,  and leave at the 
disposal of the Bank,  Anchor and the Subsidiaries of Anchor, all materials 
involving any Confidential Information of the respective entities.

9.       Implementation.

         a.       The covenants contained herein shall be construed as covenants
                  independent of one another,  and as obligations  distinct from
                  any other  contract  between the  Employee  and the Bank.  Any
                  claim  the  Employee  

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<PAGE>

                  may  have  against the Bank  shall  not constitute  a  defense
                  to  enforcement  by the  Bank  of this Agreement.

         b.       The  covenants  made  by the  Employee  herein  shall  survive
                  termination  of the Employee's  employment,  regardless of who
                  causes the termination and under what circumstances.

10.      Restrictive  Covenant.  In  consideration  of the Bank's  employment of
the Employee, the Employee agrees that in addition to any other limitation, for 
a period of twelve (12) months after the termination of his employment 
hereunder, the  termination  of this  Agreement or the completion of Base Salary
payments pursuant to section 6.c. above, whichever is later, he will not, within
a twenty-five  (25)  mile  radius of any operating office of Anchor or the Bank,
manage, operate or be employed by, participate in, or be connected in any manner
with the management,  operation,  or control of any banking  business or savings
and loan business or financial services  business.  The Employee further agrees,
regardless of the  circumstances  of the  termination of employment,  that for a
period of twelve (12) months after the termination of his employment  hereunder,
the  termination  of this  Agreement or the  completion of Base Salary  payments
pursuant to section 6.c.  above,  he will not solicit the business or patronage,
directly or indirectly, from any customers of the Bank (or any other office of a
Subsidiary  of Anchor if Employee  should  have been  employed by and located at
such office) and the Employee  will not seek to or assist others to persuade any
employee  of the Bank  engaged in similar  work or related to the Bank's work to
discontinue  employment  with  the  Bank or seek  employment  or  engage  in any
business of the Bank.  Furthermore,  the Employee  will not  communicate  to any
person, firm or corporation any information  related to customer lists,  prices,
secrets  or other  Confidential  Information  which he might  from  time to time
acquire with respect to the business of the Bank,  Anchor,  or its Subsidiaries,
or any of their affiliates. The Employee agrees to disclose the contents of this
Agreement  to any  subsequent  employer  for a  period  of  twelve  (12)  months
following  termination  of his  employment  hereunder,  the  termination of this
Agreement  or  completion  of Base  Salary  payments  pursuant  to  6.c.  above,
whichever is later.

11.       Remedies for Breach of Employment Contract. Irreparable harm shall be
presumed if the Employee  breaches any covenant of this Agreement.  The faithful
observance of all covenants in this  Agreement is an essential  condition to the
Employee's  employment,  and the Bank, Anchor and the Subsidiaries of Anchor are
depending upon absolute compliance.  Damages would probably be very difficult to
ascertain  if the  Employee  breached  any  covenant  in  this  Agreement.  This
Agreement is intended to protect the proprietary  rights of the Bank, Anchor and
the  Subsidiaries of Anchor in many important ways. In light of these facts, the
Employee  agrees that any court of  competent  jurisdiction  should  immediately
enjoin any breach of this  Agreement,  upon the request of the Bank,  Anchor and
the  Subsidiaries of Anchor,  and the Employee  specifically  releases the Bank,
Anchor, and the Subsidiaries of Anchor, from the requirement to post any bond in
connection with a temporary or interlocutory  injunctive  relief,  to the extent
permitted by law.

12.       Withholding.  Any provision  of this  Agreement  to  the   contrary
notwithstanding,  all payments made by the Bank hereunder to the Employee or his
estate or beneficiaries  shall be subject to the withholding of such amounts, if
any,  relating to tax and other payroll  deductions  as 

                                       8
<PAGE>

the Bank may reasonably determine should be withheld pursuant to any applicable
law or regulation.  In lieu of withholding  such amounts,  the Bank may accept 
other  provisions to the end that  they have  sufficient  funds to pay all  
taxes  required  by law to be withheld in respect of any or all such payments.

13.      Notices. All notices, requests, demands and other communications 
provided for by this Agreement shall be in writing and shall be sufficiently 
given if and when mailed in the continental United States by registered or
certified mail, or personally  delivered to the party entitled thereto, at the
address stated below or to such changed address as the addressee may have given
by a similar notice:

         To the Bank:                     Stephen L. Chryst
                                          President and Chief Executive Officer
                                          Anchor Financial Corporation
                                          2002 Oak Street
                                          Myrtle Beach, South Carolina 29577

         with copy to:                    Ann W. Langston
                                          Gerrish & McCreary, P.C.
                                          700 Colonial Road, Suite 200
                                          Memphis, Tennessee 38117

         To the Employee:                 Chester A. Duke
                                          905 Evans Road
                                          Marion, SC  29571


         with copy to:                    
                                          ------------------------------------
                              
                                          ------------------------------------

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

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

14.      Successors; Binding Agreement. This Agreement shall inure to the 
benefit of and  be  enforceable  by  the  Employee's  personal  or  legal  
representatives, executors,   administrators,  successors,  heirs, distributees,
devisees  and legatees.  If the Employee should die while any amount would still
be payable to him  hereunder if he had  continued  to live,  all such  amounts, 
except to the extent otherwise provided under this Agreement, shall be paid in
accordance with the terms of this  Agreement to his devisee,  legatee or other 
designee,  or if there be no such designee, to the Employee's estate.

