# Exhibit 10.1

HCSB Financial Corp. Omnibus Stock
Ownership and Long Term Incentive Plan

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Exhibit 10.1

# HCSB Financial CorporationOMNIBUS STOCK
OWNERSHIP AND

# LONG TERM INCENTIVE
PLAN

THIS IS THE OMNIBUS STOCK OWNERSHIP
AND LONG TERM INCENTIVE PLAN (Plan) of HCSB Financial Corporation (the
Corporation or Company), a South Carolina corporation with its principal
office in Horry County, South Carolina, under which Incentive Stock Options and
Non-Qualified Options to acquire shares of the Stock, Restricted Stock, Stock Appreciation
Rights, and/or Units may be granted from time to time to Eligible Employees of the
Corporation and of any of its Subsidiaries (the Subsidiaries), subject to the
following provisions:

# ARTICLE I

# DEFINITIONS

The following terms shall have the
meanings set forth below. Additional terms defined in this Plan shall have the meanings
ascribed to them when first used herein.

Board. The Board of Directors of HCSB Financial Corporation.

Change in Control
Transaction. The dissolution or liquidation of the Corporation; a
reorganization, merger or consolidation of the Corporation as a result of which the
outstanding securities of the class then subject to Rights hereunder are changed into or
exchanged for cash or property or securities not of the Corporations issue; or a
sale of all or substantially all of the assets of the Corporation to, or the acquisition
of stock representing more than twenty-five percent (25%) of the voting power of the
capital stock of the Corporation then outstanding by, another corporation, bank, other
entity or person, other than pursuant to a merger in which the Corporation is the
surviving entity.

Code. The Internal Revenue Code of 1986, as amended, together with the rules and
          regulations promulgated thereunder.

Committee. The Compensation Committee of the Board.

Common Stock. The Common Stock $.01 par value per share, of the Corporation.

Death. The date of death of an Eligible Employee who has received Rights as established
          by the relevant death certificate.

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Disability. The date on which an Eligible Employee who has received Rights becomes
          permanently and totally disabled within the meaning of Section 22 (e) (3) of the
          Code, which shall be determined by the Committee on the basis of such medical or
          other evidence as it may reasonably require or deem appropriate.

Effective Date. The date as of which this Plan is effective, which shall be the date it is adopted by the
Board.

Eligible Employees. Those individuals who meet the following eligibility requirements:

|(i) |  | Such individual must be a full time employee of the Corporation or a Subsidiary.
               For this purpose, an individual shall be considered to be an
               employee only if there exists between the Corporation or a
               Subsidiary and the individual the legal and bona fide relationship of employer
               and employee. In determining whether such relationship exists, the regulations
               of the United States Treasury Department relating to the determination of such
               relationship for the purpose of collection of income tax at the source on wages
               shall be applied.
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|(ii) |  | Such individual is identified by the Committee as a key employee who is in a
               position to significantly influence the long-term success of the Corporation,
               subject to ratification of such action by the Board.
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|(iii) |  | If the Registration shall not have occurred, such individual must have such
               knowledge and experience in financial and business matters that he or she is
               capable of evaluating the merits and risks of the investment involved in the
               receipt and/or exercise of a Right.
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|(iv) |  | Such individual, being otherwise an Eligible Employee under the foregoing items,
               shall have been selected by the Committee as a person to whom a Right or Rights
               shall be granted under the Plan.
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Fair Market
Value. With respect to the Corporations Common Stock, the market
price per share of such Common Stock determined by the Committee, consistent with the
requirements of Section 422 of the Code and to the extent consistent therewith, as
follows, as of the date specified in the context within which such term is used:

|(i) |  | if the Common Stock was traded on a stock exchange on the date in question, then
               the Fair Market Value will be equal to the closing price reported by the
               applicable composite-transactions report for such date;
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|(ii) |  | if the Common Stock was traded over-the-counter on the date in question and was
               classified as a national market issue, then the Fair Market Value will be equal
               to the last transaction price quoted by the National Association of Securities
               Dealers Automated Quotation System (NASDAQ), National Market System or SmallCap Market;
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|(iii) |  | if the Common Stock was traded over-the-counter on the date in question but was
               not classified as a national market issue, then the Fair Market Value will be
               equal to the average of the last reported representative bid and asked prices
               quoted by the NASDAQ for such date; and
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|(iv) |  | if none of the foregoing provisions is applicable, then the Fair Market Value
               will be determined by the Committee in good faith on such basis as it deems
               appropriate, subject to the approval of the Board. In such case, the Committee
               shall maintain a written record of its method of determining Fair Market Value.
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ISO. An incentive stock option as defined in Section 422 of the Code.

Just Cause Termination means:

|(i) |  | with respect to the Company or any subsidiary which employs the recipient of any
               rights under the Plan (the recipient) or for which such recipient
               primarily performs services, the commission by the recipient of an act of fraud,
               embezzlement, theft or proven dishonesty, or any other illegal act or practice
               (whether or not resulting in criminal prosecution or conviction), or any act or
               practice which the Committee shall, in good faith, deem to have resulted in the
               recipients becoming unbondable under the Companys or the
               subsidiarys fidelity bond;
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|(ii) |  | the willful engaging by the recipient in misconduct which is deemed by the
               Committee, in good faith, to be materially injurious to the Company or any
               subsidiary, monetarily or otherwise, including, but not limited, improperly
               disclosing trade secrets or other confidential or sensitive business information
               and data about the Company or any subsidiaries and competing with the Company or
               its subsidiaries, or soliciting employees, consultants or customers of the
               Company in violation of law or any employment or other agreement to which the
               recipient is a party; or
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|(iii) |  | the willful and continued failure or habitual neglect by the recipient to
               perform his or her duties with the Company or the subsidiary substantially in
               accordance with the operating and personnel policies and procedures of the
               Company or the subsidiary generally applicable to all their employees.  For
               purposes of this Plan, no act or failure to act by the recipient shall be deemed
               be willful unless done or omitted to be done by recipient not in
               good faith and without reasonable belief that the recipients action or
               omission was in the best interest of the Company and/or the subsidiary. 
               Notwithstanding the foregoing, if the recipient has entered into an employment
               agreement that is binding as of the date of employment termination, and if such
               employment agreement defines Cause, then the definition of
               Cause in such agreement shall apply to the recipient in this
               Plan.  Cause under either (i), (ii) or (iii) shall be
               determined by the Committee.
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Non-Qualified
Option. Any Option granted under Article III whether designated by the
Committee as a Non-Qualified Option or otherwise, other than an Option designated by the
Committee as an ISO, or any Option so designated but which, for any reason, fails to
qualify as an ISO pursuant to Section 422 of the Code and the rules and regulations
thereunder.

Option
Agreement. The agreement between the Corporation and an Optionee with
respect to Options granted to such Optionee, including such terms and provisions as are
necessary or appropriate under Article III.

Options. ISOs and Non-Qualified Options are collectively referred to herein as
          Options; provided, however, whenever reference is specifically made
          only to ISOs or Non-Qualified Options, such reference shall be deemed to be made
          to the exclusion of the other.

Plan Pool. A total of
200,000 shares of authorized, but unissued, and/or Treasury shares of Common Stock, as
adjusted pursuant to Section 2.3(b), which shall be available as Stock under this Plan.

Registration. The registration by the Corporation under the 1933 Act and applicable state
          Blue Sky and securities laws of this Plan, the offering of Rights
          under this Plan, the offering of Stock under this Plan, and/or the Stock
          acquirable under this Plan.

