Document:

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                                                                    EXHIBIT 10.9

                         Cameron Financial Corporation

                                Severance Plan

     The Cameron Financial Corporation Severance Plan ("Plan") is hereby adopted
as of this 5/th/ day of October, 2000, by Cameron Financial Corporation, a
Delaware corporation ("Employer") for the benefit of its eligible employees.

                                  WITNESSETH

     Whereas, the Employees (as defined below) are currently employed by
Employer or an Affiliate or Associate (as defined below); and

     Whereas, Employer desires to establish the Plan to provide security to the
Employees in connection with the Employees' employment with Employer, or an
Affiliate or Associate in the event of a Change in Control affecting Employer;

     Now, Therefore, Employer hereby establishes the Plan as set forth below.

              Article 1 -Definitions.  For purposes of this Plan:
              ---------------------------------------------------

     (a)  "Affiliate" or "Associate" shall have the meaning set forth in Rule
          12b-2 under the Securities Exchange Act of 1934.

     (b)  "Beneficiary" shall mean the person or entity designated by an
          Employee, by written instrument delivered to Employer, to receive the
          benefits payable under this Plan in the event of his death. If an
          Employee fails to designate a Beneficiary, or if no Beneficiary
          survives the Employee, such death benefits shall be paid:

          (1)  to his surviving spouse; or

          (2)  if there is no surviving spouse, to his living descendants per
               stirpes; or

          (3)  if there is neither a surviving spouse nor descendants, to his
               duly appointed and qualified executor or personal representative.

     (c)  A "Change in Control" shall be deemed to take place on the occurrence
          of any of the following events:

          (1)  The acquisition by an entity, person or group (including all
               Affiliates or Associates of such entity, person or group) of
               beneficial ownership, as that term is defined in Rule 13d-3 under
               the Exchange Act, of capital stock of Employer if after such
               acquisition such entity, person or group (and their Affiliates or
               Associates) is entitled to exercise more than 30% of the
               outstanding voting power of all capital stock of Employer
               entitled to vote in elections of directors ("Voting Power");
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          (2)  The effective time of (i) a merger or consolidation of Employer
               with one or more other corporations as a result of which the
               holders of the outstanding Voting Power of Employer immediately
               prior to such merger or consolidation (other than the surviving
               or resulting corporation or any Affiliate or Associate thereof)
               hold less than 50% of the Voting Power of the surviving or
               resulting corporation, or (ii) a transfer of 30% of the Voting
               Power, or a Substantial Portion of the Property, of Employer
               other than to an entity of which Employer owns at least 50% of
               the Voting Power; or

          (3)  The election to the Board of Directors of Employer of candidates
               who were not recommended for election by the Board of Directors
               of Employer in office immediately prior to the election, if such
               candidates constitute a majority of those elected in that
               particular election.

     (d)  "Employee" shall mean a common-law employee on the date hereof of
          Employer or an Affiliate or Associate who is compensated on salaried
          basis, other than an employee who is covered by an employment or other
          agreement with the Employer or its subsidiaries that explicitly
          addresses compensation and benefits payable to them upon termination
          of their employment.

     (e)  "Good Cause" shall be deemed to exist with respect to an Employee if,
          and only if:

          (1)  The Employee engages in acts or omissions constituting fraud,
               embezzlement, dishonesty, intentional breach of fiduciary
               obligation or intentional wrongdoing, or the Employee fails to
               diligently, faithfully and competently perform any legal and
               morally defensible directions of Employer's management or Board
               of Directors; or

          (2)  The Employee is convicted of a felony or a violation of law
               involving fraud or dishonesty.

     (f)  "Good Reason" shall exist with respect to an Employee if and only if,
          without the Employee's express written consent:

          (1)  there is a significant decrease in the scope of the Employee's
               authority;

          (2)  the Employee is assigned duties materially inconsistent with his
               present duties, responsibilities and title;

          (3)  there is a reduction in the Employee's rate of base salary; or

          (4)  Employer or any Affiliate or Associate changes by 25 miles or
               more the principal location in which the Employee is required to
               perform services.

     (g)  "Retirement Plan" shall mean any qualified or supplemental employee
          pension benefit plan, as defined in Section 3(2) of the Employee
          Retirement Income

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          Security Act of 1974, as amended ("ERISA"), currently or hereinafter
          made available by Employer or an Affiliate or Associate in which an
          Employee is eligible to participate.

     (h)  "Salary" shall mean the Employee's annual base salary rate at the
          greater of (1) the date of the Change in Control, or (2) the date the
          Employee's employment with the Employer or an Affiliate or Associate
          terminates under circumstances described in Article 2(a).

     (i)  "Substantial Portion of the Property of Employer" shall mean 50% of
          the aggregate book value of the assets of Employer, as set forth on
          the most recent balance sheet of Employer, prepared on a consolidated
          basis, by its regularly employed, independent, certified public
          accountants.