15.      Modification, Waiver or Discharge.  No provision of this Agreement may
be modified, waived or discharged unless such waiver,  modification or discharge
is agreed to in writing  signed by the executive  and an authorized  officer of 
the Bank.  No waiver by either  party  hereto at any time 

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<PAGE>


of any breach by the other party  hereto  of, or  compliance  with,  any
condition  or  provision  of this Agreement  to be  performed  by such  other 
party  shall be  deemed a waiver of similar or  dissimilar  provisions  or
conditions at the same or at any prior or  subsequent time. No agreements or
representations, oral or otherwise, express or implied,  with  respect to the 
subject  matter  hereof have been made by either party which are not expressly
set forth in this  Agreement;  provided,  however, that this Agreement shall no
supersede or in any way limit the right, duties or  obligations  that the 
Employee  or the Bank may have  under any  other  written agreement  between  
such  parties,  under any employee  pension  benefit plan or employee  welfare
benefit plan as defined under the Employee  Retirement  Income Security  Act of
1974,  as amended,  and  maintained  by the Bank,  or under any established
personnel practice or policy applicable to the Employee.

16.      Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of 
South Carolina. Any arbitration,  proceeding or litigation  pertaining  to this
Agreement  shall be located in Horry County,  South Carolina or such other
location as determined by the Bank.

17.      Validity. The invalidity or unenforceability of any  provision of this
Agreement shall not effect the validity or enforceability of any other provision
of this Agreement, which latter shall remain in full force and effect.

18.      Miscellaneous.

         a.       No Right of Set-Off,  Etc.  There shall be no right of set-off
                  or counterclaim,  in respect of any claim,  debt or obligation
                  against any payments to the  Employee,  his  beneficiaries  or
                  estates provided for in this Agreement.

         b.       No Adequate Remedy At Law. The Bank and the Employee recognize
                  that each party will have no adequate remedy at law for breach
                  by the other of any of the agreements contained herein and, in
                  the event of any such breach, the Bank and the Employee hereby
                  agree and  consent  that the other shall be entitled to decree
                  of specific performance, mandamus, or other appropriate remedy
                  to enforce performance of such agreements.

         c.       Non-Assignability.  No right,  benefit,  or interest hereunder
                  shall be subject to anticipation, alienation,  sale,  
                  assignment,  encumbrance,  charge, pledge, hypothecation,  or 
                  setoff in  respect  of any  claim,  debt or  obligation,  or 
                  to  execution,  attachment,  levy  or  similar process,  or  
                  assignment  by  operation  of law.  Any attempt,  voluntary or
                  involuntary,  to effect any action  specified in  the 
                  immediately  preceding  sentence shall, to the full extent
                  permitted by law, be null,  void and of no effect.  Any of the
                  foregoing  to the  contrary  notwithstanding,  this  provision
                  shall not preclude the Employee from  designating  one or more
                  beneficiaries  to receive any amount that may be payable after
                  his death, and shall not preclude the legal  representative of
                  the Employee's  estate from  assigning any right  hereunder to
                  the 

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<PAGE>

                  person or persons  entitled  thereto under his will or, in
                  the case of intestacy applicable to his estate.

19.       Enforcement of Agreement; Attorneys' Fees. In the event litigation is
commenced by the  Employee  against the Bank in seeking to obtain or enforce any
right,  benefit or payment under this  Agreement or to enforce any obligation of
the Bank  described  herein,  then,  provided the Employee shall prevail in such
litigation,  the  Bank  shall  be  obligated  to  pay  all  reasonable  expenses
(including  without  limitation all reasonable  attorneys' fees and court costs)
paid or incurred by the Employee in connection with such litigation.

20.       Counterparts. This Agreement may be executed in one or more 
counterparts, each of which  shall be deemed to be an  original,  but of which 
together  will constitute one and the same instrument.

         IN WITNESS  WHEREOF,  the  Employee and the Bank (by action of its duly
authorized  officer)  have  executed  this  Agreement  on the date  first  above
written.

                                     THE ANCHOR BANK


ATTEST: /s/ Rhonda P. Housand        By: /s/ Stephen L. Chryst

                                     Name: Stephen L. Chryst

                                     Title: President & Chief Executive Officer

                                   

                                    EMPLOYEE


ATTEST: /s/ M.E. Freeman            /s/ Chester A. Duke
                                    Chester A. Duke


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