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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") dated as of April 8, 2002,
is made by and between Tidelands Bancshares, Inc., a South Carolina corporation
(the "Employer" or the "Company"), which is the holding company for Tidelands
National Bank (Proposed), a proposed national bank (the "Bank"), and Bobby
Mathewes, an individual resident of South Carolina (the "Executive").

         The Employer is in the process of organizing the Bank, and the
Executive has agreed to serve as Senior Vice President and Chief Lending Officer
of the Bank and the Company. Upon organization of the Bank, the Employer and the
Executive contemplate that this Agreement will be assigned by the Employer to
the Bank and that the Bank will assume the duties of the Company hereunder
(except pursuant to Section 3). Following any such assignment, the term
"Employer" as used herein from time to time shall refer to the Bank.

         The Employer recognizes that the Executive's contribution to the growth
and success of the Bank during its organization and initial years of operations
will be a significant factor in the success of the Bank. The Employer desires to
provide for the employment of the Executive in a manner which will reinforce and
encourage the dedication of the Executive to the Bank and promote the best
interests of the Bank and its shareholders. The Executive is willing to serve
the Employer on the terms and conditions herein provided. Certain terms used in
this Agreement are defined in Section 17 hereof.

         In consideration of the foregoing, the mutual covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

         1.       Employment. The Employer shall employ the Executive, and the
Executive shall serve the Employer, as Senior Vice President and Chief Lending
Officer of the Bank and as Senior Vice President of the Company upon the terms
and conditions set forth herein. The Executive shall have such authority and
responsibilities consistent with his position as are set forth in the Company's
or the Bank's Bylaws or assigned by the Company's or the Bank's Board of
Directors (collectively, the "Board") from time to time. The Executive shall
devote his full business time, attention, skill and efforts to the performance
of his duties hereunder, except during periods of illness or periods of vacation
and leaves of absence consistent with Bank policy. The Executive may devote
reasonable periods to service as a director or advisor to other organizations,
to charitable and community activities, and to managing his personal
investments, provided that such activities do not materially interfere with the
performance of his duties hereunder and are not in conflict or competitive with,
or adverse to, the interests of the Company or the Bank.

         2.       Term. Unless earlier terminated as provided herein, the
Executive's employment under this Agreement shall commence on the date hereof
and be for a term (the "Term") of three years. At the end of each day of the
Term, the Term shall be extended for an additional day so that the remaining
term shall continue to be three years; provided that the Executive or the Bank
may at any time, by written notice, fix the Term to a finite term of three years
commencing with the date of the notice. Notwithstanding the foregoing, the Term
of employment hereunder will end on the date that the Executive attains the
retirement age, if any, specified in the Bylaws of the Bank for directors of the
Bank.

         3.       Compensation and Benefits.

                  (a)      Starting April 8, 2002, the Employer shall pay the
Executive an initial annual base salary of $90,000, plus family yearly medical,
dental, vision and disability insurance premium. On the date that the Bank opens
for business (the "Opening Date"), the annual base salary will be increase to
$95,000. The Board (or an appropriate committee of the Board) shall review the
Executive's performance and salary at least annually and may increase the
Executive's base salary if it determines in its sole discretion that an
additional increase is appropriate.

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                  (b)      The Executive shall receive a cash bonus in the
amount of $5,000 on the Opening Date of the Bank. For each anniversary of the
Opening Date thereafter, the Executive shall be eligible to receive a cash bonus
equaling up to 5% of the net pretax consolidated income of the Company
(determined in accordance with generally accepted accounting principles) if the
Bank achieves certain performance levels established by the board of directors
from time to time (the "Bonus Plan").

                  (c)      The Executive shall participate in the Bank's
long-term equity incentive program and be eligible for the grant of stock
options, restricted stock, and other awards thereunder or under any similar plan
adopted by the Company. As soon as an appropriate stock option plan is adopted
by the Board, the Company shall grant to the Executive an option to purchase a
number of shares of Common Stock equal to 2 1/2% of the number of shares sold in
the offering. The award agreement for the stock option shall provide that
one-fifth of the shares subject to the option will vest on each of the first
five anniversaries of the Opening Date, but only if the Executive remains
employed by the Company or a subsidiary on such date, and shall contain other
customary terms and conditions. Nothing herein shall be deemed to preclude the
granting to the Executive of warrants or options under a director option plan in
addition to the options granted hereunder. The exercise price of the options
will be equal to the fair market value of the stock on the date of grant.

                  (d)      The Executive shall participate in all retirement,
welfare and other benefit plans or programs of the Employer now or hereafter
applicable generally to employees of the Employer or to a class of employees
that includes senior executives of the Employer.

                  (e)      The Employer shall provide the Executive with a term
life insurance policy providing for death benefits totaling $250,000 payable to
the Executive's spouse and heirs and $250,000 payable to the Employer, and the
Executive shall cooperate with the Employer in the securing and maintenance of
such policy. If Executive is taxed by state or federal authorities with respect
to Employer's payment of the key man life insurance policy, Executive's
compensation payable hereunder shall be increased, on a tax gross-up basis, so
as to reimburse the Executive for the additional tax payable by the Executive as
a result of Employer's payment of the key man life insurance premiums taking
into account all taxes payable by the Executive with respect to such tax
gross-up payments hereunder, so that the Executive shall be, after payment of
all taxes, in the same financial position as if no taxes with respect to the key
man life insurance policy had been imposed upon him.

