Document:

Exhibit 10.1

    

    

    EMPLOYMENT AGREEMENT

        

    

    THIS EMPLOYMENT AGREEMENT is made and entered into this 15th day of January, 2019, by and among SmartFinancial, Inc., a
        Tennessee corporation (“Company”), SmartBank, a banking corporation organized under the laws of the State of Tennessee (“Bank”), and David A. Bright, a resident of the State of North Carolina (“Executive”). Company, Bank, and Executive are sometimes referred to herein collectively as the “Parties,” and each is sometimes referred to herein individually as a “Party.”

        

      

    R E C I T A L S

    

    

    A. Simultaneously with the Parties’ execution of this
        Agreement, Company; CT Merger Sub, Inc., a North Carolina corporation (“Merger Sub”); and Entegra Financial Corp., a North
        Carolina corporation  (“ENFC”), have entered into an Agreement and Plan of Merger dated January 15, 2019 (the “Merger Agreement”), which contemplates (i) the merger of Merger Sub with and into ENFC (the “Subsidiary Merger”), (ii) the subsequent merger of ENFC with and into the Company immediately following the Subsidiary Merger (the “Holding Company Merger”), and (iii) the subsequent merger of Entegra Bank, a North Carolina-chartered bank (“Entegra”), with and into Bank immediately following the Holding Company Merger (the “Bank Merger” and together with the Subsidiary Merger and the Holding Company Merger, collectively, the “Mergers”).

     

      

    B. Executive is currently employed by ENFC and Entegra as
        Chief Financial Officer of ENFC and Entegra pursuant to an Employment and Change of Control Agreement dated November 1, 2014, by and among ENFC, Entegra, and Executive (the “2014 Entegra Agreement”).

     

      

    C. The Parties desire to enter into this Agreement to
        provide for, and to set forth in writing the terms and conditions of, Executive’s employment with Company and Bank as Chief Financial Officer of Company and Bank following the Mergers, with this Agreement to supersede the 2014 Entegra Agreement.

     

          

    AGREEMENT

     

      

    In consideration of the premises set forth above and the mutual agreements hereinafter set forth, the Parties hereby agree as
        follows:

     

      

    1. Definitions.  Whenever used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:

     

      

    (a) “Affiliate” shall mean, with respect to any entity, any other entity that controls, is controlled by, or is under common control with such entity. For this purpose, “control”
        means ownership of more than 50% of the ordinary voting power of the outstanding equity securities of an entity.

     

      

    (b) “Agreement” shall mean this Employment Agreement together with any amendments hereto made in the manner described in this Agreement.

     

      

    (c) “Boards of Directors” shall mean, collectively, the board of directors of Company and the board of directors of Bank and, where appropriate, any committee or other designee
        thereof.

     

      

    (d) “Business of Employer” shall mean any business conducted by Company or Bank or any of their respective Affiliates, including the business of commercial, retail, and consumer
        banking.

    
      
        

    

    
    (e) “Cause” shall mean, in the context of the termination of this Agreement by Employer:

     

      

    (i) a material breach of the terms of this Agreement by
        Executive not cured by Executive within 15 business days after Executive’s  receipt of Employer’s written notice thereof, including without limitation failure by Executive to perform Executive’s duties and responsibilities in the manner and to the
        extent required under this Agreement;

     

      

    (ii) any act by Executive of fraud against,
        misappropriation from, or dishonesty to Company or Bank or any Affiliate of Company or Bank;

     

      

    (iii) the conviction of Executive of, or Executive’s plea
        of guilty or nolo contendere to, a felony or any crime involving fraud or moral turpitude;

     

      

    (iv) conduct by Executive that amounts to willful
        misconduct, gross neglect, or a material failure to perform Executive’s duties and responsibilities hereunder, including prolonged absences without the consent of the Chief Executive Officer of Company and Bank; provided that the nature of such conduct shall be set forth with reasonable particularity in a written notice to Executive who shall have 15 business days following
        delivery of such notice to cure such alleged conduct, provided that such conduct is, in the reasonable discretion of the Chief Executive
        Officer of Company and Bank, susceptible to a cure;

     

      

    (v) the exhibition by Executive of a standard of behavior
        within the scope of or related to Executive’s employment that is in violation of any written policy, board committee charter, or code of ethics or business conduct (or similar code) of Company or Bank or any Affiliate of Company or Bank to which
        Executive is subject; provided that the nature of such conduct shall be set forth with reasonable particularity in a written notice to
        Executive who shall have 15 business days following delivery of such notice to cure such alleged conduct, provided that such conduct is, in the
        reasonable discretion of the Chief Executive Officer of Company and Bank, susceptible to a cure;

     

      

    (vi) conduct or behavior by Executive, including without
        limitation conduct or behavior that is unethical and/or involves moral turpitude, that, in the reasonable opinion of the Chief Executive Officer of Company and Bank, has harmed or could reasonably be expected to harm, in each case in any material
        respect, the business or reputation of Company or Bank;

     

      

    (vii) receipt of any form of written notice that any
        regulatory agency or authority having jurisdiction over Company or Bank or any Affiliate of Company or Bank has instituted any form of regulatory action against Executive; or

     

      

    (viii) Executive’s removal from office and/or permanent
        prohibition from participating in the conduct of Company’s or Bank’s affairs as a result of an order issued under Section 8(e) or Section 8(g) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e) and (g)).

     

      

    (f) “Change in Control” shall mean:

     

      

    (i) a change in the ownership of Company or Bank within
        the meaning of Treasury Regulations § 1.409A-3(i)(5)(v);

     

      

    (ii) a change in the effective control of Company within
        the meaning of Treasury Regulations § 1.409A-3(i)(5)(vi)(A)(2); or

    
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    (iii) a change in the ownership of a substantial portion
        of Company’s or Bank’s assets within the meaning of Treasury Regulations § 1.409A-3(i)(5)(vii), substituting 80% for 40% under Treasury Regulations § 1.409A-3(i)(5)(vii)(A).

     

      

    (g) “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

     

      

    (h) “Competing Business” shall mean any person (other than an Affiliate of Company or Bank) that is conducting any business that is the same or substantially the same as the Business
        of Employer.

     

      

    (i) “Confidential Information” shall mean all information not generally known to the public, whether spoken, printed, electronic, or in any other form or medium, relating to the
        business, practices, policies, plans, prospects, operations, results of operations, financial condition or results, strategies, know-how, patents, trade secrets, inventions, intellectual property, records, suppliers, vendors, customers, clients,
        products, services, employees, independent contractors, personnel, systems, or internal controls of Company or Bank or any Affiliate of Company or Bank, or of any other person that has entrusted information to Company or Bank or any Affiliate of
        Company or Bank in confidence, as well as any other information that is marked or otherwise identified as confidential or proprietary or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and under
        the circumstances in which the information is known or used. The term “Confidential Information” shall include information developed by Executive in the course of Executive’s employment by Employer as if Employer furnished the same Confidential
        Information to Executive in the first instance. The term “Confidential Information” shall not include information that, through no fault of Executive or person(s) acting in concert with Executive or on Executive’s behalf, is generally available to
        and known by the public at the time of disclosure to Executive or thereafter becomes generally available to and known by the public.

     

      

    (j) “Disability” shall mean the inability of Executive to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be
        expected to result in death or can be expected to last for a continuous period of not less than 12 months.

     

      

    (k) “Employer” shall mean, collectively, Company and Bank.

     

      

    (l) “Good Reason” shall mean, in the context of the termination of this Agreement by Executive:

     

      

    (i) a material diminution in Executive’s authority,
        duties, or responsibilities, as compared to Executive’s authority, duties, and responsibilities as of the Effective Date, which is not consented to by Executive in writing;

     

      

    (ii) a material diminution in Executive’s Annual Base
        Salary which is not consented to by Executive in writing;

     

      

    (iii) a change in the location of Executive’s primary
        office such that Executive is required to report regularly to an office located outside of a 75-mile radius from the location of Executive’s primary office as of the Effective Date, which change is not consented to by Executive in writing; or

     

      

    (iv) a material breach of the terms of this Agreement by
        Employer.

