Document:

Exhibit 10.1

    

      

      

      

      Exhibit
        10.1

       

      SOUTH
        CAROLINA BANK & TRUST

      

      Deferred
        Income Plan

      

      

      Amended
        and Restated

      

      Effective
        As Of 

      

      January
        1, 2005

      

      

      

      

      

      

      

      

      

      

      

      

      

      (A
        Plan of Nonqualified Deferred Compensation)

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE
        OF CONTENTS

      

      

        
          	
                  ARTICLE
                    I—INTRODUCTION

                	
                  1

                
	 	 
	 	 
	
                  ARTICLE
                    II--DEFINITIONS

                	
                  2

                
	 	 
	 	 
	
                  ARTICLE
                    III--ELIGIBILITY & PARTICIPATION

                	
                  8

                
	 	 
	 	 
	
                  ARTICLE
                    IV—ELECTIONS, DEFERRALS & MATCHING CONTRIBUTIONS

                	
                  8

                
	 	 
	 	 
	
                  ARTICLE
                    V--ACCOUNTS & ACCOUNT CREDITING

                	
                  10

                
	 	 
	 	 
	
                  ARTICLE
                    VI--VESTING

                	
                  11

                
	 	 
	 	 
	
                  ARTICLE
                    VII--DISTRIBUTIONS

                	
                  12

                
	 	 
	 	 
	
                  ARTICLE
                    VIII--ADMINISTRATION & CLAIMS PROCEDURE

                	
                  15

                
	 	 
	 	 
	
                  ARTICLE
                    IX--AMENDMENT, TERMINATION & REORGANIZATION

                	
                  18

                
	 	 
	 	 
	
                  ARTICLE
                    X--GENERAL PROVISIONS

                	
                  19

                

        

      

      
 

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      PREAMBLE

      

      Whereas,
        South Carolina Bank & Trust (the “Bank”) adopted the Deferred Income Plan
        (the “Plan”), effective January 1, 2004; and 

      

      Whereas,
        the Bank reserved the right pursuant to Section 9.2 of the Plan to amend
        the
        Plan as required by law; and 

      

      Whereas,
        it is necessary to amend the Plan to conform to the requirements of Section
        409A
        of the Internal Revenue Code of 1986 as amended (“I.R.C.” or “Code”), as enacted
        by the American Jobs Creation Act of 2004; 

      

      Now,
        therefore, the Bank hereby amends and restates the Plan, effective as of
        January
        1, 2005.

      

      ARTICLE
        I—INTRODUCTION

      

      1.1 Name.

      

      The
        name
        of the Plan is the South Carolina Bank & Trust Deferred Income
        Plan.

      

      1.2 Purpose.

      

      The
        purpose of the Plan is to offer Participants the opportunity to voluntarily
        defer current Compensation for retirement income and other significant future
        financial needs for themselves, their families and other dependents, and
        to
        provide the Employer, if appropriate, a vehicle to address limitations on
        its
        contributions under any tax-qualified defined contribution plan. The Plan
        is
        intended to be a nonqualified “top-hat” plan; that is, an unfunded plan of
        deferred compensation maintained for a select group of management or highly
        compensated employees pursuant to Sections 201(2), 301(a)(3), and 401(a)(1)
        of
        ERISA, and an unfunded plan of deferred compensation under the
        Code.

      

      1.3 Interpretation.

      

      Throughout
        the Plan, certain words and phrases have meanings, which are specifically
        defined for purposes of the Plan. These words and phrases can be identified
        in
        that the first letter of the word or words in the phrase is capitalized.
        The
        definitions of these words and phrases are set forth in Article II and elsewhere
        in the Plan document. Wherever appropriate, pronouns of any gender shall
        be
        deemed synonymous, as shall singular and plural pronouns. Headings of Articles
        and Sections are for convenience or reference only, and are not to be considered
        in the construction or interpretation of the Plan. The Plan shall be interpreted
        and administered to give effect to its purpose in Section 1.2 and to qualify
        as
        a nonqualified, unfunded plan of deferred compensation. The Plan is intended
        to
        comply in form and operation with the requirements of Section 409A of the
        Code
        and shall be construed and administered accordingly at all times.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ARTICLE
        II--DEFINITIONS 

      

      2.1 Generally.

      

      Certain
        words and phrases are defined when first used in later paragraphs of the
        Plan.
        Unless the context clearly indicates otherwise, the following words and phrases
        when used in the Plan shall have the following respective meanings:

      

      2.2 Account.

      

      “Account”
        shall mean the interest of a Participant in the Plan as represented by the
        bookkeeping entries kept by the Employer for each Participant. Each
        Participant’s interest may be divided into one or more separate accounts or
        sub-accounts, including the Participant Deferral Account and the Matching
        Contribution Account, which reflect not only the Contributions into the Plan,
        but also gains and losses, and income and expenses allocated thereto, as
        well as
        distributions or any other withdrawals. The value of these accounts or
        sub-accounts shall be determined as of the Valuation Date. The existence
        of an
        account or bookkeeping entries for a Participant (or his Designated Beneficiary)
        does not create, suggest or imply that a Participant, Designated Beneficiary,
        or
        other person claiming through them under the Plan, has a beneficial interest
        in
        any asset of the Employer.

      

      2.3 Annual
        Forms.

      

      "Annual
        Forms" shall mean the Deferral Election Form, Deemed Crediting Option Election
        Form and a Distribution Election Form.

      

      2.4 Balance.

      

      “Balance”
        shall mean the total of Contributions and Deemed Earnings credited to a
        Participant’s Account under Article V, as adjusted for distributions or other
        withdrawals in accordance with the terms of the Plan and the standard
        bookkeeping rules established by the Employer.

      

      2.5 Board
        Committee.

      

      “Board
        Committee” shall mean the compensation committee of the Employer’s Board of
        Directors, or such other Committee of the Board as may be delegated with
        the
        duty of determining Participant eligibility under the Plan.

      

      2.6 Board
        of Directors or Board.

      

      “Board
        of
        Directors” or “Board” shall mean the Board of Directors of the
        Employer.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      2.7 Change
        of Control.

      

      “Change
        of
        Control” shall mean a change in the ownership or effective control of the
        Employer, or in the ownership of a substantial portion of the assets of the
        Employer, as provided in the Treasury Regulations issued pursuant to Section
        409A of the I.R.C.

      

      2.8 Claimant.

      

      “Claimant”
        shall mean a Participant, Designated Beneficiary or any person who believes
        that
        he is being denied a benefit to which he is entitled under the
        Plan.

       

      2.9 Code
        or I.R.C.

      

      “Code”
or
        “I.R.C.” shall mean the Internal Revenue Code of 1986 as amended, and the
        Treasury Regulations thereto, as amended from time to time.

      

      2.10 Committee.

      

      “Committee”
        shall mean the person or persons described in Article VIII who are charged
        with
        the day-to-day administration and operation of the Plan.

      

      2.11 Compensation.

      

      “Compensation”
        shall mean the base or regular cash salary payable to an Employee by
        the

      Employer,
        as well as incentives or bonuses payable to an Employee by the Employer,
        commissions payable to an Employee by the Employer, including any such amounts
        which are not includible in the Participant’s gross income under Sections 125,
        401(k), 402(h) or 403(b) of the I.R.C.

      

      2.12 Contributions. 

      

      “Contributions”
        shall mean the total of Participant Deferrals and Matching Contributions
        pursuant to Article IV, which represent each Participant’s credits to his
        Account. 

       

      2.13 Deemed
        Earnings.

      

      “Deemed
        Earnings” shall mean the gains and losses (realized and unrealized), and income
        and expenses credited or debited to Contributions based upon the Deemed
        Crediting Options in a Participant’s Account as of any Valuation
        Date.

      

      2.14 Deemed
        Crediting Options.

      

      “Deemed
        Crediting Options” shall mean the options made available to Plan Participants by
        the Employer for the purposes of determining the proper crediting of gains
        and
        losses, and income and expenses to each Participant’s Account, subject to
        procedures and requirements established by the Committee. A Participant may
        reallocate his Account among such Deemed Crediting Options periodically at
        such
        frequency and upon such terms as the Committee may determine from time to
        time.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      2.15 Deemed
        Crediting Option Election Form.

      

      “Deemed
        Crediting Option Election Form” shall mean the written agreement of a
        Participant in which the Deemed Crediting Option is exercised. The Deemed
        Crediting Option Election Form shall be in such form or forms as may be
        prescribed by the Committee, filed annually with the Employer, according
        to
        procedures and at such times as established by the Committee.

      

      2.16 Deferral
        Election Form.

      

      “Deferral
        Election Form” shall mean that written agreement of a Participant. The Deferral
        Election Form shall be in such form or forms as may be prescribed by the
        Committee, filed annually with the Employer, according to procedures and
        at such
        times as established by the Committee. Among other information the Committee
        may
        require of the Participant for proper administration of the Plan, such agreement
        shall establish the Participant’s election to defer Compensation for a Plan Year
        under the Plan and the amount of the deferral into the Plan for the Plan
        Year.

      

      2.17 Delayed
        Distribution Date. 

      

      “Delayed
        Distribution Date” shall mean six months and one day following the distribution
        date otherwise specified under the Plan and set out in the Distribution Election
        Form, which is the Original Distribution Date.

      

      2.18 Designated
        Beneficiary.

      

      “Designated
        Beneficiary” or “Beneficiary” shall mean the person, persons or trust
        specifically named to be a direct or contingent recipient of all or a portion
        of
        a Participant’s benefits under the Plan in the event of the Participant’s death
        prior to the distribution of his full Account Balance. Such designation of
        a
        recipient or recipients may be made and amended, at the Participant’s
        discretion, on the Designated Beneficiary Form and according to procedures
        established by the Committee. No beneficiary designation or change of
        Beneficiary shall become effective until received and acknowledged by the
        Employer. In the event a Participant does not have a beneficiary properly
        designated, the beneficiary under the Plan shall be the Participant’s
        estate.

      

      2.19 Designated
        Beneficiary Form.

      

      “Designated
        Beneficiary Form" shall mean the written agreement of a Participant in which
        the
        Participant elects the Designated Beneficiary. The Designated Beneficiary
        Form
        shall be in such form or forms as may be prescribed by the Committee, filed
        annually with the Employer, according to procedures and at such times as
        established by the Committee.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      2.20 Disability.