             Article 2 - Benefits Upon Termination of Employment.
             ---------------------------------------------------

     (a)  The following provisions will apply if, at any time within the six (6)
     months after a Change in Control occurs, (i) the employment of an Employee
     with Employer or its Affiliates or Associates is terminated by Employer or
     such Affiliates or Associates for any reason other than Good Cause, or (ii)
     the Employee terminates his employment with Employer or its Affiliates or
     Associates for Good Reason:

          (1)  Employer shall make a lump-sum cash payment to the Employee or
               his Beneficiary in an amount equal to:

               (A)  If the Employee shall have been credited with at least two
                    (2) years of vesting service under any Retirement Plan, two
                    week's Salary plus one additional week's Salary for each
                    full year of vesting service under any Retirement Plan up to
                    ten (10) years and one additional week's Salary for each two
                    full years of vesting service in excess of ten (10) years,
                    or

               (B)  if the Employee shall have been credited with at least one
                    (1) but less than two (2) years of vesting service under any
                    Retirement Plan, two (2) week's Salary, or

               (C)  if the Employee shall have been credited with less than one
                    (1) year of vesting service under any Retirement Plan, one
                    (1) week's Salary.

     Such payment shall be made within 30 days after the Employee's date of
     termination of employment.

     (b)  If the employment of an Employee with Employer or its Affiliates and
     Associates is terminated by Employer, such Affiliates, Associates or the
     Employee other than under circumstances set forth in Article 2(a), the
     Employee's compensation shall be paid through the date of his termination,
     and Employer shall have no further obligation with respect to the Employee
     under this Plan.

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     (c)  Notwithstanding anything herein to the contrary, in the event that, at
     any time within six (6) months after a Change in Control occurs, Employer
     or an Affiliate or Associate shall have the right to terminate such
     Employee immediately after giving written notice specifying in detail the
     reason or reasons for the Employee's termination.

     (d)  This Plan shall have no effect, and Employer shall have no obligations
     hereunder, with respect to an Employee whose employment terminates for any
     reason at any time other than within six (6) months after a Change in
     Control.

                              Article 3 - Setoff.
                              ------------------

     Any payments or benefits payable to or with respect to an Employee pursuant
to this Plan shall be reduced by any amount the Employee or his spouse or
Beneficiary may owe to Employer or any Affiliate or Associate, except for a loan
to such Employee secured by a first mortgage on the Employee's primary residence
or a loan to such Employee on an automobile that was not in excess of the Blue
Book loan value when made.  No payments or benefits payable to or with respect
to an Employee pursuant to this Plan shall be reduced by any amount Employee may
earn or receive from employment with another employer or from any other source.

                              Article 4 - Death.
                              -----------------

     If an Employee's employment with Employer and all Affiliates or Associates
terminates under circumstances described in subsection 2(a) or (b), then upon
the Employee's subsequent death, all unpaid amounts payable to the Employee
under subsection 2(a)(1) or 2(b), shall be paid to his Beneficiary.

         Article 5 - No Solicitation of Representatives and Employees.
         ------------------------------------------------------------

     No Employee shall, directly or indirectly, in his individual capacity or
otherwise, induce, cause, persuade, or attempt to induce, cause or, persuade,
any representative, agent or employee of Employer or any of its Affiliates and
Associates to terminate such person's employment relationship with Employer or
any of its Affiliates and Associates, or to violate the terms of any agreement
between said representative, agent or employee and Employer or any of its
Affiliates or Associates.

                         Article 6 - Confidentiality.
                         ---------------------------

Preservation of a continuing business relationship between Employer or its
Affiliates and Associates and their respective customers, representatives, and
employees is of critical importance to the continued business success of
Employer, its Affiliates and Associates and it is the active policy of Employer,
its Affiliates and Associates to guard as confidential certain information not
available to the public relating to the business affairs of Employer, its
Affiliates and Associates.  In view of the foregoing, no Employee shall, without
the prior written consent of Employer, disclose to any person or entity any such
confidential information that was obtained by the Employee in the course of his
employment by Employer or any of its Affiliates

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or Associates. This section shall not be applicable if and to the extent the
Employee is required to testify in a legislative, judicial or regulatory
proceeding pursuant to an order of Congress, any state or local legislature, a
judge, or an administrative law judge or is otherwise required by law to
disclose such information.

                            Article 7 - Forfeiture.
                            ----------------------

     If an Employee shall at any time violate any obligation of his under
Article 5 or 6, he or she shall immediately forfeit the right to any benefits
under this Plan, and Employer and its Affiliates and Associates shall thereafter
have no further obligation hereunder to the Employee or his spouse, Beneficiary
or any other person.

                        Article 8 - Benefits Unfunded.
                        -----------------------------

     All rights under this Plan of the Employees and their spouses and
Beneficiaries, shall at all times be entirely unfunded, and no provision shall
at any time be made with respect to segregating any assets of Employer for
payment of any amounts due hereunder.  The Employees, their spouses and
Beneficiaries shall have only the rights of general unsecured creditors of
Employer and its Affiliates and Associates.

                          Article 9 - Applicable Law.
                          --------------------------

     This Plan shall be construed and interpreted pursuant to the laws of
Missouri.

                     Article 10 - No Employment Contract.
                     -----------------------------------

     Nothing contained in this Plan shall be construed to be an employment
contract between an Employee and Employer or any Affiliate or Associate.