    
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    (m) “IRS” shall mean the United States Internal Revenue Service.

     

      

    (n) “Post-Termination Period” shall mean a period of 12 months (subject to extension as set forth in Section 8(f))
        following the effective date of the termination of Executive’s employment.

     

      

    (o) “Restricted Area” shall mean (i) during the period of Executive’s employment, a radius of 50 miles from each banking office (whether a main office, branch office, or loan or
        deposit production office) maintained by Bank or any Affiliate of Bank from time to time during such period of employment and (ii) following the termination of Executive’s  employment, a radius of 50 miles from each banking office (whether a main
        office, branch office, or loan or deposit production office) maintained by Bank or any Affiliate of Bank as of date of termination of Executive’s employment.

     

      

    (p) “Separation from Service” shall have the meaning set forth in, and whether Executive has experienced a Separation from Service shall be determined by Employer in accordance with,
        Treasury Regulations § 1.409A-1(h).

     

      

    2. Executive Duties.

     

      

    (a) Position(s); Reporting.  Executive shall be employed as Chief Financial Officer of Company and Bank and shall perform and discharge faithfully the duties and responsibilities which may be assigned
        to Executive from time to time in connection with the conduct of the business of Employer. The duties and responsibilities of Executive shall be commensurate with those of individuals holding similar positions at other banks and bank or financial
        holding companies similarly organized. Executive shall report directly to the Chief Executive Officer of Company and Bank.

     

      

    (b) Full-Time Status.  In addition to the duties and responsibilities specifically assigned to Executive pursuant to Section 2(a),
        Executive shall:

     

      

    (i) subject to Section 2(c), during regular business hours, devote substantially all of Executive’s time, energy, attention, and skill to the performance of the duties and responsibilities of
        Executive’s employment (reasonable vacations, approved leaves of absence, and reasonable absences due to illness excepted) and faithfully and industriously perform such duties and responsibilities;

     

      

    (ii) diligently follow and implement all reasonable and
        lawful policies and decisions communicated to Executive by the Boards of Directors or the Chief Executive Officer of Company and Bank; and

     

      

    (iii) timely prepare and forward to the Boards of
        Directors or the Chief Executive Officer of Company and Bank all reports and accountings as may be reasonably requested of Executive.

    
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    (c) Permitted Activities.  Executive shall devote substantially all of Executive’s business time, attention, and energies to the Business of Employer and shall not during the Term be engaged (whether
        or not during normal business hours) in any other significant business or professional activity, whether or not such activity is pursued for gain, profit, or other pecuniary advantage, provided that, as long as the following activities do not interfere with Executive’s obligations to Employer, this Section 2(c)
        shall not be construed as preventing Executive from:

     

      

    (i) investing Executive’s personal assets in any manner
        which will not require any services on the part of Executive in the operation or affairs of the subject entity and in which Executive’s participation is solely that of an investor, provided that such investment activity following the Effective Date shall not result in Executive owning beneficially at any time 2% or more of the equity securities of any Competing Business; or

     

      

    (ii) participating in civic and professional affairs and
        organizations and conferences, preparing or publishing papers or books, or teaching, so long as any such activities do not interfere with the ability of Executive to effectively discharge Executive’s duties and responsibilities hereunder, provided that the Chief Executive Officer of Company and Bank may direct Executive in writing to resign from any such organization and/or cease any
        such activities in the event the Chief Executive Officer reasonably determines that continued membership in such organization and/or activities of the type identified would not be in the best interests of Company or Bank or any of their Affiliates.

     

      

    3. Term.  The effectiveness of this Agreement is expressly contingent upon the consummation of the Mergers. Accordingly, the initial term of this Agreement (the “Initial Term”) shall commence on the date on which the last of the Mergers becomes effective
          (the “Effective Date”) (it being
          contemplated by the Parties that all of the Mergers will become effective on the same date) and, unless this Agreement is sooner terminated in accordance with its terms, shall end on the date which is the second anniversary of the Effective Date.
          At the end of the Initial Term (and the end of any one-year renewal term(s) herein provided for), this Agreement will automatically renew for an additional, successive term of one year, unless Employer or Executive gives the other Party written
          notice of such Party’s election to terminate this Agreement as of the end of the Initial Term (or then-current renewal term) at least 60 days prior to the end of the Initial Term (or then-current renewal term). The Initial Term and any and all
          such renewal terms are referred to together herein as the “Term.”

     

      

    4. Compensation.  Employer shall compensate Executive as follows during Executive’s period of employment, except as otherwise provided below:

     

      

    (a) Annual Base Salary.  Executive shall be compensated at a base annual rate of $250,000 per year (the “Annual Base Salary”). Executive’s Annual Base Salary will be reviewed by the compensation committee of Company’s board of directors at least annually, in accordance with the compensation committee’s charter and any
        procedures adopted by the compensation committee, for adjustment based on an evaluation of Executive’s performance. Executive’s Annual Base Salary shall be payable in accordance with Employer’s normal payroll practices.

     

      

    (b) Annual
        Incentive Compensation.

     

      

    (i) Executive shall be eligible to receive such annual
        incentive compensation, if any, as may be determined by, and based on performance measures established by, the board of directors of Company (or its designee) consistent with the strategic plan of Company, pursuant to any incentive compensation
        plan or program that may be adopted from time to time by the board of directors of Company (“Incentive Compensation”),
        including without limitation an annual cash bonus (the “ACIP Bonus”) based upon the achievement of performance goals under
        Employer’s Annual Cash Incentive Plan.

     

      

    (ii) Any Incentive Compensation earned shall be payable
        in cash not later than March 15th of the year following the year in which the Incentive Compensation is earned in accordance with Employer’s normal practices for the payment of short-term incentives. The payment of any Incentive Compensation shall
        be subject to and conditioned on Executive being employed by Employer on December 31st of the year in which the Incentive Compensation is earned, Executive’s employment with Employer having not been terminated by Employer for Cause prior to the
        payment of such Incentive Compensation, and any approvals or non-objections required from or by any regulatory authority having jurisdiction over Company or Bank, and it is understood by the Parties that it is contemplated that Executive may not be
        eligible to receive any such Incentive Compensation or other short-term incentive compensation if Company or Bank is subject to restrictions imposed on Company or Bank by the Board of Governors of the Federal Reserve System, the Federal Deposit
        Insurance Corporation, the Tennessee Department of Financial Institutions, or any other regulatory authority, or if Company or Bank is otherwise restricted from making payment of such compensation under applicable law, rule, or regulation.

    
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    (c) Automobile.  Employer will provide Executive with an Employer-owned automobile reasonably satisfactory to Executive and Employer for use by Executive. Executive acknowledges that Employer makes no
        representation with respect to the taxability or non-taxability of the benefits provided under this Section 4(c).

     

      

    (d) Cellular Telephone.  Employer will provide Executive with an Employer-owned cellular telephone for use by Executive in the course of Executive’s employment. Executive acknowledges that Employer
        makes no representation with respect to the taxability or non-taxability of the benefits provided under this Section 4(d).

     

      

    (e) Business Expenses.  Subject to the reimbursement policies of Employer in effect from time to time and consistent with the annual budget approved for the period during which an expense is incurred,
        Employer will reimburse Executive for reasonable and necessary business expenses incurred by Executive in the performance of Executive’s duties hereunder; provided, however, that, as a condition to any such reimbursement, Executive shall submit verification of the nature and
        amount of such expenses in accordance with said reimbursement policies. Executive acknowledges that Employer makes no representation with respect to the taxability or non-taxability of the benefits provided under this Section 4(e).

