Exhibit 10

                           PEOPLES BANCORPORATION, INC
                  2007 NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN
              (As amended by the Board of Directors July 19, 2007)

1. PURPOSE.  The purpose of the Peoples  Bancorporation,  Inc. 2007 Non-Employee
Directors Stock Option Plan (the "Plan") is to provide  Peoples  Bancorporation,
Inc.  (the  "Company")  maximum  flexibility  to meet the evolving  needs of the
Company and its subsidiaries by providing stock-based  compensation to directors
in order to align more closely the interests of corporate  management with those
of  shareholders.  The Plan is also  expected  to promote the  interests  of the
Company and its shareholders by strengthening  the Company's  ability to attract
and retain talented individuals to serve as members of the Board of Directors by
furnishing  additional  incentives whereby such present and future directors may
be encouraged to acquire,  or to increase  their  acquisition  of, Common Stock,
thus  maintaining  their  personal and  proprietary  interests in the  Company's
continued success and progress.

2. ADMINISTRATION. Grants of options under the Plan shall be automatic. The Plan
is intended to be a "formula" plan as recognized by Rule 16b-3 promulgated under
the Securities and Exchange Act of 1934, as amended (the  "Exchange  Act"),  and
shall be interpreted accordingly.

         The Board of Directors has delegated to its Compensation Committee (the
"Committee")  authority to oversee and carry out the provisions of the Plan, and
to assume such other duties as are  contemplated  for such  Committee  under the
terms of the Plan.

         The  Committee  is  responsible  to the  Board  of  Directors  for  the
operation of the Plan. The  interpretation  and construction of any provision of
the Plan by the Committee is final, unless otherwise determined by the Board.

3. ELIGIBILITY.  Except as provided otherwise in this Paragraph 3, options under
the Plan shall be granted in accordance  with  Paragraph 5 to each member of the
Board of Directors of the Company and of its bank  subsidiaries  who is not also
an employee of the Company or its  subsidiaries;  provided that shares of Common
Stock remain  available for grant  hereunder in accordance  with Paragraph 4. No
employee  of  the  Company  or its  subsidiaries  who is  also a  member  of the
Company's  Board of Directors may participate in the Plan. A Director to whom an
option  is  granted  under  the  Plan  shall be  referred  to  hereinafter  as a
"Grantee."

4. SHARES SUBJECT TO PLAN.  The shares of the Company's  Common Stock subject to
the Plan shall be authorized but unissued, or re-acquired. Subject to adjustment
in accordance with the provisions of Paragraph 6 of the Plan, the maximum number
of shares of Common Stock for which  options may be granted under the Plan shall
be 84,491.  Any shares  subject to an option which for any reason  expires or is
terminated unexercised may again be subject to an option under the Plan.

5. TERMS AND CONDITIONS OF OPTIONS. All awards made under the Plan are evidenced
by written agreements between the Company and the participant.

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         (a) Grant.  Upon the  adjournment  of the Company's  annual  meeting of
shareholders each year, each person who has served as a non-employee director of
the Company or any of its bank  subsidiaries  during the  immediately  preceding
year shall be granted an option to purchase  five  hundred  (500)  shares of the
Company's  Common  Stock,  up to a maximum of five thousand  (5,000)  shares per
director  in the  aggregate  under both the 2007  Non-Employee  Directors  Stock
Option Plan and the 1997 Non-Employee Directors Stock Option Plan.

         (b) Option Price.  The exercise  price of each option granted under the
Plan shall be 100% of the fair market value of the shares of Common Stock of the
Company on the date of the annual meeting of  shareholders  upon  adjournment of
which such option is granted (the "Grant Date"), as determined by the last sales
price on such Grant Date or, if no shares were traded on the Grant Date,  on the
next  preceding  day on which the shares  were  traded,  as quoted by a national
quotation service. If the shares are listed on a national  securities  exchange,
"fair  market  value"  means the  closing  price of the shares on such  national
securities  exchange on the Grant Date or, if no shares were traded on such day,
on the next  preceding day on which shares were traded,  as reported on National
Quotation Bureau, Inc. or other national quotation service.