                  (f)      Until the Bank opens, the Employer will reimburse the
Executive for the use of his personal automobile at the IRS legal mileage rate.
Once the Bank opens, the Executive shall be paid a $500 monthly allowance to
cover the use of his automobile and expenses related thereto.

                  (g)      The Employer shall reimburse the Executive for
reasonable travel and other expenses related to the Executive's duties which are
incurred and accounted for in accordance with the normal practices of the
Employer.

         4.       Termination.

                  (a)      The Executive's employment under this Agreement may
be terminated prior to the end of the Term only as follows, and the effect of
such termination shall be as set forth in Sections 4(b) through 4(j):

                           (i)      upon the death of the Executive;

                           (ii)     upon the disability of the Executive for a
                  period of 180 days which, in the opinion of the Board of
                  Directors, renders him unable to perform the essential
                  functions of his job and for which reasonable accommodation is
                  unavailable. For purposes of this Agreement, a "disability" is
                  defined as a physical or mental impairment that substantially
                  limits one or more major life activities, and a "reasonable
                  accommodation" is one that does not impose an undue hardship
                  on the Employer;

                           (iii)    by the Employer for Cause upon delivery of a
                  Notice of Termination to the Executive;

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                           (iv)     by the Executive for Good Reason upon
                  delivery of a Notice of Termination to the Employer within a
                  90-day period beginning on the 30th day after the occurrence
                  of a Change in Control or within a 90-day period beginning on
                  the one year anniversary of the occurrence of a Change in
                  Control;

                           (v)      by the Employer if its effort to organize
                  the Bank is abandoned;

                           (vi)     by the Employer without Cause upon delivery
                  of a Notice of Termination; and

                           (vii)    by the Executive effective upon the 30th day
                  after delivery of a Notice of Termination.

                  (b)      If the Executive's employment is terminated because
of the Executive's death, the Executive's estate shall receive any sums due him
as base salary and reimbursement of expenses through the end of the month during
which death occurred, plus any bonus earned or accrued under the Bonus Plan
through the date of death (including any amounts awarded for previous years but
which were not yet vested) and a pro rata share of any bonus with respect to the
current fiscal year which had been earned as of the date of the Executive's
death.

                  (c)      During the period of any incapacity leading up to the
termination of the Executive's employment as a result of disability, the
Employer shall continue to pay the Executive his full base salary at the rate
then in effect and all perquisites and other benefits (other than any bonus)
until the Executive becomes eligible for benefits under any long-term disability
plan or insurance program maintained by the Employer, provided that the amount
of any such payments to the Executive shall be reduced by the sum of the
amounts, if any, payable to the Executive for the same period under any
disability benefit or pension plan of the Employer or any of its subsidiaries.
Furthermore, the Executive shall receive any bonus earned or accrued under the
Bonus Plan through the date of incapacity (including any amounts awarded for
previous years but which were not yet vested) and a pro rata share of any bonus
with respect to the current fiscal year which had been earned as of the date of
the Executive's incapacity.

                  (d)      If the Executive's employment is terminated for Cause
as provided above, or if the Executive resigns (except for a termination of
employment pursuant to Section 4(e)), the Executive shall receive any sums due
him as base salary and reimbursement of expenses through the date of such
termination.

                  (e)      If the Executive's employment is terminated (1) by
the Executive pursuant to clause (iv) of Section 4(a) or (2) by the Employer
pursuant to clause (vi) of Section 4(a) following a Change in Control, then in
addition to other rights and remedies available in law or equity, the Executive
shall be entitled to the following:

                           (i)      the Employer shall pay the Executive in cash
                within fifteen days of the Termination Date severance
                compensation in an amount equal to 100% of his then current
                monthly base salary each month for 24 months from the
                Termination Date, plus any bonus earned or accrued under the
                Bonus Plan through the Termination Date (including any amounts
                awarded for previous years but which were not yet vested) and a
                pro rata share of any bonus with respect to the current fiscal
                year which had been earned as of the Termination Date; and

                           (ii)     for a period of one year following the
                Termination Date (the "Continuation Period"), the Employer shall
                at its expense continue on behalf of the Executive and his
                dependents and beneficiaries the life insurance, disability,
                medical, dental, and hospitalization benefits provided (x) to
                the Executive at any time during the 90-day period prior to the
                Change in Control or at any time thereafter or (y) to other
                similarly situated executives who continue in the employ of the
                Employer during the Continuation Period. Such coverage and
                benefits (including deductibles and costs) shall be no less
                favorable to the Executive and his dependents and beneficiaries
                than the most favorable of such coverages and benefits during
                any of the periods referred to above. The Employer's obligation
                hereunder with respect to the foregoing benefits shall be
                limited to the extent that the Executive obtains any such
                benefits pursuant to a subsequent employer's benefit

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                  plans, in which case the Employer may reduce the coverage of
                  any benefits it is required to provide the Executive hereunder
                  as long as the aggregate coverages and benefits of the
                  combined benefit plans is no less favorable to the Executive
                  than the coverages and benefits required to be provided
                  hereunder. This subsection (ii) shall not be interpreted so as
                  to limit any benefits to which the Executive or his dependents
                  or beneficiaries may be entitled under any of the Employer's
                  employee benefit plans, programs, or practices following the
                  Executive's termination of employment, including, without
                  limitation, retiree medical and life insurance benefits.

                  (f)      If the Executive's employment is terminated pursuant
to clause (v) of Section 4(a), the Employer shall pay to the Executive severance
compensation in an amount equal to 100% of his then current monthly base salary
each month for 12 months from the date of termination, but shall not be
obligated to pay any portion of any bonus.

