Document:

<PAGE>

                                                                    EXHIBIT 10.3

                            SALARY CONTINUATION PLAN

                             For The Consideration
                                       Of

                                GREER STATE BANK
                                   GREER, SC

                       Bank Compensation Strategies, Inc.

                             3600 West 80th Street
                                   Suite 200
                          Minneapolis, Minnesota 55431

                                 (612) 893-6767
                               Fax (612) 893-6797

<PAGE>

                         SUMMARY OF BENEFIT PLAN DESIGN
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

Plan benefits:

         - Retirement income benefits are provided for selected key decision
           makers.

         - Family income protection is provided for participant's beneficiary.

         - Individual agreements specify:

                  - Vesting

                  - Incentives

                  - Early retirement benefits

                  - Disability benefits

                  - Change of control provisions

The following chart summarizes the retirement benefits for each plan
participant.

<TABLE>
                                      Retire-                       Duration          Total
                                       ment         Annual             of            Benefits
Executive                   Age         Age         Benefit          Benefits           Paid
---------                   ---       -------       -------         ---------        --------
<S>                         <C>       <C>           <C>             <C>              <C>
D. Hennett                  55          65          40,000          15 years          600,000
s. Burdette                 55          65          20,000          15 years          300,000
B. Hughes                   51          65          20,000          15 years          300,000
B. Harrill                  48          65          20,000          15 years          300,000
R. Medlock                  40          65          20,000          15 years          300,000
P. Williams                 41          65          20,000          15 years          300,000
</TABLE>
<PAGE>
                             BENEFIT PLAN LIABILITY
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

Accounting considerations:

    - The plan provides postretirement benefits for preretirement services.

    - Benefit accruals are required under GAAP (APB 12/FAS 87).

    - Present value of benefit payments are recorded at earlier of retirement
      or at full eligibility (Vesting).

    Based on the recommended benefits, the employer's benefit liability is shown
below.

                             BENEFIT PLAN LIABILITY

<Table>
<Caption>
         Assets                                 Liabilities
         ------                                 -----------
         <S>                                    <C>
                                                  Accrued
                                             Benefit Liability

                                              $52,471 year 1
</Table>
<PAGE>
                              BENEFIT PLAN EXPENSE
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

<Table>
<Caption>
         ASSETS                                 LIABILITIES
         ------                                 -----------
         <S>                                    <C>
                                                  ACCRUED
                                             BENEFIT LIABILITY

                                              $52,471 year 1
</Table>

Based upon the above benefit liability and a 38.00% tax bracket, the resulting
benefit expense is shown below.

<Table>
<Caption>
Plan                                         Cumulative After-Tax
Year                                            Benefit Expense
----                                         --------------------
<S>                                          <C>
 1                                                   32,532
 2                                                   67,764
 3                                                  105,921
 4                                                  147,245
 5                                                  191,998
10                                                  478,046
15                                                  727,316
20                                                  951,782
</Table>
<PAGE>
                            COMBINED PLAN ACCOUNTING
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK           Corp tax rate: 38.00%

<Table>
<Caption>
                                              TOTAL
                            ANNUAL            ANNUAL            ACCRUED             AFTER-TAX PLAN EXPENSE
PLAN                       BENEFIT           BENEFIT            BENEFIT          ----------------------------
YEAR     NAME              PAYMENTS          PAYMENTS          LIABILITY         ANNUAL            CUMULATIVE
----     ----              --------          --------          ---------         ------            ----------
<S>      <C>               <C>               <C>               <C>               <C>               <C>
  1                                                0            52,471           32,532               32,533
  2                                                0           109,298           35,232               67,765
  3                                                0           170,841           38,157              105,922
  4                                                0           237,492           41,324              147,245
  5                                                0           309,675           44,753              191,999
  6                                                0           387,849           48,468              240,467
  7                                                0           472,511           52,491              292,957
  8                                                0           564,201           56,847              349,805
  9                                                0           663,500           61,566              411,371
 10                                                0           771,042           66,676              478,046
 11      D. Hennett        40,000
         S. Burdette       20,000             60,000           789,654           48,740              526,786
 12                                           60,000           809,812           49,698              576,484
 13                                           60,000           831,642           50,735              627,218
 14                                           60,000           855,284           51,858              679,077
 15      B. Hughes         20,000             80,000           853,090           48,239              727,316
 16                                           80,000           850,713           48,127              775,443
 17                                           80,000           848,139           48,004              823,447
 18      B. Harrill        20,000            100,000           819,574           44,289              867,736
 19                                          100,000           788,637           42,819              910,555
 20                                          100,000           755,133           41,227              951,783
 21                                          100,000           718,847           39,503              991,286
 22                                          100,000           679,550           37,636            1,028,922
 23                                          100,000           636,992           35,614            1,064,535
 24                                          100,000           590,901           33,424            1,097,959
 25      P. Williams       20,000            120,000           517,729           29,034            1,126,993
 26      R. Medlock        20,000             80,000           477,701           24,782            1,151,775
 27                                           80,000           434,350           22,723            1,174,498
 28                                           80,000           387,402           20,492            1,194,990
 29                                           80,000           336,556           18,076            1,213,066
 30                                           60,000           302,241           15,924            1,228,990
 31                                           60,000           265,077           14,158            1,243,148
 32                                           60,000           224,829           12,246            1,255,394
 33                                           40,000           201,990           10,640            1,266,034
 34                                           40,000           177,255            9,464            1,275,499
 35                                           40,000           150,467            8,192            1,283,690
 36                                           40,000           121,456            6,813            1,290,503
 37                                           40,000            90,037            5,320            1,295,824
 38                                           40,000            56,011            3,703            1,299,527
 39                                           40,000            19,160            1,952            1,301,479
 40                                           20,000                 0              521            1,302,001
</Table>
<PAGE>
                              FINANCING STRATEGY
                           SALARY CONTINUATION PLAN
                               GREER STATE BANK