      

      “Disability”
        shall mean that a Participant (i) is unable to engage in any substantial
        gainful
        activity by reason of any medically determinable physical or mental impairment
        which can be expected to result in death or can be expected to last for a
        continuous period of not less than twelve months, or (ii) is, by reason of
        any
        medically determinable physical or mental impairment which can be expected
        to
        result in death or can be expected to last for a continuous period of not
        less
        than twelve months, receiving income replacement benefits for a period of
        not
        less than three months under an accident and health plan covering employees
        of
        the Participant’s employer, or as otherwise defined by the Treasury Regulations
        issued pursuant to Section 409A of the I.R.C.

      

      2.21 Distribution
        Election Form.

      

      “Distribution
        Election Form” shall mean the written agreement of a Participant in which the
        Participant elects the manner in which distributions will be made from the
        Account. The Distribution Election Form shall be in such form or forms as
        may be
        prescribed by the Committee, filed annually with the Employer, according
        to
        procedures and at such times as established by the Committee.

      

      2.22 Effective
        Date.

      

      “Effective
        Date” of the amended and restated Plan shall mean January 1, 2005.

      

      2.23 Eligible
        Employee.

      

      “Eligible
        Employee” shall mean a person who (for any Plan Year or portion thereof) is: (1)
        an Employee of the Employer; (2) subject to United States income tax laws;
        (3) a
        member of a select group of management or a highly compensated employee of
        the
        Employer; and (4) selected by the Board Committee to participate in the
        Plan.

      

      2.24 Employee.

      

      “Employee”
        shall mean a full time common law employee of the Employer.

      

      2.25 Employer.

      

      “Employer”
        shall mean South Carolina Bank and Trust, First National Corporation, South
        Carolina Bank and Trust of the Piedmont and any corporate successors and
        assigns, unless otherwise provided herein. 

      

      2.26 ERISA.

      

      “ERISA”
        shall mean the Employee Retirement Income Security Act of 1974, as amended
        from
        time to time.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      2.27 In-Service
        Distributions.

      

      “In-Service
        Distributions” shall mean a distribution to a Participant prior to Separation
        from Service.

      

      2.28 Leave
        of Absence.

      

      “Leave
        of
        Absence” shall mean a period of time, not to exceed twelve (12) consecutive
        calendar months during which time a Participant shall not be an active Employee
        of the Employer, but shall be treated for purposes of the Plan as in continuous
        service with the Employer. A Leave of Absence may be either paid or unpaid,
        but
        must be agreed to in writing by both the Employer and the Participant. A
        Leave
        of Absence that continues beyond the twelve (12) consecutive months shall
        be
        treated as a Separation from Service as of the first business day of the
        thirteenth month for purposes of the Plan.

      

      2.29 Matching
        Contribution.

      

      “Matching
        Contribution” shall mean an amount credited to a Participant’s Account in
        accordance with Section 4.4.

      

      2.30 Matching
        Contribution Account 

      

      “Matching
        Contribution Account” shall mean that portion of a Participant’s Account
        established to record Matching Contributions on behalf of a
        Participant.

      

      2.31 Original
        Distribution Date. 

      

      “Original
        Distribution Date” shall mean the date of distribution as provided for under the
        Plan and as set out in a Distribution Election Form.

      

      2.32 Participant.

      

      “Participant”
        shall mean an Eligible Employee who participates in the Plan under Article
        III;
        a former Eligible Employee who has participated in the Plan and continues
        to be
        entitled to a benefit (in the form of an undistributed Account Balance) under
        the Plan, and any former Eligible Employee who has participated in the Plan
        under Article III and has not yet exceeded any Leave of Absence.

      

      2.33 Participant
        Deferral.

      

      “Participant
        Deferral” shall mean voluntary Participant deferral amounts, which could have
        been received currently but for the election to defer and are credited to
        his
        Account for later distribution, subject to the terms of the Plan.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      2.34 Participant
        Deferral Account.

      

      “Participant
        Deferral Account” shall mean that portion of a Participant’s Account established
        to record Participant Deferrals on behalf of a Participant.

      

      2.35 Performance-Based
        Compensation

      

      “Performance-based
        compensation” shall mean compensation that is (i) variable and contingent on the
        satisfaction of pre-established organizational or individual performance
        criteria; (ii) not readily ascertainable at the time; and (iii) based on
        services performed over a period of at least twelve months, or as otherwise
        defined by Treasury Regulations issued pursuant to Section 409A of the
        I.R.C.

      

      2.36 Plan
        Year.

      

      “Plan
        Year” shall mean the twelve (12) consecutive month period constituting a
        calendar year, beginning on January 1 and ending on December 31. However,
        in any
        partial year of the Plan that does not begin on January 1, “Plan Year” shall
        also mean the remaining partial year ending on December 31. If the Plan is
        terminated, such Plan Year shall begin on January 1 and end on the date of
        termination.

      

      2.37 Retirement.

      

      “Retirement”
        shall mean a Participant’s actual Separation from Service from the Employer
        having attained age sixty-five (65). 

      

      2.38 Separation
        from Service.

      

      “Separation
        from Service” shall mean a Participant’s separation from service as an Employee,
        independent contractor, and any other type of service agreement or arrangement
        with the Employer, other than for death, Disability, or Leave of Absence.
        A
        transfer of employment within and among the Employer and any member of a
        controlled group, as provided in Section 409A (d)(6) of the I.R.C., shall
        not be
        deemed a Separation from Service.

      

      2.39 Specified
        Employee.

      

      “Specified
        Employee” shall mean any Participant who is a key employee (as defined in
        Section 416(i) of the I.R.C., without regard to section 416(i)(5) of the
        I.R.C.). The identification date for determining a “Specified Employee” shall be
        December 31 annually.

      

      2.40 Subsequent
        Election.

      

      Subsequent
        Election is an election as defined in Section 7.4E.

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      2.41 Unforeseeable
        Emergency.

      

      “Unforeseeable
        Emergency” shall mean a severe financial hardship to the Participant, the
        Participant’s spouse, or a dependent (as defined in Section 152(a) of the
        I.R.C.) of the participant, loss of the Participant’s property due to casualty,
        or other similar extraordinary and
        unforeseeable circumstances arising as a result of events beyond the control
        of
        the Participant. Unforeseeable Emergency is limited to those types of situations
        contemplated by the Treasury Regulations issued pursuant to Section 409A
        of the
        I.R.C. 

      

      2.42 Valuation
        Date.

      

      “Valuation
        Date” shall mean the close of each business day, as established and amended from
        time to time by guidelines and procedures of the Committee in its sole and
        exclusive discretion.

       

      ARTICLE
        III--ELIGIBILITY & PARTICIPATION

       

      

      3.1 Eligibility
        Requirements.

      

      Only
        an
        Eligible Employee selected by the Board Committee may become a Participant
        in
        the Plan. Moreover, a Participant shall not be permitted to make new Participant
        Deferrals to the Plan, if he ceases to be an Eligible Employee because he
        is no
        longer a member of a select group of management or highly compensated employees,
        or otherwise ceases to be an Eligible Employee. The Board Committee shall
        notify
        an Eligible Employee of his eligibility for a Plan Year in such form as it
        may
        determine most appropriate. Current Participants remain eligible until notified
        otherwise.

      

      3.2 Participation.

      

      An
        Eligible Employee shall become a Participant in the Plan by the completion
        and
        timely filing with and subsequent acceptance by, the Annual Forms in such
        forms
        and according to the terms and conditions established by the Committee. A
        Participant (or any Designated Beneficiary who becomes entitled) remains
        a
        Participant as to his Account until his Account Balance is fully distributed
        under the terms of the Plan.

      

      ARTICLE
        IV—ELECTIONS, DEFERRALS & MATCHING CONTRIBUTIONS

      

      	4.1  	
              Participant
                Election to Defer
                Compensation.

            

      

      
        	 	
                A.

              	
                If
                  a
                  Participant has not recently become eligible to Participate in
                  the Plan,
                  prior to December 31 or an earlier date set by the Committee, a
                  Participant may elect to defer Compensation for services to be
                  performed
                  in the next following Plan Year by the execution and timely filing,
                  and
                  Employer’s acceptance of the Annual Forms in such forms and according to
                  such procedures as the Committee may prescribe from time to time.
                  If a
                  Participant has recently become eligible to Participate in the
                  Plan,
                  Section 4.2 addresses the time for filing and effective time of
                  the Annual
                  Forms. Each such Annual Form shall be effective for the Plan Year
                  to which
                  the form pertains. To cover a situation in which the Participant
                  dies
                  while the he is a Participant in the Plan, a Participant should
                  also file
                  a Designated Beneficiary Form as soon as
                  possible.

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        	 	
                B.

              	
                Each
                  Participant may elect annually to have his Compensation for the
                  upcoming
                  Plan Year reduced by a whole percentage that is not less than five
                  percent
                  (5%) ($5,000 minimum), and up to one hundred percent (100%), by
                  timely
                  filing, and the acceptance by the Employer of, his Annual Forms
                  detailing
                  such deferral. The amount of this Participant Deferral shall be
                  deferred
                  into the Plan and credited to the Participant’s Account as provided in
                  Article V.

              

      

      

      
        	 	
                C.

              	
                An
                  election to defer Performance-Based Compensation may be made at
                  such time
                  and in such manner as the Committee may specify, but in any event
                  the
                  Annual Forms must be filed not later than six months before the
                  end of the
                  period for which the Performance Based Compensation is
                  earned.

              

      

      

      
        	 	
                D.

              	
                Under
                  the Annual Forms, a Participant shall indicate the amount of such
                  Participant Deferral; designate and allocate such Participant Deferral
                  in
                  or among the elective distribution Account option(s); and, allocate
                  such
                  Accounts among the various Deemed Crediting Options. The Designated
                  Beneficiary Form, which will also be provided yearly with the Annual
                  Forms
                  to a Participant, may also request other information, such as a
                  Participant’s Designated Beneficiary, as may be required or useful for the
                  administration of the Plan.

              

      

      

      
        	 	
                E.

              	
                Pursuant
                  to transition rules provided by Treasury regulations issued pursuant
                  to
                  Section 409A of the I.R.C., a Participant prior to December 31,
                  2007, or
                  such earlier date as the Committee may determine, may elect to
                  change a
                  prior election as to time or form of payment by filing “transition” Annual
                  Forms with the Committee.