Restricted
Stock. The Stock that a Holder shall be awarded with restrictions when, as,
in the amounts and with the restrictions described in Article IV.

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Restricted Stock Grant
Agreement. The agreement between the Corporation and a Holder with respect
to Rights to Restricted Stock, including such terms and provisions as are necessary or
appropriate under Article IV.

Retirement.
Retirement shall mean

|(i) |  | the termination of an Eligible Employees employment under conditions which
               would constitute normal retirement or early retirement
               under any tax qualified retirement plan maintained by the Corporation or a
               Subsidiary, or
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|(ii) |  | termination of employment after attaining age 65 (except in the case of a Just Cause Termination
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Rights. The rights to exercise, purchase or receive the Options, Restricted Stock, Units
          and SARs described herein.

Rights Agreement. An Option Agreement, a Restricted Stock Grant Agreement, a Unit Agreement or an SAR Agreement.

SAR. The Right of an SAR Recipient to receive cash when, as and in the amounts
          described in Article VI.

SAR Agreement.
The agreement between the Corporation and an SAR Recipient with respect to the SAR awarded
to the SAR Recipient, including such terms and conditions as are necessary or appropriate
under Article VI.

SEC. The Securities and Exchange Commission.

Stock. The shares of Common Stock in the Plan Pool available for issuance pursuant to
          the valid exercise of a Right or on which the cash value of a Right is to be
          based.

Tax Withholding
Liability. All federal and state income taxes, social security tax, and any
other taxes applicable to the compensation income arising from the transaction required by
applicable law to be withheld by the Corporation.

Transfer. The sale, assignment, transfer, conveyance, pledge, hypothecation, encumbrance,
          loan, gift, attachment, levy upon, assignment for the benefit of creditors, by
          operation of law (by will or descent and distribution), transfer by a qualified
          domestic relations order, a property settlement or maintenance agreement,
          transfer by result of the bankruptcy laws or otherwise of a share of Stock or of
          a Right.

Units. The Right of a Unit Recipient to receive a combination of cash and Stock when,
          as and in the amounts described in Article V.

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Unit Agreement. The agreement between the Corporation and Unit Recipient with respect to the award of
Units to the Unit Recipient, including such terms and conditions as are necessary or
appropriate under Article V.

1933 Act. The
Securities Act of 1933, as amended, together with the rules and regulations promulgated
thereunder.

1934 Act. The
Securities Exchange Act of 1934, as amended, together with the rules and regulations
promulgated thereunder.

# ARTICLE II

# GENERAL

# Section 2.1. Purpose.

The purposes of this Plan are to
encourage and motivate selected key employees to contribute to the successful performance
of the Corporation and its Subsidiaries and the growth of the market value of the
Corporations Common Stock; to achieve a unity of purpose between such employees and
shareholders by providing ownership opportunities, and, when viewed in conjunction with
potential benefit plans for members of the Board and the Boards of Directors of some or
all of the Subsidiaries, to achieve a unity of purpose between such employees and
directors in the achievement of the Corporations primary long term performance
objectives; and to retain such employees by rewarding them with potentially
tax-advantageous future compensation. These objectives will be promoted through the
granting of Rights to designated Eligible Employees pursuant to the terms of this Plan.

# Section 2.2.
Administration.

|(a) |  | The Plan shall be administered by the Committee. Subject to the provisions of
               SEC Rule 16b-3(d), the Committee may designate any officers or employees of the
               Corporation or any Subsidiary to assist in the administration of the Plan, to
               execute documents on behalf of the Committee and to perform such other
               ministerial duties as may be delegated to them by the Committee.
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|(b) |  | Subject to the provisions of the Plan, the determinations and the interpretation
               and construction of any provision of the Plan by the Committee shall be
               recommended to the Board for approval, and when so approved by the Board shall
               be final and conclusive upon persons affected thereby. By way of illustration
               and not of limitation, the Committee shall have the discretion, subject to the
               approval by the Board,
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|(i) | to construe and interpret the Plan and all Rights granted hereunder and to
          determine the terms and         provisions (and amendments thereof) of the Rights granted under the Plan (which need not be identical);
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|(ii) | to define the terms used in the Plan and in the Rights granted hereunder;
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|(iii) | to prescribe, amend and rescind the rules and regulations relating to the Plan;
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|(iv) | to determine the Eligible Employees to whom and the time or times at which such
          Rights shall be granted,        the number of shares of Stock, as and when applicable,
          to be subject to each Right, the exercise price or,        other relevant purchase
          price or value pertaining to a Right, and the determination of leaves of absence
                  which may be granted to Eligible Employees without constituting a termination of
          their employment for        the purposes of the Plan; and
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|(v) | to make all other determinations and interpretations necessary or advisable for
          the administration of the       Plan.
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|(c) |  | Notwithstanding the foregoing, or any other provision of this Plan, the
               Committee will have no authority to determine any matters, or exercise any
               discretion, to the extent that the power to make such determinations or to
               exercise such discretion would cause the loss of exemption under SEC Rule 16b-3
               of any grant or award hereunder.
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|(d) |  | It shall be in the discretion of the Committee, subject to approval by the
               Board, to grant Options to purchase shares of Stock which qualify as ISOs under
               the Code or which will be given tax treatment as Non-Qualified Options. Any
               Options granted which fail to satisfy the requirements for ISOs shall become
               Non-Qualified Options.
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|(e) |  | The intent of the Corporation is to effect the Registration. In such event, the
               Corporation shall make available to Eligible Employees receiving Rights and/or
               shares of Stock in connection therewith all disclosure documents required under
               such federal and state laws. If such Registration shall not occur, the Committee
               shall be responsible for supplying the recipient of a Right and/or shares of
               Stock in connection therewith with such information about the Corporation as is
               contemplated by the federal and state securities laws in connection with
               exemptions from the registration requirements of such laws, as well as providing
               the recipient of a Right with the opportunity to ask questions and receive
               answers concerning the Corporation and the terms and conditions of the Rights
               granted under this Plan. In addition, if such Registration shall not occur, the
               Committee shall be responsible, subject to approval by the Board, for
               determining the maximum number of Eligible Employees and the suitability of
               particular persons to be Eligible Employees in order to comply with applicable
               federal and state securities statutes and regulations governing such exemptions.
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|(f) |  | In determining the Eligible Employees to whom Rights may be granted and the
               number of shares of Stock to be covered by each Right, the Committee and the
               Board shall take into account the nature of the services rendered by such
               Eligible Employees, their present and potential contributions to the success of
               the Corporation and/or a
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| |  | Subsidiary
and such other factors as the Committee and the Board shall deem relevant. An Eligible
Employee who has been granted a Right under this Plan may be granted an additional Right
or Rights under this Plan if the Committee and the Board shall so determine. If pursuant
to the terms of this Plan, or otherwise in connection with this Plan, it is necessary that
the percentage of stock ownership of an Eligible Employee be determined, the ownership
attribution provisions set forth in Section 424(d) of the Code shall be controlling.
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|(g) |  | The granting of Rights pursuant to this Plan is in the exclusive discretion of
               the Board, and until the Board acts, no individual shall have any rights under
               this Plan. The terms of this Plan shall be interpreted in accordance with this
               intent.
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# Section 2.3. Stock
Available For Rights.