     

      

    (f) Paid Leave.  On a non-cumulative basis, Executive shall be entitled to 25 days paid leave per calendar year, prorated for any partial calendar year of service. The provisions of this Section 4(f) shall apply notwithstanding any less generous paid leave policy then maintained by Employer, but Executive’s use of such paid leave shall otherwise
        be in accordance with Employer’s paid leave policy as in effect from time to time.

     

      

    (g) Other Benefits.  In addition to the benefits specifically described in this Agreement, Executive shall be entitled to such other benefits as may be available from time to time to employees of
        Employer generally, including, by way of example only, retirement plan and health, dental, life, and disability insurance benefits. All such benefits shall be awarded and administered in accordance with the written terms of any applicable benefit
        plan or, if no written terms exist, Employer’s standard policies and practices relating to such benefits.

     

      

    (h) Reimbursement of Expenses; In-Kind Benefits.  All expenses eligible for reimbursement described in this Agreement must be incurred by Executive during the Term of this Agreement to be eligible for
        reimbursement. Any in-kind benefits provided by Employer must be provided during the Term of this Agreement. The amount of reimbursable expenses incurred, and the amount of any in-kind benefits provided, in one taxable year shall not affect the
        expenses eligible for reimbursement, or in-kind benefits provided, in any other taxable year. Each category of reimbursement shall be paid as soon as administratively practicable, but in no event shall any such reimbursement be paid after the last
        day of the calendar year following the calendar year in which the expense was incurred. Neither rights to reimbursement, nor in-kind benefits, shall be subject to liquidation or exchange for other benefits.

    
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    (i) Claw Back of Compensation.  Executive agrees to repay any compensation previously paid or otherwise made available to Executive that is subject to recovery under any applicable law, rule, or
        regulation (including any rule of any exchange or service on or through which any securities of the Company are listed or traded). Executive agrees to repay promptly any such compensation identified by Company or Bank. If Executive fails to repay
        any such compensation promptly, Executive agrees that the amount of such compensation may be deducted from any and all other compensation owed to Executive under this Agreement or otherwise. Executive acknowledges that Employer may take appropriate
        disciplinary action (up to, and including, termination of Executive’s employment for Cause) if Executive fails to repay any such compensation. The provisions of this Section 4(i)
        shall be modified to the extent, and remain in effect for the period, required by applicable law, rule, or regulation.

     

      

    5. Termination of Employment.

     

      

    (a) Termination by Employer.  During the Term, Executive’s employment may be terminated by Employer:

     

      

    (i) at any time for Cause, as determined by the Chief
        Executive Officer of Company and Bank; or

     

      

    (ii) at any time without Cause (provided that Employer shall give Executive at least 60 days prior written notice of its intent to terminate), in which event Employer shall be required to (A) pay to
        Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit equal to 2.5 times Executive’s Annual Base Salary as of the date of termination, said benefit to be
        payable in equal installments over the course of the 30-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, and (B) if Executive timely and properly elects health continuation coverage under
        the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), timely pay on behalf of Executive the monthly (or
        other) COBRA premium for such coverage for Executive and his dependents until the earliest of (x) the 12-month anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA
        continuation coverage, and (z) the date on which Executive becomes eligible to receive substantially similar coverage from another employer (notice of which eligibility Executive shall promptly give to Employer). Notwithstanding the foregoing, if
        payments under clause (B) of this Section 5(a)(ii) would cause Employer to violate the nondiscrimination rules applicable to non-grandfathered plans under
        the Affordable Care Act (the “ACA”), or result in the imposition of penalties under the ACA and the related regulations and
        guidance promulgated thereunder, the Parties agree to reform clause (B) of this Section 5(a)(ii) in such manner as is necessary to comply with the ACA
        while, to the extent reasonably practicable, preserving the benefit provided for in clause (B) of this Section 5(a)(ii). Notwithstanding the foregoing,
        Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(a)(ii) unless within
        45 days after the date of termination of Executive’s employment Executive executes and delivers to Employer a separation agreement containing a full release of claims and covenant not to sue in form and substance reasonably satisfactory to Employer
        and Executive (the “Separation Agreement”) and the Separation Agreement is not revoked within any revocation period specified
        in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(a)(ii), and the payment of the same by Employer shall immediately cease, in the event of a breach by Executive of Section 7 or Section 8.   

    
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    (b) Termination by Executive.  During the Term, Executive’s employment may be terminated by Executive:

     

      

    (i) at any time for Good Reason, provided that (A) before terminating his employment for Good Reason, (1) Executive shall give notice to Employer of the existence of Good Reason for termination,
        which notice must be given by Executive to Employer within 60 days of the initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable detail the condition(s) giving rise to Good Reason for
        termination and (2) Employer shall have 30 days from the effective date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (B) such termination must occur within 12 months of the initial existence of the
        condition(s) giving rise to Good Reason for termination. In the event of the termination of Executive’s employment for Good Reason, Employer shall be required to (A) pay to Executive (or, in the event of Executive’s death, Executive’s estate,
        heirs, or designated beneficiaries, as the case may be) a severance benefit equal to (1) if termination is for Good Reason as defined in Section 1(l)(i) or
        Section 1(l)(iii), 2.5 times Executive’s Annual Base Salary as of the date of termination, said benefit to be payable in equal installments over the course
        of the 30-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, or (2) if termination is for Good Reason as defined in Section 1(l)(ii), 2.5 times Executive’s Annual Base Salary immediately prior to the diminution in Annual Base Salary giving rise to termination, said benefit to be payable in equal installments over the course of the
        30-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, and (B) if Executive timely and properly elects health continuation coverage under COBRA, timely pay on behalf of Executive the monthly
        (or other) COBRA premium for such coverage for Executive and his dependents until the earliest of (x) the 12-month anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA
        continuation coverage, and (z) the date on which Executive becomes eligible to receive substantially similar coverage from another employer, notice of which eligibility Executive shall promptly give to Employer (provided that, if Employer making payments under this clause (B) would violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result
        in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform this clause (B) in such manner as is necessary to comply with the ACA while, to the extent reasonably
        practicable, preserving the benefit provided for in this clause (B)). Notwithstanding the foregoing, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(b)(i) unless within 45 days after the date of termination of Executive’s employment Executive executes and delivers to Employer the Separation
        Agreement and the Separation Agreement is not revoked within any revocation period specified in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer shall have no obligation to pay the severance
        benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(b)(i), and the payment of the same by Employer shall immediately cease, in
        the event of a breach by Executive of Section 7 or Section 8; or

     

      

    (ii) at any time without Good Reason (provided that Executive shall give Employer at least 60 days prior written notice of Executive’s intent to terminate).

     

      

    (c) Termination Upon Disability.  During the Term, Executive’s employment may be terminated by Employer upon the Disability of Executive (provided that Employer shall give Executive at least 60 days prior written notice of its intent to terminate). For the avoidance of doubt, termination for Disability under this Section 5(c) shall not be considered termination without Cause.

     

      

    (d) Termination Upon Death.  Executive’s employment shall terminate automatically upon the death of Executive. For the avoidance of doubt, termination of Executive’s employment upon the death of
        Executive under this Section 5(d) shall not be considered termination without Cause.

    
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    (e) Termination by Mutual Agreement.  During the Term, Executive’s employment may be terminated at any time by mutual written agreement of the Parties.

     

      

    (f) Non-Renewal of Agreement.  For the avoidance of doubt, the Parties expressly acknowledge and agree that neither the election by a Party to not renew or extend this Agreement pursuant to Section 3 nor the termination of Executive’s employment in connection with any such election shall give rise to any severance or other payment or benefit to
        Executive under this Agreement.