              

      

      

      4.2
         New
        Participants and Partial Years.

      

      The
        initial Annual Forms of a new Participant shall be filed with the Employer
        on a
        date established by the Committee, but in any event not later than 30 days
        following the date the Participant becomes eligible to participate in the
        Plan
        and such elections within the Annual Forms only apply and are effective with
        respect to services to be performed subsequent to the elections. Such first
        Annual Forms shall be applicable to a Participant’s Compensation beginning with
        the first payroll in the month after such Form is filed and accepted by the
        Employer.

      

      4.3 Irrevocable
        Elections.

      

      An
        election in a Deferral Election Form or a Distribution Election Form, once
        made
        by a Participant, shall be irrevocable for the Plan Year. The Committee,
        however, shall reduce or eliminate Participant Deferrals upon granting a
        Participant’s request for a distribution based upon an Unforeseeable Emergency.

      

      
        
           

        

        
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      4.4 Matching
        Contributions.

      

      The
        Employer may, but shall not be required to, provide a deemed match, in such
        amounts as it may determine from time to time, for Participant Deferrals.
        Such
        Matching Contributions, if any, shall be credited to the Matching Contribution
        Account of the Participant’s Account and shall be subject to the vesting
        requirements set forth in Section 6.2.

       

      ARTICLE
        V--ACCOUNTS & ACCOUNT CREDITING

       

      

      5.1 Establishment
        of a Participant’s Account.

      

      
        	 	
                A.

              	
                Bookkeeping
                  Account. The
                  Committee shall cause a deemed bookkeeping Account and appropriate
                  sub-accounts, based upon the primary elective distribution option(s)
                  to be
                  established and maintained in the name of each Participant, according
                  to
                  his yearly Annual Forms for the Plan Year. This Account shall reflect
                  the
                  amount of Participant Deferrals, Matching Contributions and Deemed
                  Earnings credited on behalf of each Participant under the
                  Plan.

              

      

      

      
        	 	
                B.

              	
                Bookkeeping
                  Activity. Participant
                  Deferrals shall be credited to a Participant’s Account on the business day
                  they would otherwise have been made available as cash to the Participant.
                  Matching Contributions shall be credited to a Participant’s Account on the
                  business day the Company designates. Deemed Earnings shall be credited
                  or
                  debited to each Participant’s Account, as well as any distributions, any
                  other withdrawals under the Plan, as of the Valuation Date. Accounts
                  shall
                  continue on each Valuation Date until the Participant’s Account is fully
                  distributed under the terms of the
                  Plan.

              

      

      

      5.2 Deemed
        Crediting Options.

      

      The
        Committee shall establish a portfolio of two or more Deemed Crediting Options,
        among which a Participant may allocate amounts credited to his Account, which
        are subject to Participant direction under the Plan. The Committee reserves
        the
        right, in its sole and exclusive discretion, to substitute, eliminate and
        otherwise change this portfolio of Deemed Crediting Options, as well as the
        right to establish rules and procedures for the selection and offering of
        these
        Deemed Crediting Options.

      

      5.3 Allocation
        Of Account Among Deemed Crediting Options.

      

      
        	 	
                A.

              	
                Each
                  Participant shall elect the manner in which his Account is divided
                  among
                  the Deemed Crediting Options by giving allocation instructions
                  in a Deemed
                  Crediting Option Election Form supplied by and filed with the Committee;
                  or by such other procedure, including electronic communications,
                  as the
                  Committee may prescribe. A Participant’s election shall specify the
                  percentage of his Account (in any whole percentage) to be deemed
                  to be
                  invested in any Deemed Crediting Option. Such election shall remain
                  in
                  effect for the Plan Year or if a revised Deemed Crediting Option
                  Election
                  Form is filed with the Committee, then when the new election is
                  filed the
                  original Deemed Crediting Option Election Form is revoked and the
                  revised
                  Deemed Crediting Option Election Form is thereof
                  effective.

              

      

      

      
        	 	
                B.

              	
                Amounts
                  credited to a Participant’s Account shall be deemed to be invested in
                  accordance with the most recent effective Deemed Crediting Option
                  Election
                  Form. As of the effective date of any new Deemed Crediting Option
                  Election
                  Form, all or a portion of the Participant’s Account shall be reallocated
                  among the designated Deemed Crediting Options and according to
                  the
                  percentages specified in the new instructions, until and unless
                  subsequent
                  instructions shall be filed and become effective. If the Committee
                  receives a Deemed Crediting Option Election Form, which is unclear,
                  incomplete or improper, the Deemed Crediting Option Election Form
                  then in
                  effect shall remain in effect until the subsequent instruction
                  is
                  clarified, completed or otherwise made acceptable to the
                  Committee.

              

      

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      5.4 Valuation
        and Risk of Decrease in Value.

      

      The
        Participant’s Account will be valued on the Valuation Date at the fair market
        value. On such date, Deemed Earnings will be allocated to each Participant’s
        Account. Each Participant and Designated Beneficiary assumes the risk in
        connection with any decrease in the fair market value of his
        Account.

      

      5.5 Limited
        Function of Committee.

      

      By
        deferring compensation pursuant to the Plan, each Participant hereby agrees
        that
        the Employer and Committee are in no way responsible for or guarantor of
        the
        investment results of the Participant’s Account. The Committee shall have no
        duty to review, or to advise the Participant on the investment of the
        Participant’s Account; and in fact, shall not review or advise the Participant
        thereon. Furthermore, the Committee shall have no power to direct the investment
        of the Participant’s Account other than promptly to carry out the Participant’s
        deemed investment instructions when properly completed and transmitted to
        the
        Committee and accepted according to its rules and procedures. 

       

      ARTICLE
        VI--VESTING

       

      

      6.1  Vesting
        of Participant Deferrals.

      

      A
        Participant shall be fully vested at all times in Participant Deferrals,
        as well
        as Deemed Earnings upon Participant Deferrals, credited to his Participant
        Deferral Account. 

      

      6.2  Vesting
        of Matching Contributions.

      

      A
        Participant shall vest ratably in Matching Contributions, as well as Deemed
        Earnings upon Matching Contributions, credited to his Matching Contribution
        Account in accordance with the schedule and the methods used by the Employer’s
        401k Plan. Notwithstanding the above, a Participant shall become fully vested
        in
        his Matching Contribution Account upon death, Disability or Retirement. Upon
        Separation from Service not due to Retirement, a Participant shall be entitled
        to the vested portion of his Matching Contribution Account, and any non-vested
        portion shall be forfeited. 

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      ARTICLE
        VII--DISTRIBUTIONS

       

      

      7.1 Distributions
        Generally.

      

      A
        Participant’s Account shall be distributed only in accordance with the
        provisions of this Article

      VII.
        All
        distributions from Accounts under the Plan shall be made in cash in American
        currency.

      

      7.2 Automatic
        Distributions.

      

      
        	 	
                A.

              	
                Participant’s
                  Death. If
                  the Participant dies while employed by the Employer, his Account
                  shall be
                  valued as of the Valuation Date next following his date of death
                  and shall
                  be distributed in lump sum to his Designated Beneficiary thirty
                  (30) days
                  thereafter. 

              

      

      

      
        	 	
                B.

              	
                Participant’s
                  Disability. If
                  a
                  Participant becomes disabled while employed by the Employer, his
                  Account
                  shall be valued as of the Valuation Date next following his date
                  of
                  Disability and shall be distributed in lump sum to him thirty (30)
                  days
                  thereafter.

              

      

      

      
        	 	
                C.

              	
                Separation
                  from Service. Except
                  as provided in Section 7.5, if
                  a
                  Participant incurs a Separation from Service, his vested Account
                  shall be
                  valued as of the Valuation Date next following his official date
                  of
                  separation and shall be distributed in lump sum to him thirty (30)
                  days
                  thereafter.

              

      

      

      D. Change
        of Control Distribution. Upon
        the
        occurrence of a Change of Control event, a Participant’s entire Account, valued
        as of the Valuation Date next following the event, shall be paid to him in
        a
        lump sum thirty (30) days thereafter. 

      

      7.3 Elective
        Distributions.

      

      A
        Participant shall become entitled to receive a distribution from his Account
        at
        such time or times and by such method of payment as elected and specified
        in the
        Participant’s applicable annual Distribution Election Form, and/or as may be
        mandated by the provisions of this Article VII based upon the following
        distribution options: 

      

      
        	 	
                A.

              	
                Retirement
                  Distribution.
                  Upon a Participant’s Retirement from the Employer, his Account, valued as
                  of the Valuation Date next following his Retirement shall be distributed
                  according to the method of payment elected in each of his Distribution
                  Election Forms. If the Participant dies while receiving Retirement
                  installment payments, his Designated Beneficiary shall continue
                  to receive
                  the remaining installments. If subsequently the Designated Beneficiary
                  dies, any remaining installments will be paid to the Designated
                  Beneficiary’s estate.

              

      

      

      
        	 	
                B.

              	
                In-Service
                  Distributions.
                  If
                  a Participant elects in his annual Distribution Election Form,
                  he can
                  receive a distribution from his Account, on a date certain not
                  earlier
                  than three (3) years after the end of the deferral Plan Year, all
                  of his
                  annual deferral amount for such Plan Year, plus amounts credited/debited
                  for such Plan Year based on the performance of the Participant’s elected
                  Deemed Crediting Options and other items affecting the Account.
                  The
                  election is made on an annual basis, applies only to the Participant’s
                  current Plan Year Contributions and is irrevocable, except as provided
                  in
                  Paragraph E of Section 7.4. 

              

      

      

      
        	 	
                D.

              	
                Sub
                  Accounts.
                  Due to possibility of yearly changing elections on the Annual Forms,
                  if
                  the elections for a Participant change from year to year, such
                  change in
                  the elections will necessitate the Employer maintaining separate
                  sub-accounts which will total the Participant's Account for each
                  given
                  year.

              

      

      

      
        
          12

        

        
           

          
            

          

        

        
           

        

      

      7.4 Timing
        and Method
        of Payment for Elective Distributions.

      

      	A.  	
              Retirement
                Distribution. At
                the election of a Participant in the applicable annual Distribution
                Election Form, a Participant may receive a Retirement distribution
                in a
                lump sum or in payments of up to ten (10) annual installments (10
                years)
                with the first installment to begin ten (10) days after the first
                business
                day on or after January 1 in the calendar year following the Participant’s
                date of Retirement and to be paid thereafter ten (10) days after
                the first
                business day on or after January 1 of each calendar year until the
                Account
                has been fully distributed.