         The maximum  aggregate  fair market value  (determined  as of the Grant
Date) of the shares with respect to which stock options are  exercisable for the
first time by the Grantee during any calendar year shall not exceed $100,000.

         (c) Medium and Time of  Payment.  The option  price shall be payable in
full upon exercise of an option in cash or check.  Upon receipt of payment,  the
Company shall,  without  transfer or issue tax, deliver to the Grantee (or other
person  entitled to exercise the options  granted) a certificate or certificates
for such shares.

         (d) Term.  Each option granted under the Plan shall,  to the extent not
previously  exercised,  terminate  and  expire at the  earlier of ten (10) years
after grant, or the date set forth in subparagraph 5(g) below.

         (e)  Exercisability.  Each option granted under the Plan shall,  unless
earlier terminated as provided hereinafter in Paragraph 5(g), become exercisable
on the Grant Date.

         (f) Method of  Exercise.  All options  granted  under the Plan shall be
exercised by an  irrevocable  written  notice  directed to the  Secretary of the
Company at the Company's principal place of business.

         (g) Effect of Termination of Directorship or Death.

                  (i) Termination of  Directorship.  In the event that a Grantee
during his  directorship  ceases to be a director  of the  Company or one of its
banking  subsidiaries  for any reason  other than death or  permanent  and total
disability,  any  option or  unexercised  portion  thereof  which was  otherwise
exercisable  on the date of  termination  of  directorship,  shall expire unless
exercised within a period of ninety (90) days from the date on which the Grantee
ceased to be a non-employee director, but in no event after the term provided in
the Grantee's Agreement.

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                  (ii) Death or  Permanent  and Total  Disability.  In the event
that a Grantee during his directorship ceases to be a director of the Company or
one of its  banking  subsidiaries  by  reason  of death or  permanent  and total
disability,  any  option or  unexercised  portion  thereof  which was  otherwise
exercisable on the date such Grantee's  directorship  ceased shall expire unless
exercised  within a period of one (1) year  from the date on which  the  Grantee
ceased to be a  non-employee  director by reason of his death or  permanent  and
total  disability,  but in no event  after the term  provided  in the  Grantee's
Agreement.

                  In the event of the death of a Grantee,  the  option  shall be
exercisable  by his or her  personal  representatives,  heirs  or  legatees,  as
provided herein.

                  Permanent and total disability as used herein is as defined in
Section 22(e)(3) of the Internal Revenue Code of 1986 (the "Code").

         (h)  Nonassignability of Option Rights.  Options may not be transferred
except by will or the laws of descent and  distribution.  During the lifetime of
the Grantee, the option shall be exercisable only by the Grantee.

         (i)  Rights as  Shareholder.  Neither  the  Grantee  nor the  Grantee's
successors  shall have rights as a  shareholder  of the Company  with respect to
shares of common stock covered by the Grantee's  option until the Grantee or the
Grantee's successors become the holder of record of such shares.

         6. ADJUSTMENTS.

         (a) Recapitalization. In the event that dividends are payable in common
stock  of  the  Company  or in the  event  there  are  splits,  subdivisions  or
combinations  of shares of common  stock of the  Company,  the  number of shares
available under the Plan shall be increased or decreased proportionately, as the
case may be, and the number of shares  deliverable upon the exercise  thereafter
of  an   option   theretofore   granted   shall  be   increased   or   decreased
proportionately,  as the case may be, without  change in the aggregate  purchase
price.

         (b) Reorganization.  In case the Company is merged or consolidated with
another corporation and the Company is not the surviving corporation, or in case
the property or stock of the Company is acquired by another  corporation,  or in
case of a separation,  reorganization,  recapitalization  or  liquidation of the
Company, the Board of Directors of the Company, or the Board of Directors of any
corporation assuming the obligations of the Company hereunder,  shall either (i)
make appropriate  provision for the protection of any outstanding options by the
substitution  on an equitable basis of appropriate  stock of the Company,  or of
the merged,  consolidated  or otherwise  reorganized  corporation  which will be
issuable in respect of the shares of common stock of the Company  upon  exercise
of the options, provided only that the excess of the aggregate fair market value
of the shares subject to option  immediately  after such  substitution  over the
purchase  price thereof is not more than the excess of the aggregate fair market
value of the shares subject to option  immediately before such substitution over
the purchase price thereof,  or (ii) upon written notice to the Grantee  provide


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that the option  (including the portion not then  exercisable) must be exercised
within sixty (60) days of the date of such notice or will be terminated.