                          Article 11 - Severability.
                          -------------------------

     In the event any provision of this Plan is held illegal or invalid, the
remaining provisions of this Plan shall not be affected thereby.

                           Article 12 - Successors.
                           -----------------------

     The Plan shall be binding upon and inure to the benefit of Employer, the
Employees and their respective heirs, representatives and successors.

                    Article 13 - Amendment and Termination.
                    --------------------------------------

     Employer shall have the right to amend the Plan from time to time and may
terminate the Plan at any time; provided that within six (6) months following a
Change in Control (i) no amendment may be made that diminishes any Employee's
right in the event of a termination of employment, following such Change in
Control and (ii) the Plan may not be terminated.

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                           Article 14 - Excise Tax.
                           -----------------------

     If the payments and benefits provided under the Plan to or with respect to
an Employee, either alone or with other payments and benefits, would constitute
"parachute payments" within the meaning of Section 280G of the Internal Revenue
Code of 1986, as amended, then the payments and/or benefits under the Plan shall
be reduced to the extent necessary so that no portion thereof shall be subject
to the excise tax imposed by Section 4999 of the Code.  Either Employer or the
party entitled to receive the payment or benefit may request that a
determination shall be made by independent tax counsel selected by Employer and
approved by such party.  "Independent tax counsel" shall mean a law firm of
recognized expertise in Federal income tax matters that has not previously
advised Employer or an Affiliate or Associate.

     IN WITNESS WHEREOF, Employer has caused this instrument to be executed in
its name by its duly authorized officer, all as of the day and year first above
written.

                              CAMERON FINANCIAL CORPORATION

                              By: /s/ Jon N. Crouch, Chairman
                                  ---------------------------
                                  Jon N. Crouch, Chairman

                                       6<PAGE>

                                                                   Exhibit 10.12

                             EMPLOYMENT AGREEMENT

     This AGREEMENT ("Agreement") is made effective as of July 31, 2000, by and
between SouthBanc Shares, Inc. (the "Holding Company"), and J. Edward Wells
("Executive").  Any reference to "Institution" or "Bank" herein shall mean
Heritage Federal Bank or any successor thereto.

     WHEREAS, the Holding Company wishes to assure itself of the services of
Executive for the period provided in this Agreement; and

     WHEREAS, the Executive is willing to serve in the employ of the Holding
Company on a full-time basis for said period.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and upon the other terms and conditions hereinafter provided, the parties hereby
agree as follows:

1.   POSITION AND RESPONSIBILITIES.

     During the period of Executive's employment hereunder, Executive agrees to
serve as Chairman of the Board of Directors of the Holding Company.  The
Executive shall render administrative and management services to the Holding
Company such as are customarily performed by persons in a similar executive
capacity.  During said period, Executive also agrees to serve, if elected, as an
officer or director of any subsidiary of the Holding Company.

2.   TERMS.

     (a) The period of Executive's employment under this Agreement shall be
deemed to have commenced as of the date first above written and shall continue
for a period of thirty-six (36) full calendar months thereafter.  Commencing on
the first anniversary date of this Agreement, and continuing on each anniversary
thereafter, the disinterested members of the board of directors of the Holding
Company ("Board") may extend the Agreement an additional year such that the
remaining term of the Agreement shall be thirty-six (36) months unless the
Executive elects not to extend the term of this Agreement by giving written
notice in accordance with Section 8 of this Agreement. The Board will review the
Agreement and Executive's performance annually for purposes of determining
whether to extend the Agreement and the rationale and results thereof shall be
included in the minutes of the Board's meeting.  The Board shall give notice to
the Executive as soon as possible after such review as to whether the Agreement
is to be extended.

     (b) During the period of Executive's employment hereunder, except for
periods of absence occasioned by illness, reasonable vacation periods, and
reasonable leaves of absence, Executive shall devote substantially all his
business time, attention, skill, and efforts to the faithful performance of his
duties hereunder, including activities and services related to the organization,
operation and management of the Holding Company and its direct or indirect
subsidiaries ("Subsidiaries") and participation in community, professional and
civic organizations; provided,
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however, that, with the approval of the Board, as evidenced by a resolution of
such Board, from time to time, Executive may serve, or continue to serve, on the
boards of directors of, and hold any other offices or positions in, companies or
organizations, which, in such Board's judgment, will not present any conflict of
interest with the Holding Company or its Subsidiaries, or materially affect the
performance of Executive's duties pursuant to this Agreement.

     (c) Notwithstanding anything herein contained to the contrary, Executive's
employment with the Holding Company may be terminated by the Holding Company or
Executive during the term of this Agreement, subject to the terms and conditions
of this Agreement.  In addition, any breach of this Agreement warranting
Executive's termination or suspension from the Holding Company shall also be
deemed a breach under the Executive's Bank Agreement.