                  (g)      If the Employer terminates the Executive's employment
pursuant to clause (vi) of Section 4(a) before a Change in Control, the Employer
shall pay to the Executive severance compensation in an amount equal to 100% of
his then current monthly base salary each month for twelve months from the date
of termination, plus any bonus earned or accrued under the Bonus Plan through
the date of termination (including any amounts awarded for previous years but
which were not yet vested) and a pro rata share of any bonus with respect to the
current fiscal year which had been earned as of the date of the Executive's
termination.

                  (h)      With the exceptions of the provisions of this
Section 4, and the express terms of any benefit plan under which the Executive
is a participant, it is agreed that, upon termination of the Executive's
employment, the Employer shall have no obligation to the Executive for, and the
Executive waives and relinquishes, any further compensation or benefits
(exclusive of COBRA benefits). At the time of termination of employment, the
Employer and the Executive shall enter into a mutually satisfactory form of
release acknowledging such remaining obligations and discharging both parties,
as well as the Employer's officers, directors and employees with respect to
their actions for or on behalf of the Employer, from any other claims or
obligations arising out of or in connection with the Executive's employment by
the Employer, including the circumstances of such termination.

                  (i)      In the event that the Executive's employment is
terminated for any reason, the Executive shall (and does hereby) tender his
resignation as a director of the Company, the Bank, and any subsidiary,
effective as of the date of termination.

                  (j)      The parties intend that the severance payments and
other compensation provided for herein are reasonable compensation for the
Executive's services to the Employer and shall not constitute "excess parachute
payments" within the meaning of Section 280G of the Internal Revenue Code of
1986 and any regulations thereunder. In the event that the Employer's
independent accountants acting as auditors for the Employer on the date of a
Change in Control determine that the payments provided for herein constitute
"excess parachute payments," then the compensation payable hereunder shall be
increased, on a tax gross-up basis, so as to reimburse the Executive for the tax
payable by the Executive, pursuant to Section 4999 of the Internal Revenue Code,
on such "excess parachute payments," taking into account all taxes payable by
the Executive with respect to such tax gross-up payments hereunder, so that the
Executive shall be, after payment of all taxes, in the same financial position
as if no taxes under Section 4999 had been imposed upon him.

         5.       Ownership of Work Product. The Employer shall own all Work
Product arising during the course of the Executive's employment (prior, present
or future). For purposes hereof, "Work Product" shall mean all intellectual
property rights, including all Trade Secrets, U.S. and international copyrights,
patentable inventions, and other intellectual property rights in any
programming, documentation, technology or other work product that relates to the
Employer, its business or its customers and that employee conceives, develops,
or delivers to the Employer at any time during his employment, during or outside
normal working hours, in or away from the facilities of the Employer, and
whether or not requested by the Employer. If the Work Product contains any
materials, programming or intellectual property rights that the Executive
conceived or developed prior to, and independent of, the Executive's work for
the Employer, the Executive agrees to point out the pre-existing items to

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the Employer and the Executive grants the Employer a worldwide, unrestricted,
royalty-free right, including the right to sublicense such items. The Executive
agrees to take such actions and execute such further acknowledgments and
assignments as the Employer may reasonably request to give effect to this
provision.

         6.       Protection of Trade Secrets. The Executive agrees to maintain
in strict confidence and, except as necessary to perform his duties for the
Employer, the Executive agrees not to use or disclose any Trade Secrets of the
Employer during or after his employment. "Trade Secret" means information,
including a formula, pattern, compilation, program, device, method, technique,
process, drawing, cost data or customer list, that: (i) derives economic value,
actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use; and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

         7.       Protection of Other Confidential Information. In addition, the
Executive agrees to maintain in strict confidence and, except as necessary to
perform his duties for the Employer, not to use or disclose any Confidential
Business Information of the Employer during his employment and for a period of
24 months following termination of the Executive's employment. "Confidential
Business Information" shall mean any internal, non-public information (other
than Trade Secrets already addressed above) concerning the Employer's financial
position and results of operations (including revenues, assets, net income,
etc.); annual and long-range business plans; product or service plans; marketing
plans and methods; training, educational and administrative manuals; customer
and supplier information and purchase histories; and employee lists. The
provisions of Sections 6 and 7 shall also apply to protect Trade Secrets and
Confidential Business Information of third parties provided to the Employer
under an obligation of secrecy.

         8.       Return of Materials. The Executive shall surrender to the
Employer, promptly upon its request and in any event upon termination of the
Executive's employment, all media, documents, notebooks, computer programs,
handbooks, data files, models, samples, price lists, drawings, customer lists,
prospect data, or other material of any nature whatsoever (in tangible or
electronic form) in the Executive's possession or control, including all copies
thereof, relating to the Employer, its business, or its customers. Upon the
request of the Employer, employee shall certify in writing compliance with the
foregoing requirement.

         9.       Restrictive Covenants.

                  (a)      No Solicitation of Customers. During the Executive's
employment with the Employer and for a period of 12 months thereafter, the
Executive shall not (except on behalf of or with the prior written consent of
the Employer), either directly or indirectly, on the Executive's own behalf or
in the service or on behalf of others, (A) solicit, divert, or appropriate to or
for a Competing Business, or (B) attempt to solicit, divert, or appropriate to
or for a Competing Business, any person or entity that is or was a customer of
the Employer or any of its Affiliates at any time during the 12 months prior to
the date of termination and with whom the Executive has had material contact.
This restriction does not apply after a Change in Control.