            

      

      	B.  	
              In-Service
                Distributions.
                At
                the election of a Participant in the applicable Distribution Election
                Form, an In-Service Distribution may be selected for payment as soon
                as
                three (3) years after the end of the deferral Plan Year. Distribution
                will
                be in a lump-sum, occurring thirty (30) days following the distribution
                date elected on the Distribution Election Form.

            

      

      
        	 	
                C.

              	
                Installment
                  Payments. In
                  any distribution in which a Participant has elected or will receive
                  distribution in periodic installments, the amount of each periodic
                  installment shall be determined by applying a formula to the Account
                  in
                  which the numerator is the number one and the denominator is the
                  number of
                  remaining installments to be paid. For example, if a Participant
                  elects
                  ten (10) annual installments for a Retirement distribution, the
                  first
                  payment will be 1/10 of the Account, the second will be 1/9, the
                  third
                  will be 1/8; the fourth will be 1/7 and so on until the Account
                  is
                  entirely distributed. For purposes of the election described in
                  Paragraph
                  E of this Section, installment payments shall be treated as a series
                  of
                  separate payments, as described in Treasury regulations issued
                  pursuant to
                  Section 409A of the I.R.C. 

              

      

      

      
        	 	
                D.

              	
                Failure
                  to Designate a Method of Payment. In
                  any situation in which the Committee is unable to determine the
                  method of
                  payment because of incomplete, unclear, or uncertain instructions
                  in a
                  Participant’s Distribution Election Form, the Participant will be deemed
                  to have elected a lump sum
                  distribution.

              

      

      

      
        	 	
                E.

              	
                Subsequent
                  Elections. A
                  Participant who has made an In-Service Distribution or a Retirement
                  distribution election may make one or more subsequent elections
                  for a
                  given Plan Year to postpone the distribution date or to change
                  the form of
                  payment to another form permitted by the Plan. Such Subsequent
                  Election
                  shall be made in writing is such form as is acceptable to the Committee
                  and must (i) be made at least twelve months prior to the previous
                  distribution date; (ii) provide for an effective date at least
                  twelve
                  months following the Subsequent Election; and (iii) postpone the
                  commencement of payment for a period of not less than five years
                  from the
                  previous distribution date. 

              

      

      

      
        
          13

        

        
           

          
            

          

        

        
           

        

      

      7.5 Distributions
        to a Specified Employee.

      

      Notwithstanding
        any other provision in the Plan to the contrary, a distribution to a Specified
        Employee upon Separation from Service, including Retirement, (and any other
        event required by Treasury Regulations issued pursuant to Section 409A of
        the
        I.R.C.) shall commence on the Delayed Distribution Date, which shall be six
        months and one day following the Original Distribution Date. No interest
        or
        earnings credit or debit to the Account shall be made on account of the delay.
        If the form of payment is installments, then such installments for a period
        of
        six months beginning on the Delayed Distribution Date shall be double what
        they
        otherwise would have been (so that at the end of one year from the Original
        Distribution Date the Participant will have received the same amount he would
        have received had he not been a Specified Employee.)

      

      7.6 Distributions
        Resulting from Unforeseeable Emergency.

      

      A
        Participant may request that all or a portion of his Account be distributed
        at
        any time prior to

      Separation
        from Service from the Employer by submitting a written request to the
        Committee;

      provided
        that the Participant has incurred an Unforeseeable Emergency, and the
        distribution is

      necessary
        to alleviate such Unforeseeable Emergency.

       

      Such
        distribution shall be limited to an amount that does not exceed the amount
        necessary to

      satisfy
        such emergency after taking into account the extent to which such hardship
        is or
        may be

      relieved
        through reimbursement or compensation by insurance or otherwise or by
        liquidation of

      the
        Participant’s assets (to the extent the liquidation of such assets would not
        itself cause severe

      financial
        hardship). Such distribution shall be made ten (10) days after the Employer
        determines that an Unforeseeable Emergency has occurred. The Balance not
        distributed from the Participant’s Account shall remain in the
        Plan.

      

      7.7 Distributions
        of Small Accounts.

      

      If
        at any
        time the value of the Participant’s Account is: (a) less than $10,000 (or such
        other greater or lesser amount as may be specified as “de minimis” under
        Treasury Regulations issued pursuant to Section 409A of the I.R.C.), (b)
        the
        payment accompanies the termination in the entirety of the Participant's
        Account
        with the Employer and all similar arrangements the Participant has with the
        Employer that would constitute a nonqualified deferred compensation plan
        under
        Section 409A of the I.R.C., (c) the payment is made on or before the later
        of
        December 31 of the calendar year in which the Participant's Separation from
        Service from the Employer occurs, or the fifteenth (15th)
        day of
        the third month following the Participant's Separation from Service from
        the
        Employer; and (c) the Participant is provided no election with respect to
        receipt of the lump sum payment, the Committee, in its sole and exclusive
        discretion, may make a distribution in lump sum of the value of the entire
        Account. If the value of a Participant’s Account is zero upon the Valuation Date
        of any distribution, the Participant shall be deemed to have received a
        distribution of such Account and his participation in the Plan
        terminates.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      ARTICLE
        VIII--ADMINISTRATION & CLAIMS PROCEDURE

       

      

      8.1  Duties
        of the Employer.

      

      The
        Employer shall have overall responsibility for the establishment, amendment,
        termination, administration, and operation of the Plan. The Employer shall
        discharge this responsibility by the appointment and removal (with or without
        cause) of the members of the Committee, to which is delegated overall
        responsibility for administering, managing and operating the Plan.

      

      8.2  The
        Committee.

      

      The
        Committee shall consist of one or more members who shall be appointed by,
        and
        may be removed by, the Employer, and one of whom (who must be an officer
        of the
        Employer) shall be designated by the Employer as Chairman of the Committee.
        In
        the absence of such appointment, the Employer shall serve as the Committee.
        The
        Committee shall consist of officers or other Employees of the Employer, or
        any
        other persons who shall serve at the request of the Employer. Any member
        of the
        Committee may resign by delivering a written resignation to the Employer
        and to
        the Committee, and this resignation shall become effective upon the date
        specified therein. The members of the Committee shall serve at the will of
        the
        Employer, and the Employer may from time to time remove any Committee member
        with or without cause and appoint their successors. In the event of a vacancy
        in
        membership, the remaining members shall constitute the Committee with full
        order
        to act.

      

      8.3 Committee’s
        Powers and Duties to Enforce Plan.

      

      The
        Committee shall be the “Administrator” and “Named Fiduciary” only to the extent
        required by ERISA for top-hat plans and shall have the complete control and
        authority to enforce the Plan on behalf of any and all persons having or
        claiming any interest in the Plan in accordance with its terms. The Committee,
        in its sole and absolute discretion, shall interpret the Plan and shall
        determine all questions arising in the administration and application of
        the
        Plan. Any such interpretation by the Committee shall be final, conclusive
        and
        binding on all persons.

      

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      8.4 Organization
        of the Committee.

      

      The
        Committee shall act by a majority of its members at the time in office.
        Committee action may be taken either by a vote at a meeting or by written
        consent without a meeting. The Committee may authorize any one or more of
        its
        members to execute any document or documents on behalf of the Committee.
        The
        Committee shall notify the Employer, in writing, of such authorization and
        the
        name or names of its member or members so designated in such cases. The Employer
        thereafter shall accept and rely on any documents executed by said member
        of the
        Committee or members as representing action by the Committee until the Committee
        shall file with the Employer a written revocation of such designation. The
        Committee may adopt such by-laws and regulations, as it deems desirable for
        the
        proper conduct of the Plan and to change or amend these by-laws and regulations
        from time to time. With the permission of the Employer, the Committee may
        employ
        and appropriately compensate accountants, legal counsel, benefit specialists,
        actuaries, plan administrators and record keepers and any other persons as
        it
        deems necessary or desirable in connection with the administration and
        maintenance of the Plan. Such professionals and advisors shall not be considered
        members of the Committee for any purpose.

      

      8.5 Limitation
        of Liability.

      

      
        	 	
                A.

              	
                No
                  member of the Board of Directors, the Employer and no officer or
                  Employee
                  of the Employer shall be liable to any Employee, Participant, Designated
                  Beneficiary or any other person for any action taken or act of
                  omission in
                  connection with the administration or operation of the Plan unless
                  attributable to his own fraud or willful misconduct. Nor shall
                  the
                  Employer be liable to any Employee, Participant, Designated Beneficiary
                  or
                  any other person for any such action taken or act of omission unless
                  attributable to fraud, gross negligence or willful misconduct on
                  the part
                  of a Director, officer or Employee of the Employer. Moreover, each
                  Participant, Designated Beneficiary, and any other person claiming
                  a right
                  to payment under the Plan shall only be entitled to look to the
                  Employer
                  for payment, and shall not have the right, claim or demand against
                  the
                  Committee (or any member thereof), any Director, Officer or Employee
                  of
                  the Employer.

              

      

      

      
        	 	
                B.

              	
                To
                  the fullest extent permitted by the law and subject to the Employer’s
                  Certificate of Incorporation and By-laws, the Employer shall indemnify
                  the
                  Committee, each of its members, and the Employer’s officers and Directors
                  (and any Employee involved in carrying out the functions of the
                  Employer
                  under the Plan) for part or all expenses, costs, or liabilities
                  arising
                  out of the performance of duties required by the terms of the Plan,
                  except
                  for those expenses, costs, or liabilities arising out of a member’s fraud,
                  willful misconduct or gross
                  negligence.

              

      

      

      8.6 Committee
        Reliance on Records and Reports.

      

      The
        Committee shall be entitled to rely upon certificates, reports, and opinions
        provided by an accountant, tax or pension advisor, actuary or legal counsel
        employed by the Employer or Committee. The Committee shall keep a record
        of all
        its proceedings and acts, and shall keep all such books of account, records,
        and
        other data as may be necessary for the proper administration of the Plan.
        The
        regularly kept records of the Committee and the Employer shall be conclusive
        evidence of the service of a Participant, Compensation, age, marital status,
        status as an Employee, and all other matters contained therein and relevant
        to
        the Plan. The Committee, in any of its dealings with Participants hereunder,
        may
        conclusively rely on any Annual Forms, written statement, representation,
        or
        documents made or provided by such Participants.