|(a) |  | Shares of the Stock shall be subject to, or underlying, grants of Options,
               Restricted Stock, SARs and Units under this Plan. The total number of shares of
               Stock for which, or with respect to which, Rights may be granted (including the
               number of shares of Stock in respect of which SARs and Units may be granted)
               under this Plan shall be those designated in the Plan Pool. In the event that a
               Right granted under this Plan to any Eligible Employee expires or is terminated
               unexercised as to any shares of Stock covered thereby, such shares thereafter
               shall be deemed available in the Plan Pool for the granting of Rights under this
               Plan; provided, however, if the expiration or termination date of a Right is
               beyond the term of existence of this Plan as described in Section 7.3, then any
               shares of Stock covered by unexercised or terminated Rights shall not reactivate
               the existence of this Plan and therefore shall not be available for additional
               grants of Rights under this Plan.
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|(b) |  | In the event the outstanding shares of Common Stock are increased, decreased,
          changed into or exchanged for a different number or kind of securities as a
          result of a stock split, reverse stock split, stock dividend, recapitalization,
          merger, share exchange acquisition, combination or reclassification, appropriate
          proportionate adjustments will be made in: (i) the aggregate number and/or kind
          of shares of Stock in the Plan Pool that may be issued pursuant to the exercise
          of, or that are underlying, Rights granted hereunder; (ii) the exercise or other
          purchase price or value pertaining to, and the number and/or kind of shares of
          Stock called for with respect to, or underlying, each outstanding Right granted
          hereunder; and (iii) other rights and matters determined on a per share basis
          under this Plan or any Rights Agreement. Any such adjustments will be made only
          by the Committee, subject to approval by the Board, and when so approved will be
          effective, conclusive and binding for all purposes with respect to this Plan and
          all Rights then outstanding. No such adjustments will be required by reason of
          (i) the issuance or sale by the Corporation for cash of additional shares of its
          Common Stock or securities convertible into or exchangeable for shares of its
          Common Stock, or (ii) the issuance of shares of Common Stock in exchange for
          shares of the capital stock of any corporation, financial institution or other
          organization acquired by the Corporation or any Subsidiary in connection
          therewith.
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|(c) |  | The grant of a Right pursuant to this Plan shall not affect in any way the right
               or power of the Corporation to make adjustments, reclassification,
               reorganizations or changes of its capital or business structure or to merge or
               to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
               its business or assets.
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|(d) |  | No fractional shares of Stock shall be issued under this Plan for any adjustment
          under Section 2.3(b).
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# Section 2.4. Severable
Provisions.

The Corporation intends that the
provisions of each of Articles III, IV, V and VI, in each case together with Articles I,
II and VII, shall each be deemed to be effective on an independent basis, and that if one
or more of such Articles, or the operative provisions thereof, shall be deemed invalid,
void or voidable, the remainder of such Articles shall continue in full force and effect.

# Article III

# OPTIONS

# Section 3.1. Grant of
Options.

|(a) |  | The Company may grant Options to Eligible Employees as provided in this Article
               III. Options will be deemed granted pursuant to this Article III only upon (i)
               authorization by the Committee, (ii) the approval of such grant by the Board,
               and (iii) the execution and delivery of an Option Agreement by the Eligible
               Employee optionee (the Optionee) and a duly authorized officer
               of the Company. Options will not be deemed granted hereunder merely upon
               authorization of such grant by the Committee. The aggregate number of shares of
               Stock potentially acquirable under all Options granted shall not exceed the
               total number of shares of Stock remaining in the Plan Pool, less all shares of
               Stock potentially acquired under, or underlying, all other Rights outstanding
               under this Plan.
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|(b) |  | Subject to approval by the Board, the Committee shall designate Options at the
               time a grant is authorized as either ISOs or Non-Qualified Options. In
               accordance with Section 422 (d) of the Code, the aggregate Fair Market Value
               (determined as of the date an ISO is granted) of the shares of Stock as to which
               an ISO may first become exercisable by an Optionee in a particular calendar year
               (pursuant to Article III and all other plans of the Company and/or its
               Subsidiaries) may not exceed $100,000 (the $100,000 Limitation). If
               an Optionee is granted Options in excess of the $100,000 Limitation, or if such
               Options otherwise become exercisable with respect to a number of shares of Stock
               which would exceed the $100,000 Limitation, such excess Options shall be
               Non-Qualified Options.
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# Section 3.2. Exercise
Price.

|(a) |  | Subject to approval by the Board, the initial exercise price of each Option
               granted under this Plan (the Exercise Price) shall be determined by
               the Committee in its discretion; provided, however, that the Exercise Price of
               an ISO shall not be less than (i) the Fair Market Value of the Common Stock on
               the date of grant of the Option, in the case of any Eligible Employee who does
               not own stock possessing more than ten percent (10%) of the total combined
               voting power of all classes of the capital stock of the Company (within the
               meaning of Section 422 (b) (6) of the Code), or (ii) one hundred ten percent
               (110%) of such Fair Market Value in the case of any Eligible Employee who owns
               stock in excess of such amount.
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|(b) |  | Subject to the approval of the Board and the provisions of Section 3.2(a) (as to
               the establishment of the Exercise Price of an Option on the date of grant), the
               Committee may establish that the Exercise Price of an Option shall be adjusted
               upward or downward, on a quarterly basis, based upon the market value
               performance of the Common Stock in comparison with the aggregate market value
               performance of one or more indices composed of publicly-traded financial
               institutions and financial institution holding companies deemed by the Committee
               to be similar (in terms of asset size, capitalization, trading volumes and other
               factors deemed relevant by the Committee) to the Corporation (an
               Index and the Indices); provided, however, that the
               Exercise Price of an ISO shall not be adjustable if, under the Code, such
               adjustable Exercise Price would disqualify the ISO as an ISO. The Committee may
               utilize Indices published by third parties and/or may construct one or more
               Indices meeting the characteristics described above.
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The Indices utilized will be
recalculated quarterly, including in such quarterly recalculation such adjustments for
stock splits, reverse stock splits and stock dividends of the companies in the indices and
of the Company as are appropriate. Each such Index shall include no fewer than fifteen
(15) publicly-traded financial institutions and financial institution holding companies.
If more than one Index is utilized by the Committee, it may give such weighting to each
Index utilized as the Committee may determine in its sole discretion, consistent with the
provisions of this Article III.