                  (b)      No Recruitment of Personnel. During the Executive's
employment with the Employer and for a period of 12 months thereafter, the
Executive shall not, either directly or indirectly, on the Executive's own
behalf or in the service or on behalf of others, (A) solicit, divert, or hire
away, or (B) attempt to solicit, divert, or hire away, to any Competing Business
located in the Territory, any employee of or consultant to the Employer or any
of its Affiliates, regardless of whether the employee or consultant is full-time
or temporary, the employment or engagement is pursuant to written agreement, or
the employment is for a determined period or is at will. This restriction does
not apply after a Change in Control.

                  (c)      Non-Competition Agreement. During the Executive's
employment with the Employer and for a period of 12 months thereafter, the
Executive shall not (without the prior written consent of the Employer) compete
with the Employer or any of its Affiliates by, directly or indirectly, forming,
serving as an organizer, director or officer of, or consultant to, or acquiring
or maintaining more than a 1% passive investment in, a depository financial
institution or holding company therefor if such depository institution or
holding company has one or more offices or branches located in the Territory.
Notwithstanding the foregoing, the Executive may serve as an officer of or
consultant to a depository institution or holding company therefor even though
such institution operates one or more

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offices or branches in the Territory, if the Executive's employment does not
directly involve, in whole or in part, the depository financial institution's or
holding company's operations in the Territory. This restriction does not apply
after a Change in Control.

         10.      Independent Provisions. The provisions in each of the above
Sections 9(a), 9(b), and 9(c) are independent, and the unenforceability of any
one provision shall not affect the enforceability of any other provision.

         11.      Successors; Binding Agreement. The rights and obligations of
this Agreement shall bind and inure to the benefit of the surviving corporation
in any merger or consolidation in which the Employer is a party, or any assignee
of all or substantially all of the Employer's business and properties. The
Executive's rights and obligations under this Agreement may not be assigned by
him, except that his right to receive accrued but unpaid compensation,
unreimbursed expenses and other rights, if any, provided under this Agreement
which survive termination of this Agreement shall pass after death to the
personal representatives of his estate.

         12.      Notice. For the purposes of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing and shall
be deemed to have been duly given when personally delivered or sent by certified
mail, return receipt requested, postage prepaid, addressed to the respective
addresses last given by each party to the other; provided, however, that all
notices to the Employer shall be directed to the attention of the Employer with
a copy to the Secretary of the Employer. All notices and communications shall be
deemed to have been received on the date of delivery thereof.

         13.      Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of South
Carolina without giving effect to the conflict of laws principles thereof. Any
action brought by any party to this Agreement shall be brought and maintained in
a court of competent jurisdiction in State of South Carolina.

         14.      Non-Waiver. Failure of the Employer to enforce any of the
provisions of this Agreement or any rights with respect thereto shall in no way
be considered to be a waiver of such provisions or rights, or in any way affect
the validity of this Agreement.

         15.      Enforcement. The Executive agrees that in the event of any
breach or threatened breach by the Executive of any covenant contained in
Section 9(a), 9(b), or 9(c) hereof, the resulting injuries to the Employer would
be difficult or impossible to estimate accurately, even though irreparable
injury or damages would certainly result. Accordingly, an award of legal
damages, if without other relief, would be inadequate to protect the Employer.
The Executive, therefore, agrees that in the event of any such breach, the
Employer shall be entitled to obtain from a court of competent jurisdiction an
injunction to restrain the breach or anticipated breach of any such covenant,
and to obtain any other available legal, equitable, statutory, or contractual
relief. Should the Employer have cause to seek such relief, no bond shall be
required from the Employer, and the Executive shall pay all attorney's fees and
court costs which the Employer may incur to the extent the Employer prevails in
its enforcement action.

         16.      Saving Clause. The provisions of this Agreement shall be
deemed severable and the invalidity or unenforceability of any provision shall
not affect the validity or enforceability of the other provisions hereof. If any
provision or clause of this Agreement, or portion thereof, shall be held by any
court or other tribunal of competent jurisdiction to be illegal, void, or
unenforceable in such jurisdiction, the remainder of such provision shall not be
thereby affected and shall be given full effect, without regard to the invalid
portion. It is the intention of the parties that, if any court construes any
provision or clause of this Agreement, or any portion thereof, to be illegal,
void, or unenforceable because of the duration of such provision or the area or
matter covered thereby, such court shall reduce the duration, area, or matter of
such provision, and, in its reduced form, such provision shall then be
enforceable and shall be enforced. The Executive and the Employer hereby agree
that they will negotiate in good faith to amend this Agreement from time to time
to modify the terms of Sections 9(a), 9(b), and 9(c), the definition of the term
"Territory," and the definition of the term "Business," to reflect changes in
the Employer's business and affairs so that the scope of the limitations placed
on the Executive's activities by Section 9

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accomplishes the parties' intent in relation to the then current facts and
circumstances. Any such amendment shall be effective only when completed in
writing and signed by the Executive and the Employer.

         17.      Certain Definitions.

                  (a)      "Affiliate" shall mean any business entity controlled
by, controlling or under common control with the Employer.

                  (b)      "Business" shall mean the operation of a depository
financial institution, including, without limitation, the solicitation and
acceptance of deposits of money and commercial paper, the solicitation and
funding of loans and the provision of other banking services, and any other
related business engaged in by the Employer or any of its Affiliates as of the
date of termination.