This financing strategy recommendation will:

    - Cover contingent benefit liabilities in the event of death prior to
      retirement.

    - Generate additional tax-favored earnings to offset the benefit expenses.

    - Comply with regulatory parameters as defined by OCC Bulletin 96-51.

                          ASSET/LIABILITY MANAGEMENT

                    ASSETS                     LIABILITIES

                 Taxable Asset
                 (5.25% taxable)

                 $1,100,000                      Accrued
                                             Benefit Liability

                Other Assets
                (6.00% no current tax)

<PAGE>
                            PRO FORMA BALANCE SHEET
                           SALARY CONTINUATION PLAN
                               GREER STATE BANK

This pro forma balance sheet illustrates changes that would result from
implementation of the recommended financing strategy. This schedule is based
upon the bank's call report data as of March 31, 1997.

<Table>
<Caption>
                            03/31/97          --PLAN ACTIVITY--           03/31/97
                             ACTUAL         DEBIT          CREDIT        PRO FORMA
                           ----------     ---------       ---------      ----------
<S>                        <C>            <C>             <C>            <C>
ASSETS

Cash and Due from Bank      2,610,000                                     2,610,000
Securities                 27,714,000                     1,100,000(1)   26,614,000
Loans                      61,584,000                                    61,584,000
   Less: Reserve             (471,000)                                     (471,000)
                           ----------                                    ----------
Net Loans                  61,113,000                                    61,113,000
Other Assets                3,996,000     1,100,000(2)                    5,096,000
                           ----------                                    ----------
      Total Assets         95,433,000                                    95,433,000
                           ==========                                    ==========
LIABILITIES AND CAPITAL

Deposits                   79,797,000                                    79,797,000
Fed Funds Purchased           700,000                                       700,000
Other Liabilities           6,249,000                                     6,249,000
                           ----------                                    ----------
      Total Liabilities    86,746,000                                    86,746,000

Common Stock                3,131,000                                     3,131,000
Surplus                     4,520,000                                     4,520,000
Undivided Profits           1,036,000             0(3)                    1,036,000
                           ----------                                    ----------
Total Equity Capital        8,687,000                                     8,687,000
                           ----------                                    ----------
      Total Liabilities
        and Capital        95,433,000                                    95,433,000
                           ==========                                    ==========

===================================================================================
</Table>

1. Allocation to insurance assets
2. Recognition of insurance asset cash values
3. No loads or surrender charges
<PAGE>
                           FINANCING STRATEGY DETAIL
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

    The financing vehicles for the benefit program are summarized as follows:

<Table>
<S>                                 <C>
Single Premiums                     1,100,000

Net Life Insurance Coverage         1,825,000
                                    ---------
Total Death Benefits                2,925,000
                                    =========
</Table>

<Table>
<Caption>
                                                               Net Life           Total
                                    Ins       Single           Insurance          Death
Executive                  Age      Co.      Premiums          Coverage          Benefits
---------                  ---      ---      --------          ---------         --------
<S>                        <C>      <C>      <C>              <C>                <C>
D. Hennett                 55       WCL        355,000           445,000           800,000
S. Burdette                55       CHB        175,000           275,000           450,000
B. Hughes                  51       WCL        185,000           275,000           460,000
B. Harrill                 48       CHB        165,000           275,000           440,000
R. Medlock                 40       TMG        110,000           280,000           390,000
P. Williams                41       TMG        110,000           275,000           385,000
                                             ---------         ---------         ---------
                                             1,100,000         1,825,000         2,925,000
                                             =========         =========         =========
</Table>

<PAGE>
                     FINANCING STRATEGY EARNING COMPARISON
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

                          Asset Allocation: $1,100,000
<Table>
<Caption>
<S>                                    <C>             <C>              <C>
                                        5.25%            6.00%            Financing
                                       Taxable         Insurance           Strategy
                                        Asset            Asset           Gain (Loss)
                                      -------          ---------         -----------

Income                                 57,751           65,320
Tax (38.00%)                          (21,945)               0
                                      -------          ---------
                                       35,806           65,320
Insurance Costs:
  Load (.0%)                                0                0
  Mortality Charges                         0           (7,490)
                                      -------          --------          -----------
YEAR 1 NET EARNINGS                    35,806           57,830             22,024
                                      =======          ========          ===========

