Document:

First Amendment to the

Amended and Restated Employment Agreement
between

CresCom Bank and David L. Morrow

WHEREAS, CresCom
Bank (the “Bank”) and David J. Morrow (the “Executive)” are parties to an Amended and Restated Employment
Agreement dated as of December 24, 2008 (the “Agreement”);

WHEREAS, the parties
desire to modify the Agreement pursuant to Section 13 thereof to make certain changes the parties deem necessary and appropriate;

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, the parties hereby agree as follows:

First Change

All references to
“Crescent Bank” or the “Bank” in the Agreement shall refer to “Crescom Bank”.

Second Change

Section 2 is hereby
amended by adding the following sentence to the end thereof:

“Notwithstanding
anything in this Section 2 to the contrary, unless otherwise mutually agreed by the parties in writing, no annual extensions of
the term of the Agreement shall occur after the date Executive attains age 70.”

Third Change

Section 3(a) is
hereby amended by substituting “$270,000” for “$197,600” therein and Section 3(b) is hereby amended by
deleting the third sentence thereof (referring to the two percent (2%) of pre-tax, pre-incentive earnings incentive bonus).

Fourth Change

Section 3(d) (referring
to the payment of director’s fees) is hereby deleted and replaced with the following: “(d) Reserved.”

Fifth Change

Sections 4(b) is
hereby amended to read as follows:

“(b) (i) Upon
the occurrence of an Event of Termination, the Bank shall pay Executive, or, in the event of his subsequent death, his beneficiary
or beneficiaries, or his estate, as the case may be, as severance pay or liquidated damages, or both, a lump sum amount equal to
three (3) times the average of the sum of the following items in each of the three (3) years preceding his Date of Termination:
(i) Executive’s annualized Base Salary (as defined in Section 3(a) above), (ii) all other cash compensation paid to Executive by
the Bank in each year of the relevant period and (iii) contributions made on the Executive’s behalf to any employee benefit plans
sponsored by the Bank; provided however, that if the Bank is not in compliance with its minimum capital requirements or if such
payments would cause the Bank’s capital to be reduced below its minimum capital requirements, such payments shall be deferred until
such time as the Bank is in capital compliance.

    	 

    	 

    

(ii) Upon the occurrence
of an Event of Termination, all payments shall be made in a lump sum within thirty (30) days after the Date of Termination, provided
however if the Executive is a “specified employee” (as defined in Treasury Regulation §1.409A-1(i)), then, solely
to the extent required to avoid penalties under Code Section 409A, such payment shall be delayed until the first day of the seventh
month following the Executive’s Date of Termination. Such payment(s) shall not be reduced in the event the Executive obtains other
employment following termination of employment. Notwithstanding anything herein to the contrary, in the event of a Change in Control,
as defined in Section 5 hereof, followed within one (1) year by an Event of Termination, any payments to the Executive under this
Agreement shall be made solely in accordance with Section 5 hereof.”

Sixth Change

Section 5(c) is hereby amended to read
as follows:

“(c) Upon the occurrence of a
Change in Control, followed by Executive’s termination of employment in the circumstances described in Section 5(b), the Bank shall
pay Executive, or in the event of his subsequent death, his beneficiary or beneficiaries, or his estate, as the case may be, as
severance pay or liquidated damages, or both, an amount equal t o 2.99 times the average of the sum of the following items in each
of the five completed calendar years preceding his termination of employment (or such shorter period as Executive shall have been
employed by the Bank): ( i ) Executive’s “annual compensation” (as defined below) and (ii) contributions made on the
Executive’s behalf to any employee benefit plans of the Bank and its affiliates. For purposes of this Section 5(c), Executive’s
“annual compensation” shall mean the amount reported by the Bank in Box 1 of Executive’s Form W-2(s) for a calendar
year (but excluding income attributable to the vesting of equity compensation or the exercise of stock options). Any payments to
which Executive may be entitled under this Section 5(c) shall be made in a lump sum within thirty (30) days after the Date of Termination
following the Change in Control, or in the event that Code Section 409A applies and Executive is a “specified employee”
within the meaning of Code Section 409A, no later than the first day of the seventh month following the Executive’s Date of Termination.”

