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                                                                    EXHIBIT 10.8

                      BEACH FIRST NATIONAL BANCSHARES, INC.


                                February 9, 2000


Mr. Gary Horn

                  Re:      Separation Agreement

Dear Gary:

         This letter, upon your signature, will constitute the agreement between
you and Beach First National Bancshares, Inc. regarding the terms of your
separation from employment.

         1.       The effective date of your termination from employment is
January 15, 2000.

         2.       You will receive no later than thirty (30) days from the date
of the signing of this letter a $3,500.00 bonus for the pre-tax profits of Beach
First National Bancshares, Inc. for the calendar year 1999.

         3.       You may utilize for a minimum of three months from termination
date the Dunes Club Membership. The Membership can continue to be utilized
beyond the three month period in the event it is not needed by a new Bank
officer but the utilization of the Membership will cease by September 1, 2000.
You will be responsible for all charges incurred while utilizing the Dunes Club
Membership and you will promptly pay the monthly charges except for the
membership dues.

         4.       You will return to Beach First the bank automobile no later
than February 28, 2000.

         5.       The stock options which you hold in your name (22,077 shares)
are redeemable no later than January 15, 2002. If not redeemed by said date all
stock options will lapse.

         6.       The Bank shall pay you your monthly salary which is the sum of
$8,268.75 until September 1, 2000. This money shall be paid in the form of
salary continuation and the Bank shall make the usual deductions for employment
taxes. In the event you accept any employment prior to September 1, 2000, the
Bank's obligation to pay any continuation of salary shall automatically cease.

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         7.       The Bank shall pay for your continued health insurance
coverage until September 1, 2000, unless you accept employment at which time the
obligation of the Bank shall cease. The Bank may continue the health insurance
coverage by making payments on your behalf under the COBRA provisions and after
September 1, 2000, you may continue this coverage at your own expense under the
COBRA provisions.

         8.       You have represented that you have, to the best of your
knowledge and belief, retained no documentary information or other tangible
personalty of Beach First's practices, procedures, trade secrets or the like,
documents or keys. Should you subsequently discover that you have inadvertently
overlooked and retained any of the above-mentioned items, you have agreed to
immediately return same.

         9.       You release and discharge and promise never to assert any and
all legal, equitable and administrative claims that you have or might have
against Beach First National Bancshares, Inc. and its predecessors,
subsidiaries, related entities, officers, directors, shareholders, employees,
agents, successors or assigns, arising from or related to your employment and/or
the termination of your employment.

         These claims include, but are not limited to, claims arising under
federal, state and local statutory or common law, such as the Age Discrimination
in Employment Act, Title VII of the Civil Rights Act, as amended, including the
amendments of the Civil Rights Act of 1991, the Americans With Disabilities Act
[relevant state and local anti-discrimination statutes], and the law of contract
and tort; except, however, from the terms of this Separation Agreement and any
claims arising from acts subsequent to the execution of this Separation
Agreement.

         10.      Unless required or otherwise permitted by law, you will not
disclose, directly or indirectly, to others any information regarding the
following:

                  a.       Any information regarding Beach First National
                           Bancshares, Inc.'s practices, procedures, trade
                           secrets, business and corporate matters, and matters
                           relating to officers, directors, shareholders, and
                           employees.

                  b.       The terms of this Separation Agreement, including any
                           information regarding the payment of the monies and
                           the payment of benefits, which are confidential
                           except that you may disclose this information to your
                           attorney, accountant or other professional advisor to
                           whom you must make the disclosure in order for them
                           to render professional services to you. You will
                           instruct them, however, to maintain the
                           confidentiality of this information just as you must.

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                  c.       This shall not exclude you from responding to
                           inquiries or requests for information specifically
                           requested by a Beach First National Bancshares, Inc.
                           employee acting in their legal capacity and in the
                           scope of their employment.

         You shall maintain the confidentiality of all matters pertaining to
your employment.

         11.      In the event that you breach any of your obligations under
this Separation Agreement (including disclosure of any matters relating to Beach
First National Bancshares, Inc. which will be violative of the confidentiality
provision) or as otherwise imposed by law, Beach First National Bancshares, Inc.
will be entitled to recover the benefits paid under this agreement and to obtain
all other relief provided by law or equity, including the recovery reasonable
attorney's fees which may be incurred by Beach First National Bancshares, Inc.
The breach of any obligations hereunder by Beach First National Bancshares, Inc.
shall entitle you to obtain all relief provided by law or equity, including the
recovery of reasonable attorney's fees incurred in obtaining such relief.

         12.      The following is required by the Older Workers Benefit
                  Protection Act:

         YOU HAVE UP TO 21 DAYS FROM THE DATE OF THIS LETTER OR FEBRUARY 22,
         2000, TO ACCEPT THE TERMS OF THIS SEPARATION AGREEMENT, ALTHOUGH YOU
         MAY ACCEPT IT AT ANY TIME WITHIN THOSE 21 DAYS. YOU ARE ADVISED TO
         CONSULT AN ATTORNEY ABOUT THE AGREEMENT.

         To accept the agreement, please date and sign this letter and return it
to me. (An extra copy for your files is enclosed.) Once you do so, you will have
an additional seven days in which to revoke your acceptance. To revoke, you must
send me a written statement of revocation by registered mail, return receipt
requested. If you do not revoke, the eighth day after the date of your
acceptance will be the "effective date" of the agreement.

         13.      Upon the effective date of this agreement, you will be
entitled to receive the compensation set forth above.

         14.      In order to effectuate all matters set forth in this
Agreement, you agree to execute such documents as are necessary and proper to
effectuate the terms of this Separation Agreement.



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         All other terms and conditions of your Employment Contract, shall
remain in full force and effect and are not herein revoked or revised except as
expressly stated herein.

                                   Sincerely,

                                   Beach First National Bancshares, Inc.

                                   /s/ Raymond E. Cleary III
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                                   Dr. Raymond E. Cleary, III
                                   Chairman


                                   ACCEPTANCE

         By signing this letter, I acknowledge that I have had the opportunity
to review this Separation Agreement carefully with an attorney of my choice;
that I have read this Agreement and understand the terms of the Agreement; and
that I voluntarily agree and accept all matters set forth in this Agreement.

Dated:  March 22, 2000                    /s/    Gary Horn
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                                                 Gary Horn