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      8.7 Costs
        of the Plan.

      

      All
        the
        costs and expenses for maintaining the administration and operation of the
        Plan
        shall be borne by the Employer unless the Employer shall give notice (that
        Plan
        Participants bear this expense, in whole or in part) to: (a) Eligible Employees
        at the time they become Participants by completion and filing of the Annual
        Forms; or (b) to existing Participants during annual re-enrollment. Such
        notice
        shall detail the administrative expense to be assessed a Plan Participant,
        how
        that expense will be assessed and allocated to the Participant Accounts,
        and any
        other important information concerning the imposition of this administrative
        expense. This administration charge, if any, shall operate as a reduction
        to the
        Account of a Participant or his designated Beneficiary, and in the absence
        of
        specification otherwise shall reduce the Account, and be charged annually
        during
        the month of January.

      

      8.8 Claims
        Procedure.

      

      
        	 	
                A.

              	
                Claim.
                  Benefits
                  shall be paid in accordance with the terms of the Plan. A Claimant
                  may
                  file a written request for such benefit with the Employer, setting
                  forth
                  his claim. The request must be addressed to the Committee care
                  of
                  Secretary of the Employer at its then principal place of business.
                  

              

      

      

      
        	 	
                B.

              	
                Claim
                  Decision. Upon
                  the receipt of a claim, the Committee shall advise the Claimant
                  that a
                  reply will be forthcoming within ninety (90) days and shall, in
                  fact,
                  deliver such reply within such period. However, the Committee may
                  extend
                  the reply period for an additional ninety (90) days for reasonable
                  cause.
                  Any claim not granted or denied within such time period shall be
                  deemed to
                  have been denied. If the claim is denied in whole or in part, the
                  Committee shall adopt a written opinion, using language calculated
                  to be
                  understood by the Claimant, setting
                  forth:

              

      

      

      	(1)  	
              The
                specific reason or reasons for such
                denial;

            

      

      	(2)  	
              The
                specific reference to pertinent provisions of the Plan on which such
                denial is based;

            

      

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

            

      

      	(4)  	
              Appropriate
                information as to the steps to be taken if the Claimant wishes to
                submit
                the claim for review; and

            

      

      	(5)  	
              The
                time limits for requesting a review under Subsection C and for review
                under Subsection D hereof.

            

       

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      
        	 	
                C.

              	
                Request
                  for Review. Within
                  sixty (60) days after the receipt by the Claimant of the written
                  opinion
                  described above, the Claimant may request in writing that the Secretary
                  of
                  the Employer review the determination of the Committee. Such request
                  must
                  be addressed to the Secretary of the Employer, at its then principal
                  place
                  of business. The Claimant or his duly authorized representative
                  may, but
                  need not, review the pertinent documents and submit issues and
                  comments in
                  writing for consideration by the Employer. If the Claimant does
                  not
                  request a review of the Committee’s determination by the Secretary of the
                  Employer within such sixty (60) day period, he shall be barred
                  and
                  estopped from challenging the Committee’s
                  determination.

              

      

      

      
        	 	
                D.

              	
                Review
                  of Decision. Within
                  sixty (60) days after the Secretary’s receipt of a request for review, he
                  will review the Committee’s determination. After considering all materials
                  presented by the Claimant, the Secretary will render a written
                  opinion,
                  written in a manner calculated to be understood by the Claimant,
                  setting
                  forth the specific reasons for the decision and containing specific
                  references to the pertinent provisions of the Plan on which the
                  decision
                  is based. If special circumstances require that the sixty (60)
                  day time
                  period be extended, the Secretary will so notify the Claimant and
                  will
                  render the decision as soon as possible, but no later than one
                  hundred
                  twenty (120) days after receipt of the request for review. Any
                  claim not
                  granted or denied within such time period shall be deemed to have
                  been
                  denied.

              

      

      

      8.9  Litigation.

      

      It
        shall
        only be necessary to join the Employer as a party in any action or judicial
        proceeding affecting the Plan. No Participant or Designated Beneficiary or
        any
        other person claiming under the Plan shall be entitled to service of process
        or
        notice of such action or proceeding, except as may be expressly required
        by law.
        Any final judgment in such action or proceeding shall be binding on all
        Participants, Designated Beneficiaries or persons claiming under the
        Plan.

       

      ARTICLE
        IX--AMENDMENT, TERMINATION & REORGANIZATION

       

      

      9.1 Amendment.

      

      The
        Employer by action of its Board of Directors, or duly authorized Committee
        thereof, in accordance with its by-laws, reserves the right to amend the
        Plan,
        by resolution of the Employer, to the extent permitted under the Code and
        ERISA.
        However, no amendment to the Plan shall be effective to the extent that it
        has
        the effect of decreasing a Participant’s (or Designated Beneficiary’s) accrued
        benefit prior to the date of the amendment. 

      

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      9.2 Amendment
        Required By Law.

      

      Notwithstanding
        Section 9.1, the Plan may be amended at any time, if in the opinion of the
        Employer, such amendment is necessary to ensure the Plan is treated as a
        nonqualified plan of deferred compensation under the Code and ERISA, or to
        bring
        it into conformance with Treasury or SEC Regulations or requirements for
        such
        plans. This includes the right to amend the Plan, so that any trust, if
        applicable, created in conjunction with the Plan, will be treated as a grantor
        trust under Sections 671 through 679 of the Code, and to otherwise conform
        the
        Plan provisions and such trust, if applicable, to the requirements of any
        applicable law.

      

      9.3 Termination.

      

      The
        Employer intends to continue the Plan indefinitely. However, the Employer
        by
        action of its Board of Directors or a duly authorized committee thereof,
        in
        accordance with its by-laws, reserves the right to terminate the Plan at
        any
        time. However, no such termination shall deprive any participant or Designated
        Beneficiary of a right accrued under the Plan prior to the date of termination.
        

      

      9.4 Consolidation/Merger.

      

      The
        Employer shall not enter into any consolidation or merger without the guarantee
        and assurance of the successor or surviving company or companies to the
        obligations contained under the Plan. Should such consolidation or merger
        occur,
        the term “Employer” as defined and used in the Plan shall refer to the successor
        or surviving company. Should the consolidation or merger during a Plan Year
        constitute a Change of Control as defined in the Plan and a Participant has
        elected a distribution under Section VII of the Plan, a Participant or
        Designated Beneficiary shall receive distribution of the entire Balance in
        his
        Account in a lump sum 30 days after the Change of Control.

       

      ARTICLE
        X--GENERAL PROVISIONS

       

      

      10.1 Applicable
        Law.

      

      Except
        insofar as the law has been superseded by Federal law, South Carolina law
        shall
        govern the construction, validity and administration of the Plan. The parties
        to
        the Plan intend that the Plan shall be a nonqualified unfunded plan of deferred
        compensation without plan assets and any ambiguities in its construction
        shall
        be resolved in favor of an interpretation which will effect this
        intention.

      

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      10.2 Benefits
        Not Transferable or Assignable.

      

      
        	 	
                A.

              	
                Benefits
                  under the Plan shall not be subject to anticipation, alienation,
                  sale,
                  transfer, assignment, pledge, encumbrance or charge and any attempt
                  to
                  anticipate, alienate, sell, transfer, assign, pledge, encumber
                  or charge
                  such benefits shall be void, nor shall any such benefits be in
                  any way
                  liable for or subject to the debts, contracts, liabilities, engagements
                  or
                  torts of any person entitled to them. However, a Participant may
                  name a
                  recipient for any benefits payable or which would become payable
                  to a
                  Participant upon his death. This Section shall also apply to the
                  creation,
                  assignment or recognition of a right to any benefit payable with
                  respect
                  to a Participant pursuant to a domestic relations order, including
                  a
                  qualified domestic relations order under Section 414(p) of the
                  Code. In
                  addition, the following actions shall not be treated or construed
                  as an
                  assignment or alienation: (a) Plan Contribution or distribution
                  tax
                  withholding; (b) recovery of distribution overpayments to a Participant
                  or
                  Designated Beneficiary; (c) direct deposit of a distribution to
                  a
                  Participant’s or Designated Beneficiary’s banking institution account; or
                  (d) transfer of Participant rights from one Plan to another Plan,
                  if
                  applicable.

              

      

      

      
        	 	
                B.

              	
                The
                  Employer may bring an action for a declaratory judgment if a
                  Participant’s, Designated Beneficiary’s or any Beneficiary’s benefits
                  hereunder are attached by an order from any court. The Employer
                  may seek
                  such declaratory judgment in any court of competent jurisdiction
                  to:

              

      

      

      	(1)  	
              determine
                the proper recipient or recipients of the benefits to be paid under
                the
                Plan;

            

      

      	(2)  	
              protect
                the operation and consequences of the Plan for the Employer and all
                Participants; and

            

      

      	(3)  	
              request
                any other equitable relief the Employer in its sole and exclusive
                judgment
                may feel appropriate. 

            

      

      Benefits
        which may become payable during the pendency of such an action shall, at
        the
        sole discretion of the Employer, either be:

      

      	(1)  	
              paid
                into the court as they become payable or

            

      

      	(2)  	
              held
                in the Participant’s or Designated Beneficiary’s Account subject to the
                court’s final distribution order.

            

      

      10.3  Not
        an Employment Contract.

      

      The
        Plan
        is not and shall not be deemed to constitute a contract between the Employer
        and
        any Employee, or to be a consideration for, or an inducement to, or a condition
        of, the employment of any Employee. Nothing contained in the Plan shall give
        or
        be deemed to give an Employee the right to remain in the employment of the
        Employer or to interfere with the right to be retained in the employ of the
        Employer, any legal or equitable right against the Employer, or to interfere
        with the right of the Employer to discharge any Employee at any time. It
        is
        expressly understood by the parties hereto that the Plan relates to the payment
        of deferred compensation for the Employee’s services, generally payable after
        separation from employment with the Employer, and is not intended to be an
        employment contract.

      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      10.4  Notices.