Seventh Change

Section 10 is hereby
amended to read as follows:

“If, and only
if, Executive’s employment is terminated for the reasons set forth in Section 4(a) hereof, and such termination occurs prior to
the end of the Executive’s term of employment under this Agreement, Executive agrees that, for a period of one (1) year following
the effective date of his termination under Section 4(a), Executive shall not, without the written consent of the Board, become
an officer, employee, consultant, director, independent contractor, agent, sole proprietor, partner or trustee of any bank or bank
holding company, savings bank, savings and loan association, savings and loan holding company, any mortgage or loan broker or any
other entity competing with the Bank or its affiliates, if such position entails working within (or providing services within)
thirty (30) miles of the Bank’s main office.”

    	 

    	 

    

Eighth Change

Section 19 is hereby
amended to read as follows:

“All reasonable
legal fees paid or incurred by Executive pursuant to any dispute or question of interpretation relating to this Agreement, whether
brought in good faith by the Bank (or any successors thereto) or Executive, shall be paid or reimbursed by the Bank if Executive
is the prevailing party with respect to such matter, provided, however, that such reimbursement shall occur not later than thirty
(30) days after the date that Executive becomes entitled to reimbursement of legal fees under this Section 19 (but in no event
later than two and one-half months after the end of the year in which the expense was incurred). Notwithstanding the foregoing,
with respect to disputes or questions of interpretation arising prior to July 1, 2012. payment or reimbursement shall be made to
Executive without regard to whether Executive is the prevailing party with respect to such matter.”

****

In all other respects,
the terms of the Agreement are hereby ratified and confirmed. This First Amendment may executed by the parties in counterparts.

IN WITNESS WHEREOF,
the parties have executed this First Amendment, effective as of September 19, 2012.

	 	CRESCOM BANK
	 	 	 
	 	 	 
	 	 /s/ Manly Eubank
	 	Name: 	 Manly Eubank 
	 	Title:	 Chairman - Compensation Committee
	 	 	 
	 	 	 
	 	 /s/ David L. Morrow
	 	David L. MorrowCAROLINA FINANCIAL CORPORATION

AMENDED AND RESTATED SUPPLEMENTAL
EXECUTIVE AGREEMENT

This Amended and
Restated Supplemental Executive Agreement (the “Agreement”) is made effective as of December 24, 2008, by and between
Carolina Financial Corporation (the “Company”) and David L. Morrow (the “Executive”) to supplement the
amended and restated employment agreement between Executive and Crescent Bank (the “Bank”), a wholly-owned subsidiary
of the Company, dated December 24, 2008 (the “Employment Agreement”). Capitalized terms which are not defined herein
shall have the same meaning as set forth in the Employment Agreement (and any successor thereto).

WHEREAS, the Company
and the Executive are currently parties to a supplemental executive agreement entered into on August 2, 2006 (the “Original
Agreement”); and

WHEREAS, the Company
desires to amend and restate the Original Agreement in order to make changes to comply with Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) and the final regulations issued thereunder in April 2007; and

WHEREAS, the Executive
has agreed to such changes; and

WHEREAS, the Board
of Directors of the Company, and the Executive believe it is in the best interests of the Company to enter into the Agreement in
order to reinforce and reward the Executive for his service and dedication to the continued success of the Company and incorporate
the changes required by Section 409A of the Code.

NOW, THEREFORE,
in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties
hereby agree as follows:

Section 1.
(a) In the event of a termination of Executive’s employment with the Bank under Section 5 of the Employment Agreement, Executive
shall be entitled to receive, pursuant to this Agreement, an amount payable by the Company, in addition to any compensation or
benefits payable by the Bank pursuant to Section 5(c) and 5(d) of the Employment Agreement, which amount shall equal the difference,
if any, between (i) the amount that would be paid by the Bank under the Employment Agreement pursuant to Sections 5 without regard
to any reduction that maybe required by Section 5(f), and (ii) the amount that is actually paid under the terms of the Employment
Agreement. Any payments hereunder shall be made in a lump sum within thirty (30) days after the Date of Termination, or in the
event the Executive is a Specified Employee (within the meaning of Treasury Regulations §1.409A-1(i)), and to the extent necessary
to avoid penalties under Section 409A of the Code, payment shall be made to the Executive on the first day of the seventh month
following the Executive’s Date of Termination.

(b)For purposes
of Section 1, termination of Executive’s employment with the Bank under Section 5 of the Employment Agreement as used herein
shall mean “Separation from Service” as defined in Section 409A of the Code and the Treasury Regulations promulgated
thereunder, provided, however, that the Bank and Executive reasonably anticipate that the level of bona fide services Executive
would perform after termination would permanently decrease to a level that is less than 50% of the average level of bona fide services
performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period.