     

      

    (g) Effect of Termination; Resignation.  Upon the termination of Executive’s employment, Employer shall have no further obligations to Executive or Executive’s estate, heirs, beneficiaries, executors,
        administrators, or legal or personal representatives under or with respect to this Agreement, except for the payment of any amounts earned and owing under Sections 4(a)
        and 4(b) as of the effective date of the termination of Executive’s employment and any payment(s) required by Section 5(a)(ii), Section 5(b)(i), or Section 6 of this Agreement. Further, upon the termination of Executive’s employment, (i) if Executive is a member of the board of directors of Company or the board of directors of Bank, or the board of directors of
        any Affiliate of Company or Bank, Executive shall, at the request of Employer, resign from Executive’s position(s) on such boards, and (ii) Executive shall, at the request of Employer, resign from any officer position(s) held by Executive at any
        Affiliate of Company or Bank, in each case with any and all such resignations to be effective not later than the date on which Executive’s employment is terminated unless a later effective date is agreed to by Employer.

     

      

    6. Change in Control.

     

      

    (a) If, within 18 months following a Change in Control,
        Employer (or any successor of or to Employer) terminates Executive’s employment without Cause, Employer (or its successor) shall be required to (i) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated
        beneficiaries, as the case may be) a severance benefit in an amount equal to 2.5 times the sum of (A) Executive’s Annual Base Salary as of the date of termination plus (B) the average of the two most recent ACIP Bonuses paid to Executive prior to
        the Change in Control (the “ACIP Bonus Amount”), said benefit to be payable in one lump sum payment within 60 days following
        the date of termination of Executive’s employment, and (ii) if Executive timely and properly elects health continuation coverage under COBRA, timely pay on behalf of Executive the monthly (or other) COBRA premium for such coverage for Executive and
        his dependents until the earliest of (x) the 18-month anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA continuation coverage, and (z) the date on which Executive becomes
        eligible to receive substantially similar coverage from another employer (notice of which eligibility Executive shall promptly give to Employer). Notwithstanding the foregoing, if payments under clause (ii) of this Section 6(a) would cause Employer to violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and
        the related regulations and guidance promulgated thereunder, the Parties agree to reform clause (ii) of this Section 6(a) in such manner as is necessary to
        comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided for in clause (ii) of this Section 6(a). Notwithstanding
        the foregoing, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(a) unless

        within 45 days after the date of termination of Executive’s employment Executive executes and delivers to Employer (or its successor) the Separation Agreement and the Separation Agreement is not revoked within any revocation period specified in the
        Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(a), and the payment of the same by Employer (or its successor) shall immediately cease, in the event of a breach by Executive of Section 7 or Section 8.

    
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    (b) If, within 18 months following a Change in Control, Executive terminates his employment with Employer (or its successor) for Good Reason (provided that (x) before terminating his employment for Good Reason, Executive shall give notice to Employer (or its successor) of the existence of Good Reason for termination, which notice must be given by Executive
        to Employer (or its successor) within 60 days of the initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable detail the condition(s) giving rise to Good Reason for termination, and Employer
        (or its successor) shall have 30 days from the effective date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (y) such termination must occur within 12 months of the initial existence of the condition(s)
        giving rise to Good Reason for termination), Employer (or its successor) shall be required to (i) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a severance
        benefit in an amount equal to (A) if termination is for Good Reason as defined in Section 1(l)(i) or Section 1(l)(iii), 2.5 times the sum of (1) Executive’s Annual Base Salary as of the date of termination plus (2) the ACIP Bonus Amount, said benefit to be payable in one lump sum payment within 60 days
        following the date of termination of Executive’s employment, or (B) if termination is for Good Reason as defined in Section 1(l)(ii), 2.5 times the sum of
        (1) Executive’s Annual Base Salary immediately prior to the diminution in Annual Base Salary giving rise to termination and (2) the ACIP Bonus Amount, said benefit to be payable in one lump sum payment within 60 days following the date of
        termination of Executive’s employment, and (ii) if Executive timely and properly elects health continuation coverage under COBRA, timely pay on behalf of Executive the monthly (or other) COBRA premium for such coverage for Executive and his
        dependents until the earliest of (x) the 18-month anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA continuation coverage, and (z) the date on which Executive becomes
        eligible to receive substantially similar coverage from another employer, notice of which eligibility Executive shall promptly give to Employer (provided

        that, if Employer making payments under this clause (ii) would violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and the related regulations and
        guidance promulgated thereunder, the Parties agree to reform this clause (ii) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided for in this clause (ii)).
        Notwithstanding the foregoing, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(b) unless within 45 days after the date of termination of Executive’s employment Executive executes and delivers to Employer (or its successor) the Separation Agreement and the Separation Agreement is not revoked
        within any revocation period specified in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA
        premiums contemplated by this Section 6(b), and the payment of the same by Employer (or its successor) shall immediately cease, in the event of a breach by
        Executive of Section 7 or Section 8.

     

      

    7. Confidential Information.

     

      

    (a) Executive understands and acknowledges that, during
        the course of Executive’s employment with Employer, Executive will have access to and learn of and about Confidential Information. Executive acknowledges and agrees that all Confidential Information of Company or Bank or their respective Affiliates
        that Executive accesses, receives, learns of, or develops while Executive is employed by Employer shall be and will remain the sole and exclusive property of Company and Bank and their respective Affiliates.

    
      10

      
        

    

    (b) Executive understands and acknowledges that Company
        and Bank and their respective Affiliates have invested, and continue to invest, substantial time, money, and specialized knowledge into developing their resources, creating a customer base, generating customer and potential customer lists, training
        their employees, and improving their offerings in the field of banking and financial services. Executive understands and acknowledges that, as a result of these efforts, Company and Bank and their respective Affiliates have created and continue to
        use and create Confidential Information, and that the Confidential Information provides Company and Bank and their respective Affiliates with a competitive advantage over others in the marketplace.

     

      

    (c) Executive covenants and agrees (i) to treat all
        Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, communicate, or make available Confidential Information, or allow it to be disclosed, communicated, or made available, in whole or in part, to any
        person (including other employees of Company or Bank or their respective Affiliates) not having a need to know and authority to know and use the Confidential Information in connection with the business of Company or Bank or their respective
        Affiliates, and, in any event, not to anyone outside of the direct employ of Company or Bank or their respective Affiliates except as required in the performance of Executive’s authorized employment duties to Employer or with the prior consent of
        the Chief Executive Officer of Company and Bank in each instance (in which case such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not
        to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of Company or Bank or any of their
        respective Affiliates, except as required in the performance of Executive’s authorized employment duties to Employer or with the prior consent of the Chief Executive Officer of Company and Bank in each instance (in which case such access, use,
        copying, or removal shall be only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law, rule, or regulation or
        pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not
        exceed the extent of disclosure required by such law, rule, regulation, or order. Executive shall promptly provide written notice of any such order to the Chief Executive Officer of Company and Bank.

     

      

    (d) Notwithstanding any other provision of this Agreement:

     

      

    (i) Executive will not be held criminally or civilly
        liable under any federal or state trade secret law for any disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (2) solely for the
        purpose of reporting or investigating a suspected violation of law, or (B) is made in a complaint or other document filed under seal in a lawsuit or other proceeding; and

     

      

    (ii) If Executive files a lawsuit for retaliation by
        Employer for reporting a suspected violation of law, Executive may disclose trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive (A) files any document containing trade secrets under seal
        and (B) does not disclose trade secrets, except pursuant to court order.

     

      

    (e) Executive understands and acknowledges that
        Executive’s obligations under this Agreement with regard to any particular Confidential Information shall commence, or shall be deemed to have commenced, immediately upon Executive first having access to such Confidential Information (whether
        before or after the Effective Date) and shall continue during and after Executive’s employment by Employer until such time as such Confidential Information has become public knowledge other than as a result of Executive’s breach of this Agreement
        or a breach by any person acting in concert with or at the direction of Executive or acting on Executive’s behalf.