3.   COMPENSATION AND REIMBURSEMENT.

     (a) The Executive shall be entitled to a salary from the Holding Company or
its Subsidiaries of $200,000 per year ("Base Salary").  Base Salary shall
include any amounts of compensation deferred by Executive under any tax-
qualified retirement or welfare benefit plan or any other deferred compensation
arrangement maintained by the Holding Company and its Subsidiaries.  Such Base
Salary shall be payable in accordance with the Holding Company's customary
practices.  During the period of this Agreement, Executive's Base Salary shall
be reviewed annually in connection with Executive's performance evaluation by
the Board and the Board's consideration of any renewal or extension of the term
of the Agreement.  Executive's salary review shall be conducted by the Board or
by a Committee of the Board delegated such responsibility by the Board.  Any
increase in Base Salary shall become the "Base Salary" for purposes of this
Agreement.  In addition to the Base Salary provided in this Section 3(a), the
Holding Company shall also provide Executive, at no premium cost to Executive,
with all such other benefits as provided uniformly to permanent full-time
employees of the Holding Company and its Subsidiaries.  In addition, Executive
shall be entitled to incentive compensation and bonuses as provided in any plan
or arrangement of the Holding Company or its Subsidiaries in which Executive is
eligible to participate.

     (b) The Executive shall be entitled to participate in any employee benefit
plans, arrangements and perquisites substantially equivalent to those in which
Executive was participating or otherwise deriving benefit from immediately prior
to the beginning of the term of this Agreement, and the Holding Company and its
Subsidiaries will not, without Executive's prior written consent, make any
changes in such plans, arrangements or perquisites which would materially
adversely affect Executive's rights or benefits thereunder, except to the extent
that such changes are made applicable to all Holding Company and Institution
employees eligible to participate in such plans, arrangements and perquisites on
a non-discriminatory basis.  Without limiting the generality of the foregoing
provisions of this Subsection (b), Executive shall be entitled to participate in
or receive benefits under all plans relating to stock options, restricted stock
awards, stock purchases, pension, thrift, supplemental retirement, profit-
sharing, employee stock ownership, group life insurance, medical and other
health and welfare coverage, education, cash or stock bonuses that are now or
hereafter made available by the Holding Company or its Subsidiaries to its
senior executives and key management employees, subject to and on a basis
consistent with the terms, conditions and overall

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administration of such plans and arrangements. Executive shall be entitled to
incentive compensation and bonuses as provided in any plan of the Holding
Company and its Subsidiaries in which Executive is eligible to participate.
Nothing paid to the Executive under any such plan or arrangement will be deemed
to be in lieu of other compensation to which the Executive is entitled under
this Agreement.

     (c) The Holding Company shall pay or reimburse Executive for all reasonable
and documented expenses which have been authorized by the Board and which
Executive incurred in the performance of  his obligations under this Agreement.
The Holding Company may provide such additional compensation in such form and
such amounts as the Board may from time to time determine.

4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION.

     (a) Upon the occurrence of an Event of Termination (as herein defined)
during the Executive's term of employment under this Agreement, the provisions
of this Section shall apply. As used in this Agreement, an "Event of
Termination" shall mean and include any one or more of the following:  (i) the
termination by the Holding Company of Executive's full-time employment hereunder
for any reason other than termination governed by Section 5(a) hereof, or for
Cause, as defined in Section 7 hereof; (ii) Executive's resignation from the
Holding Company's employ, upon, any (A) failure to elect or reelect or to
appoint or reappoint Executive as Chairman of the Board of Directors, unless
consented to by the Executive, (B) a material change in Executive's function,
duties, or responsibilities with the Holding Company or its Subsidiaries, which
change would cause Executive's position to become one of lesser responsibility,
importance, or scope from the position and attributes thereof described in
Section 1, above, unless consented to by the Executive, (C) a relocation of
Executive's principal place of employment by more than 35 miles from its
location at the effective date of this Agreement, unless consented to by the
Executive, (D) a material reduction in the benefits and perquisites to the
Executive from those being provided as of the effective date of this Agreement,
unless consented to by the Executive, (E) a liquidation or dissolution of the
Holding Company or the Institution, or (F) breach of this Agreement by the
Holding Company. Upon the occurrence of any event described in clauses (A), (B),
(C), (D), (E) or (F), above, the Holding Company shall have the opportunity to
cure the breach within thirty (30) days after receiving notice from Executive
that an Event of Termination had occurred.  If the Holding Company does not cure
the event or circumstance constituting an Event of Termination within the time
period prescribed in this Section 4(a), Executive shall have the right to elect
to terminate his employment under this Agreement by resignation upon not less
than sixty (60) days prior written notice thereafter.  An Event of Termination
under this Agreement will also be deemed an Event of Termination under the
Executive's Bank Employment Agreement.