Cumulative Impact:

          Over 2 Years                 72,777          118,561             45,784
          Over 3 Years                110,950          182,275             71,325
          Over 4 Years                150,367          249,141             98,774
          Over 5 Years                191,067          319,403            128,336

          Over 10 Years               415,318          726,885            311,567

          Over 15 Years               678,522        1,252,940            574,418

          Over 20 Years               987,442        1,918,430            930,988

Additional Death Benefit                    0        1,857,264          1,857,264
</TABLE>
<PAGE>
                   RESULTS OF BENEFIT AND FINANCING DECISIONS
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

                          ----------------------------
                           ASSET/LIABILITY MANAGEMENT
                          ----------------------------

<Table>
<Caption>
                  ASSETS                              LIABILITIES
--------------------------------------------------------------------------------
             <S>                         |         <C>
              Taxable Asset              |              Accrued
             (5.25% taxable)             |         Benefit Liability
                                         |
                                         |
               $1,100,000                |          $52,471 year 1
                                         |
                                         |
             Other Assets                |
             (6.00% no current tax)      |
</Table>

<Table>
<Caption>
              FINANCING              CUMULATIVE               CUMULATIVE
PLAN          STRATEGY       -       AFTER-TAX         =       NET PLAN
YEAR         GAIN (LOSS)           BENEFIT EXPENSE            GAIN (LOSS)
-------------------------------------------------------------------------
<S>          <C>             <C>   <C>                 <C>    <C>
 1              22,024                 37,926                   (15,902)
 2              45,784                 74,088                   (28,304)
 3              71,325                113,175                   (41,850)
 4              98,774                155,429                   (56,655)
 5             128,336                201,112                   (72,776)

10             311,567                491,810                  (180,243)

15             574,418                745,730                  (171,312)

20             930,988                974,846                   (43,858)
</Table>
<PAGE>
                    EARNINGS IMPACT OF ALTERNATIVE DECISIONS
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

                          ASSET ALLOCATION: $1,100,000

<Table>
<Caption>
                                   No             Benefit           Benefit and
                                Decision       Decision Only     Financing Decision
                                ---------------------------------------------------
                                 5.25%             5.25%               6.00%
                                Taxable           Taxable            Insurance
                                 Asset             Asset               Asset
                                ---------------------------------------------------
<S>                             <C>            <C>               <C>

Income                           57,750            57,750               65,320
Tax (38.00%)                    (21,945)          (21,945)                   0
                                -------           -------            ---------
                                 35,805            35,805               65,320

Insurance Costs:
   Load ( .0%)                        0                 0                    0
   Mortality Charges                  0                 0               (7,490)
                                -------           -------            ---------
Year 1 Net Income                35,805            35,805               57,830
Benefit Plan Expense, Net
    Year 1 Accrual                    0           (32,532)             (32,532)
Yr 1 Implementation Fees              0            (5,394)              (5,394)
                                -------           -------            ---------
YEAR 1 EARNINGS IMPACT           35,805            (2,121)              19,904
                                =======           =======            =========

CUMULATIVE IMPACT:

          Over  2 years          72,777            (1,311)              44,473
          Over  3 years         110,950            (2,225)              69,100
          Over  4 years         150,367            (5,062)              93,712
          Over  5 years         191,067           (10,045)             118,291

          Over 10 years         415,318           (76,492)             235,075

          Over 15 years         678,522           (67,208)             507,210

          Over 20 years         987,442            12,596              943,584

-----------------------------------------------------------------------------------
   ADDITIONAL DEATH BENEFIT           0                 0            1,857,264
-----------------------------------------------------------------------------------
</Table>

<PAGE>

                      DETAILED BENEFIT PLAN FINANCIAL DATA
                            SALARY CONTINUATION PLAN
                                GREER STATE BANK

This section of the recommendation sets forth the estimated income and expenses
associated with the implementation of the benefit plan and the related
financing strategy. Included in this section are summary data for all plan
participants and detailed data for the individual plan participants.

In order to facilitate your review and understanding of the financial data,
the following is an explanation of the key terms used:

INTEREST ON POLICY EQUITY VALUE-
         The gross income earned on the insurance policy asset based on current
         policy interest rates.

AFTER TAX OPPORTUNITY COST-
         By purchasing the insurance asset that we have recommended, the
         employer would either liquidate an existing earning asset or pass up
         the opportunity to invest the funds elsewhere. This calculation
         measures the after-tax effect of this lost income or "opportunity
         cost." This cost is compounded annually.

LOAD, SURRENDER CHARGES AND MORTALITY COST-
         All of the expenses of providing and maintaining the insurance
         coverage, which are charged against the policy equity value.

SALARY CONTINUATION EXPENSES-
         Fees paid to establish and service the plan.
         The expense accruals for the salary continuation benefit plan use the
         interest method calculation.

INCOME TAXES-
         The estimated current and deferred tax savings on the salary
         continuation benefit plan.