     

      

    (f) At any time upon request by Employer, and in any event
        upon termination of Executive’s employment with Employer, Executive will promptly deliver to Employer all property of or belonging to Employer, including without limitation all Confidential Information, then in Executive’s possession or control.

    
      11

      
        

    

    8. Non-Competition; Non-Solicitation; Non-Disparagement.

     

      

    (a) Non-Competition.  Executive agrees that, during the period of Executive’s employment by Employer hereunder and, in the event of the termination of Executive’s employment during the Term by
        Executive without Good Reason or in connection with an election by Executive to not renew (and thus terminate) this Agreement pursuant to Section 3, for the
        duration of the Post-Termination Period, Executive will not (except on behalf of or with the prior written consent of Company or Bank) (i) within the Restricted Area, either directly or indirectly, on Executive’s own behalf or in the service of or
        on behalf of others, engage in any business, activity, enterprise, or venture competitive with the Business of Employer; (ii) within the Restricted Area, either directly or indirectly, perform for any Competing Business any services that are the
        same as, or substantially the same as, the services Executive performs or performed for Employer; (iii) within the Restricted Area, accept employment with or be employed by any person engaged in any business, activity, enterprise, or venture
        competitive with the Business of Employer; or (iv) work for or with, consult for, or otherwise be affiliated with or be employed by any person or group of persons proposing to establish a new bank or other financial institution within the
        Restricted Area.

     

      

    (b) Non-Solicitation of Customers.  Executive agrees that, during the period of Executive’s employment by Employer hereunder and, in the event of the termination of Executive’s employment for any
        reason, for the duration of the Post-Termination Period, Executive will not directly or indirectly (except on behalf of or with the prior written consent of Company or Bank), on Executive’s own behalf or in the service of or on behalf of others,
        solicit, divert, or appropriate, or attempt to solicit, divert, or appropriate, any business from any customers of Company or Bank or any customers of any Affiliate of Company or Bank, including prospective customers actively sought by Company or
        Bank or any Affiliate of Company or Bank with whom Executive has or had contact during the last two years of Executive’s employment with Employer, for purposes of selling, offering, or providing products or services that are competitive with those
        sold, offered, or provided by Company or Bank or any Affiliate of Company or Bank.

     

      

    (c) Non-Solicitation of Employees.  Executive agrees that, during the period of Executive’s employment by Employer hereunder and, following the termination of Executive’s employment for any reason,
        for the duration of the Post-Termination Period, Executive will not directly or indirectly (except on behalf of or with the prior written consent of Company or Bank), on Executive’s own behalf or in the service of or on behalf of others, solicit,
        recruit, or hire away, or attempt to solicit, recruit, or hire away, any employee of Company or Bank or any Affiliate of Company or Bank with whom Executive had contact during the last two years of Executive’s employment, regardless of whether such
        employee is a full-time, part-time, or temporary employee of Company or Bank or an Affiliate of Company or Bank or such employee’s employment is pursuant to a written agreement, for a determined period, or at will.

     

      

    (d) Non-Disparagement.  Executive agrees that, both during the period of Executive’s employment by Employer hereunder and following the termination of Executive’s employment, Executive will not make
        any disparaging statements or remarks (written or oral) about Company or Bank or any Affiliate of Company or Bank or any of their respective officers, directors, employees, shareholders, agents, or representatives. Employer agrees that, following
        the termination of Executive’s employment, Employer will instruct its directors and senior executive officers to refrain from making any disparaging statements or remarks (written or oral) about Executive.

    
      12

      
        

    

    (e) Modification.  The Parties agree that the provisions of this Agreement represent a reasonable balancing of their respective interests and have attempted to limit the restrictions imposed on
        Executive to those necessary to protect Employer from inevitable disclosure of Confidential Information and unfair competition. The Parties agree that, if the scope or enforceability of this Agreement is in any way disputed at any time and an
        arbitrator, court, or other trier of fact determines that the scope of the restrictions contained in this Agreement is overbroad, then such arbitrator, court, or other trier of fact may modify the scope of the restrictions contained in this
        Agreement.

     

      

    (f) Tolling.  Executive agrees that, in the event Executive breaches this Section 8, the Post-Termination
        Period shall be tolled during, and therefore extended by, the period of such breach.

     

      

    (g) Remedies.  Executive agrees that the covenants contained in Section 7 and Section 8 of this Agreement are of the essence of this Agreement; that each of such covenants is reasonable and necessary to protect the business, interests, and properties of Company
        and Bank and their respective Affiliates; and that irreparable loss and damage will be suffered by Employer should Executive breach any of such covenants. Therefore, Executive agrees and consents that, in addition to all other remedies provided by
        or available at law or in equity, Employer shall be entitled to a temporary restraining order and temporary and permanent injunctions to prevent a breach or contemplated or threatened breach of any of the covenants contained in Section 7 or Section 8 of this Agreement and that, in such event,
        Employer shall not be required to post a bond. Employer and Executive agree that all remedies available to Employer shall be cumulative.

     

      

    9. Severability. The Parties agree that each of the provisions included in this Agreement is separate, distinct, and severable from the other provisions of this Agreement and that the invalidity or unenforceability of
          any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid or unenforceable by a court of competent jurisdiction because
          of a conflict between the provision and any applicable law, rule, regulation, or public policy, the provision shall be redrawn to make the provision consistent with, and valid and enforceable under, such law, rule, regulation, or public policy.

     

      

    10. No Set-Off by Executive. The existence of any claim, demand, action, or cause of action by Executive against Company or Bank or any Affiliate of Company or Bank, whether predicated upon this Agreement or otherwise,
          shall not constitute a defense to the enforcement by Employer of any of its rights under this Agreement.

     

      

    11. Notices.  All notices, requests, waivers, and
        other communications required or permitted hereunder shall be in writing and shall be either personally delivered; sent by national overnight courier service, postage prepaid, next-business-day delivery guaranteed; or mailed by first class United
        States Mail, postage prepaid return receipt requested, to the recipient at the address below indicated:          

     

      	
              If to Company or Bank:

            	
              If to Executive:

            
	 	 
	
              SmartFinancial, Inc.

            	
              David A. Bright

            
	
              SmartBank

            	
              40 Butler Ridge Trail

            
	
              5401 Kingston Pike, Suite 600

            	
              Hendersonville, North Carolina 28792

            
	
              Knoxville, Tennessee 37919

            	 
	
              Attention: President/CEO

            	 

      

      or to such other address or to the attention of such other person as the recipient Party shall have specified by prior written notice to the
          sending Party. All such notices, requests, waivers, and other communications shall be deemed to have been effectively given: (a) when personally delivered to the Party to be notified; (b) two business days after deposit with a national overnight
          courier service, postage prepaid, addressed to the Party to be notified as set forth above with next-business-day delivery guaranteed; or (c) four business days after deposit in the United States Mail, first class, postage prepaid with return
          receipt requested, at any time other than during a general discontinuance of postal service due to strike, lockout, or otherwise (in which case such notice, request, waiver, or other communication shall be effectively given upon receipt), and
          addressed to the Party to be notified as set forth above.

      
        13

        
          

      

      12. Assignment. Each of Company and Bank may assign this Agreement and its rights hereunder, and may delegate is duties and obligations under this Agreement, in each case without notice to or the consent of
            Executive, in connection with the consummation of a Change in Control. This Agreement is a personal contract, and neither this Agreement nor the rights, interest, duties, or obligations of Executive hereunder may be assigned or delegated by
            Executive. Subject to the preceding provisions of this Section 12, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.