     (b) Upon the occurrence of an Event of Termination, on the Date of
Termination, as defined in Section 8, the Holding Company shall be obligated to
pay Executive, or, in the event of his subsequent death, his beneficiary or
beneficiaries, or his estate, as the case may be, a sum equal to the sum of:
(i) the Base Salary and bonuses in accordance with Section 3(a) of this
Agreement that would have been paid to Executive for the remaining term of this
Agreement had the Event of Termination not occurred; and (ii) all benefits,
including health insurance in accordance with Section

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3(b) that would have been provided to Executive for the remaining term of this
Agreement had an Event of Termination not occurred; provided, however, that any
                                                    --------  -------
payments pursuant to this subsection and subsection 4(c) below shall not, in the
aggregate, exceed three times Executive's average annual compensation for the
five most recent taxable years that Executive has been employed by the Holding
Company or such lesser number of years in the event that Executive shall have
been employed by the Holding Company for less than five years. At the election
of the Executive, which election is to be made prior to an Event of Termination,
such payments shall be made in a lump sum. In the event that no election is
made, payment to the Executive will be made on a monthly basis in approximately
equal installments during the remaining term of the Agreement. In the event the
Institution is not in compliance with its minimum capital requirements or if
such payments pursuant to this subsection (b) would cause the Institution's
capital to be reduced below its minimum regulatory capital requirements, such
payments shall be deferred until such time as the Institution or successor
thereto is in capital compliance. Payments made under this Section 4(b) shall
not be reduced in the event the Executive obtains other employment following
termination of employment.

     (c) Upon the occurrence of an Event of Termination, the Holding Company
will cause to be continued life, medical, dental and disability coverage
substantially equivalent to the coverage maintained by the Holding Company or
its Subsidiaries for Executive prior to his termination at no premium cost to
the Executive.  Such coverage shall cease upon the expiration of the remaining
term of this Agreement.

5.   CHANGE IN CONTROL.

     (a) For purposes of this Agreement, a "Change in Control" of the Holding
Company or the Institution shall mean an event of a nature that:  (i) results in
a Change in Control of the Bank or the Holding Company within the meaning of the
Home Owners' Loan Act of 1933, as amended and the Rules and Regulations
promulgated by the Office of Thrift Supervision ("OTS") (or its predecessor
agency), as in effect on the date hereof; or  (ii) without limitation such a
Change in Control shall be deemed to have occurred at such time as (A) any
"person" (as the term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of voting securities of the Bank or the
Holding Company representing  25% or more of the Bank's or the Holding Company's
outstanding voting securities or right to acquire such securities except for any
voting securities of the Bank purchased by the Holding Company and any voting
securities purchased by any employee benefit plan of the Holding Company or its
Subsidiaries, or (B) individuals who constitute the Board on the date hereof
(the "Incumbent Board") cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the date
hereof whose election was approved by a vote of at least three-quarters of the
directors comprising the Incumbent Board, or whose nomination for election by
the Holding Company's stockholders was approved by a Nominating Committee solely
composed of members which are Incumbent Board members, shall be, for purposes of
this clause (B), considered as though he were a member of the Incumbent Board,
or (C) a plan of reorganization, merger, consolidation, sale of all or
substantially all the assets of the Bank or the Holding Company or similar
transaction is consummated  in which the Bank or Holding Company is not the
resulting entity.

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     (b) If a Change in Control has occurred pursuant to Section 5(a) of this
Agreement or the Board has determined that a Change in Control has occurred,
Executive shall be entitled to the benefits provided in paragraphs (c) and (d),
of this Section 5 upon his subsequent termination of employment at any time
during the term of this Agreement due to (i) Executive's dismissal, or (ii)
Executive's voluntary resignation following any demotion, loss of title, office
or significant authority or responsibility, reduction in the annual compensation
or reduction in benefits or relocation of his principal place of employment by
more than 25 miles from its location immediately prior to the change in control,
unless such termination is because of his death or termination for Cause.

     (c) Upon the Executive's entitlement to benefits pursuant to Section 5(b)
of this Agreement, the Holding Company shall pay Executive, or in the event of
his subsequent death, his beneficiary or beneficiaries, or his estate, as the
case may be, as severance pay or liquidated damages, or both, a sum equal to
three (3) times Executive's Average Annual Compensation (as defined herein) for
the five (5) preceding taxable years that Executive has been employed by the
Holding Company or its Subsidiaries or such lesser number of years in the event
Executive shall have been employed with the Holding Company or its Subsidiaries
for less than five (5) years.  Such Average Annual Compensation shall include
all taxable income paid by the Holding Company or its Subsidiaries, including
but not limited to, Base Salary, commissions and bonuses, as well as
contributions on behalf of Executive to any pension plan, profit sharing, or
employee stock ownership plan, directors' or board committee fees and fringe
benefits paid or to be paid to the Executive during such years.  At the election
of the Executive, which election is to be made prior to a Change in Control,
such payment shall be made in a lump sum.  In the event that no election is
made, payment to the Executive will be made on a monthly basis in approximately
equal installments during the remaining term of the Agreement.  Such payments
shall not be reduced in the event Executive obtains other employment following
termination of employment.

     (d) Upon the Executive's entitlement to benefits pursuant to Section 5(b)
of this Agreement, the Company will cause to be continued life, medical, dental
and disability coverage substantially equivalent to the coverage maintained by
the Institution for Executive at no premium cost to Executive prior to his
severance.  Such coverage and payments shall cease upon the earlier of (i)
expiration of thirty-six (36) months following the Change in Control, or (ii)
the attainment of coverage by another employer.