# Section 3.3. Terms and
Conditions of Options.

|(a) |  | All Options must be granted within ten (10) years of the Effective Date.
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|(b) |  | The Committee, subject to the approval by the Board, may grant ISOs and
               Non-Qualifed Options, either separately or jointly, to an Eligible Employee.
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|(c) |  | Each grant of Options shall be evidenced by an Option Agreement in form and
               substance satisfactory to the Committee in its discretion, consistent with the
               provisions of this Article III.
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|(d) |  | At the discretion of the Committee, an Optionee, as a condition to the granting
               of an Option, must execute and deliver to the Company a confidential information
               agreement approved by the Committee.
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|(e) |  | Nothing contained in Article III, any Option Agreement or in any other agreement
               executed in connection with the granting of an Option under this Article III
               will confer upon any Optionee any right with respect to the continuation of his
               or her status as an employee of the Company or any of its Subsidiaries.
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|(f) |  | Except as otherwise provided herein, each Option Agreement may specify the
               period or periods of time within which each Option or portion thereof will first
               become exercisable (the Vesting Period) with respect to the total
               number of shares of Stock acquirable thereunder. Such Vesting Periods will be
               fixed by the Committee in its discretion, and may be accelerated or shortened by
               the Committee in its discretion; provided, however, that the Vesting Period for
               any portion of each ISO shall be at least one year (1) from the date such Option
               was granted.
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|(g) |  | Not less than one hundred (100) shares of Stock may be purchased at any one time
               through the exercise of an Option unless the number purchased is the total
               number at that time purchasable under all Options granted to the Optionee.
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|(h) |  | An Optionee shall have no rights as a shareholder of the Company with respect to
               any shares of Stock covered by Options granted to the Optionee until payment in
               full of the Exercise Price by such Optionee for the shares being purchased. No
               adjustment shall be made for dividends (ordinary or extraordinary, whether in
               cash, securities or other property) or distributions or other rights for which
               the record date is prior to the date such Stock is fully paid for, except as
               provided in Sections 2.3(b) and 3.2(b).
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|(i) |  | All shares of Stock obtained pursuant to an Option which qualifies as an ISO
               shall be held in escrow for a period which ends on the later of (i) two (2)
               years from the date of the granting of the ISO or (ii) one (1) year after the
               issuance of such shares pursuant to the exercise of the ISO. Such shares of
               Stock shall be held by the Company or its designee. The Optionee who has
               exercised the ISO shall have all rights of a shareholder, including, but not
               limited to, the rights to vote, receive dividends and sell such shares. The sole
               purpose of the escrow is to inform the Company of a disqualifying disposition of
               the shares of Stock acquired within the meaning of Section 422 of the Code, and
               it shall be administered solely for this purpose.
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|(j) |  | Additionally and notwithstanding any other provisions of this Article III, no
               shares of Stock obtained pursuant to an Option may be Transferred until at least
               six (6) months and one (1) day shall have elapsed since the date such Option was
               granted.
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# Section 3.4. Exercise of
Options.

|(a) |  | An Optionee must be an Eligible Employee at all times from the date of grant
               until the exercise of the Options granted, except as provided in Section 3.5(b).
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|(b) |  | An Option may be exercised to the extent exercisable (i) by giving written
               notice of exercise to the Company, specifying the number of full shares of Stock
               to be purchased and, if applicable, accompanied by full payment of the Exercise
               Price thereof and the amount of the Tax Withholding Liability pursuant to
               Section 3.4(c) below; and (ii) by giving assurances satisfactory to the Company
               that the shares of Stock to be purchased upon such exercise are being purchased
               for investment and not with a view to resale in connection with any distribution
               of such shares in violation of the 1933 Act; provided, however, that in the
               event the prior occurrence of the Registration or in the event resale of such
               Stock without such Registration would otherwise be permissible, this second
               condition will be inoperative if, in the opinion of counsel for the Company,
               such condition is not required under the 1933 Act or any other applicable law,
               regulation or rule of any governmental agency.
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|(c) |  | As a condition to the issuance of the shares of Stock upon full or partial
               exercise of a Non-Qualified Option, the Optionee will pay to the Company in
               cash, or in such other form as the Committee may determine in its discretion,
               the amount of the Companys Tax Withholding Liability required in
               connection with such exercise.
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|(d) |  | The Exercise Price of an Option shall be payable to the Company either (i) in
               United States dollars, in cash or by check, or money order payable to the order
               of the Company, or (ii) at the discretion of the Committee and the Board,
               through the delivery of shares of the Stock owned by the Optionee (including, if
               the Committee so permits, a portion of the shares of Stock as to which the
               Option is then being exercised) with a Fair Market Value as of the date of
               delivery equal to the Exercise Price, or (iii) at the discretion of the
               Committee and the Board, by a combination of (i) and (ii) above. No shares of
               Stock shall be delivered until full payment has been made.
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# Section 3.5. Term and
Termination of Option.

|(a) |  | Subject to approval by the Board, the Committee shall determine, and each Option
               Agreement shall state, the expiration date or dates of each Option, but such
               expiration date shall be not later than ten (10) years after the date such
               Option was granted (the Option Period). In the event an ISO is
               granted to a 10% Shareholder, the expiration date or dates of each Option Period
               shall be not later than five (5) years after the date such Option is granted.
               Subject to approval by the Board, the Committee may extend the expiration date
               or dates of an Option Period of any Non-Qualified Option after such date was
               originally set; provided, however such expiration date may not exceed the
               maximum expiration date described in this Section 3.5(a).
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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|(b) |  | To the extent not previously exercised, each Option will terminate upon the
               expiration of the Option Period specified in the Option Agreement; provided,
               however, that, subject to the provisions of Section 3.5(a), each ISO will
               terminate upon the earlier of: (i) ninety (90) days after the date that the
               Optionee ceases to be an Eligible Employee for any reason, other than by reason
               of Death, Disability, or a Just Cause Termination; (ii) twelve (12) months after
               the date that the Optionee ceases to be an Eligible Employee by reason of
               Disability; or (iii) immediately as of the date that the Optionee ceases to be
               an Eligible Employee by reason of a Just Cause Termination. The Committee may,
               subject to approval by the Board, specify other events that will result in the
               termination of an ISO (including, without limitation, termination of employment
               by reason of Death). In the case of Non-Qualified Options, the Committee shall
               have discretion, subject to approval by the Board, to specify what, if any,
               events will terminate the Option prior to the expiration of the Option Period.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 3.6. Change in
Control Transaction.

At any time prior to the date of
consummation of a Change in Control Transaction, the Committee may, in its absolute
discretion, determine that all or any part of the Options theretofore granted under this
Article III shall become immediately exercisable in full and may thereafter be exercised
at any time before the date of consummation of the Change in Control Transaction (except
as otherwise provided in Article II hereof, and except to the extent that such
acceleration of exercisability would result in an excess parachute payment
within the meaning of Section 280G of the Code). Any Option that has not been fully
exercised before the date of consummation of the Change in Control Transaction shall
terminate on such date, unless a provision has been made in writing in connection with
such transaction for the assumption of all Options theretofore granted, or the
substitution for such Options of options to acquire the voting stock of a successor
employer corporation, or a parent or a subsidiary thereof, with appropriate adjustments as
to the number and kind of shares and prices, in which event the Options theretofore
granted shall continue in the manner and under the terms so provided.

# Section 3.7.
Restrictions On Transfer.

An Option granted under Article III
may not be Transferred except by will or the laws of descent and distribution and, during
the lifetime of the Optionee to whom it was granted, may be exercised only by such
Optionee.

# Section 3.8. Stock
Certificates.

Certificates representing the Stock
issued pursuant to the exercise of Options will bear all legends required by law and
necessary to effectuate the provisions hereof. The Company may place a stop
transfer order against such shares of Stock until all restrictions and conditions
set forth in this Article III, the applicable Option Agreement, and in the legends
referred to in this Section 3.8 have been complied with.

12

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# Section 3.9. Amendment
and Discontinuance.

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

|(a) |  | Increase the total number of shares of Stock issuable pursuant to all Rights
               under the Plan, except as contemplated in Section 2.3(b) hereof; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

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

No termination, amendment, or
modification of the Plan shall affect adversely a Optionees rights under a Stock
Option Agreement without the consent of the Optionee or his legal representative.

# Section 3.10. Compliance
with Rule 16b-3.

With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article III are intended to comply
with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the
extent any provision of this Article III or action by the Board or the Committee fails so
to comply, it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee and the Board.