NET PLAN GAIN (LOSS)-
         The estimated annual net gain or loss of providing the benefit plan.

CUMULATIVE NET PLAN GAIN (LOSS)-
         The cumulative total of the annual net plan gain or loss.

The specific assumptions used in preparing the illustrations are as follows:

<Table>
<S>                                                   <C>
Interest rate on policy equity value.................  6.00%
  (Weighted average)

Opportunity cost rate................................  5.25%

Corporate tax rate................................... 38.00%

Discount rate for accruals...........................  8.00
</Table>

* The results illustrated throughout are based on the above assumptions. The
  results will differ over time as assumed rates fluctuate. BCS does not
  practice law or public accounting. Specific legal and accounting questions
  should be referred to your professional advisors.

                          (c) Copyright 1997, BCS Inc.<PAGE>
                                                                   EXHIBIT 10.4

                          DEFERRED COMPENSATION PLAN
                                 FOR DIRECTORS

         THIS DEFERRED COMPENSATION PLAN FOR DIRECTORS is made and entered into
this 19th day of October, 1955, by GREER STATE BANK, a bank organized and
existing under the laws of the State of South Carolina, having a principal
place of business in Greer, South Carolina.

                                  WITNESSETH

         WHEREAS, Company desires to provide an unfunded deferred compensation
arrangement for its members of its Board of Directors to be effective January
1, 1996;

         NOW, THEREFORE, Company does hereby adopt the following Deferred
Compensation Plan.

         (1) Definitions.  When used in this Plan, the following terms shall
have the indicated meanings:

                  (a) "Committee" means those persons appointed by the
         Board of Directors of Company.

                  (b) "Company" means GREER STATE BANK and any affiliated
         company authorized by GREER STATE BANK to participate in this Plan.

                  (c)  "Compensation" means the fees paid to a Participant
         for serving as a member of the Company's Board of Directors.

                  (d)  "Deferred Compensation Amount" means the account
         established by Company to record the Participant's deferral of
         Compensation and any earnings thereon.

                  (e)  "Director" means a natural person that is a member of
         the Board of Directors of Company and reports on the cash basis of
         accounting for Federal income tax purposes.

                  (f)  "Named Fiduciary" is Company.

                  (g)  "Participant" means a Director who elects to
         participate in this Plan.

                                       1
<PAGE>
                  (h)  "Plan" means this Deferred Compensation Plan for
         Directors.

                  (i)  "Plan Year" means the twelve (12) consecutive
         month period beginning on January 1 and ending on December 31.

         (2)  Deferral of Compensation. A Director may voluntarily elect to
participate in this Plan and effective January 1, 1966 defer receipt of all or
a part of his Compensation due from Company under the terms and conditions of
this Plan. The election to defer such Compensation and the amount or portion of
Compensation to be deferred shall be made for each calendar year. A new
Director may elect to participate in this Plan within thirty (30) days after
becoming a member of the Company's Board of Directors and defer all or part of
his Compensation for the remainder of the calendar year in which he becomes a
Director. A Director that does not initially elect to participate in this Plan
may do so for any succeeding calendar year by electing in writing to
participate before January 1 of such succeeding calendar year. The Committee
may establish a minimum and/or maximum deferral amount at any time and from
time to time to be applicable to a subsequent Plan Year. An election shall be
irrevocable for any calendar year or remainder thereof for a new Director
specified in such election. Further, an election shall remain in effect for
each succeeding calendar year unless the Participant amends or terminates his
election by written notice to the Company before January 1 of such succeeding
calendar year.

         (3)  Deferred Compensation Account and Earnings. Company shall
establish the Deferred Compensation Account on its books. The Company shall
credit the Deferred Compensation Account by the

                                       2
<PAGE>
amount of Compensation the Participant elects to reduce his Compensation and
defers into this Plan. Each December 31 of a Plan Year, Company shall credit the
Deferred Compensation Account with earnings resulting in the Deferred
Compensation Account as follows. Company shall increase the amount of each
Participant's Deferred Compensation Account each Plan Year by the same
percentage return (rounded to the nearest hundredth) on average equity for the
Company's fiscal year ending within such Plan Year; provided however, that the
percentage increase shall not be less than seven (7%) percent nor more than
twelve (12%) percent in any Plan Year. The percentage return on average equity
shall be determined by the independent accounting firm serving the Company at
the end of each Plan Year and such determination shall be conclusive and binding
upon Company, Participant and Designated Beneficiary.

         (a)      Participant and Elections. The application for participation
and election to defer receipt of Compensation shall be made in writing by the
Participant to the Committee on a form provided by the Committee and shall be
signed by the Participant and acknowledged by the Committee or its designated
representative. The Participant shall irrevocably elect in writing the method of
payment of the Deferred Compensation Account during the Participant's life on a
form provided by the Committee at the time the Participant first elects to
participate in this Plan and shall be properly delivered to the Committee in
accordance with the Committee's requirements. The Participant shall elect in
writing the method of payment of the Deferred Compensation Account in the event
of the Participant's death on a form provid-

                                       3
<PAGE>
ed by the Committee and may be changed by the Participant at any time and from
time to time; provided however, that if a Participant dies after payment has
commenced to the Participant, the method of payment shall in no event extend
longer than the period of payment over which the Participant would have
received payment had the Participant not died.