                  (c)      "Cause" shall consist of any of (A) the commission by
the Executive of a willful act (including, without limitation, a dishonest or
fraudulent act) or a grossly negligent act, or the willful or grossly negligent
omission to act by the Executive, which is intended to cause, causes or is
reasonably likely to cause material harm to the Employer (including harm to its
business reputation), (B) the indictment of the Executive for the commission or
perpetration by the Executive of any felony or any crime involving dishonesty,
moral turpitude or fraud, (C) the material breach by the Executive of this
Agreement that, if susceptible of cure, remains uncured ten days following
written notice to the Executive of such breach, (D) the receipt of any form of
notice, written or otherwise, that any regulatory agency having jurisdiction
over the Employer intends to institute any form of formal or informal (e.g., a
memorandum of understanding which relates to the Executive's performance)
regulatory action against the Executive or the Employer or the Employer
(provided that the Board of Directors determines in good faith that the subject
matter of such action involves acts or omissions by or under the supervision of
the Executive or that termination of the Executive would materially advance the
Employer's compliance with the purpose of the action or would materially assist
the Employer in avoiding or reducing the restrictions or adverse effects to the
Employer related to the regulatory action); (E) the exhibition by the Executive
of a standard of behavior within the scope of his employment that is materially
disruptive to the orderly conduct of the Employer's business operations
(including, without limitation, substance abuse or sexual misconduct) to a level
which, in the Board of Directors' good faith and reasonable judgment, is
materially detrimental to the Employer's best interest, that, if susceptible of
cure remains uncured ten days following written notice to the Executive of such
specific inappropriate behavior; or (F) the failure of the Executive to devote
his full business time and attention to his employment as provided under this
Agreement that, if susceptible of cure, remains uncured 30 days following
written notice to the Executive of such failure.

                  (d)      "Change in Control" shall mean the occurrence during
the Term of any of the following events, unless such event is a result of a
Non-Control Transaction:

                           (i)      The individuals who, as of the date of this
                  Agreement, are members of the Board of Directors of the
                  Company (the "Incumbent Board") cease for any reason to
                  constitute at least fifty percent of the Board of Directors of
                  the Company; provided, however, that if the election, or
                  nomination for election by the Company's shareholders, of any
                  new director was approved in advance by a vote of at least
                  fifty percent of the Incumbent Board, such new director shall,
                  for purposes of this Agreement, be considered as a member of
                  the Incumbent Board; provided, further, that no individual
                  shall be considered a member of the Incumbent Board if such
                  individual initially assumed office as a result of either an
                  actual or threatened "Election Contest" (as described in Rule
                  14a-11 promulgated under the Securities Exchange Act of 1934
                  (the "Exchange Act"), or other actual or threatened
                  solicitation of proxies or consents by or on behalf of any
                  person other than the Board of Directors of the Company (a
                  "Proxy Contest"), including by reason of any agreement
                  intended to avoid or settle any Election Contest or Proxy
                  Contest.

                           (ii)     An acquisition (other than directly from the
                  Company) of any voting securities of the Company (the "Voting
                  Securities") by any "Person" (as the term "person" is used for
                  purposes of Section 13(d) or 14(d) of the Exchange Act)
                  immediately after which such Person has "Beneficial Ownership"
                  (within the meaning of Rule 13d-3 promulgated under the
                  Exchange Act) of 20% or more of the combined voting power of
                  the Company's then outstanding Voting Securities; provided,

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                  however, that in determining whether a Change in Control has
                  occurred, Voting Securities which are acquired in a
                  Non-Control Acquisition shall not constitute an acquisition
                  which would cause a Change in Control.

                           (iii)    Consummation of: (i) a merger,
                  consolidation, or reorganization involving the Company; (ii) a
                  complete liquidation or dissolution of the Company; or (iii)
                  the sale or other disposition of all or substantially all of
                  the assets of the Company to any Person (other than a transfer
                  to a Subsidiary).

                           (iv)     A notice of an application is filed with the
                  Office of Comptroller of the Currency (the "OCC") or the
                  Federal Reserve Board or any other bank or thrift regulatory
                  approval (or notice of no disapproval) is granted by the
                  Federal Reserve, the OCC, the Federal Deposit Insurance
                  Corporation, or any other regulatory authority for permission
                  to acquire control of the Company or any of its banking
                  subsidiaries; provided that if the application is filed in
                  connection with a transaction which has been approved by the
                  Board, then the Change in Control shall not be deemed to occur
                  until consummation of the transaction.

                  (e)      "Competing Business" shall mean any business that, in
whole or in part, is the same or substantially the same as the Business.

                  (f)      "Good Reason" shall mean the occurrence after a
Change in Control of any of the events or conditions described in subsections
(i) through (viii) hereof:

                           (i)      a change in the Executive's status, title,
                  position or responsibilities (including reporting
                  responsibilities) which, in the Executive's reasonable
                  judgment, represents an adverse change from his status, title,
                  position or responsibilities as in effect at any time within
                  ninety days preceding the date of a Change in Control or at
                  any time thereafter; the assignment to the Executive of any
                  duties or responsibilities which, in the Executive's
                  reasonable judgment, are inconsistent with his status, title,
                  position or responsibilities as in effect at any time within
                  ninety days preceding the date of a Change in Control or at
                  any time thereafter; any removal of the Executive from or
                  failure to reappoint or reelect him to any of such offices or
                  positions, except in connection with the termination of his
                  employment for Disability or Cause, as a result of his death,
                  or by the Executive other than for Good Reason, or any other
                  change in condition or circumstances that in the Executive's
                  reasonable judgment makes it materially more difficult for the
                  Executive to carry out the duties and responsibilities of his
                  office than existed at any time within ninety days preceding
                  the date of Change in Control or at any time thereafter;