# Article IV

# RESTRICTED STOCK GRANTS

# Section 4.1 Grants of
Restricted Stock.

|(a) |  | The Company may issue Restricted Stock to Eligible Employees as provided in this
               Article IV. Restricted Stock will be deemed issued only upon (i) authorization
               by the Committee, (ii) approval by the Board, and (iii) the execution and
               delivery of a Restricted Stock Grant Agreement by the Eligible Employee to whom
               such Restricted Stock is to be issued (the Holder) and a duly
               authorized officer of the Company. Restricted Stock will not be deemed to have
               been issued merely upon authorization by the Committee.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Each issuance of Restricted Stock pursuant to this Article IV will be evidenced
               by a Restricted Stock Grant Agreement between the Company and the Holder in form
               and substance satisfactory to the Committee in its sole discretion, consistent
               with this Article IV. Each Restricted Stock Grant Agreement will specify the
               purchase price per share, if any, paid by the Holder for the Restricted Stock,
               such amount to be fixed by the Committee and the Board.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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|(c) |  | Without limiting the foregoing, each Restricted Stock Grant Agreement shall set
               forth the terms and conditions of any forfeiture provisions regarding the
               Restricted Stock, (including any provisions for accelerated vesting in the event
               of a Change in Control Transaction) as determined by the Committee and the
               Board.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | At the discretion of the Committee, the Holder, as a condition to such issuance,
               may be required (i) to execute and deliver to the Company a confidential
               information agreement approved by the Committee, and/or (ii) to pay to the
               Corporation in cash, or in such other form as the Committee may determine in its
               discretion, the amount of the Corporations Tax Withholding Liability
               required in connection with such issuance.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Nothing contained in this Article IV, any Restricted Stock Grant Agreement, or
               any other agreement executed in connection with the issuance of Restricted Stock
               under this Article IV will confer upon any holder any right with respect to the
               continuation of his or her status as an employee of the Company or any of its
               Subsidiaries.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 4.2.
Restrictions on Transfer of Restricted Stock.

|(a) |  | Shares of Restricted Stock acquired by a Holder may be Transferred only in
               accordance with the specific limitations on the Transfer of Restricted Stock
               imposed by applicable state or federal securities laws or set forth below, and
               subject to certain undertakings of the transferee set forth in Section 4.2(c).
               All Transfers of Restricted Stock not meeting the conditions set forth in this
               Section 4.2(a) are expressly prohibited.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Any prohibited Transfer of Restricted Stock is void and of no effect. Should
               such a Transfer purport to occur, the Company may refuse to carry out the
               Transfer on its books, attempt to set aside the Transfer, enforce any
               undertaking or right under this Section 4.2(b), and/or exercise any other legal
               or equitable remedy.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Any Transfer of Restricted Stock that would otherwise be permitted under the
               terms of this Plan is prohibited unless the transferee executes such documents
               as the Company may reasonably require to ensure the Companys rights under
               a Restricted Stock Grant Agreement and this Article IV are adequately protected
               with respect to the Restricted Stock so Transferred. Such documents may include,
               without limitation, an agreement by the transferee to be bound by all of the
               terms of this Plan applicable to Restricted Stock and of the applicable
               Restricted Stock Grant Agreement, as if the transferee were the original Holder
               of such Restricted Stock.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | To facilitate the enforcement of the restrictions on Transfer set forth in this
               Article IV, the Committee may, at its discretion, require the Holder of shares
               of Restricted Stock to deliver the certificate(s) for such shares with a stock
               power executed in blank by the Holder and the Holders spouse, to the
               Secretary of the Company or his or her designee, and the Company may hold said
               certificate(s) and stock power(s) in escrow and take all such actions as are
               necessary to insure that all Transfers and/or releases are
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

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| |  | made in accordance with the terms of this Plan. The certificates may be held in escrow
               so long as
               the shares of Restricted Stock whose ownership they evidence are subject to any
               restriction on Transfer under this Article IV or under a Restricted Stock Grant
               Agreement. Each Holder acknowledges that the Secretary of the Company (or his or
               her designee) is so appointed as the escrow holder with the foregoing
               authorities as a material inducement to the issuance of shares of Restricted
               Stock under this Article IV, that the appointment is coupled with an interest,
               and that it accordingly will be irrevocable. The escrow holder will not be
               liable to any party to a Restricted Stock Grant Agreement (or to any other
               party) for any actions or omissions unless the escrow holder is grossly
               negligent relative thereto. The escrow holder may rely upon any letter, notice
               or other document executed by any signature purported to be genuine.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 4.3. Compliance
with Law.

Notwithstanding any other provision
of this Article IV, Restricted Stock may be issued pursuant to this Article IV only after
there has been compliance with all applicable federal and state securities laws, and such
issuance will be subject to this overriding condition. The Company may include shares of
Restricted Stock in a Registration, but will not be required to register or qualify
Restricted Stock with the SEC or any state agency, except that the Company will register
with, or as required by local law, file for and secure an exemption from such registration
requirements from, the applicable securities administrator and other officials of each
jurisdiction in which an Eligible Employee would be issued Restricted Stock hereunder
prior to such issuance.

# Section 4.4. Stock
Certificates.

Certificates representing the
Restricted Stock issued pursuant to this Article IV will bear all legends required by law
and necessary to effectuate the provisions hereof. The Company may place a stop
transfer order against shares of Restricted Stock until all restrictions and
conditions set forth in this Article IV, the applicable Restricted Stock Grant Agreement
and the legends referred to in this Section 4.4 have been complied with.

# Section 4.5. Market
Standoff.

To the extent requested by the
Company and any underwriter of securities of the Company in connection with a firm
commitment underwriting, no Holder of any shares of Restricted Stock will Transfer any
such shares not included in such underwriting, or not previously registered in a
Registration, during the one hundred twenty (120) day period following the effective date
of the registration statement filed with the SEC under the 1933 Act in connection with
such offering.

# Section 4.6. Amendment
and Discontinuance.

15

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

|(a) |  | Increase the total number of shares of Stock issuable pursuant to all Rights
          under the Plan, except as contemplated in Section 2.3(b) hereof; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | modify the requirements as to eligibility for participation under this Article
          IV.
|--- |  | --------------------------------------------------------------------------------------------

No termination, amendment, or modification of the Plan shall affect
          adversely a Holders rights under a Restricted Stock Agreement without the
          consent of the Holder or his legal representative.

# Section 4.7. Compliance
with Rule 16b-3.

With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article IV are intended to comply with
all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the
extent any provision of this Article IV or action by the Board or the Committee fails so
to comply, it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee and the Board.

# Article V

# LONG-TERM INCENTIVE
COMPENSATION UNITS

# Section 5.1. Awards of
Units.

|(a) |  | The Company may grant awards of Units to Eligible Employees as provided in this
               Article V. Units will be deemed granted only upon (i) authorization by the
               Committee, (ii) approval by the Board, and (iii) the execution and delivery of a
               Unit Agreement by the Eligible Employee to whom Units are to be granted (a
               Unit Recipient) and an authorized officer of the Company. Units will
               not be deemed granted merely upon authorization by the Committee. Units may be
               granted in each of the years 2004 through 2014 in such amounts and to such Unit
               Recipients as the Committee may determine, subject to approval by the Board and
               to the limitation in Section 5.2 below.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Each grant of Units pursuant to this Article V will be evidenced by a Unit Award
               Agreement between the Company and the Unit Recipient in form and substance
               satisfactory to the Committee in its sole discretion, consistent with this
               Article V.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Except as otherwise provided herein, Units will be distributed only after the
               end of a performance period of two or more years (Performance
               Period) beginning with the year in which such Units were awarded. The
               Performance Period shall be set by the Committee and the Board for each
               years awards.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16