         (5)      Commencement of Payment of Deferred Compensation.

Except for any hardship payments pursuant to Paragraph (6) below, the Company
shall commence payment of the Deferred Compensation Account in accordance with
the method of payment elected by the Participant pursuant to Paragraph (7)
within thirty (30) days after the January 1 of the Plan year immediately
following the first to occur of one of the following events:

         (a)      Age.  Upon the Participant attaining the age of sixty-five
                  (65) years.

         (b)      Death.  The death of the Participant.

         (c)      Termination.  The termination of the Participant as a member
                  of the Board of Directors of Company.

         (d)      Director Emeritus.  Upon the Director being designated a
                  Director Emeritus of the Board of Directors of Company.

Even though a Participant attains the age of sixty-five (65) years and payment
commences to such Participant pursuant to subparagraph (a) above, such
Participant shall not be prohibited from deferring compensation under this Plan
as long as an event described in subparagraph (b), (c) or (d) has not occurred.

         (6)      Hardship.  Upon application of any Participant (or Designated
Beneficiary if the Participant is deceased) who has incurred an unforeseeable
emergency, the Committee, in its sole and absolute discretion, may pay to the
Participant a lump sum

                                       4
<PAGE>
amount as a hardship distribution from his Deferred Compensation Account. Any
hardship distribution approved by the Committee shall be limited to the amount
needed to meet the emergency. An unforeseeable emergency is a severe financial
hardship to 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 Internal Revenue Code of 1986, as amended), 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 Designated Beneficiary in the event of the Participant's
death). The circumstances that will constitute an unforeseeable emergency will
depend upon the facts of each case, but, in any case, payment may not be made
to the extent that such hardship is or may be relieved:

    (a)  through reimbursement or compensation by insurance or otherwise;

    (b)  by liquidation of the Participant's assets, to the extent the
         liquidation of such assets would not itself cause severe financial
         hardship; or

    (c)  by cessation of deferrals under this Plan.

    (7)  Method of Payment.  Except as provided in Paragraph (6) above, the
Deferred Compensation Account shall be paid to the Participant, or his
Designated Beneficiary, following the time for commencement of payment
specified in Paragraph (5) above pursuant to one of the following methods:

         (a) Lump sum payment.

         (b) Over a period of Five (5) calendar years as follows:

                                       5
<PAGE>

                  (i)      Twenty (20% percent of the Deferred
                           Compensation Account value, (which value is
                           determined on the first day of the calendar year of
                           payment) in the first year;

                  (ii)     Twenty-Five (25%) percent of the remainder in the
                           second year;

                  (iii)    Thirty-Three and Thirty-Three One-Hundredths
                           (33.33%) percent of the remainder in the third year;

                  (iv)     Fifty (50%) percent of the remainder in the fourth
                           year;

                  (v)      The remaining balance in the fifth year.

         (c)      Over a period of Ten (10) calendar years as follows:

                  (i)      Ten (10%) percent of the Deferred Compensation
                           Account value, (which value is determined on the
                           first day of the calendar year of payment) in the
                           first year;

                  (ii)     Eleven and Eleven One-Hundredths (11.11%) percent of
                           the remainder in the second year;

                  (iii)    Twelve and One-Half (12.50%) percent of the
                           remainder in the third year;

                  (iv)     Fourteen and Twenty-Eight One-Hundredths (14.28%)
                           percent of the remainder in the fourth year;

                  (v)      Sixteen and Sixty-Six One-Hundredths (16.66%)
                           percent of the remainder in the fifth year;

                  (vi)     Twenty (20%) percent of the remainder in the sixth
                           year;

                  (vii)    Twenty-Five (25%) percent of the remainder in the
                           seventh year;

                  (viii)   Thirty-Three and Thirty-Three One-Hundredths
                           (33.33%) percent of the remainder in the eighth year;

                  (ix)     Fifty (50%) percent of the remainder in the ninth
                           year;

                  (x)      The remaining balance in the tenth year.

         (d)      Over a period of Fifteen (15) calendar years as follows:

                                       6
<PAGE>
                  (i)  Six and Sixty-Six One-Hundredths (6.66%) percent of the
                       Deferred Compensation Account value, (which value is
                       determined on the first day of the calendar year of
                       payment) in the first year;

                 (ii)  Seven and Fourteen One-Hundredths (7.14%) percent of
                       the remainder in the second year;

                (iii)  Seven and Sixty-Nine One-Hundredths (7.69%) percent of
                       the remainder in the third year;

                 (iv)  Eight and Thirty-Three One-Hundredths (8.33%) percent of
                       the remainder in the fourth year;

                  (v)  Nine and Nine One-Hundredths (9.09%) percent of the
                       remainder in the fifth year;

                 (vi)  Ten (10%) percent of the remainder in the sixth year;

                (vii)  Eleven and Eleven One-Hundredths (11.11%) percent of the
                       remainder in the seventh year;