      

      	A.  	
              Any
                notices required or permitted hereunder shall be in writing and shall
                be
                deemed to be sufficiently given at the time when delivered personally
                or
                when mailed by certified or registered first class mail, postage
                prepaid,
                addressed to either party hereto as
                follows:

            

      

      If
        to the
        Employer:

       

      P.O.
        Box
        1287

      Orangeburg,
        SC 29116

      

      If
        to the
        Participant:

      

      At
        his
        last known address, as indicated by the records of the Employer;

      

      or
        to such
        changed address as such parties may have fixed by notice. However, any notice
        of
        change of address shall be effective only upon receipt.

       

      

      	B.  	
              Any
                communication, benefit payment, statement of notice addressed to
                a
                Participant or Designated Beneficiary at the last post office address
                as
                shown on the Employer’s records shall be binding on the Participant or
                Designated Beneficiary for all purposes of the Plan. The Employer
                shall
                not be obligated to search for any Participant or Designated Beneficiary
                beyond sending a registered letter to such last known
                address.

            

      

      10.5  Severability.

      

      If
        any
        provision or provisions of the Plan shall for any reason be invalid or
        unenforceable, the remaining provisions of the Plan shall be carried into
        effect, unless the effect thereof would be to materially alter or defeat
        the
        purposes of the Plan. All terms of the plan and all discretion granted hereunder
        shall be uniformly and consistently applied to all the Employees, Participants
        and Designated Beneficiaries.

      

      10.6  Participant
        is General Creditor with No Rights to Assets.

      

      	A.  	
              The
                payments to the Participant or his Designated Beneficiary or any
                other
                beneficiary hereunder shall be made from assets which shall continue,
                for
                all purposes, to be a part of the general, unrestricted assets of
                the
                Employer, no person shall have any interest in any such assets by
                virtue
                of the provisions of the Plan. The Employer’s obligation hereunder shall
                be an unfunded and unsecured promise to pay money in the future.
                To the
                extent that any person acquires a right to receive payments from
                the
                Employer under the provisions hereof, such right shall be no greater
                than
                the right of any unsecured general creditor of the Employer; no such
                person shall have nor require any legal or equitable right, or claim
                in or
                to any property or assets of the Employer. The Employer shall not
                be
                obligated under any circumstances to fund obligations under the
                Plan.

            

      

      	B.  	
              The
                Employer at its sole discretion and exclusive option, may acquire
                and/or
                set-aside assets or funds, in a trust or otherwise, to support its
                financial obligations under the Plan. No such trust established for
                this
                purpose shall be established in or transferred to a location that
                would
                cause it to be deemed to be an “offshore trust” for purposes of Section
                409A(b)(1) of the I.R.C. No such acquisition or set-aside shall impair
                or
                derogate from the Employer’s direct obligation to a Participant or
                Designated Beneficiary under the Plan. However, no Participant or
                Designated Beneficiary shall be entitled to receive duplicate payments
                of
                any Accounts provided under the Plan because of the existence of
                such
                assets or funds.

            

      

      	C.  	
              In
                the event that, in its discretion, the Employer purchases an asset(s)
                or
                insurance policy or policies insuring the life of the Participant
                to allow
                the Employer to recover the cost of providing benefits, in whole
                or in
                part hereunder, neither the Participant, Designated Beneficiary nor
                any
                other beneficiary shall have any rights whatsoever therein in such
                assets
                or in the proceeds therefrom. The Employer shall be the sole owner
                and
                beneficiary of any such assets or insurance policy and shall possess
                and
                may exercise all incidents of ownership therein. No such asset or
                policy,
                policies or other property shall be held in any trust for the Participant
                or any other person nor as collateral security for any obligation
                of the
                Employer hereunder. Nor shall any Participant’s participation in the
                acquisition of such assets or policy or policies be a representation
                to
                the Participant, Designated Beneficiary or any other beneficiary
                of any
                beneficial interest or ownership in such assets, policy or policies.
                A
                Participant may be required to submit to medical examinations, supply
                such
                information and to execute such documents as may be required by an
                insurance carrier or carriers (to whom the Employer may apply from
                time to
                time) as a precondition to participate in the
                Plan.

            

      

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      10.7  No
        Trust Relationship Created.

      

      Nothing
        contained in the Plan shall be deemed to create a trust of any kind or create
        any fiduciary relationship between the Employer and the Participant, Designated
        Beneficiary, other beneficiaries of the Participant, or any other person
        claiming through the Participant. Funds allocated hereunder shall continue
        for
        all purposes to be part of the general assets and funds of the Employer and
        no
        person other than the Employer shall, by virtue of the provisions of the
        Plan,
        have any beneficial interest in such assets and funds. The creation of a
        grantor
        trust (so called “Rabbi Trust”) under the Code (owned by and for the benefit of
        the Employer) to hold such assets or funds for the administrative convenience
        of
        the Employer shall not give nor be a representation to a Participant, Designated
        Beneficiary, or any other person, of a property or beneficial ownership interest
        in such trust assets or funds even though the incidental advantages or benefits
        of the trust to Plan Participants may be communicated to them.

      

      10.8  Limitations
        on Liability of the Employer.

      

      Neither
        the establishment of the Plan nor any modification hereof nor the creation
        of
        any Account under the Plan nor the payment of any benefits under the Plan
        shall
        be construed as giving to any Participant or any other person any legal or
        equitable right against the Employer or any Director, officer or Employee
        thereof except as provided by law or by any Plan provision.

      

      10.9  Agreement
        Between Employer and Participant Only.

      

      The
        Plan
        is solely between the Employer and Participant. The Participant, Designated
        Beneficiary, estate or any other person claiming through the Participant,
        shall
        only have recourse against the Employer for enforcement of the Plan. The
        Plan
        shall be binding upon and inure to the benefit of the Employer and its
        successors and assigns, and the Participant, successors, heirs, executors,
        administrators and beneficiaries.

      

      10.10 Independence
        of Benefits.

      

      The
        benefits payable under the Plan are for services already rendered and shall
        be
        independent of, and in addition to, any other benefits or compensation, whether
        by salary, bonus, fees or otherwise, payable to the Participant under any
        compensation and/or benefit arrangements or plans, incentive cash compensations
        and stock plans and other retirement or welfare benefit plans, that now exist
        or
        may hereafter exist from time to time.

      

      10.11 Unclaimed
        Property.

      

      Except
        as
        may be required by law, the Employer may take any of the following actions
        if it
        gives notice to a Participant or Designated Beneficiary of an entitlement
        to
        benefits under the Plan, and the Participant or Designated Beneficiary fails
        to
        claim such benefit or fails to provide their location to the Employer within
        three (3) calendar years of such notice:

      

      (1) Direct
        distribution of such benefits, in such proportions as the Employer may
        determine, to one or more or all, of a Participant’s next of kin, if their
        location is known to the Employer;

      

      (2) Deem
        this
        benefit to be a forfeiture and paid to the Employer if the location of a
        Participant’s next of kin is not known. However, the Employer shall pay the
        benefit, unadjusted for gains or losses from the date of such forfeiture,
        to a
        Participant or Designated Beneficiary who subsequently makes proper claim
        to the
        benefit. 

      

      The
        Employer shall not be liable to any person for payment pursuant to applicable
        state unclaimed property laws.

      

      10.12  Required
        Tax Withholding and Reporting.

      

      The
        Employer shall withhold and report Federal, state and local income and payroll
        tax amounts on all Contributions to and distributions and withdrawals from
        a
        Participant’s Account as may be required by law from time to time.

      

      (Signature
        page follows.)

      

      SOUTH
        CAROLINA BANK & TRUST

      

      

      

      BY:
        /s/
        Richard C. Mathis

      

      Title:
        Chief
        Financial Officer

      

      
        
          22Exhibit 10.2

    

    

    

    Exhibit
      10.2

     

    SOUTH
      CAROLINA BANK & TRUST

    

    Non-Employee
      Directors Deferred Income Plan

    

    

    As
      Amended and Restated

    

    Effective
      As Of 

    

    January
      1, 2005

    

    

    

    

    

    

    

    

    

    

    

    

    (A
      Plan of Nonqualified Deferred
      Compensation)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SOUTH
      CAROLINA BANK AND TRUST

    NON-EMPLOYEE
      DIRECTORS DEFERRED

    INCOME
      PLAN

    AS
      AMENDED AND RESTATED

    

    PREAMBLE

     

    Whereas,
      South Carolina Bank and Trust (the "Bank"), adopted the South Carolina Bank
      and
      Trust Non-Employee Directors Deferred Income Plan (the "Plan") effective January
      1, 2005; and

     

    Whereas,
      the Bank reserved the right pursuant to Section VII of the Plan to amend the
      Plan as required by law; and

    

    Whereas,
      it is necessary to amend the Plan to conform to the requirements of Section
      409A
      of the Internal Revenue Code of 1986, as amended, ("I.R.C.") as enacted by
      the
      American Jobs Creation Act of 2004.

    

    Now,
      therefore, the Bank hereby amends and restates the Plan, effective as of January
      1, 2005. 

    

    SECTION
      I - INTRODUCTION

    

    Effective
      January 1, 2005, the "Bank hereby amends and restates the Plan for members
      of
      its Board of Directors ("Board"), who are not employees of the Bank or an
      Affiliate ("Non-Employee Directors"). The Plan is intended to comply in form
      and
      operation with the requirements of Section 409A of the I.R.C., and shall be
      construed and administered accordingly at all times. 

    

    SECTION
      II - DEFINITIONS

    

    (a)  “Account”
shall
      mean the interest of a Participant in the Plan as represented by the bookkeeping
      entries kept by the Bank for each Participant. Each Participant’s interest may
      be divided into one or more separate accounts or sub-accounts. The Account
      reflects the contributions made, gains, losses, income and expenses allocated
      thereto, as well as, distributions or any other withdrawals. The existence
      of an
      account or bookkeeping entries for a Participant (or his Designated Beneficiary)
      does not create, suggest or imply that a Participant, Designated Beneficiary,
      or
      other person claiming through them under the Plan, has a beneficial interest
      in
      any assets of the Employer.

    

    (b)  “Affiliate”
shall
      mean partnership, corporation, company, joint venture or other business entity,
      in which the Bank has a direct or indirect ownership interest of more than
      fifty
      percent (50%), or the Bank is owned by an entity that has an ownership interest
      in such other entity of more than fifty percent (50%).

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (c)  “Bank”
shall
      mean South Carolina Bank & Trust. 