       

        

      13. Waiver. A waiver by a Party of any provision of this Agreement or of any breach of this Agreement by any other Party shall not be effective unless in a writing signed by the Party granting such waiver, and no
            waiver shall operate or be construed as a waiver of the same or any other provision or breach on any other occasion.

       

        

      14. Mediation. Except with respect to Section 7, Section 8, and Section 22, in the event of any dispute arising out of or relating to this Agreement or a breach hereof, which dispute cannot be
            settled through direct discussions among the Parties, the Parties agree to first endeavor to settle the dispute in an amicable manner by non-binding, confidential mediation in Knoxville, Knox County, Tennessee before resorting to any other
            process for resolving the dispute.

       

          

      15. Applicable Law and Choice of Forum. This Agreement shall be governed by and construed and enforced under and in accordance with
            the laws of the State of Tennessee, without regard to or the application of principles of conflicts of laws. The Parties agree that any litigation, suit, action, or proceeding arising out of or related to this Agreement shall be instituted
            exclusively in the United States District Court for the Eastern District of Tennessee, Knoxville Division, or the courts of the State of Tennessee sitting in Knoxville, Knox County, Tennessee, and each Party irrevocably submits to the exclusive
            jurisdiction of and venue in such courts and waives any objection it might otherwise have to the jurisdiction of or venue in such courts.

       

        

      16. Interpretation. Words used herein importing any gender include all genders. Words used herein importing the singular shall include the plural and vice versa. When used herein, the terms “herein,” “hereunder,”
            “hereby,” “hereto,” and “hereof,” and any similar terms, refer to this Agreement. When used herein, the term “person” shall include an individual, a corporation, a limited liability company, a partnership, an association, a trust, and any other
            entity or organization, whether or not incorporated. Any captions, titles, or headings preceding the text of any section or subsection of this Agreement are solely for convenience of reference and shall not constitute part of this Agreement or
            affect its meaning, construction, or effect.

       

        

      17. Entire Agreement; No Duplication of Benefits.

       

          

      (a) This Agreement embodies the entire and final, integrated agreement of the Parties on the subject matter stated in this Agreement and supersedes all prior understandings and agreements (oral and
            written) of the Parties relating to the subject matter of this Agreement. No amendment or supplement to or modification of this Agreement shall be valid or binding upon any Party unless made in writing and signed by all Parties.

      
        14

        
          

      

      (b) The 2014 Entegra Agreement is
          expressly terminated and superseded by this Agreement as of the Effective Date, and neither Executive, ENFC, Entegra, Company, nor Bank shall have any further or continuing rights, duties, obligations, or liability under the 2014 Entegra
          Agreement. Without limiting the foregoing, Executive expressly acknowledges and agrees that Executive is owed no, and hereby waives any and all rights to any, further or additional compensation or benefits under the 2014 Entegra Agreement.

       

        

      (c) Any severance payments or benefits
          received by Executive pursuant to this Agreement shall be in lieu of any payments or benefits pursuant any general severance policy or other severance plan maintained by Company or Bank for the benefit of its employees generally.

       

        

      18. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. A signed copy of this Agreement
            delivered by facsimile, e-mail, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original manually signed copy of this Agreement.

       

        

      19. Rights of Third Parties. Nothing herein expressed is intended to or shall be construed to confer upon or give to any person, other than the Parties hereto and their respective successors and permitted assigns,
            any rights or remedies under or by reason of this Agreement.

       

        

      20. Legal Fees. In the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement, the prevailing Party or Parties shall be entitled to recover from the non-prevailing
            Party or Parties all reasonable fees, expenses, and disbursements, including without limitation reasonable attorneys’ fees and court costs, incurred by such prevailing Party or Parties in connection with such claim, action, suit, or proceeding,
            in addition to any other relief to which such prevailing Party or Parties may be entitled at law or in equity.

       

        

      21. Survival. The rights and obligations of the Parties under Sections 4(i), 5(a)(ii), 5(b)(i), 5(g), 6, 7, 8, 10, 14, 15, 20,
            21, 23, 24, and 26 shall survive the expiration and/or termination of this Agreement and the termination of Executive’s employment hereunder for the periods expressly designated in such sections or, if no such
            period is designated, for the maximum period permissible under applicable law.

       

        

      22. Representations Regarding Restrictive Covenants and Other Agreements. Executive represents and warrants to Employer that (a) the execution, delivery, and performance of this Agreement by Executive do not and
            will not conflict with, breach, violate, or cause a default under any contract, agreement, instrument, order, judgment, or decree to which Executive is a party or by which Executive is bound and (b) Executive is not, and will not become, a
            party to or bound by (i) any employment, non-competition, non-solicitation, or confidentiality agreement with any other person or (ii) any other agreement which would prohibit or impair Executive from providing or performing for Employer the
            services contemplated by this Agreement.

       

        

      23. Code Section 409A. Notwithstanding anything in this Agreement to the contrary, the following provisions shall apply to all benefits and payments provided under this Agreement by Employer to Executive:

       

          

      (a) The payment (or commencement of a series of payments) hereunder of any non-qualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment shall be
            delayed until such time as Executive has also undergone a Separation from Service, at which time such non-qualified deferred compensation (calculated as of the date of Executive’s termination of employment hereunder) shall be paid (or commence
            to be paid) to Executive as set forth in this Agreement as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive’s ultimate Separation from Service.

      
        15

        
          

      

      (b) If Executive is a specified employee (as determined by Employer in accordance with Section 409A of the Code and Treasury Regulations § 1.409A-3(i)(2)) as of Executive’s Separation from Service with
            Employer, and if any payment, benefit, or entitlement provided for in this Agreement or otherwise both (i) constitutes non-qualified deferred compensation (within the meaning of Section 409A of the Code) and (ii) cannot be paid or provided in a
            manner otherwise provided herein without subjecting Executive to additional tax or interest (or both) under Section 409A of the Code, then any such payment, benefit, or entitlement that is payable during the first six months following the
            Separation from Service shall be paid or provided to Executive in a lump sum cash payment to be made on the earlier of (x) Executive’s death and (y) the first business day of the seventh month immediately following Executive’s Separation from
            Service.

       

        

      (c) Any payment or benefit paid or provided under this Agreement due to a Separation from Service that is exempt from Section 409A of the Code pursuant to Treasury Regulations § 1.409A-1(b)(9)(v) will
            be paid or provided to Executive only to the extent that expenses are not incurred or the benefits are not provided beyond the last day of Executive’s second taxable year following Executive’s taxable year in which the Separation from Service
            occurs, provided that Employer reimburses such expenses
            no later than the last day of the third taxable year following Executive’s taxable year in which Executive’s Separation from Service occurs.

       

        

      (d) It is the Parties’ intent that the payments, benefits, and entitlements to which Executive could become entitled in connection with Executive’s employment under this Agreement be exempt from or
            comply with Section 409A of the Code and the regulations and other guidance promulgated thereunder, and, accordingly, this Agreement will be interpreted to be consistent with such intent. For purposes of the limitations on non-qualified
            deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the exclusion under Section 409A of the Code for short-term
            deferral amounts, the separation pay exception, or any other exception or exclusion under Section 409A of the Code.

       

        

      (e) While the payments and benefits provided for hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever
            shall Company or Bank or their respective Affiliates be liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the
            Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

       

        

      (f) No deferred compensation payments provided for under this Agreement shall be accelerated to Executive, except as permitted by Treasury Regulations § 1.409A-3(j)(4).

       

        

      (g) Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this
            Agreement that constitutes “deferred compensation” for purposes of Section 409A of the Code be subject to offset by any other amount unless permitted by Section 409A of the Code.

      
        16

        
          

      

      24. Tax Matters.

       

        

      (a) Withholding of Taxes.  Employer may deduct and withhold from any amounts payable under this Agreement all federal, state, local, or other taxes Employer is required to deduct or withhold
          pursuant to applicable law, rule, regulation, or ruling.