               (viii)  Twelve and One-Half (12.50%) percent of the remainder in
                       the eighth year;

                 (ix)  Fourteen and Twenty-Eight One-Hundredths (14.28%)
                       percent of the remainder in the ninth year;

                  (x)  Sixteen and Sixty-Six One-Hundredths (16.66%) percent
                       of the remainder in the tenth year;

                 (xi)  Twenty (20%) percent of the remainder in the eleventh
                       year;

                (xii)  Twenty-five (25%) percent of the remainder in the
                       twelfth year;

               (xiii)  Thirty-Three and Thirty-Three One-Hundredths (33.33%)
                       percent of the remainder in the thirteenth year;

                (xiv)  Fifty (50%) percent of the remainder in the fourteenth
                       year;

                 (xv)  The remaining balance in the fifteenth year.

            (e)   Over a period of Twenty (20) calendar years as follows:

                  (i)  Five (5%) percent of the Deferred Compensation Account
                       value, (which value is deter-

                                       7

<PAGE>
                        mined on the first day of the calendar year of payment)
                        in the first year;

                  (ii)  Five and Twenty-Six One-Hundredths (5.26%) percent of
                        the remainder in the second year;

                 (iii)  Five and Fifty-Five One-Hundredths (5.55%) percent of
                        the remainder in the third year;

                  (iv)  Five and Eighty-Eight One-Hundredths (5.88%) percent of
                        the remainder in the fourth year;

                   (v)  Six and Twenty-Five One-Hundredths (6.25%) percent of
                        the remainder in the fifth year;

                  (vi)  Six and Sixty-Six One-Hundredths (6.66%) percent of the
                        remainder in the sixth year;

                 (vii)  Seven and Fourteen One-Hundredths (7.14%) percent of
                        the remainder in the seventh year;

                (viii)  Seven and Sixty-Nine One-Hundredths (7.69%) percent of
                        the remainder in the eighth year;

                  (ix)  Eight and Thirty-Three One-Hundredths (8.33%) percent of
                        the remainder in the ninth year;

                   (x)  Nine and Nine One-Hundredths (9.09%) percent of
                        the remainder in the tenth year;

                  (xi)  Ten (10%) percent of the remainder in the eleventh year;

                 (xii)  Eleven and Eleven One-Hundredths (11.11%) percent of
                        the remainder in the twelfth year;

                (xiii)  Twelve and One-Half (12.50%) percent of the remainder in
                        the thirteenth year;

                 (xiv)  Fourteen and Twenty-Eight One-Hundredths (14.28%)
                        percent of the remainder in the fourteenth year;

                 (xv)   Sixteen and Sixty-Six One-Hundredths (16.66%) percent
                        of the remainder in the fifteenth year;

                 (xvi)  Twenty and Six One-Hundredths (20.06%) percent of the
                        remainder in the sixteenth year;

                (xvii)  Twenty-Five (25%) percent of the remainder in the
                        seventeenth year;

                                       8
<PAGE>
              (xviii)    Thirty-Three and Thirty-Three One-Hundredths
                        (33.33%) percent of the remainder in the eighteenth
                        year;

                (xix)   Fifty (50%) percent of the remainder in the nineteenth
                        year;

                 (xx)   The remaining balance in the twentieth year.

         Payment of the Deferred Compensation Account shall begin no later than
thirty (30) days following the January 1 after the Plan Year during which
Participant first becomes entitled to payment pursuant to Paragraph (5) above.
All payments shall cease if the Deferred Compensation Account is exhausted
prior to the final installment payment.

         The method of payment of the Deferred Compensation Account to the
Participant shall be irrevocably elected at the time the Participant first
elects to participate in this Plan as provided in Paragraph (2) above.

         (8)   Death of Participant. In the event the Participant dies prior to
commencement of payment of the Deferred Compensation Account, the Company shall
pay the Deferred Compensation Account to the Participant's Designated
Beneficiary pursuant to such method of payment as the Participant has
designated in writing prior to his death and properly and timely delivered to
the Committee in accordance with the Committee's requirements. In the event the
Participant dies after commencement of payment of the Deferred Compensation
Account and subject to the limitations in Paragraph (7) above, the Company
shall pay any remaining balance in the Deferred Compensation Account to the
Participant's Designated Beneficiary pursuant to such method of payment as the
Participant has designated in writing prior to his death. If no

                                       9
<PAGE>

payment method has been designated by a Participant then the Deferred
Compensation Account shall be paid to the Designated Beneficiary in a lump sum
payment.

         (9)   Ownership and Status. Title to and beneficial ownership of any
cash or assets which the Company may earmark to pay the deferred compensation
shall at all times remain with the Company. The Participant, or his Designated
Beneficiary, shall not have any right, title or property interest whatsoever
in any specific assets of the Company. This Plan shall at all times be an
unfunded Plan, and a Participant shall at all times be a general unsecured
creditor of the Employer. This Plan only constitutes a mere promise by the
Employer to make benefit payments in the future.