                           (ii)     a reduction in the Executive's base salary
                  or any failure to pay the Executive any compensation or
                  benefits to which he is entitled within five days of the date
                  due;

                           (iii)    the Employer's requiring the Executive to be
                  based at any place outside a 30-mile radius from the executive
                  offices occupied by the Executive immediately prior to the
                  Change in Control, except for reasonably required travel on
                  the Employer's business which is not materially greater than
                  such travel requirements prior to the Change in Control;

                           (iv)     the failure by the Employer to (A) continue
                  in effect (without reduction in benefit level and/or reward
                  opportunities) any material compensation or employee benefit
                  plan in which the Executive was participating at any time
                  within ninety days preceding the date of a Change in Control
                  or at any time thereafter, unless such plan is replaced with a
                  plan that provides substantially equivalent compensation or
                  benefits to the Executive, or (B) provide the Executive with
                  compensation and benefits, in the aggregate, at least equal
                  (in terms of benefit levels and/or reward opportunities) to
                  those provided for under each other employee benefit plan,
                  program and practice in which the Executive was participating
                  at any time within ninety days preceding the date of a Change
                  in Control or at any time thereafter;

                                       8

<PAGE>

                           (v)      the insolvency or the filing (by any party,
                  including the Company or the Bank) of a petition for
                  bankruptcy of the Company or the Bank, which petition is not
                  dismissed within sixty days;

                           (vi)     any material breach by the Employer of any
                  material provision of this Agreement;

                           (vii)    any purported termination of the Executive's
                  employment for Cause by the Employer which does not comply
                  with the terms of this Agreement; or

                           (viii)   the failure of the Employer to obtain an
                  agreement, satisfactory to the Executive, from any successor
                  or assign to assume and agree to perform this Agreement, as
                  contemplated in Section 11 hereof.

         Any event or condition described in clause (i) through (viii) above
which occurs prior to a Change in Control but which the Executive reasonably
demonstrates (A) was at the request of a third party, or (B) otherwise arose in
connection with, or in anticipation of, a Change in Control which actually
occurs, shall constitute Good Reason for purposes of this Agreement,
notwithstanding that it occurred prior to the Change in Control. The Executive's
right to terminate his employment for Good Reason shall not be affected by his
incapacity due to physical or mental illness.

                  (g)      "Non-Control Transaction" shall mean a transaction
described below:

                           (i)      the shareholders of the Company, immediately
                  before such merger, consolidation or reorganization, own,
                  directly or indirectly, immediately following such merger,
                  consolidation or reorganization, at least 50% of the combined
                  voting power of the outstanding voting securities of the
                  corporation resulting from such merger, consolidation or
                  reorganization (the "Surviving Corporation") in substantially
                  the same proportion as their ownership of the Voting
                  Securities immediately before such merger, consolidation or
                  reorganization; and

                           (ii)     immediately following such merger,
                  consolidation or reorganization, the number of directors on
                  the board of directors of the Surviving Corporation who were
                  members of the Incumbent Board shall at least equal the number
                  of directors who were affiliated with or appointed by the
                  other party to the merger, consolidation or reorganization.

                  (h)      "Territory" shall mean a radius of ten miles
from (i) the main office of the Employer or (ii) any branch office of the
Employer.

                  (i)      "Notice of Termination" shall mean a written notice
of termination from the Employer or the Executive which specifies an effective
date of termination, indicates the specific termination provision in this
Agreement relied upon, and, in the case of a termination for Good Reason or for
Cause, sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive's employment under the
provision so indicated.

         18.      Entire Agreement. This Agreement constitutes the entire
agreement between the parties hereto and supersedes all prior agreements, if
any, understandings and arrangements, oral or written, between the parties
hereto with respect to the subject matter hereof.

         19.      Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

         IN WITNESS WHEREOF, the Employer has caused this Agreement to be
executed and its seal to be affixed hereunto by its officers thereunto duly
authorized, and the Executive has signed and sealed this Agreement, effective as
of the date first above written.

                                       9

<PAGE>

                                      TIDELANDS BANCSHARES, INC.

ATTEST:

By:  /s/ Jerry A. Vereen            By: /s/ Fred Renken
   --------------------------       -------------------------------------------
Name:  Jerry A. Vereen              Name: Fred Renken
     ------------------------       Title: Chairman/ Compensation Committee

                                EXECUTIVE   /s/ Robert H. (Bobby) Mathewes, Jr.
                                -----------------------------------------------
                                Robert H. (Bobby) Mathewes, Jr.

                                       10<PAGE>

                                                                     EXIBIT 10.3

THE WARRANTS EVIDENCED BY THIS CERTIFICATE HAVE BEEN ISSUED OR SOLD IN RELIANCE
ON EXEMPTIONS FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE
STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED EXCEPT IN A TRANSACTION
WHICH IS EXEMPT UNDER SUCH ACT AND STATE LAWS OR PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND STATE LAWS.

                           TIDELANDS BANCSHARES, INC.

