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                       RICHMOND SAVINGS BANK, INC., SSB
                              EMPLOYMENT AGREEMENT


     THIS AGREEMENT entered into as of November 22, 1996, by and between
RICHMOND SAVINGS BANK, INC., SSB (hereinafter referred to as the "Savings Bank")
and R. LARRY CAMPBELL (hereinafter referred to as the "Officer") and is joined
in by CAROLINA FINCORP, INC., the parent holding company of the Savings Bank
(hereinafter referred to as the "Holding Company").

     WHEREAS, the Officer has heretofore been employed by the Savings Bank as
its President and Chief Executive Officer; and

     WHEREAS, the Savings Bank is a state-chartered stock savings bank and the
wholly-owned subsidiary of the Holding Company; and

     WHEREAS, the Savings Bank desires to retain the services of the Officer as
the President and Chief Executive Officer of the Savings Bank upon the terms and
conditions set forth herein; and

     WHEREAS, the Savings Bank considers the establishment and maintenance of a
sound and vital management to be part of its overall corporate strategy and to
be essential to protecting and enhancing the best interests of the Holding
Company, the Savings Bank and their stockholders; and

     WHEREAS, the parties desire to enter into this Agreement in order to set
forth the terms and conditions of the Officer's employment relationship with the
Savings Bank.

     NOW, THEREFORE, for and in consideration of the premises and mutual
promises, covenants and conditions hereinafter set forth and other good and
valuable considerations, the receipt and sufficiency of which hereby are
acknowledged, the parties hereby do agree as follows:

     1.  Employment.  The Savings Bank hereby agrees to employ the Officer and
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the Officer hereby agrees to accept employment, upon the terms and conditions
stated herein, as the President and Chief Executive Officer of the Savings Bank.
The Officer shall render such administrative and
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management services to the Savings Bank as are customarily performed by persons
situated in a similar executive capacity.  The Officer shall promote the
business of the Savings Bank and perform such other duties as shall, from time
to time, be reasonably prescribed by the Board of Directors of the Savings Bank
(the "Board").

     2.  Compensation.  The Savings Bank shall pay the Officer during the term
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of this Agreement, as compensation for all service rendered by him to the
Savings Bank, a base salary at the rate of $95,400 per annum, payable in cash
not less frequently than monthly; provided that the rate of such salary shall be
reviewed by the Board not less often than annually.  Such rate of salary, or
increased rate of salary, as the case may be, may be further increased from time
to time in such amounts as the Board, in its discretion, may decide.  The
Officer will be entitled to such customary fringe benefits, vacation and sick
leave as are consistent with the normal practices and established policies of
the Savings Bank.

     3.  Bonus Compensation.  The Officer shall be entitled to participate in
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any bonus compensation plan adopted by the Directors of the Savings Bank which
would apply to the Officer's position.

     4.  Participation in Retirement and Employee Benefit Plans; Fringe
         --------------------------------------------------------------
Benefits.  The Officer shall be entitled to participate in any plan relating to
deferred compensation, stock awards, stock options, stock purchases, pension,
thrift, profit sharing, group life insurance, medical and dental coverage,
disability coverage, education, or other retirement or employee benefits that
the Savings Bank or the Holding Company have adopted, or may, from time to time
adopt, for benefit of their executive employees and for employees generally,
subject to the eligibility rules of such plans.

     The Officer shall also be entitled to participate in any other fringe
benefits which are now or may be or become applicable to the Officer or the
Savings Bank's other executive employees, including the

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payment of reasonable expenses for attending annual and periodic meetings of
trade associations, and any other benefits which are commensurate with the
duties and responsibilities to be performed by the Officer under this Agreement.
Additionally, the Officer shall be entitled to such vacation and sick leave as
shall be established under uniform employee policies promulgated by the
Directors.  The Savings Bank shall reimburse the Officer for all out-of-pocket
reasonable and necessary business expenses which the Officer may incur in
connection with his services on behalf of the Savings Bank.

     5.  Term. The term of employment under this Agreement shall be for a period
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of three (3) years commencing on the effective date of this Agreement (effective
date meaning the date first set forth above), and will automatically extend on a
year to year basis at the conclusion of the initial three year period provided
neither the Board nor the Officer give the other written notice at least 90 days
prior to the expiration date of the initial three year period, and provided that
neither give the other written notice at least 90 days prior to the expiration
date of any subsequent yearly period, and further provided that this section be
additionally subject to provisions in Section 8(c).