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|(d) |  | The percentage of the Units awarded under this Section 5.1 or credited pursuant
               to Section 5.5 that will be distributed to Unit Recipients shall depend on the
               levels of financial performance and other performance objectives achieved during
               each year of the Performance Period; provided, however, that the Committee may,
               subject to approval of the Board, adopt one or more performance categories or
               eliminate all performance categories other than financial performance. Financial
               performance shall be based on the consolidated results of the Company and its
               Subsidiaries prepared on the same basis as the financial statements published
               for financial reporting purposes and determined in accordance with Section
               5.1(e) below. Other performance categories adopted by the Committee shall be
               based on measurements of performance as the Committee shall deem appropriate.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Distributions of Units awarded will be based on the Companys financial
               performance with results from other performance categories applied as a factor,
               not exceeding one (1), against financial results. The annual financial and other
               performance results will be averaged over the Performance Period and translated
               into percentage factors according to graduated criteria established by the
               Committee, subject to approval of the Board, for the entire Performance Period.
               The resulting percentage factors shall determine the percentage of Units to be
               distributed. No distributions of Units, based on financial performance and other
               performance, shall be made if a minimum average percentage of the applicable
               measurement of performance, to be established by the Committee and approved by
               the Board, is not achieved for the Performance Period. The performance levels
               achieved for each Performance Period and percentage of Units to be distributed
               shall be conclusively determined by the Committee, subject to approval by the
               Board.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | The percentage of Units awarded which Unit Recipients become entitled to receive
               based on the levels of performance (including those Units credited under Section
               5.5) will be determined as soon as practicable after each Performance Period and
               are called Retained Units.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) |  | As soon as practical after determination of the number of Retained Units, such
               Retained Units shall be distributed in the form of a combination of shares and
               cash in the relative percentages as between the two as determined by the
               Committee, subject to approval by the Board. The Units awarded, but which Unit
               Recipients do not become entitled to receive, shall be canceled.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) |  | Notwithstanding any other provision in this Article V, the Committee, if it
               determines that it is necessary or advisable under the circumstances, may,
               subject to approval by the Board, adopt rules pursuant to which Eligible
               Employees by virtue of hire, or promotion or upgrade to a higher job grade
               classification, or special individual circumstances, may be granted the total
               award of Units or any portion thereof, with respect to one or more Performance
               Periods that began in prior years and at the time of the awards have not yet
               been completed.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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# Section 5.2. Limitations.

The aggregate number of shares of
Stock potentially distributable under all Units granted, including those Units credited
pursuant to Section 5.5, shall not exceed the total number of shares of Stock remaining in
the Plan Pool, less all shares of Stock potentially acquirable under, or underlying, all
other Rights outstanding under this Plan.

# Section 5.3. Terms and
Conditions.

|(a) |  | All awards of Units must be made within ten (10) years of the Effective Date.
|--- |  | -----------------------------------------------------------------------------

|(b) |  | The award of Units shall be evidenced by a Unit Award Agreement in form and
               substance satisfactory to the Committee in its discretion, consistent with the
               provisions of this Article V.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | At the discretion of the Committee and the Board, a Unit Recipient, as a
               condition to the award of Units, may be required to execute and deliver to the
               Company a confidential information agreement approved by the Committee.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | Nothing contained in this Article V, any Unit Award Agreement or in any other
               agreement executed in connection with the award of Units under this Article V
               will confer upon any Unit Recipient any right with respect to the continuation
               of his or her status as an employee of the Company or any of its Subsidiaries.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | A Unit Recipient shall have no rights as a shareholder of the Company with
               respect to any Units until the distribution of shares of Stock in connection
               therewith. No adjustment shall be made in the number of Units for dividends
               (ordinary or extraordinary, whether in cash, securities or other property) or
               distributions or other rights for which the record date is prior to the date
               such Stock is fully paid for, except as provided in Sections 2.3(b) and 5.6(a).
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 5.4. Special
Distribution Rules.

|(a) |  | Except as otherwise provided in this Section 5.4, a Unit Recipient must be an
               Eligible Employee from the date a Unit is awarded to him or her continuously
               through and including the date of distribution of such Unit.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | In case of the Death or Disability of a Unit Recipient prior to the end of any
               Performance Period, the number of Units awarded to the Unit Recipient for such
               Performance Period shall be reduced pro rata based on the number of months
               remaining in the Performance Period after the month of Death or Disability. The
               remaining Units, reduced in the discretion of the Committee and the Board to the
               percentage indicated by the levels of performance achieved prior to the date of
               Death or Disability, if any, shall be distributed within a reasonable time after
               Death or
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

18

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| |  | Disability. All other Units awarded to the Unit Recipient for such
               Performance Period shall be canceled.
| |  | -----------------------------------------------------------------------------------------------------------------------

|(c) |  | If a Unit Recipient enters into Retirement prior to the end of any Performance
               Period, the Units awarded to such Unit Recipient under this Article V and not
               yet distributed shall be prorated to the end of the year in which such
               Retirement occurs and distributed at the end of the Performance Period based
               upon the Companys performance for such period.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | In the event of the termination of the Unit Recipients status as an
               Eligible Employee prior to the end of any Performance Period for any reason
               other than Death, Disability or Retirement, all Units awarded to the Unit
               Recipient with respect to any such Performance Period shall be immediately
               forfeited and canceled.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Upon a Unit Recipients promotion to a higher job grade classification, the
               Committee and the Board may award to the Unit Recipient the total Units, or any
               portion thereof, which are associated with the higher job grade classification
               for the then current Performance Period.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Notwithstanding any other provision
of this Plan, the Committee may reduce or eliminate awards to a Unit Recipient who has
been demoted to a lower job grade classification, and where circumstances warrant, may
permit continued participation, proration or early distribution, or a combination thereof,
of awards which would otherwise be canceled.

# Section 5.5. Dividend
Equivalent Units.

On each record date for dividends on
the Common Stock, an amount equal to the dividend payable on one share of Common Stock
will be determined and credited (the Dividend Equivalent Credit) on the
payment date to each Unit Recipients account for each Unit which has been awarded to
the Unit Recipient and not distributed or canceled. Such amount will be converted within
the account to an additional number of Units equal to the number of shares of Common Stock
that could be purchased at Fair Market Value on such dividend payment date. These Units
will be treated for purposes of this Article V in the same manner as those Units granted
pursuant to Section 5.1.

# Section 5.6. Adjustments.

|(a) |  | In addition to the provisions of Section 2.3(b), if an extraordinary change
               occurs during a Performance Period which significantly alters the basis upon
               which the performance levels were established under Section 5.1 for that
               Performance Period, to avoid distortion in the operation of this Article V, but
               subject to Section 5.2, the Committee may, subject to approval by the Board,
               make adjustments in such performance levels to preserve the incentive features
               of this Article V, whether before or after the end of the Performance Period, to
               the extent it deems appropriate in its sole discretion, which adjustments shall
               be conclusive and binding upon all parties
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

19

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| |  | concerned. Such changes may include,
               without limitation, adoption of, or changes in, accounting practices, tax laws
               and regulatory or other laws or regulations; economic changes not in the
               ordinary course of business cycles; or compliance with judicial decrees or other
               legal authorities.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | At any time prior to the date of consummation of a Change in Control
               Transaction, the Committee may, subject to approval by the Board, determine that
               all or any part of the Units theretofore awarded under this Article V shall
               become immediately distributable (reduced pro rata based on the number of months
               remaining in the Performance Period after the consummation of the Change in
               Control Transaction) and may thereafter be distributed at any time before the
               date of consummation of the Change in Control Transaction (except as otherwise
               provided in Article II hereof, and except to the extent that such acceleration
               of distribution would result in an excess parachute payment within
               the meaning of Section 280G of the Code). Any Units that have not been
               distributed before the date of consummation of Use Change in Control Transaction
               shall terminate on such date, unless a provision has been made in writing in
               connection with such transaction for the assumption of all awards of Units
               theretofore made, or the substitution for such units of awards of compensation
               units having comparable characteristics under a long term incentive award plan
               of a successor employer corporation, or a parent or a subsidiary thereof, with
               appropriate adjustments, in which event the awards of Units theretofore made
               shall continue in the manner and under the terms so provided.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 5.7. Other
Conditions.