6.   CHANGE OF CONTROL RELATED PROVISIONS.

     Notwithstanding the provisions of Section 5 of this Agreement, in no event
shall the aggregate payments or benefits to be made or afforded to Executive
under said paragraphs or otherwise paid or provided by the Holding Company in
connection with a Change in Control (the "Termination Benefits") constitute an
"excess parachute payment" under Section 280G of the Code or any successor
thereto, and in order to avoid such a result, the Termination Benefits will be
reduced, if necessary, to an amount (the "Non-Triggering Amount"), the value of
which is one dollar ($1.00) less than an amount equal to three (3) times
Executive's "base amount", as determined in accordance with said Section 280G.
The allocation of any reduction required with respect to the Termination
Benefits shall be determined by Executive.

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<PAGE>

7.   TERMINATION FOR CAUSE.

     The term "Termination for Cause" shall mean termination because of
Executive's personal dishonesty, willful misconduct, any breach of fiduciary
duty involving personal profit, intentional failure to perform stated duties,
willful violation of any law, rule, regulation (other than traffic violations or
similar offenses), final cease and desist order or material breach of any
provision of this Agreement.  Notwithstanding the foregoing, Executive shall not
be deemed to have been terminated for Cause unless and until there shall have
been delivered to him a Notice of Termination which shall include a copy of a
resolution duly adopted by the affirmative vote of not less than three-fourths
of the members of the Board at a meeting of the Board called and held for that
purpose (after reasonable notice to Executive and an opportunity for him,
together with counsel, to be heard before the Board), finding that in the good
faith opinion of the Board, Executive was guilty of conduct justifying
Termination for Cause and specifying the particulars thereof in detail.  The
Executive shall not have the right to receive compensation or other benefits for
any period after Termination for Cause. During the period beginning on the date
of the Notice of Termination for Cause pursuant to Section 8 hereof through the
Date of Termination, stock options and related limited rights granted to
Executive under any stock option plan shall not be exercisable nor shall any
unvested awards granted to Executive under any stock benefit plan of the
Institution, the Holding Company or any subsidiary or affiliate thereof, vest.
At the Date of Termination, such stock options and related limited rights and
any such unvested awards shall become null and void and shall not be exercisable
by or delivered to Executive at any time subsequent to such Termination for
Cause.

8.   NOTICE.

     (a) Any purported termination by the Holding Company or by Executive shall
be communicated by Notice of Termination to the other party hereto.  For
purposes of this Agreement, a "Notice of Termination" shall mean a written
notice which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's employment under the
provision so indicated.

     (b) "Date of Termination" shall mean the date specified in the Notice of
Termination (which, in the case of a Termination for Cause, shall not be less
than thirty (30) days from the date such Notice of Termination is given).

     (c) If, within thirty (30) days after any Notice of Termination is given,
the party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, except upon the occurrence of a
Change in Control and voluntary termination by the Executive in which case the
Date of Termination shall be the date specified in the Notice, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties, by a binding arbitration award, or
by a final judgment, order or decree of a court of competent jurisdiction (the
time for appeal therefrom having expired and no appeal having been perfected)
and provided further that the Date of Termination shall be extended by a notice
of dispute only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence.
However, in no case shall the internal appeal or review

                                       6
<PAGE>

process extend beyond 45 days from the date of Notice. Except as otherwise
provided by this Agreement, following Executive's receipt of a Notice of
Termination, his employment with the Holding Company shall be terminated and his
rights to any and all benefits under this Agreement shall cease.

9.   POST-TERMINATION OBLIGATIONS.

     All payments and benefits to Executive under this Agreement shall be
subject to Executive's compliance with this Section 9 for one (1) full year
after the earlier of the expiration of this Agreement or termination of
Executive's employment with the Holding Company.  Executive shall, upon
reasonable notice, furnish such information and assistance to the Holding
Company as may reasonably be required by the Holding Company in connection with
any litigation in which it or any of its subsidiaries or affiliates is, or may
become, a party.

10.  NON-COMPETITION AND NON-DISCLOSURE.

     (a) Upon any termination of Executive's employment hereunder pursuant to
Section 4 hereof, Executive agrees not to compete with the Holding Company or
its Subsidiaries for a period of one (1) year following such termination in any
city, town or county in which the Executive's normal business office is located
and the Holding Company or any of its Subsidiaries has an office or has filed an
application for regulatory approval to establish an office, determined as of the
effective date of such termination, except as agreed to pursuant to a resolution
duly adopted by the Board.  Executive agrees that during such period and within
said cities, towns and counties, Executive shall not work for or advise, consult
or otherwise serve with, directly or indirectly, any entity whose business
materially competes with the depository, lending or other business activities of
the Holding Company or its Subsidiaries.  The parties hereto, recognizing that
irreparable injury will result to the Holding Company or its Subsidiaries, its
business and property in the event of Executive's breach of this Subsection
10(a) agree that in the event of any such breach by Executive, the Holding
Company or its Subsidiaries, will be entitled, in addition to any other remedies
and damages available, to an injunction to restrain the violation hereof by
Executive, Executive's partners, agents, servants, employees and all persons
acting for or under the direction of Executive. Executive represents and admits
that in the event of the termination of his employment pursuant to Section 7
hereof, Executive's experience and capabilities are such that Executive can
obtain employment in a business engaged in other lines and/or of a different
nature than the Holding Company or its Subsidiaries, and that the enforcement of
a remedy by way of injunction will not prevent Executive from earning a
livelihood.  Nothing herein will be construed as prohibiting the Holding Company
or its Subsidiaries from pursuing any other remedies available to the Holding
Company or its Subsidiaries for such breach or threatened breach, including the
recovery of damages from Executive.