         (10)  Designated Beneficiary. The Participant shall have the right to
designate a beneficiary, or beneficiaries, (the "Designated Beneficiary") to
receive his Deferred Compensation Account in the event of his death and to
revoke any such designation at any time thereafter. Further, the Participant
shall also have the right to select a method of payment permitted pursuant to
Paragraph (7) above in the event of his death. The beneficiary designation and
method of payment shall be in writing on a form provided by the Committee,
signed by the Participant, and bearing the signature of at least one (1)
witness. The beneficiary designation form must be delivered to the Committee
prior to Participant's death in order to be effective. If no such beneficiary
designation is on file with the Committee at the death of the Participant, or
if such designation is not effective for any reason as determined in the sole
and absolute discretion of the

                                       10
<PAGE>

Committee, then the estate of the Participant shall be the Designated
Beneficiary.

         (11)     TRUST.  Nothing contained in this Plan and no action taken
pursuant to the provisions of this Plan shall create or be construed to create
a trust of any kind, or a fiduciary relationship or joint venture between the
Participant and the Company.

         (12)     ASSIGNMENT.  The right of the Participant, or his Designated
Beneficiary, or any other person entitled to the payment of Deferred
Compensation Account, or other benefits under this Plan, shall not be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
attachment, encumbrance or garnishment by creditors of the Participant or the
Participant's Designated Beneficiary, and such rights may not be subject to the
debts, contract liabilities, engagements or torts of the Participant or his
Designated Beneficiary.

         (13)     INCAPACITY.  If the Committee shall find that any person to
whom any payment is payable under this Plan is unable to care for his affairs
because of illness or accident, or is a minor, any payment due, (unless a prior
claim therefore shall have been made by a duly appointed guardian, conservator,
or other legal representative), may be paid to the spouse, a child, a parent, a
brother, a sister, or to any person deemed by the Committee to have incurred
expense for such person otherwise entitled to payment, in accordance with the
applicable provisions above. Any such payment shall be a complete discharge of
the liabilities of Company under this Plan.

         (14)     CONSTRUCTION.  The Committee shall have the sole and full
power and authority to interpret, construe and administer

                                       11
<PAGE>
this Plan and all matters relating to this Plan, and the Committee's
interpretations and construction thereof, and action thereunder, including any
valuation of, and crediting or debiting of earnings and losses to, the Deferred
Compensation Account, or the amount or recipient of the payment to be made
therefrom, shall be binding and conclusive on the Participant, Designated
Beneficiary and all persons and entities for all purposes. The Committee shall
have the full power and authority to correct any errors concerning the Plan. No
member of the Committee shall be liable to any Participant, Designated
Beneficiary or other person or organization for any action taken or omitted in
connection with the interpretation and administration of this Plan and all
matters relating to this Plan, unless attributable to his own willful
misconduct or bad faith. A Participant may be appointed to serve on the
Committee.

         (15) BENEFIT. This Plan shall be binding upon and inure to the benefit
of the Company, its successors and assigns.

         (16) SITUS. Except as pre-empted by Federal law, this Plan shall be
construed in accordance with and governed by the laws of the state of South
Carolina regardless of the fact that Company, Participant or his Designated
Beneficiary is a resident of another state or country.

         (17) AMENDMENT AND TERMINATION. This Plan may be amended or terminated
at any time, and from time to time, upon a majority vote of those members of
the Board of Directors of the Company then serving. In the event the Plan is
terminated by the Board of Directors, then notwithstanding anything in this
Plan to the contrary, the Company shall fully pay in a lump sum amount as

                                       12

<PAGE>

soon as reasonably practical after such Plan termination (but in no event later
than six (6) months after the date of termination) the entire Deferred
Compensation Account of each Participant determined as of the date of
termination, including any Participant or Designated Beneficiary then in pay
status.

         (18)     GENDER.  Reference to the masculine gender in this Plan shall
include the feminine gender, unless the context clearly indicates otherwise.

         (19)     SUBSIDIARY AND AFFILIATES ADOPTION.  Any wholly-owned
subsidiary of Company, or any wholly-owned subsidiary of a wholly-owned
subsidiary of Company may adopt this Plan by a written resolution of its Board
of Directors. No Company adopting or participating in this Plan shall be liable
or obligated for any amount owed by another Company adopting or participating
in this Plan. Each such Plan shall be separate and distinct. Further, a
Participant and such Participant's Designated Beneficiary shall only have a
claim or right of payment against the Company adopting this Plan from which the
Participant has deferred compensation and then only to the extent specifically
authorized in this Plan.

         (20)     CLAIMS PROCEDURE.  A Participant, or his Designated
Beneficiary in the event of the Participant's death, shall have the right to
file a claim and inquire if he has any right to benefits and the amounts
thereof under this Plan, or appeal the denial of a claim. A claim will be
considered as having been filed when a written communication is made by the
Participant (or his Designated Beneficiary in the event of his death) or his
authorized representative who brings his claim request to the

                                       13
<PAGE>
attention of the Committee. The Committee shall notify the claimant in writing
within ninety (90) days after receipt of the claim if the claim is wholly or
partially denied. If an extension of time beyond the initial ninety (90) day
period for processing the claim is required, written notice of the extension
shall be provided the claimant prior to the termination of the initial ninety
(90) day period. In no event shall the extension exceed a period of ninety (90)
days from the end of the initial period. The extension notice shall indicate the
special circumstances requiring an extension of time and the date by which the
Committee expects to render a final decision.