|(a) |  | No person shall have any claim to be granted an award of Units under this
               Article V and there is no obligation for uniformity of treatment of Eligible
               Employees or Unit Recipients under this Article IV.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | The Company shall have the right to deduct from any distribution or payment in
               cash under this Article V, and the Unit Recipient or other person receiving
               shares of Stock under this Article V shall be required to pay to the Company,
               any Tax Withholding Liability. The number of shares of Stock to be distributed
               to any individual Unit Recipient may be reduced by the number of shares of
               Stock, the Fair Market Value of which on the Distribution Date (as defined in
               Section 5.7(d) below) is equivalent to the cash necessary to pay any Tax
               Withholding Liability, where the cash to be distributed is not sufficient to pay
               such Tax Withholding Liability, or the Unit Recipient may deliver to the Company
               cash sufficient to pay such Tax Withholding Liability.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Any distribution of shares of Stock under this Article V may be delayed until
               the requirements of any applicable laws or regulations, and any stock exchange
               or applicable NASDAQ requirements, are satisfied. The shares of Stock
               distributed under this Article V shall be subject to such restrictions and
               conditions on disposition as counsel for the Company shall determine to be
               desirable or necessary under applicable law.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20

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|(d) |  | For the purpose of distribution of Units in cash, the value of a Unit shall be
               the Fair Market Value on the Distribution Date. Except as otherwise determined
               by the Committee, the Distribution Date shall be March 15th in the
               year of distribution (or the first business day thereafter), except that in the
               case of special distributions the Distribution Date shall be the first business
               day of the month in which the Committee and the Board determine the amount and
               form of the distribution.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Notwithstanding any other provision of this Article V, no Dividend Equivalent
               Credits shall be made and no distributions of Units shall be made if at the time
               a Dividend Equivalent Credit or distribution would otherwise have been made:
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | The regular quarterly dividend on the Common Stock has been omitted and not
          subsequently paid or there       exists any default in payment of dividends on any
          such outstanding shares of capital stock of the        Corporation:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | The rate of dividends on the Common Stock is lower than at the time the Units
          to which the Dividend         Equivalent Credit relates were awarded, adjusted for any
          change of the type referred to in Section 2.3(b).
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | Estimated consolidated net income of the Corporation for the twelve month       
          period preceding the month the Dividend Equivalent Credit or distribution would
          otherwise have been        made is less than the sum of the amount of the Dividend
          Equivalent Credits and Units eligible for       distribution under this Article V in
          that month plus all dividends applicable to such period on an accrual        basis, either paid, declared or accrued at the most
          recently paid rate, on all outstanding shares of Common        Stock; or
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) | The Dividend Equivalent Credit or distribution would result in a default in any
          agreement by which the         Corporation is bound.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | In the event net income available under Section 5.7(e) above for Dividend
               Equivalent Credits and awards eligible for distribution under this Article V is
               sufficient to cover part but not all of such amounts, the following order shall
               be applied in making payments: (i) Dividend Equivalent Credits, and then (ii)
               Units eligible for distribution under this Article V.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 5.8. Designation
of Beneficiaries.

A Unit Recipient may designate a
beneficiary or beneficiaries to receive all or part of the Stock and/or cash to be
distributed to the Unit Recipient under this Article V in case of Death. A designation of
beneficiary may be replaced by a new designation or may be revoked by the Unit Recipient
at any time. A designation or revocation shall be on a form to be provided for that
purpose and shall be signed by the Unit Recipient and delivered to the Corporation prior
to the Unit Recipients Death. In case of the Unit Recipients Death, any
amounts to be distributed to

21

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the Unit Recipient under this Article V with respect to which
a designation of beneficiary has been made (to the extent it is valid and enforceable
under applicable law) shall be distributed in accordance with this Article V to the
designated beneficiary or beneficiaries. The amount distributable to a Unit Recipient upon
Death and not subject to such a designation shall be distributed to the Unit recipient
estate. If there shall be any question as to the legal right of any beneficiary to receive
a distribution under this Article V, the amount in question may be paid to the estate of
the Unit Recipient, in which event the Corporation shall have no further liability to
anyone with respect to such amount.

# Section 5.9.
Restrictions On Transfer.

Units granted under Article V may not
be Transferred, except as provided in Section 5.8, and, during the lifetime of the Unit
Recipient to whom it was awarded, cash and stock receivable with respect to Units may be
received only by such Unit Recipient.

# Section 5.10. Amendment
and Discontinuance.

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

|(a) |  | Increase the total number of shares of Stock issuable pursuant to all Rights
          under the Plan, except as contemplated in Section 2.3(b) hereof; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | modify the requirements as to eligibility for participation under this Article
          V.
|--- |  | -------------------------------------------------------------------------------------------

No termination, amendment, or modification of the Plan shall affect adversely
          a Unit Recipients rights under a Unit Award Agreement without the consent
          of the Unit Recipient or his legal representative. No award of Units may be
          granted under this Article V after December 31, 2010.

# Section 5.11.
          Compliance with Rule 16b-3.

With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article V are intended to comply with
all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the
extent any provision of this Article V or action by the Board or the Committee fails so to
comply, it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee and the Board.

# Article VI

# STOCK APPRECIATION
RIGHTS

# Section 6.1. Grants of SARs.

|(a) |  | The Corporation may grant SARs under this Article VI. SARs will be deemed
               granted only upon (i) authorization by the Committee, (ii) approval by the
               Board, and (iii) the
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | execution and delivery of a SAR Agreement by the Eligible
               Employee to whom the SARs are to be granted (the SAR Recipient) and
               a duly authorized officer of the Corporation. SARs will not be deemed granted
               merely upon authorization by the Committee. The aggregate number of shares of
               Stock which shall underlie SARs granted hereunder shall not exceed the total
               number of shares of Stock remaining in the Plan Pool, less all shares of Stock
               potentially acquirable under or underlying all other Rights outstanding under
               this Plan.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Each grant of SARs pursuant to this Article VI shall be evidenced by a SAR
               Agreement between the Corporation and the SAR Recipient, in form and substance
               satisfactory to the Committee in its sole discretion, consistent with this
               Article VI.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 6.2. Terms and
Conditions of SARs.