       

        

      (b) Excise Tax.

       

        

      (i) In the event that any payments or benefits provided
          or to be provided by Company or Bank or their respective Affiliates to Executive or for Executive’s benefit pursuant to the terms of this Agreement or otherwise (“Covered Payments”) constitute “parachute payments” within the meaning of Section 280G of the Code (or any successor provision thereto) and would, but for this Section 24(b), be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest
          or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making the Covered Payments the
          Parties will, to the extent practicable and reasonable, take such action and execute such documents as may be necessary to ensure that none of the Covered Payments will constitute “parachute payments” within the meaning of Section 280G of the
          Code (or any successor provision thereto), and in the event (but only in the event) it is not practicable and reasonable to take such action and execute such documents or it is not reasonably possible to ensure that none of the Covered Payments
          will constitute “parachute payments” within the meaning of Section 280G of the Code (or any successor provision thereto), then a calculation shall be made comparing (A) the Net Benefit (as defined below) to Executive of the Covered Payments after
          payment of the Excise Tax to (B) the Net Benefit to Executive if the Covered Payments are reduced to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under clause (A) above is less than the amount
          calculated under clause (B) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax. The term “Net Benefit” shall mean the present value of the Covered Payments net of all federal, state, local, foreign income, employment, and excise taxes. Any reduction made pursuant
          to this Section 24(b) shall be made in a manner determined by Employer that is consistent with the requirements of Section 409A of the Code.

       

        

      (ii) All determinations and calculations required under
          this Section 24(b), including any determination of whether any payments or benefits constitute “parachute payments,” shall be made by Employer in its sole
          discretion and shall be final and binding on Employer and Executive for all purposes. For purposes of making the determinations and calculations required by this Section 24(b),
          Employer may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. Executive shall furnish Employer with such information and documents as Employer may reasonably
          request in order for Employer to make its determinations and calculations under this Section 24(b).

       

        

      25. Regulatory Restrictions. The Parties expressly acknowledge and agree that (a) any and all payments contemplated by this Agreement are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k)
            and 12 C.F.R. Part 359, as such laws and regulations may be amended from time to time, and (b) the obligations of the Parties under this Agreement are generally subject to such conditions, restrictions, and limitations as may be imposed from
            time to time by applicable state and/or federal banking laws, rules, and regulations.

       

        

      26. Right to Contact. Executive acknowledges and agrees that Employer shall have the right to contact any new or potential employer of Executive (or other business) and apprise such person of Executive’s
          responsibilities and obligations owed under this Agreement.

       

        

      27. Effectiveness of the Agreement. For the avoidance of doubt, this Agreement shall not become effective and shall have not force or effect, and the Parties shall have no rights, duties, obligations, or
          liability hereunder, in the event the Mergers are not consummated.

      

      

      (Signature Page Follows)

      
        17

        
          

      

      IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement on the date first written above.

       

        

       
        	COMPANY:	SMARTFINANCIAL, INC.
	
                 

              	
                 

              	
                 

              
	
                 

              	By:	/s/ William Y. Carroll, Jr.
	
                 

              	
                 

              	William Y. Carroll, Jr.
	
                 

              	
                 

              	President and Chief Executive Officer

      

       

        

      	BANK:	
              SMARTBANK

            
	 	 	 
	 	By:	/s/ William Y. Carroll, Jr.
	 	 	William Y. Carroll, Jr.
	 	 	President and Chief Executive Officer

      

      

      
        	EXECUTIVE:	
                 

              
	
                 

              	
                 

              
	
                 

              	/s/ David A. Bright
	
                 

              	David A. Bright

      

      

      

      
        (Signature Page to Bright Employment Agreement)Exhibit 10.2

    

   

    

  EMPLOYMENT AGREEMENT

      

  

  THIS EMPLOYMENT AGREEMENT is made and entered into this 15th day of January, 2019, by and among SmartFinancial, Inc., a Tennessee corporation (“Company”), SmartBank, a banking corporation organized under the laws of the State of Tennessee (“Bank”), and Ryan M. Scaggs, a resident of the State of North Carolina (“Executive”).

    Company, Bank, and Executive are sometimes referred to herein collectively as the “Parties,” and each is sometimes referred to herein
    individually as a “Party.”

   

        

  R E C I T A L S

  

  

  A. Simultaneously with the Parties’ execution of this Agreement, Company; CT Merger Sub,
      Inc., a North Carolina corporation (“Merger Sub”); and Entegra Financial Corp., a North Carolina corporation  (“ENFC”), have entered into an Agreement and Plan of Merger dated January 15, 2019 (the “Merger Agreement”), which contemplates (i) the merger of Merger Sub with and into ENFC (the “Subsidiary Merger”),

      (ii) the subsequent merger of ENFC with and into the Company immediately following the Subsidiary Merger (the “Holding Company Merger”), and
      (iii) the subsequent merger of Entegra Bank, a North Carolina-chartered bank (“Entegra”), with and into Bank immediately following the
      Holding Company Merger (the “Bank Merger” and together with the Subsidiary Merger and the Holding Company Merger, collectively, the “Mergers”).

   

    

  B. Executive is currently employed by ENFC and Entegra as Executive Vice President and
      Chief Operating Officer of ENFC and Entegra pursuant to an Employment and Change of Control Agreement dated November 1, 2014, by and among ENFC, Entegra, and Executive (the “2014 Entegra Agreement”).

   

    

  C. The Parties desire to enter into this Agreement to provide for, and to set forth in
      writing the terms and conditions of, Executive’s employment with Company and Bank as Chief Operating Officer of Company and Bank following the Mergers, with this Agreement to supersede the 2014 Entegra Agreement.

   

    

  AGREEMENT

   

        

  In consideration of the premises set forth above and the mutual agreements hereinafter set forth, the Parties hereby agree as follows:

   

    

  1. Definitions.
        Whenever used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:

   

        

  (a) “Affiliate” shall mean, with respect to any entity, any other entity that controls, is controlled by, or is under common control with such entity. For this purpose, “control” means ownership of more than 50% of the
      ordinary voting power of the outstanding equity securities of an entity.

   

    

  (b) “Agreement” shall mean this Employment Agreement together with any amendments hereto made in the manner described in this Agreement.

   

    

  (c) “Boards of Directors” shall mean, collectively, the board of directors of Company and the board of directors of Bank and, where appropriate, any committee or other designee thereof.

  
    
      

  

  
  (d) “Business of Employer” shall mean any business conducted by Company or Bank or any of their respective Affiliates, including the business of commercial, retail, and consumer banking.

   

    

  (e) “Cause” shall mean, in the context of the termination of this Agreement by Employer:

   

    

  (i) a material breach of the terms of this Agreement by Executive not cured by
      Executive within 15 business days after Executive’s  receipt of Employer’s written notice thereof, including without limitation failure by Executive to perform Executive’s duties and responsibilities in the manner and to the extent required under
      this Agreement;

   

    

  (ii) any act by Executive of fraud against, misappropriation from, or dishonesty to
      Company or Bank or any Affiliate of Company or Bank;

   

    

  (iii) the conviction of Executive of, or Executive’s plea of guilty or nolo contendere
      to, a felony or any crime involving fraud or moral turpitude;

   

    

  (iv) conduct by Executive that amounts to willful misconduct, gross neglect, or a
      material failure to perform Executive’s duties and responsibilities hereunder, including prolonged absences without the consent of the Chief Executive Officer of Company and Bank; provided that the nature of such conduct shall be set forth with reasonable particularity in a written notice to Executive who shall have 15 business days following delivery of such notice to cure such alleged conduct, provided that such conduct is, in the reasonable discretion of the Chief Executive Officer of Company and Bank, susceptible to a cure;

   

    