     6.  Loyalty.  The Officer shall devote his full efforts and entire business
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time to the performance of his duties and responsibilities under this Agreement.

     The Officer agrees that he will hold in confidence all knowledge or
information of a confidential nature with respect to the respective businesses
of the Holding Company, the Savings Bank or of their subsidiaries, if any,
received by him during the term of this Agreement and will not disclose or make
use of such information, except in the ordinary course of his duties under this
Agreement, without the prior written consent of the Holding Company or the
Savings Bank.

     7.  Standards.  The Officer shall perform his duties and responsibilities
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under this Agreement in accordance with such reasonable standards as expected of
the Officer and as outlined in Section 1 of this Agreement, and as may be
established from time to time by the Board.

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     8.  Termination and Termination Pay.
         ------------------------------- 

     (a) The Officer's employment under this Agreement shall be terminated upon
the death of the Officer during the term of this Agreement, in which event, the
Officer's estate shall be entitled to receive the compensation due the Officer
through the last day of the calendar month in which his death shall have
occurred and for a period of one month thereafter.

     (b) The Officer's employment under this Agreement may be terminated at any
time by the Officer upon sixty (60) days' written notice to the Board of
Directors.  Upon such termination, the Officer shall be entitled to receive
compensation through the effective date of such termination.

     (c) The Board may terminate this Agreement at any time, or request
Officer's resignation, but only upon a two-thirds vote of the Board.  Any
termination of the Officer by the Board shall not prejudice the Officer's right
to compensation or other benefits under this Agreement for the remaining period
which would have been covered by this Agreement if such termination had not
occurred. However, in no event will the Officer be compensated for more or less
than twelve months.  Any benefits to which the Officer may be entitled shall not
be affected.

     9.  Additional Regulatory Requirements.
         ---------------------------------- 

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

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

     (c) If the Savings Bank is in default as defined in Section 3(x)(1) of the
Federal Deposit Insurance Act (12 U.S.C. (S) 1818(x)(1)), all obligations under
this Agreement shall terminate as of the date of default, but this paragraph
shall not affect any vested rights of the contracting parties.

     (d) All obligations under this Agreement shall be terminated, except to the
extent determined that continuation of the Agreement is necessary for the
continued operation of the Savings Bank, (i) by the Federal Deposit Insurance
Corporation (the "Corporation"), at the time the Corporation enters into an
agreement to provide assistance to or on behalf of the Savings Bank under the
authority contained in Section 13(c) of the Federal Deposit Insurance Act (12
U.S.C. (S) 1818(c)); or (ii) by the Administrator of the Savings Institution
Division of the North Carolina Department of Commerce (the "Administrator"), at
the time the Administrator approves a supervisory merger to resolve problems
related to operation of the Savings Bank or when the Savings Bank is determined
by the Administrator to be in an unsafe or unsound condition.  Any rights of the
parties that have already vested, however, shall not be affected by such action.

     10.  Change in Control.
          ----------------- 

     (a) In the event of a "Change in Control" (as defined in Subsection (b)
below), the term of employment under this Agreement shall automatically be
extended for a period of three (3) years beginning on the date of the Change in
Control, and the acquiror shall be bound by the terms of this Agreement and
shall be prohibited, during the remainder of the term of this Agreement, from:

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          (i)   Assigning Officer any duties and/or responsibilities that are
          inconsistent with his position, duties, responsibilities or status at
          the time of the Change in Control or with his reporting
          responsibilities or equivalent titles with the Savings Bank in effect
          at such time; or

          (ii)  Adjusting Officer's annual base salary rate other than in
          accordance with the provisions of Section 2 of this Agreement; or

          (iii) Reducing in level, scope or coverage or eliminating Officer's
          life insurance, medical or hospitalization insurance, disability
          insurance, profit sharing plans, stock option plans, stock purchase
          plans, deferred compensation plans, bonus compensation plans,
          management retention plans, retirement plans or similar plans or
          benefits being provided by the Savings Bank or the Holding Company to
          the Officer as of the effective date of the Change in Control; or

          (iv)  Transferring Officer to a location more than forty (40) miles
          distant from Officer's primary work station at the time of a Change in
          Control, without the Officer's express written consent.