     (b) Executive recognizes and acknowledges that the knowledge of the
business activities and plans for business activities of the Holding Company and
its Subsidiaries as it may exist from time to time, is a valuable, special and
unique asset of the business of the  Holding Company and its Subsidiaries.
Executive will not, during or after the term of his employment, disclose any
knowledge of the past, present, planned or considered business activities of the
Holding Company

                                       7
<PAGE>

and its Subsidiaries thereof to any person, firm, corporation, or other entity
for any reason or purpose whatsoever unless expressly authorized by the Board of
Directors or required by law. Notwithstanding the foregoing, Executive may
disclose any knowledge of banking, financial and/or economic principles,
concepts or ideas which are not solely and exclusively derived from the business
plans and activities of the Holding Company. In the event of a breach or
threatened breach by the Executive of the provisions of this Section, the
Holding Company will be entitled to an injunction restraining Executive from
disclosing, in whole or in part, the knowledge of the past, present, planned or
considered business activities of the Holding Company or its Subsidiaries or
from rendering any services to any person, firm, corporation, other entity to
whom such knowledge, in whole or in part, has been disclosed or is threatened to
be disclosed. Nothing herein will be construed as prohibiting the Holding
Company from pursuing any other remedies available to the Holding Company for
such breach or threatened breach, including the recovery of damages from
Executive.

11.  SOURCE OF PAYMENTS.

     (a) All payments provided in this Agreement shall be timely paid in cash or
check from the general funds of the Holding Company subject to Section 11(b) of
this Agreement.

     (b) Notwithstanding any provision herein to the contrary, to the extent
that payments and benefits, as provided by this Agreement, are paid to or
received by Executive under the Employment Agreement of even date herewith,
between Executive and the Institution, such compensation payments and benefits
paid by the Institution will be subtracted from any amount due simultaneously to
Executive under similar provisions of this Agreement.  Payments pursuant to this
Agreement and the Institution Agreement shall be allocated in proportion to the
level of activity and the time expended on such activities by the Executive as
determined by the Holding Company and the Institution on a quarterly basis.

12.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

     This Agreement contains the entire understanding between the parties hereto
and supersedes and replaces in its entirety Executive's  prior employment
agreement with Heritage Federal Bank and Heritage Bancorp, Inc. dated April 3,
1998, except that this Agreement shall not affect or operate to reduce any
benefit or compensation inuring to the Executive of a kind elsewhere provided.
No provision of this Agreement shall be interpreted to mean that Executive is
subject to receiving fewer benefits than those available to him without
reference to this Agreement.

13.  NO ATTACHMENT.

     (a) Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect any such action shall be null,
void, and of no effect.

                                       8
<PAGE>

     (b) This Agreement shall be binding upon, and inure to the benefit of,
Executive and the Holding Company and their respective successors and assigns.

14.  MODIFICATION AND WAIVER.

     (a) This Agreement may not be modified or amended except by an instrument
in writing signed by the parties hereto.

     (b) No term or condition of this Agreement shall be deemed to have been
waived, nor shall there be any estoppel against the enforcement of any provision
of this Agreement, except by written instrument of the party charged with such
waiver or estoppel.  No such written waiver shall be deemed a continuing waiver
unless specifically stated therein, and each such waiver shall operate only as
to the specific term or condition waived and shall not constitute a waiver of
such term or condition for the future as to any act other than that specifically
waived.

15.  SEVERABILITY.

     If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each
such other provision and part thereof shall to the full extent consistent with
law continue in full force and effect.

16.  HEADINGS FOR REFERENCE ONLY.

     The headings of sections and paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement.

17.  GOVERNING LAW.

     This Agreement shall be governed by the laws of the State of Delaware
regardless of the laws that might otherwise govern under applicable principles
of conflicts of law.

18.  ARBITRATION.

     Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration, conducted before a panel
of three arbitrators sitting in a location selected by the Executive within
fifty (50) miles from the location of the Institution, in accordance with the
rules of the American Arbitration Association then in effect.  Judgment may be
entered on the arbitrator's award in any court having jurisdiction; provided,
however, that Executive shall be entitled to seek specific performance of his
right to be paid until the Date of Termination during the pendency of any
dispute or controversy arising under or in connection with this Agreement.

     In the event any dispute or controversy arising under or in connection with
Executive's termination is resolved in favor of the Executive, whether by
judgment, arbitration or settlement,

                                       9
<PAGE>

Executive shall be entitled to the payment of all back-pay, including salary,
bonuses and any other cash compensation, fringe benefits and any compensation
and benefits due Executive under this Agreement.