                             STOCK WARRANT AGREEMENT

                                         , 2002
                                  -------

WARRANT HOLDER:                                   NO. OF SHARES:
               --------------------------------                -----------------

         Tidelands Bancshares, Inc. (the "Company"), a South Carolina
corporation and the holding company for Tidelands National Bank (proposed) (the
"Bank"), hereby grants to the person identified above as the Warrant Holder
Warrants (the "Warrants") to purchase the number of shares set forth above,
representing one share of common stock for each share of common stock purchased
by the Warrant Holder in the Company's initial public offering, in consideration
of the financial risk associated with Warrant Holder's investment in the Company
during its organizational stage and the time, expertise, and continuing
involvement of the Warrant Holder in the management of the Bank. Such Warrants
are granted on the following terms and conditions:

         1.       EXERCISE OF WARRANTS. One-fifth of the shares (the "Shares")
subject to the Warrants granted in this Agreement shall vest on each of the
first five anniversaries of the date of the completion of the Company's initial
public offering (the "Completion Date"). Exercise of the Warrants is subject to
the following:

         (a)      EXERCISE PRICE. The exercise price (the "Exercise Price")
                  shall be $10.00 per Share, subject to adjustment pursuant to
                  Section 2 below.

         (b)      EXPIRATION OF WARRANT TERM. The Warrants will expire at 5:00
                  p.m. Eastern Standard Time on the tenth anniversary of the
                  Completion Date (subject to earlier termination in certain
                  circumstances pursuant to Section 5 below), and may not be
                  exercised thereafter (the "Expiration Date").

         (c)      PAYMENT. The purchase price for Shares as to which the
                  Warrants are being exercised shall be paid in cash, by wire
                  transfer, by certified or bank cashier's check, or by personal
                  check drawn on funds on deposit with the Bank.

         (d)      METHOD OF EXERCISE. The Warrants shall be exercisable by a
                  written notice delivered to the President or Secretary of the
                  Company which shall:

                  (i)      State the owner's election to exercise the Warrants,
                           the number of Shares with respect to which it is
                           being exercised, the person in whose name the

<PAGE>

                           stock certificate for such Shares is to be
                           registered, and such person's address and tax
                           identification number (or, if more than one, the
                           names, addresses and tax identification numbers of
                           such persons);

                  (ii)     Be signed by the person or persons entitled to
                           exercise the Warrants and, if the Warrants are being
                           exercised by any person or persons other than the
                           original holder thereof, be accompanied by proof
                           satisfactory to counsel for the Bank of the right of
                           such person or persons to exercise the Warrants; and

                  (iii)    Be accompanied by the originally executed copy of
                           this Stock Warrant Agreement.

         (e)      PARTIAL EXERCISE. In the event of a partial exercise of the
                  Warrants, the Company shall either issue a new agreement for
                  the balance of the Shares subject to this Stock Warrant
                  Agreement after such partial exercise, or it shall
                  conspicuously note hereon the date and number of Shares
                  purchased pursuant to such exercise and the number of Shares
                  remaining covered by this Stock Warrant Agreement.

         (f)      RESTRICTIONS ON EXERCISE. The Warrants may not be exercised
                  (i) if the issuance of the Shares upon such exercise would
                  constitute a violation of any applicable federal or state
                  securities or banking laws or other law or regulation or (ii)
                  unless the Bank or the holder hereof, as applicable, obtains
                  any approval or other clearance which the Bank determines to
                  be necessary or advisable from the Federal Reserve Board, the
                  Office of the Comptroller of the Currency, the Federal Deposit
                  Insurance Corporation or any other state or federal banking
                  regulatory agency with regulatory authority over the operation
                  of Company or the Bank (collectively the "Regulatory
                  Agencies"). The Company may require representations and
                  warranties from the Warranty Holder as required to comply with
                  applicable laws or regulations, including the Securities Act
                  of 1933 and state securities laws.

         2.       ANTI-DILUTION; MERGER. If, prior to the exercise of Warrants
hereunder, the Company (i) declares, makes or issues, or fixes a record date for
the determination of holders of common stock entitled to receive, a dividend or
other distribution payable on the Shares in shares of its capital stock, (ii)
subdivides the outstanding Shares, (iii) combines the outstanding Shares, (iv)
issues any shares of its capital stock by reclassification of the Shares,
capital reorganization or otherwise (including any such reclassification or
reorganization in connection with a consolidation or merger or and sale of all
or substantially all of the Company's assets to any person), then the Exercise
Price, and the number and kind of shares receivable upon exercise, in effect at
the time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification shall be proportionately adjusted
so that the holder of any Warrant exercised after such time shall be entitled to
receive the aggregate number and kind of shares which, if such Warrant had been
exercised immediately prior to such time, he would have owned upon such exercise
and been entitled to receive by virtue of such dividend, distribution,
subdivision, combination, reclassification, reorganization, consideration,
merger or sale.

         3.       VALID ISSUANCE OF COMMON STOCK. The Company possesses the full
authority and legal right to issue this Warrant and the Shares issuable pursuant
to this Warrant. The issuance

                                      -2-

<PAGE>

of this Warrant vests in the holder the entire legal and beneficial interests in
this Warrant, free and clear of any liens, claims, and encumbrances and subject
to no legal or equitable restrictions of any kind except as described herein.
The Shares that are issuable upon exercise of this Warrant, when issued, sold
and delivered in accordance with the terms of this Agreement for the
consideration expressed herein, will be duly and validly issued, fully paid, and
non-assessable, and will be free of restrictions on transfer other than
restrictions under applicable state and federal securities.