     (b)  For the purposes of this Agreement, the term "Change in Control" shall
mean any of the following events:

          (i)   a change in control of a nature that would be required to be
          reported by the Holding Company in response to Item 1 of the Current
          Report on Form 8-K, as in effect on the date hereof, pursuant to
          Section 13 or 15(d) of the Exchange Act; or

          (ii)  such time as any "person" (as such term is used in Sections
          13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
          owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
          indirectly, of securities of the Holding Company or Savings Bank
          representing 25 percent or more of the combined voting power of the
          outstanding Common Stock of the Holding Company or Common Stock of the
          Savings Bank, as applicable; or

          (iii) individuals who constitute the Board or board of directors of
          the Holding Company on the date hereof (the "Incumbent Board" and
          "Incumbent Holding Company Board," respectively) cease for any reason
          to constitute at least a majority thereof, provided that any person
          becoming a director subsequent to the date hereof whose election was
          approved by a vote of at least three-quarters of the directors
          comprising the Incumbent Board or Incumbent Holding Company Board, as
          applicable, or whose nomination for election by the Savings Bank's or
          Holding Company's shareholders was approved by the Savings Bank's

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          or Holding Company's Board of Directors or Nominating Committee, as
          applicable, shall be considered as though he or she were a member of
          the Incumbent Board or Incumbent Holding Company Board, as applicable;
          or

          (iv)  either the Holding Company or the Savings Bank consolidates or
          merges with or into another corporation, association or entity or is
          otherwise reorganized, where neither the Holding Company nor the
          Savings Bank, respectively, is the surviving corporation in such
          transaction; or

          (v)   all or substantially all of the assets of either the Holding
          Company or the Savings Bank are sold or otherwise transferred to or
          are acquired by any other entity or group.

     Notwithstanding the other provisions of this Section 10, a transaction or
event shall not be considered a Change in Control if, prior to the consummation
or occurrence of such transaction or event, Officer and Savings Bank agree in
writing that the same shall not be treated as a Change in Control for purposes
of this Agreement.

     11.  Successors and Assigns.
          ---------------------- 

     (a)  This Agreement shall inure to the benefit of and be binding upon any
corporate or other successor of the Savings Bank which shall acquire, directly
or indirectly, by conversion, merger, consolidation, purchase or otherwise, all
or substantially all of the assets of the Holding Company or the Savings Bank.

     (b)  Since the Savings Bank is contracting for the unique and personal
skills of the Officer, the Officer shall be precluded from assigning or
delegating his rights or duties hereunder without first obtaining the written
consent of the Savings Bank.

     12.  Noncompetition.  Officer agrees that he will not, for a period of 12
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full months after separation from the Savings Bank, become a director or
officer, or go to work for or become employed by any bank, savings bank, or
similar financial institution, or engage in, raid or attempt to switch any

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customers on the books of the Savings Bank at the time the Officer separated
from the Savings Bank. This covenant applies only to the North Carolina counties
of Richmond, Moore and Scotland and is in no way intended to prevent Officer
from gaining employment in any other financial institution except within the
counties herein listed.

     13.  Modification; Waiver; Amendments.  No provision of this Agreement may
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be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing, signed by the Officer and on behalf of the Savings Bank
by such officer as may be specifically designated by the Directors.  No waiver
by either party hereto, at any time, of any breach by the other party hereto of,
or compliance with, any condition or provision of this Agreement to be performed
by such other party shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time.  No amendments or
additions to this Agreement shall be binding unless in writing and signed by
both parties, except as herein otherwise provided.

     14.  Applicable Law.  This Agreement shall be governed in all respects
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whether as to validity, construction, capacity, performance or otherwise, by the
laws of North Carolina, except to the extent that federal law shall be deemed to
apply.

     15.  Severability.  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.

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     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first hereinabove written.

                                 RICHMOND SAVINGS BANK, INC., SSB


                                 By:    /s/ J. Stanley Vetter, M..D.
                                    --------------------------------------------
                                       Chairman of the Board



                                        /s/ R. Larry Campbell            (SEAL)
                                 -----------------------------------------
                                          R. Larry Campbell



     The foregoing Agreement is consented and agreed to by Carolina Fincorp,
Inc., the parent holding company of Richmond Savings Bank, Inc., SSB.


                                 CAROLINA FINCORP, INC.


                                 By:    /s/ J. Stanley Vetter, M.D.
                                    --------------------------------------------
                                    Member of Board of Directors

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