|(a) |  | All SARs must be granted within ten (10) years of the Effective Date.
|--- |  | ---------------------------------------------------------------------

|(b) |  | Each SAR issued pursuant to this Article VI shall have an initial base value
               (the Base Value) equal to the Fair Market Value of a share of Common
               Stock on the date of issuance of the SAR.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Subject to the approval of the Board and to the provisions of Section 6.2(b) (as
               to the establishment of the initial Base Value of a SAR), the Committee may
               establish that the Base Value of a SAR shall be adjusted, upward or downward, on
               a quarterly basis, based upon the market value performance of the Common Stock
               in comparison with the aggregate market value performance of the Index or
               Indices utilized under Section 3.2(b).
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | At the discretion of the Committee and the Board, a SAR Recipient, as a
               condition to the granting of a SAR, must execute and deliver to the Corporation
               a confidential information agreement approved by the Committee.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Nothing contained in this Article VI, any SAR Agreement or in any other
               agreement executed in connection with the granting of a SAR under this Article
               VI will confer upon any SAR Recipient any right with respect to the continuation
               of his or her status as an employee of the Corporation or any of its
               Subsidiaries.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | Except as otherwise provided herein, each SAR Agreement may specify the period
               or periods of time within which each SAR or portion thereof will first become
               exercisable (the SAR Vesting Period). Such SAR Vesting Periods will
               be fixed by the Committee, subject to approval by the Board, and may be
               accelerated or shortened by the Committee, subject to approval by the Board.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) |  | SARs relating to no less than one hundred (100) shares of Stock may be exercised
               at any one time unless the number exercised is the total number at that time
               exercisable under all SARs granted to the SAR Recipient.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|(h) |  | A SAR Recipient shall have no rights as a shareholder of the Corporation with
               respect to any shares of Stock underlying such SAR. No adjustment shall be made
               for dividends (ordinary or extraordinary, whether in cash, securities or other
               property) or distributions or other rights for which the record date is prior to
               the date such Stock is fully paid for, except as provided in Sections 2.3(b) and
               6.2(c).
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 6.3.
Restrictions On Transfer of SARs.

SARs granted under this Article VI may
not be Transferred, except as provided in Section 6.7, and during the lifetime of the SAR
Recipient to whom it was granted, may be exercised only by such SAR Recipient.

# Section 6.4. Exercise of
SARs.

|(a) |  | A SAR Recipient (or his or her executors or administrators, or heirs or
               legatees) shall exercise a SAR by giving written notice of such exercise to the
               Corporation. SARs may be exercised only upon the completion of the SAR Vesting
               Period, if any, applicable to such SAR (the date such notice is received by the
               Corporation being referred to herein as the SAR Exercise Date).
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Within ten (10) business days of the SAR Exercise Date applicable to a SAR
               exercised in accordance with Section 6.4(a), the SAR Recipient shall be paid in
               cash the difference between the Base Value of such SAR (as adjusted, if
               applicable under Section 6.2(c), as of the most recently preceding quarterly
               period) and the Fair Market Value of the Common Stock as of the SAR Exercise
               Date, as such difference is reduced by the Companys Tax Withholding
               Liability arising from such exercise.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# Section 6.5. Termination
of SARs.

Subject to approval by the Board, the
Committee shall determine, and each SAR Agreement shall state, the expiration date or
dates of each SAR, but such expiration date shall be not later than ten (10) years after
the date such SAR is granted (the SAR Period). Subject to approval by the
Board, the Committee may extend the expiration date or dates of a SAR Period after such
date was originally set; provided, however, such expiration date may not exceed the
maximum expiration date described in this Section 6.5(a).

# Section 6.6. Change in
Control Transaction.

At any time prior to the date or
consummation of a Change in Control Transaction, the Committee may, in its absolute
discretion, determine that all or any part of the SARs theretofore granted under this
Article VI shall become immediately exercisable in full and may thereafter be exercised at
any time before the date of consummation of the Change in Control Transaction (except as
otherwise provided in Article II hereof, and except to the extent that such acceleration
of exercisability would result in an excess parachute payment within the meaning of
Section 280G of the Code). Any SAR that has not been fully exercised before the date of
consummation of the Change in Control Transaction shall terminate on such date, unless a
provision has been made in writing in connection with such transaction for the assumption
of all SARs theretofore granted, or the substitution for such SARs of grants of stock
appreciation rights having comparable characteristics under a stock appreciation rights
plan of a successor employer

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corporation or bank, or a parent or a
subsidiary thereof, with appropriate adjustments, in which event the SARs theretofore
granted shall continue in the manner and under the terms so provided.

# Section 6.7. Designation
of Beneficiaries.

A SAR Recipient may designate a
beneficiary or beneficiaries to receive all or part of the cash to be paid to the SAR
Recipient under this Article VI in case of Death. A designation of beneficiary may be
replaced by a new designation or may be revoked by the SAR Recipient at any time. A
designation or revocation shall be on a form to be provided for that purpose and shall be
signed by the SAR Recipient and delivered to the Corporation prior to the SAR
Recipients Death. In case of the SAR Recipients Death, the amounts to be
distributed to the SAR Recipient under this Article VI with respect to which a designation
of beneficiary has been made (to the extent it is valid and enforceable under applicable
law) shall be distributed in accordance with this Article VI to the designated beneficiary
or beneficiaries. The amount distributable to a SAR Recipient upon Death and not subject
to such a designation shall be distributed to the SAR Recipients estate. If there
shall be any question as to the legal right of any beneficiary to receive a distribution
under this Article VI, the amount in question may be paid to the estate of the SAR
Recipient in which event the Corporation shall have no further liability to anyone with
respect to such amount.

# Section 6.8. Amendment
and Discontinuance.

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

|(a) |  | Increase the total number of shares of Stock issuable pursuant to all Rights
          under the Plan, except as contemplated in Section 2.3(b) hereof; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | modify the requirements as to eligibility for participation under this Article
          VI.
|--- |  | --------------------------------------------------------------------------------------------

No termination, amendment, or modification of the Plan shall affect
          adversely a SAR Recipients rights under a SAR Agreement without the
          consent of the SAR Recipient or his legal representative.

# Section 6.9. Compliance
With Rule 16b-3.

With respect to persons subject to
Section 16 of the 1934 Act, transactions under this Article VI are intended to comply with
all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the
extent any provision of this Article VI or action by the Board or the Committee fails so
to comply, it shall be deemed null and void, is the extent permitted by law and deemed
advisable by the Committee and the Board.

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# Article VII

# MISCELLANEOUS

# Section 7.1. Application
of Funds.

The proceeds received by the
Corporation from the sale of Stock pursuant to the exercise of Rights will be used for
general corporate purposes.

# Section 7.2. No
Obligation to Exercise Right.

The granting of a Right shall impose
no obligation upon the recipient to exercise such Right.

# Section 7.3. Term of
Plan.

Except as otherwise specifically
provide herein, Rights may be granted pursuant to this Plan from time to time within ten
(10) years from the Effective Date.

# Section 7.4. Captions
and Headings; Gender and Number.

Captions and paragraph headings used
herein are for convenience only, do not modify or affect the meaning of any provision
herein, are not a part of, and shall not serve as a basis for, interpretation or
construction of this Plan. As used herein, the masculine gender shall include the feminine
and neuter, and the singular number shall include the plural, and vice versa, whenever
such meanings are appropriate.

# Section 7.5. Expenses of
Administration of Plan.

All costs and expenses incurred in
the operation and administration of this Plan shall be borne by the Corporation or by one
or more Subsidiaries. The Corporation shall also indemnify, defend and hold each member of
the Committee and the Board harmless against all claims, expenses and liabilities arising
out of or related to the exercise of the powers of the Committee and the Board and the
discharge of the duties of the Committee and the Board hereunder.

# Section 7.6. Governing
Law.

Without regard to the principles of
conflicts of laws the laws of the State of South Carolina shall govern and control the
validity, interpretation, performance and enforcement of this Plan.

# Section 7.7. Inspection
of Plan.

A copy of this Plan, and any
amendments thereto, shall be maintained by the Secretary of the Corporation and shall be
shown to any proper person making inquiry about it.

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