    

    (d)  “Board”
shall
      mean the Bank’s Board of Directors.

    

    (e)  “Committee”
shall
      mean the compensation committee of the Board.

    

    (f)  “Deemed
      Crediting Option”
shall
      mean the options made available to Plan Participants by the Bank for the
      purposes of determining the proper crediting of gains and losses, and income
      and
      expenses to each Participant’s Account, subject to procedures and requirements
      established by the Plan Administrator. A Participant may reallocate his Account
      among such Deemed Crediting Options periodically at such frequency and upon
      such
      terms as the Plan Administrator may determine from time to time. The Bank
      reserves the right in its sole and exclusive discretion to substitute, eliminate
      and otherwise change the options made available to Plan Participants, as well
      as
      the right to establish rules and procedures for the selection and offering
      of
      the Deemed Crediting Option.

    

    (g)  “Deemed
      Crediting Option Election Form”
shall
      mean the written agreement of a Participant in which the Deemed Crediting Option
      is exercised. The Deemed Crediting Option Election Form shall be in such form
      or
      forms as may be prescribed by the Plan Administrator, filed with the Bank,
      according to procedures and at such times as established by the Plan
      Administrator.

    

    (h)  "Designated
      Beneficiary"
      or
      "Beneficiary"
      shall
      mean the person, persons or trust specifically named to be a direct or
      contingent recipient of all or a portion of a Participant's benefits under
      the
      Plan in the event the Participant's death prior to the distribution of his
      full
      balance in his Account. Such designation of a recipient or recipients may be
      made and amended, at the Participant's discretion, on the Designated Beneficiary
      Form and according to the procedures established by the Plan Administrator.
      No
      beneficiary designation or change of Beneficiary shall become effective until
      received and acknowledged by the Employer. In the event a Participant does
      not
      have a beneficiary properly designated, the beneficiary under the Plan shall
      be
      the Participant's estate. 

     

    (i)  “Designated
      Beneficiary Form”
shall
      mean the written agreement of a Participant in which the Participant elects
      the
      Designated Beneficiary. In the event that the Participant designates someone
      other than their spouse as Beneficiary for at least fifty percent (50%) of
      his
      benefits under the Plan, the signature of such spouse is required on this form.
      The Designated Beneficiary Form shall be in such form or forms as may be
      prescribed by the Plan Administrator, filed with the Bank, according to
      procedures and at such times as established by the Plan
      Administrator.

    

    (j)  “Distribution
      Election Form”
shall
      mean the written agreement of a Participant in which the Participant elects
      the
      manner in which distributions will be made from the Account. The Distribution
      Election Form shall be in such form or forms as may be prescribed by the Plan
      Administrator, filed with the Bank, according to procedures and at such times
      as
      established by the Plan Administrator.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (k)  “Deferral
      Election Form”
shall
      mean that written agreement of a Participant. The Deferral Election Form shall
      be in such form or forms as may be prescribed by the Plan Administrator, filed
      with the Bank, according to procedures and at such times as established by
      the
      Plan Administrator. Among other information the Plan Administrator may require
      of the Participant for proper administration of the Plan, such agreement shall
      establish the Participant’s election to defer Retainers and Meeting Fees for a
      Plan Year under the Plan and the amount of the deferral into the Plan for the
      Plan Year.

    

    (l)  “In-Service
      Distribution”
shall
      mean a distribution to a Participant prior to Separation from
      Service.

    

    (m)  “Meeting
      Fees”
shall
      mean Board or Board committee meeting fees payable to a Non-Employee Director
      in
      cash.

    

    (n)  “Non-Employee
      Directors”
shall
      mean members of the Board of the Bank who are not employees of the Bank or
      an
      Affiliate.

    

    (o)  “Participant”
shall
      mean a person who (1) is a Non-Employee Director; (2) is subject to United
      States income tax laws; and (3) elects to participate in the Plan. 

    

    (p)  “Plan”
shall
      mean South Carolina Bank & Trust Non-Employee Directors Deferred Income Plan
      as amended and restated.

    

    (q)  “Plan
      Year”
shall
      mean the twelve (12) consecutive month period constituting a calendar year,
      beginning on January 1 and ending on December 31. However, in any partial year
      of the Plan that does not begin on January 1, “Plan Year” shall also mean the
      remaining partial year ending on December 31. If the Plan is terminated, such
      Plan Year shall begin on January 1 and end on the date of termination.

    

    (r)  “Plan
      Administrator”
shall
      mean the one or more employees of the Bank as so designated by the Committee
      that have general operation and administration duties of the Plan.

    

    (s)  “Retainers”
shall
      mean any retainer payable in cash for service as a Non-Employee Director,
      including any such retainer for service as chairman of the Board or as a chair
      or member of a Board committee.

    

    (t)  “Separation
      of Service”
shall
      mean ceasing to perform any type of service for the Bank or an Affiliate, when
      the Bank and all Affiliates, as well as, the Participant do not contemplate
      or
      anticipate any future service by the Participant for the Bank or any
      Affiliate.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (u)  “Unforeseeable
      Emergency”
shall
      mean a severe financial hardship of the Participant resulting from a sudden
      and
      unexpected illness or accident of the Participant or of a dependent (as defined
      in Section 152(a) of the I.R.C.) of the Participant, loss of the Participant's
      property due to casualty or other similar, extraordinary and unforeseeable
      circumstances arising as a result of events beyond the control of the
      Participant, or as otherwise defined under the Treasury Regulations issues
      pursuant to Section 409A of the I.R.C. The circumstances that will constitute
      an
      Unforeseeable Emergency will depend upon the facts of each case, as determined
      by the Plan Administrator in its discretion, but in any case payment may not
      be
      made, to the extent that such hardship is or may be relieved: (i) through
      reimbursement or compensation by insurance or otherwise; (ii) by liquidation
      of
      the Participant's assets to the extent the liquidation of such assets would
      not
      itself cause severe financial hardship; or (iii) by cessation of deferrals
      under
      the Plan. 

    

    SECTION
      III - PLAN PARTICIPANTS

    

    Each
      Non-Employee Director shall become a Participant under the Plan by filing the
      written Deferral Election Form as described in Section IV below with the Plan
      Administrator. Such Deferral Election Form will designate the amount of deferral
      of income with respect to the Retainers and Meeting Fees payable to the
      Non-Employee Director for his services as a member of the Board.

    

    SECTION
      IV - DEFERRAL ELECTIONS

    

    (a) Each
      Participant may elect to defer receipt of some or all of his Retainer and
      Meeting Fee and have the cash value of such Retainer and Meeting Fee credited
      to
      the Account established for him under the Plan.

     

    (b) Each
      election with respect to a Retainer and Meeting Fee for a Plan Year shall be
      set
      forth on a Deferral Election Form provided by the Plan
      Administrator.

     

    (c)
        A
      Deferral
      Election Form effective for a Plan Year shall be delivered to the Plan
      Administrator prior to the first day of such Plan Year. The election shall
      remain in effect for subsequent Plan Years until a revised Deferral Election
      Form is delivered to the Plan Administrator before the first day of the Plan
      Year in which the revision is to become effective. Except as provided in
      paragraph (d) below, an initial Deferral Election Form or a revised Deferral
      Election Form shall apply only to a Retainer or Meeting Fee otherwise earned
      by
      a Participant after the end of the Plan Year in which such initial or revised
      Deferral Election Form is delivered to the Plan Administrator. Any Deferral
      Election Form delivered by a Participant shall be irrevocable with respect
      to
      any Retainer or Meeting Fee covered by the elections set forth therein. If
      a
      Deferral Election Form is not in effect for a Non-Employee Director for a Plan
      Year, he shall be deemed to have elected not to defer his Retainer or Meeting
      Fees for such Plan Year.

     

    (d) Notwithstanding
      the preceding provisions of this Section, an election made by a Participant
      in
      the Plan Year in which he first becomes eligible to participate in the Plan,
      may
      be made pursuant to a Deferral Election Form delivered to the Plan Administrator
      within 30 days after the date on which he initially becomes eligible to
      participate in the Plan, and such Deferral Election Form shall be effective
      with
      respect to Retainers and Meeting Fees earned after the date such Deferral
      Election Form is delivered to the Plan Administrator. If the Deferral Election
      Form for such Participant is not delivered within the 30 day window, such
      election will be effective after the end of the Plan Year in which such Deferral
      Election Form was delivered to the Plan Administrator.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    SECTION
      V - PARTICIPANT ACCOUNTS

    

    (a) A
      Retainer
      or a Meeting Fee deferred by a Participant shall be credited to the
      Participant's Account as of the date it would otherwise have been
      paid.

     

    (b) Each
      Account shall be maintained on the books of the Bank until full payment of
      the
      balance thereof has been made to the applicable Participant (or the
      beneficiaries of a deceased Participant). No funds shall be set aside or
      earmarked for any Account, which shall be purely a bookkeeping
      device.

    

    (c) From
      time
      to time the Plan Administrator will provide Participants with a portfolio of
      two
      or more Deemed Crediting Options under the Plan. A Participant shall designate
      in his Deemed Crediting Option Election Form the Deemed Crediting Option(s)
      by
      which gains and losses will be credited to his Account. A Participant may change
      the allocation among Deemed Crediting Options for his Account by written
      direction filed with the Plan Administrator in accordance with policies and
      procedures established by the Plan Administrator from time to time.

    

    SECTION
      VI - DISTRIBUTION OF ACCOUNTS

    

    (a)
       Unless
      otherwise elected by the Participant under paragraph (b) below, the entire
      balance of a Participant’s Account will be distributed to him in a lump sum six
      months and one day following his Separation of Service.

     

    (b)
       In
      his
      Distribution Election Form, a Participant may elect to receive an In-Service
      Distribution, payable on a specified date in a lump sum from his Account, of
      amounts deferred during a Plan Year as soon as three (3) years after the Plan
      Year for which the amounts were deferred. An In-Service Distribution shall
      also
      include earnings or losses attributable to such deferrals based upon the Deemed
      Crediting Options elected by the Participant for such Plan Year.

