EXHIBIT 10 (h)

                                    AGREEMENT


         THIS  AGREEMENT  is made and entered  into this _27th_ day of _October_
1998, by and between Coastal  Federal Savings Bank, (the "Bank"),  Myrtle Beach,
South Carolina; and Steven J. Sherry (the "Executive").

         The Bank wishes to employ the  Executive  in the  capacity of Executive
Vice  President,  Marketing.  The  Executive  desires  to be  employed  in  such
capacity.   Accordingly,   in  consideration  of  the  respective  promises  and
conditions  contained in this  Agreement,  the Bank and the  Executive  agree as
follows:

1.       Terms.

                  The term of this  Agreement  shall be deemed to have commenced
as of the date first  above  written and shall  continue  for a period of twelve
(12) full calendar months thereafter.  Commencing on the first anniversary date,
and continuing at each anniversary  date  thereafter,  the Board of Directors of
the  Bank  (the  "Board")  shall  consider  extension  of the  Agreement  for an
additional  year,  the results  thereof  shall be included in the minutes of the
Board's meeting.

2.       Payment in the Event of a Change in Control

         a.       For the purposes of this  Agreement,  a "Change in Control" of
                  Coastal Financial  Corporation shall be deemed to occur if and
                  when

                  (1) any  person  (as such term is used in  Sections  13(d) and
                  14(d)(2) of the Securities Exchange Act of 1934) is or becomes
                  the beneficial owner, directly or indirectly, of securities of
                  Coastal Financial Corporation  representing 25 percent or more
                  of  the   combined   voting   power   of   Coastal   Financial
                  Corporation's then outstanding securities;

                  (2) the  membership  of the  Board  of  Directors  of  Coastal
                  Financial  Corporation  changes as the  result of a  contested
                  election,  such that  individuals  who were  directors  at the
                  beginning of any 24-month period (whether commencing before or
                  after the effective date of this  Agreement) do not constitute
                  a majority of the Board at the end of such period; or

                  (3) shareholders of Coastal  Financial  Corporation  approve a
                  merger,   consolidation,   sale  or   disposition  of  all  or
                  substantially   all  of  the  assets  of   Coastal   Financial
                  Corporation, or a plan of partial or complete liquidation.

         b.       If,  within  one year  after  the  occurrence  of a Change  in
                  Control,  the  Executive's  employment is  terminated,  unless
                  termination is because of his death,  or for  disability,  the
                  Executive  shall be  entitled  to 1.0  times  the  Executive's
                  average  "base  amount" for the  preceding  five (5)  calendar
                  years,  within  the  meaning  of  Section  280G(b)(3)  of  the
                  Internal  Revenue Code of 1986  ("Code"),  as amended.  In the
                  event the  Executive  has been  employed  by the Bank for less
                  than five (5) calendar years  preceding the Change in Control,
                  the  Executive's  base amount shall be determined by reference
                  to the period  during which he has been  employed by the Bank,
                  with any period of less than one full year annualized.  In the
                  event that a Change in Control  occurs during his initial year
                  of employment hereunder,  the Executive's base amount shall be
                  annualized.  Any  payment  to the  Executive  made  under this
                  subparagraph  shall  be  made,  at the  Executive's  election,
                  either in a lump sum payable within ten days, of the Change in
                  Control, or in substantially equal installment payments over a
                  one year  period.  The  Executive  is  entitled  to a monetary
                  payment and may elect the method of payment  only in the event
                  that his termination  occurs within one year after a Change in
                  Control.

         c.       If  within  one year  after  the  occurrence  of a  Change  in
                  Control,  a  material  change  in the  Executive's  duties  or
                  responsibilities,  would cause Executive's  position to become
                  one of lesser  responsibility,  importance,  or scope from the
                  position and  attributes as described in the  Executive's  job
                  description prior to the Change in Control, Executive shall be
                  entitled to 1.0 times the Executive's average "base amount" as
                  set forth in Section 2(b) hereof.



  4.     Source of Payments

         All payments provided in this Agreement shall be timely paid in cash or
         check from the general funds of the Bank.

  5.     Applicable Law

         The  parties  agree  that  this  Agreement  shall  be  governed  by and
         construed in accordance  with the laws of the state of South  Carolina,
         and further agree that any litigation regarding this Agreement shall be
         brought and litigated in the state or federal  courts  located in South
         Carolina.  Accordingly, the Executive consents to personal jurisdiction
         in the state and federal courts in South Carolina.

6.       Headings

         The  headings or titles of sections  are for  convenience  of reference
         only and do not constitute a part of this Agreement.


7.       Severability

         The  parties  agree  that each  paragraph  of this  Agreement  and each
         provision  within each paragraph is severable from the remainder of the
         Agreement,  and  further  agree that if any  portion of this  Agreement
         shall be severed,  the  remainder  of the  Agreement  shall be enforced
         according to its terms and to the fullest extent permitted by law.

8.       Waiver

         Any failure or default by any party to this  Agreement  to exercise any
         right  or  enforce  any  obligation  under  this  Agreement  shall  not
         constitute a waiver of such right or obligation  and shall not preclude
         the future exercise or enforcement thereof.

9.       Assignment

         Nothing in this Agreement  shall preclude the Bank, with or without the
         consent of the  Executive,  from  assigning  the  rights,  duties,  and
         obligations under this Agreement to an affiliated corporation or to any
         other  corporation  or  entity  with  which  the  Bank  shall  merge or
         consolidate  or otherwise  transfer  its assets or stock.  Upon such an
         assignment and assumption,  the term "The Bank," as used herein,  shall
         refer to such assignee  corporation or entity, and this Agreement shall
         continue in full force and effect.  This Agreement may not be assigned,
         pledged,  or otherwise  encumbered by the Executive  without the Bank's
         prior written consent.

10.      Modification

         This Agreement constitutes the entire understanding of the parties with
         respect to the subject  matter herein and  supersedes any other oral or
         written  agreements  or  understandings  with  respect  thereto,  which
         agreements  and  understandings,  if any, are hereby  terminated.  This
         Agreement  may not be  modified in any manner  whatsoever,  except by a
         writing signed by the Executive and the Bank's Chief Executive  Officer
         or Chairman of the Board of Directors.




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Date                                        Coastal Federal Savings Bank


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Date                                        Coastal Financial Corporation


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Date                                        Executive


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Date                                        Witness