         4.       RESTRICTIONS ON TRANSFERABILITY. This the Agreement and the
Warrants may not be assigned, transferred, pledged, or hypothecated in any way
(whether by operation of law or otherwise) and shall not be subject to
execution, attachment, or similar process. Any attempted assignment, transfer,
pledge, hypothecation, or other disposition of these Warrants contrary to the
provisions hereof shall be without legal effect. The Shares issuable on exercise
of the Warrants may not be assigned or transferred by the Warrant Holder unless,
if so requested by the Company, the Warrant Holder delivers to the Company an
opinion of counsel in form and substance satisfactory to the Company stating
that such transfer or assignment is in compliance with the Securities Act of
1933 and applicable state securities laws.

         5.       MANDATORY EXERCISE; TERMINATION.

         (a)      Warrant Holder shall exercise all of Warrant Holder's then
                  exercisable Warrants within 90 days of the date that Warrant
                  Holder ceases to serve the Company as an executive officer,
                  employee, or director, or the then exercisable Warrants shall
                  terminate; provided that such 90 day period shall be extended
                  to one year if the cessation of service was a result of the
                  Warrant Holder's death or disability. If applicable, Warrant
                  Holder agrees to exercise any Warrants that are not
                  exercisable on the date in which Warrant Holder ceases to
                  serve the Company within 90 days of the date that those
                  Warrants become exercisable, or the then exercisable Warrants
                  shall terminate. In the event the Warrant Holder fails to
                  exercise any of the Warrants referred to in this subparagraph
                  within the 90 day periods, such Warrants shall be forfeited.

         (b)      The Company may be required to increase its capital to meet
                  capital requirements imposed by statute, rule, regulation, or
                  guideline. In order to achieve such capital increase, the
                  Regulatory Agencies may direct the Company to require the
                  Warrant Holders to either (i) exercise all or part of their
                  Warrants or (ii) allow the Warrants to be terminated. If the
                  Regulatory Agencies so direct the Company, then the Warrant
                  Holder must exercise or forfeit the Warrants as set forth
                  below.

         (c)      When the Company is required to increase its capital as
                  described in subsection (b) above, the Company shall send a
                  notice (the "Notice") to the Warrant Holder (i) specifying the
                  number of Shares relating to the Warrants for which the
                  Warrants must be exercised (the "Number") (if less than all
                  shares relating to warrants held by all holders of warrants of
                  the Company under agreements substantially similar to this one
                  are required by the Company to be exercised or cancelled, the
                  Number for the Warrant Holder shall reflect a proportionate
                  allocation based on the number of Shares subject to this
                  Agreement as compared to the total number of shares subject to
                  warrants held by all such warrant holders

                                      -3-

<PAGE>

                  as a group); (ii) specifying the date prior to which the
                  Warrants must be totally or partially exercised, as the case
                  may be (the "Deadline"); and (iii) stating that the failure of
                  the Warrant holder to exercise the Warrants shall result in
                  their automatic termination.

         (d)      If the Warrant Holder does not exercise the Warrants pursuant
                  to the terms of the Notice, this Agreement shall be
                  automatically terminated on the Deadline, without further act
                  or action by the Warrant Holder or the Company, and the
                  Warrant Holder shall deliver this Agreement to the Company for
                  cancellation. If the Number is less than the total number of
                  Shares that are then subject to exercise under this Agreement,
                  the Company shall issue a new Stock Warrant Agreement in
                  compliance with Section 1(e) hereof.

         6.       COVENANTS OF THE COMPANY. During the term of the Warrants,
the Company shall:

         (a)      at all times authorize, reserve and keep available, solely for
                  issuance upon exercise of this Warrant, sufficient shares of
                  common stock from time to time issuable upon exercise of this
                  Warrant;

         (b)      on receipt of evidence reasonably satisfactory to the Company
                  of the loss, theft, destruction or mutilation of this Warrant
                  and, in the case of loss, theft, or destruction, on delivery
                  of any indemnity agreement or bond reasonably satisfactory in
                  form and amount to the Company or, in the case of mutilation,
                  on surrender and cancellation of this Warrant, at its expense
                  execute and deliver, in lieu of this Warrant, a new Warrant of
                  like tenor; and

         (c)      on surrender for exchange of this Warrant or any Warrant
                  substituted therefor pursuant hereto, properly endorsed, to
                  the Company, at its expense, issue and deliver to or on the
                  order of the holder thereof a new Warrant or Warrants of like
                  tenor, in the name of such holder, calling in the aggregate on
                  the face or faces thereof for the issuances of the number of
                  shares of common stock issuable pursuant to the terms of the
                  Warrant or Warrants so surrendered.

         7.       NO DILUTION OR IMPAIRMENT. The Company shall not amend its
Articles of Incorporation or participate in any reorganization, transfer of
assets, consolidation, merger, dissolution, issuance or sale of securities or
any other voluntary action for the purpose of avoiding or seeking to avoid the
observance or performance of any of the terms to be observed or performed
hereunder by the Company, but will at all times in good faith assist in carrying
out all such action as may be reasonably necessary in order to protect the
exercise rights of the holder against improper dilution or other impairment.

         8.       AMENDMENT. Neither this Agreement nor the rights granted
hereunder may be amended, changed or waived except in writing signed by each
party hereto.

                                      -4-

<PAGE>

         IN WITNESS WHEREOF, the Company has executed and the holder has
accepted this Stock Warrant Agreement as of the date and year first above
written.

                                         TIDELANDS BANCSHARES, INC.

                                         By:
                                            ------------------------------------
                                               President
(CORPORATE SEAL)
                                         Attest:
                                                --------------------------------
                                                 Secretary

                                         WARRANT HOLDER:

                                         By:
                                            ------------------------------------
                                                  Signature

                                         ---------------------------------------
                                         Print Name

                                      -5-

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