         (c)  General   Restriction.   Each  option  shall  be  subject  to  the
requirement  that,  if at any time the Board of Directors  of the Company  shall
determine, in its discretion, that the listing, registration or qualification of
the shares  subject to such  option  upon any  securities  exchange or under any
state or federal  law, or the consent or approval of any  government  regulatory
body, is necessary or desirable as a condition of, or in  connection  with,  the
granting  of such option or the issue or  purchase  of shares  thereunder,  such
option  may  not  be  exercised  in  whole  or  in  part  unless  such  listing,
registration,  qualification,  consent or approval  shall have been  effected or
obtained free of any conditions not acceptable to the Board of Directors.

7. EFFECTIVE DATE AND DURATION OF PLAN.

         (a)  Effective  Date.  If  approved  by  the  Board  of  Directors  and
shareholders  of  the  Company,   the  Plan  shall  become  effective  upon  the
adjournment of the 2007 Annual Shareholder Meeting (May 17, 2007).

         (b) Duration.  The Plan shall remain in effect until all shares subject
to or which may become subject to the Plan shall have been purchased pursuant to
options  granted  under the Plan;  provided  that options under the Plan must be
granted within ten (10) years from the Effective Date.

8. NO OBLIGATION TO EXERCISE  OPTION.  The granting of an option shall impose no
obligation upon the Grantee to exercise such option.

9. AMENDMENT. The Board of Directors of the Company, by majority vote, may amend
the Plan;  provided,  however,  that without the approval of the shareholders of
the Company, no such amendments shall change:

         (a) The maximum  number of shares of Common  Stock as to which  options
may be granted under the Plan (except by operation of the  adjustment  provision
of the Plan); or

         (b) The date on which the Plan will  terminate as provided by Paragraph
7(b) of the Plan; or

         (c) The number of shares of Common Stock subject to each option; or

         (d) The option price as provided under Paragraph 5(b) of the Plan; or

         (e)  The  provision  of  Paragraph  3  of  the  Plan  relating  to  the
determination of persons to whom options may be granted; or

         (f) The  provisions  of the  Plan in such a  manner  so as to  increase
materially  (within the meaning of Rule 16b-3 of the Exchange  Act) the benefits
accruing under the Plan.

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         The  provisions  of the Plan  determining  (i) the persons  eligible to
receive grants of options, (ii) the timing of option grants, (iii) the number of
shares subject to options,  (iv) the exercise price of options,  (v) the periods
during  which  options  are  exercisable,  and (vi) the  dates on which  options
terminate,  may not be amended more than once every six (6) months other than to
comport with changes in the Code, ERISA or the rules and regulations thereunder.

10.  BINDING  EFFECT.  All  decisions of the Board of Directors or the Committee
involving  the  implementation,  administration  or operation of the Plan or any
offering  under  the  Plan  shall  be  binding  on  the  Company,  all  eligible
non-employee  directors  participating  in the Plan, and all persons eligible or
who become eligible to participate in the Plan.


NOTE: On July 19, 2007,  pursuant to its  authority  under Section 9 of the 2007
Non-Employee  Directors Stock Option Plan (the "2007 Directors Plan"), the Board
of Directors amended the 2007 Directors Plan to resolve an ambiguity in the plan
as adopted  by the  shareholders.  Section  5(a) of the 2007  Directors  Plan as
adopted by the shareholders  inadvertently omitted language that would have made
it clear that the 5,000 maximum share per director grant was an aggregate  under
both the 2007 Directors  Plan and the 1997  Non-Employee  Directors  Plan, not a
maximum of 5,000  shares  under each plan.  Accordingly,  the Board of Directors
amended the 2007 Directors Plan to add to the end of Section 5(a) the phrase "in
the aggregate under both the 2007  Non-Employee  Directors Stock Option Plan and
the 1997 Non-Employee Directors Stock Option Plan."