     

    (c)
       If
      a
      Participant's service on the Board shall terminate by reason of his death,
      or if
      he shall die after becoming entitled to distribution hereunder but prior to
      receipt of his distribution, his Account shall be distributed to such
      beneficiary or beneficiaries as such Participant shall have designated on the
      Designated Beneficiary Form last filed with the Plan Administrator prior to
      his
      death, or in the absence of such designation or of any living beneficiary,
      to
      the personal representative of his estate. 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (d)
       In
      the
      written discretion of the Plan Administrator, and at the written request of
      a
      Participant, up to 100% of the balance of his Account, determined as of the
      last
      day of the calendar month prior to the date of distribution, may be distributed
      to a Participant in a lump sum in the case of an Unforeseeable Emergency.
      Withdrawal of amounts because of an Unforeseeable Emergency shall be permitted
      only to the extent reasonably needed to satisfy the Unforeseeable
      Emergency.

    

    (e) In
      the
      event of termination of the Plan, the entire balance of a Participant’s Account
      will be distributed to him six months and one day following the Board's
      resolution terminating the Plan. 

    

    (f) Any
      Distribution Election Form changing the distribution of a Participant shall
      be
      delivered to the Plan Administrator prior to the first day of such Plan Year
      for
      which it is to be effective. Notwithstanding the preceding sentence, an election
      made by a Participant in the Plan Year in which he first becomes eligible to
      participate in the Plan must be made pursuant to the Distribution Election
      Form
      delivered to the Plan Administrator within 30 days after the date on which
      he
      initially becomes eligible to participate in the Plan, and such Distribution
      Election Form shall be effective after the date such Deferral Election Form
      is
      delivered to the Plan Administrator. If the Distribution Election Form for
      such
      Participant is not delivered within the 30 day window, such election will be
      effective after the end of the Plan Year in which such Distribution Election
      Form was delivered to the Plan Administrator. Any election pursuant to a
      Distribution Election Form shall remain in effect for subsequent Plan Years
      until a revised Distribution Election Form is delivered to the Plan
      Administrator, also before the first day of the Plan Year in which the revision
      is to become effective. If there has been a change in the distribution for
      a
      Participant, separate sub-accounts must be maintained to track the applicable
      Account balance with the different distribution dates.

    

    SECTION
      VII - ADMINISTRATION OF THE PLAN

    

    (a) 
      The Plan
      Administrator shall be responsible for the general operation and administration
      of the Plan, and shall have such powers as are necessary to discharge its duties
      under the Plan, including, without limitation, the following: 

    

    (i)
       With
      the
      advice of the general counsel of the Bank, to construe and interpret the Plan,
      to decide all questions of eligibility, to determine the amount, manner and
      time
      of payment of any benefits hereunder, to prescribe rules and procedures to
      be
      followed by Participants and their beneficiaries under the Plan, and to
      otherwise carry out the purposes of the Plan; and 

    

    (ii)
       To
      appoint
      or employ individuals to assist in the administration of the Plan and any other
      agents deemed advisable. The decisions of the Plan Administrator shall be
      binding and conclusive upon all Participants, beneficiaries and other
      persons.

    

    (b)
       Any
      Participant claiming a benefit, requesting an interpretation or ruling, or
      requesting information, under the Plan, shall present the request in writing
      to
      the Plan Administrator. The Plan Administrator shall respond in writing as
      soon
      as practicable. If the claim or request is denied, the written notice of denial
      shall state the following:

    

                (i)
 The
      reasons
      for denial, with specific reference to the Plan provisions upon which the denial
      is based; 

                (ii)
 A
      description of any additional material or information required and an
      explanation of why it is necessary; and

                (iii)
      An explanation
      of the Plan's review procedure.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (c) The
      initial notice of denial shall normally be given within 90 days after receipt
      of
      the claim. If special circumstances require an extension of time, the claimant
      shall be so notified and the time limit shall be 180 days. Any person whose
      claim or request is denied, or who has not received a response within 30 days,
      may request review by notice in writing to the Plan Administrator. 

    

    (d) The
      original decision shall be reviewed by the Plan Administrator, which may, but
      shall not be required to, grant the claimant a hearing. On review, whether
      or
      not there is a hearing, the claimant may have representation, examine pertinent
      documents and submit issues and comments in writing. The decision on review
      shall ordinarily be made within 60 days. If an extension of time is required
      for
      a hearing or other special circumstances, the claimant shall be so notified
      and
      the time limit shall be extended to 120 days. The decision on review shall
      be in
      writing and shall state the reasons and the relevant Plan provisions. All
      decisions on review shall be final and bind all parties concerned.

    

    SECTION
      VIII - AMENDMENT OR TERMINATION

    

    (a)
       The
      Bank
      intends the Plan to be permanent but reserves the right to amend or terminate
      the Plan when, in the sole opinion of the Bank, such amendment or termination
      is
      advisable. Any such amendment or termination shall be made pursuant to a
      resolution of the Board and shall be effective as of the date of such resolution
      or such later date as the resolution may expressly state.

    

    (b)
       No
      amendment or termination of the Plan shall (i) directly or indirectly deprive
      any current or former Participant or his beneficiaries of all or any portion
      of
      his Accounts as determined as of the effective date of such amendment or
      termination, or (ii) directly or indirectly reduce the balance of any Account
      held hereunder as of the effective date of such amendment or termination. No
      additional Retainers or Meeting Fees shall be credited to the Accounts of
      Participants after termination of the Plan, but the Bank shall continue to
      credit earnings, gains and losses to Accounts pursuant to Section V until the
      balances of such Accounts have been fully distributed to Participants or their
      beneficiaries.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    SECTION
      IX - GENERAL PROVISIONS

    

    (a)
       The
      Plan
      at all times shall be unfunded. However, the Bank may, but shall not be required
      to, segregate assets in trusts or otherwise, for the payment of benefits under
      the Plan. The right of a Participant or his beneficiary to receive a benefit
      hereunder shall be an unsecured claim against the general assets of the Bank,
      and neither the Participant nor a beneficiary shall have any rights in or
      against any specific assets of the Bank. All amounts credited to Accounts shall
      constitute general assets of the Bank and be subject to the claims of the
      general creditors of the Bank.

    

    (b)
       Nothing
      contained in the Plan shall constitute a guaranty by the Bank, the Committee,
      the Plan Administrator, or any other person or entity, that the assets of the
      Bank will be sufficient to pay any benefit hereunder. No Participant or
      beneficiary shall have any right to receive a distribution under the Plan except
      in accordance with the terms of the Plan.

    

    (c)
       Establishment
      of the Plan shall not be construed to give any Participant the right to be
      retained as a member of the Board.

    

    (d)
       No
      interest of any person or entity in, or right to receive a distribution under,
      the Plan, shall be subject in any manner to sale, transfer, assignment, pledge,
      attachment, garnishment, or other alienation or encumbrance of any kind; nor
      may
      such interest or right to receive a distribution be taken, either voluntarily
      or
      involuntarily, for the satisfaction of the debts of, or other obligations or
      claims against, such person or entity, including claims for alimony, support,
      separate maintenance and claims in bankruptcy proceedings.

    

    (e)
       The
      Plan
      shall be construed and administered under the laws of the State of South
      Carolina, except to the extent preempted by federal law.

    

    (f)
       If
      any
      person entitled to a payment under the Plan is deemed by the Bank to be
      incapable of personally receiving and giving a valid receipt for such payment,
      then, unless and until claim therefore shall have been made by a duly appointed
      guardian or other legal representative of such person, the Bank may provide
      for
      such payment or any part thereof to be made to any other person or institution
      that is contributing toward or providing for the care and maintenance of such
      person. Any such payment shall be a payment for the account of such person
      and a
      complete discharge of any liability of the Bank, the Committee, the Plan
      Administrator and the Plan therefore.

    

    (g)
       The
      Plan
      shall be continued, following a transfer or sale of assets of the Bank, or
      following the merger or consolidation of the Bank into or with any other
      corporation or entity, by the transferee, purchaser or successor entity, unless
      the Plan has been terminated by the Bank pursuant to the provisions of Section
      VIII prior to the effective date of such transaction.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (h)
       Each
      Participant or beneficiary shall keep the Plan Administrator informed of his
      current address. The Plan Administrator shall not be obligated to search for
      the
      whereabouts of any person. If the location of a Participant is not made known
      to
      the Plan Administrator within three years after the date on which payment of
      the
      Participant's benefits under the Plan may first be made, payment may be made
      as
      though the Participant had died at the end of the three year period. If, within
      one additional year after such three year period has elapsed, or, within three
      years after the actual death of a

    Participant,
      the Plan Administrator is unable to locate any beneficiary of the Participant,
      then the Bank shall have no further obligation to pay any benefit hereunder
      to
      such Participant, or beneficiary or any other person and such benefit shall
      be
      forfeited. If such

    Participant,
      or his beneficiary or any other person, subsequently makes a valid claim for
      distribution of the amount forfeited, such amount, without gains or earnings
      thereon that arise after the date on which payment of the Participant's benefits
      under the Plan may first be made, shall be distributed to such Participant
      or
      his beneficiary or such other person pursuant to Section VI.

    

    (i)
       Notwithstanding
      any of the preceding provisions of the Plan, none of: (1) the Bank, (2) any
      member of the Committee, (3) any Plan Administrator or (4) any individual acting
      as an employee or agent of the Bank, the Committee or the Plan Administrator,
      shall be liable to any Participant, former Participant, or any beneficiary
      or
      other person for any claim, loss, liability or expense incurred by such
      Participant, or beneficiary or other person in connection with the
      Plan.

    

    (j)
       Any
      notice
      under the Plan shall be in writing, or by electronic means, and shall be
      received when actually delivered, or mailed postage paid as first class United
      States Mail. Notices shall be directed to the Bank at its principal business
      office at 520 Gervais Street, Columbia, SC, 29201 (or as updated by written
      notification by the Plan Administrator), to a Non-Employee Director at the
      address stated in his Deferral Election Form or as updated by written
      notification to the Plan Administrator, and to a beneficiary entitled to
      benefits at the address stated in the Participant's Designated Beneficiary
      Form,
      or to such other addresses any party may specify by notice to the other
      parties.

    

    IN
      WITNESS
      WHEREOF, the amended and restated Plan has been executed on behalf of the Bank
      on this 16th
      day of
      November, 2006 to be effective as of January 1, 2005.

    

     SOUTH
      CAROLINA BANK AND TRUST 

    

    

    BY:
/s/
      Richard C. Mathis

     

    Title:
      Chief Financial Officer

    

     

    
      
        
        

      

      
        10

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