19.  PAYMENT OF LEGAL FEES.

     All reasonable legal fees paid or incurred by Executive pursuant to any
dispute or question of interpretation relating to this Agreement shall be paid
or reimbursed by the Holding Company, if Executive is successful pursuant to a
legal judgment, arbitration or settlement.

20.  INDEMNIFICATION.

     (a) The Holding Company shall provide Executive (including his heirs,
executors and administrators) with coverage under a standard directors' and
officers' liability insurance policy at its expense and shall indemnify
Executive (and his heirs, executors and administrators) to the fullest extent
permitted under Delaware law against all expenses and liabilities reasonably
incurred by him in connection with or arising out of any action, suit or
proceeding in which he may be involved by reason of his having been a director
or officer of the Holding Company (whether or not he continues to be a director
or officer at the time of incurring such expenses or liabilities), such expenses
and liabilities to include, but not be limited to, judgments, court costs and
attorneys' fees and the cost of reasonable settlements.

     (b) Any payments made to Executive pursuant to this Section are subject to
and conditioned upon compliance with 12 U.S.C. Section 1828(k) and 12 C.F.R.
Part 359 and any rules or regulations promulgated thereunder.

21.  SUCCESSOR TO THE HOLDING COMPANY.

     The Holding Company shall require any successor or assignee, whether direct
or indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Institution or the Holding
Company, expressly and unconditionally to assume and agree to perform the
Holding Company's obligations under this Agreement, in the same manner and to
the same extent that the Holding Company would be required to perform if no such
succession or assignment had taken place.

22.  REQUIRED REGULATORY PROVISIONS

In the event any of the foregoing provisions of this Section 22 are in conflict
with the terms of this Agreement, this Section 22 shall prevail.

     (a) The Bank may terminate Executive's employment at any time, but any
termination by the Bank, other than Termination for Cause, shall not prejudice
Executive's right to compensation or other benefits under this Agreement.
Executive shall not have the right to receive compensation or other benefits for
any period after Termination for Cause as defined in Section 7 of this
Agreement.

                                       10
<PAGE>

     (b) If Executive is suspended from office and/or temporarily prohibited
from participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
(S)1818(e)(3) or (g)(1); the Bank 's and the Holding Company's obligations under
this contract shall be suspended as of the date of service, unless stayed by
appropriate proceedings.  If the charges in the notice are dismissed, the Bank
or the Holding Company may in its discretion:  (i) pay Executive all or part of
the compensation withheld while their contract obligations were suspended; and
(ii) reinstate (in whole or in part) any of the obligations which were
suspended.

     (c) If Executive is removed and/or permanently prohibited from
participating in the conduct of the Bank's affairs by an order issued under
Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
(S)1818(e)(4) or (g)(1), all obligations of the Bank and/or the Holding Company
under this contract shall terminate as of the effective date of the order, but
vested rights of the contracting parties shall not be affected.

     (d) If the Bank is in default as defined in Section 3(x)(1) of the Federal
Deposit Insurance Act, 12 U.S.C. (S)1813(x)(1) all obligations of the Bank
and/or the Holding Company under this contract shall terminate as of the date of
default, but this paragraph shall not affect any vested rights of the
contracting parties.

     (e) All obligations of the Bank and/or the Holding Company under this
contract shall be terminated, except to the extent determined that continuation
of the contract is necessary for the continued operation of the institution:
(i) by the Director of the OTS (or his designee), the FDIC or the Resolution
Trust Corporation, at the time the FDIC enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in Section
13(c) of the Federal Deposit Insurance Act, 12 U.S.C. (S)1823(c); or (ii) by the
Director of the OTS (or his designee) at the time the Director (or his designee)
approves a supervisory merger to resolve problems related to the operations of
the Bank or when the Bank is determined by the Director to be in an unsafe or
unsound condition.  Any rights of the parties that have already vested, however,
shall not be affected by such action.

     (f) Any payments made to Executive pursuant to this Agreement, or
otherwise, are subject to and conditioned upon compliance with 12 U.S.C. Section
1828(k) and 12 C.F.R. Section 545.121 and any rules and regulations promulgated
thereunder.

     (g) Any payments made under this Agreement shall not, in the aggregate,
exceed three times Executive's Average Annual Compensation (as defined in this
Agreement) for the five most recent taxable years that Executive has been
employed by the Holding Company or such lesser number of years in the event that
Executive shall have been employed by the Holding Company for less than five
years.

                                       11
<PAGE>

                                  SIGNATURES

     IN WITNESS WHEREOF, SouthBanc Shares, Inc. has caused this Agreement to be
executed and its seal to be affixed hereunto by its duly authorized officer and
its directors, and Executive has signed this Agreement, on the 31st day of July,
2000.

ATTEST:                             SOUTHBANC SHARES, INC.

/s/ Sylvia B. Reed                  By: /s/ Robert W. Orr
------------------------------          -------------------------------
                                        Robert W. Orr
                                        For the Entire Board of Directors

          [SEAL]

WITNESS:

/s/ Edwin I. Shealy                 By: /s/ J. Edward Wells
------------------------------          -------------------------------
                                        J. Edward Wells

                                       12

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