    	 

    	 

    

Section 2.
(a) In the event that any payments or benefits provided or to be provided to the Executive pursuant to Section 5 of the Employment
Agreement, in combination with payments or benefits, if any, from other plans or arrangements maintained by the Company or the
Bank, constitute “excess parachute payments” under Section 280G of the Code and are subject to excise tax under Section
4999 of the Code, the Company shall pay to Executive in cash an additional amount equal to the amount of the Gross Up Payment as
defined herein. The “Gross Up Payment” shall be the amount needed to ensure that the amount of such payments and the
value of such benefits received by Executive (net of such excise tax and any federal, state and local tax on the Company’s
payment to him attributable to such excise tax) equals the amount of such payments and value of such benefits as he would receive
in the absence of such excise tax and any federal, state and local tax on the Company’s payment to him attributable to such
excise tax. The Company shall pay the Gross Up Payment within thirty (30) days after the Date of Termination, or in the event the
Executive is a Specified Employee (within the meaning of Treasury Regulations §1.409A-1(i)), and to the extent necessary to
avoid penalties under Section 409A of the Code, payment shall be made to the Executive on the first day of the seventh month following
the Executive’s Date of Termination. For purposes of determining the amount of the Gross Up Payment, the value of any non-cash
benefits and deferred payments or benefits shall be determined by the Company’s independent auditors in accordance with the
principles of Sections 280G(d)(3) and (4) of the Code.

(b)In the event
that, after the Gross Up Payment is made, the amount of the excise tax described is determined to be less than the amount calculated
in the determination of the actual Gross Up Payment made by the Company, Executive shall repay to the Company, at the time that
such reduction in the amount of excise tax is finally determined, the portion of the Gross Up Payment attributable to such reduction,
plus interest on the amount of such repayment at the applicable federal rate under Section 1274 of the Code from the date of the
Gross Up Payment to the date of the repayment. The amount of the reduction of the Gross Up Payment shall reflect any subsequent
reduction in excise taxes resulting from such repayment.

(c)In the event
that, after the Gross Up Payment is made, the amount of the excise tax is determined to exceed the amount anticipated at the time
the Gross Up Payment was made, the Company shall pay to the Executive, in immediately available funds, within thirty (30) days
following the date that such additional amount of excise tax is finally determined, an additional payment (“Additional Gross
Up Payment”) equal to such additional amount of excise tax and any federal, state and local taxes thereon, plus all interest
and penalties, if any, owed by the Executive with respect to such additional amount of excise and other tax.

(d)The Company shall have the right
to challenge, on Executive’s behalf, any excise tax assessment against him as to which Executive is entitled to (or would
be entitled if such assessment is finally determined to be proper) a Gross Up Payment or Additional Gross Up Payment, provided
that all costs and expenses incurred in such a challenge shall be borne by the Company and the Company shall indemnify the
Executive and hold him harmless, on an after-tax basis, from any excise or other tax (including interest and penalties with respect
thereto) imposed as a result of such payment of costs and expenses by the Company.

    	 

    	 

    

Section 3.Any
payments made to the Executive pursuant to this Agreement or otherwise, are subject to and conditioned upon compliance with all
applicable banking laws and regulations, including, without limitation, 12 U.S.C. Section 1828(k) and any regulations promulgated
thereunder.

Section 4.This Agreement
shall be deemed effective as of the date first above written, as if executed on such date. Except as expressly set forth herein,
this Agreement shall not by implication or otherwise alter, modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the Employment Agreement, all of which are ratified and affirmed in all respects and shall
continue in full force and effect and shall be otherwise unaffected.

Section 5.This
Agreement shall be governed by the laws of the State of South Carolina but only to the extent not superseded by federal law.

Section 6.This
Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed an original, and all of
which together shall constitute but one and the same instrument.

Section 7.This
Agreement shall be interpreted and administered consistent with Section 409A of the Code.

IN WITNESS WHEREOF,
the Employers and the Executive have duly executed this Agreement as of the day and year first written above.

	ATTEST:	 	CAROLINA FINANCIAL CORPORATION
	 	 	 	 
	/s/ Frank J. Cole, Jr.	 	By:	 /s/ Frank E. Lucas
	Secretary	 	 	Frank E. Lucas
	 	 	 	 
	WITNESS:	 	EXECUTIVE
	 	 	 	 
	 /s/ Ann Sonnycalf	 	By:	 /s/ David L. Morrow
	 	 	 	David L. Morrow

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