         Notice of a wholly or partially denied claim for benefits will be in
writing in a manner calculated to be understood by the claimant and shall
include:

         (a)      The reason or reasons for denial;

         (b)      Specific reference to the Plan provisions that apply in the
                  case;

         (c)      A description of any additional material or information that
                  would be helpful to the Committee in further review of the
                  claim, and reason(s) why it is necessary; and

         (d)      An explanation of the Plan's claim appeal procedure.

         If a Claim is denied, the claimant may file an appeal asking the
Committee to conduct a full and fair review of his claim. An appeal must be made
in writing no more than sixty (60) days after the claimant receives written
notice of the denial. The claimant may review any documents that apply to the
case and may also summit points of disagreement and other comments in writing
along with the appeal.

                                       14

<PAGE>

         The decision of the Committee regarding the appeal shall be given to
the claimant in writing no later than sixty (60) days following receipt of the
appeal. However, if a hearing is held, or there are special circumstances
involved, the decision will be given no later than 120 days after receiving the
appeal. If such an extension of time for review is required because of special
circumstances, written notice of the extension shall be furnished to the
claimant prior to the commencement of the extension. The decision shall include
specific reasons for the decision, written in a manner calculated to be
understood by the claimant, as well as specific references to the pertinent
Plan provisions on which the decision is based.

         (21)     CAPTIONS.  The captions of the various paragraphs,
subparagraphs and clauses in this Plan document are for convenience only and
shall not control or affect the meaning or construction of this Plan.

         IN WITNESS WHEREOF, GREER STATE BANK has caused this Plan to be
executed by its duly authorized officer as of the day and year first above
written.

Witnesses:                                   GREER STATE BANK

/s/ Gaye D. Burroughs                        By: /s/ R. Dennis Hennett
---------------------------------               --------------------------------

/s/ Tracy R. Lister                          Its: President
---------------------------------                 ------------------------------

                                       15
<PAGE>
                               FIRST AMENDMENT TO
                                GREER STATE BANK
                    DEFERRED COMPENSATION PLAN FOR DIRECTORS

         THIS FIRST AMENDMENT to Greer State Bank Deferred Compensation Plan
For Directors is made and entered into this 25th day of July, 1996 by Greer
State Bank.

         WHEREAS, Greer State Bank established an agreement providing for and
creating the Greer State Bank Deferred Compensation Plan for Directors on
October 19, 1995; and

         WHEREAS, the Greer State Bank desires to amend the said Deferred
Compensation Plan.

         NOW, THEREFORE, the Employer does hereby make the following amendments
in the Greer State Bank Deferred Compensation Plan for Directors.

         1.       Paragraph (4) is amended in its entirety to read as follows:

                  (4)      Participant and Elections.  The application for
         participation and election to defer receipt of Compensation shall be
         made in writing by the Participant to the Committee on a form provided
         by the Committee and shall be signed by the Participant and
         acknowledged by the Committee or its designated representative. The
         Participant shall irrevocably elect in writing the method of payment of
         the Deferred Compensation Account during life and upon death on a form
         provided by the Committee at the time the Participant first elects to
         participate in this Plan and such form shall be properly delivered to
         the Committee in accordance with the Committee's requirements. If a
         Participant dies after payment has commenced to the Participant, the
         method of payment upon the Participant's death shall in no event extend
         longer than the period of payment over which the Participant would have
         received payment had the Participant not died.

         2.       Paragraph (6) is amended by adding the following sentence to
Paragraph (6):

                  If the Participant requesting the hardship distribution is a
         member of the Committee, such Participant shall abstain

                                       1
<PAGE>

         from voting upon the approval of his application for the hardship
         distribution.

         3.       Paragraph (17) is amended in its entirety to read as follows:

                  (17) AMENDMENT AND TERMINATION. This Plan may be amended or
         terminated at any time, and from time to time, upon a majority vote of
         those members of the Board of Directors of the Company then serving. In
         the event the Plan is terminated by the Board of Directors, then
         notwithstanding anything in this Plan to the contrary, the Company
         shall fully pay in a lump sum amount on the sixtieth (60th) day
         following the date of Plan termination the entire Deferred Compensation
         Account of each Participant determined as of the date of termination,
         including any Participant or Designated Beneficiary then in pay status.

         IN WITNESS WHEREOF, Greer State Bank, by its duly authorized officer,
has caused this First Amendment to the above referenced Deferred Compensation
Plan for Directors to be adopted and this document executed as of the date
first above written.

Witnesses:                                   GREER STATE BANK

Gaye Burroughs                               By: R. Dennis Hennett
----------------------------                    ----------------------------

Jolynne Beck                                 Its: President
----------------------------                     ---------------------------

                                       2

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