  (v) the exhibition by Executive of a standard of behavior within the scope of or
      related to Executive’s employment that is in violation of any written policy, board committee charter, or code of ethics or business conduct (or similar code) of Company or Bank or any Affiliate of Company or Bank to which Executive is subject; provided that the nature of such conduct shall be set forth with reasonable particularity in a written notice to Executive who shall have 15 business days following
      delivery of such notice to cure such alleged conduct, provided that such conduct is, in the reasonable discretion of the Chief Executive Officer of Company and
      Bank, susceptible to a cure;

   

    

  (vi) conduct or behavior by Executive, including without limitation conduct or behavior
      that is unethical and/or involves moral turpitude, that, in the reasonable opinion of the Chief Executive Officer of Company and Bank, has harmed or could reasonably be expected to harm, in each case in any material respect, the business or
      reputation of Company or Bank;

   

    

  (vii) receipt of any form of written notice that any regulatory agency or authority
      having jurisdiction over Company or Bank or any Affiliate of Company or Bank has instituted any form of regulatory action against Executive; or

   

    

  (viii) Executive’s removal from office and/or permanent prohibition from participating
      in the conduct of Company’s or Bank’s affairs as a result of an order issued under Section 8(e) or Section 8(g) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e) and (g)).

   

    

  (f) “Change in Control” shall mean:

   

    

  (i) a change in the ownership of Company or Bank within the meaning of Treasury
      Regulations § 1.409A-3(i)(5)(v);

  
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  (ii) a change in the effective control of Company within the meaning of Treasury
      Regulations § 1.409A-3(i)(5)(vi)(A)(2); or

   

    

  (iii) a change in the ownership of a substantial portion of Company’s or Bank’s assets
      within the meaning of Treasury Regulations § 1.409A-3(i)(5)(vii), substituting 80% for 40% under Treasury Regulations § 1.409A-3(i)(5)(vii)(A).

   

    

  (g) “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

   

    

  (h) “Competing Business” shall mean any person (other than an Affiliate of Company or Bank) that is conducting any business that is the same or substantially the same as the Business of Employer.

   

    

  (i) “Confidential Information” shall mean all information not generally known to the public, whether spoken, printed, electronic, or in any other form or medium, relating to the business, practices, policies, plans,
      prospects, operations, results of operations, financial condition or results, strategies, know-how, patents, trade secrets, inventions, intellectual property, records, suppliers, vendors, customers, clients, products, services, employees, independent
      contractors, personnel, systems, or internal controls of Company or Bank or any Affiliate of Company or Bank, or of any other person that has entrusted information to Company or Bank or any Affiliate of Company or Bank in confidence, as well as any
      other information that is marked or otherwise identified as confidential or proprietary or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and under the circumstances in which the information is
      known or used. The term “Confidential Information” shall include information developed by Executive in the course of Executive’s employment by Employer as if Employer furnished the same Confidential Information to Executive in the first instance. The
      term “Confidential Information” shall not include information that, through no fault of Executive or person(s) acting in concert with Executive or on Executive’s behalf, is generally available to and known by the public at the time of disclosure to
      Executive or thereafter becomes generally available to and known by the public.

   

    

  (j) “Disability” shall mean the inability of Executive to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be
      expected to last for a continuous period of not less than 12 months.

   

    

  (k) “Employer” shall mean, collectively, Company and Bank.

   

    

  (l) “Good Reason” shall mean, in the context of the termination of this Agreement by Executive:

   

    

  (i) a material diminution in Executive’s authority, duties, or responsibilities, as
      compared to Executive’s authority, duties, and responsibilities as of the Effective Date, which is not consented to by Executive in writing;

   

    

  (ii) a material diminution in Executive’s Annual Base Salary which is not consented to
      by Executive in writing;

   

    

  (iii) a change in the location of Executive’s primary office such that Executive is
      required to report regularly to an office located outside of a 75-mile radius from the location of Executive’s primary office as of the Effective Date, which change is not consented to by Executive in writing; or

  
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  (iv) a material breach of the terms of this Agreement by Employer.

   

    

  (m) “IRS” shall mean the United States Internal Revenue Service.

   

    

  (n) “Post-Termination Period” shall mean a period of 12 months (subject to extension as set forth in Section 8(f)) following the effective date of
      the termination of Executive’s employment.

   

    

  (o) “Restricted Area” shall mean (i) during the period of Executive’s employment, a radius of 50 miles from each banking office (whether a main office, branch office, or loan or deposit production office) maintained by Bank
      or any Affiliate of Bank from time to time during such period of employment and (ii) following the termination of Executive’s  employment, a radius of 50 miles from each banking office (whether a main office, branch office, or loan or deposit
      production office) maintained by Bank or any Affiliate of Bank as of date of termination of Executive’s employment.

   

    

  (p) “Separation from Service” shall have the meaning set forth in, and whether Executive has experienced a Separation from Service shall be determined by Employer in accordance with, Treasury Regulations § 1.409A-1(h).

   

    

  2. Executive Duties.

   

    

  (a) Position(s);

        Reporting. Executive shall be employed as Chief Operating Officer of Company and Bank and shall perform and discharge faithfully the duties and responsibilities which may be assigned to Executive from time to time in connection with the
      conduct of the business of Employer. The duties and responsibilities of Executive shall be commensurate with those of individuals holding similar positions at other banks and bank or financial holding companies similarly organized. Executive shall
      report directly to the Chief Executive Officer of Company and Bank.

   

    

  (b) Full-Time

        Status. In addition to the duties and responsibilities specifically assigned to Executive pursuant to Section 2(a), Executive shall:

   

    

  (i) subject to Section 2(c),
      during regular business hours, devote substantially all of Executive’s time, energy, attention, and skill to the performance of the duties and responsibilities of Executive’s employment (reasonable vacations, approved leaves of absence, and
      reasonable absences due to illness excepted) and faithfully and industriously perform such duties and responsibilities;

   

    

  (ii) diligently follow and implement all reasonable and lawful policies and decisions
      communicated to Executive by the Boards of Directors or the Chief Executive Officer of Company and Bank; and

   

    

  (iii) timely prepare and forward to the Boards of Directors or the Chief Executive
      Officer of Company and Bank all reports and accountings as may be reasonably requested of Executive.

   

    

  (c) Permitted

        Activities.  Executive shall devote substantially all of Executive’s business time, attention, and energies to the Business of Employer and shall not during the Term be engaged (whether or not during normal business hours) in any other
      significant business or professional activity, whether or not such activity is pursued for gain, profit, or other pecuniary advantage, provided that, as long
      as the following activities do not interfere with Executive’s obligations to Employer, this Section 2(c) shall not be construed as preventing Executive from:

   

    

  (i) investing Executive’s personal assets in any manner which will not require any
      services on the part of Executive in the operation or affairs of the subject entity and in which Executive’s participation is solely that of an investor, provided
      that such investment activity following the Effective Date shall not result in Executive owning beneficially at any time 2% or more of the equity securities of any Competing Business; or

  
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  (ii) participating in civic and professional affairs and organizations and conferences,
      preparing or publishing papers or books, or teaching, so long as any such activities do not interfere with the ability of Executive to effectively discharge Executive’s duties and responsibilities hereunder, provided that the Chief Executive Officer of Company and Bank may direct Executive in writing to resign from any such organization and/or cease any such activities in the event the Chief
      Executive Officer reasonably determines that continued membership in such organization and/or activities of the type identified would not be in the best interests of Company or Bank or any of their Affiliates.

   

    

  3. Term. The
        effectiveness of this Agreement is expressly contingent upon the consummation of the Mergers. Accordingly, the initial term of this Agreement (the “Initial Term”) shall commence on the date on which the last of the Mergers becomes effective (the “Effective Date”) (it being contemplated by the Parties that all of the Mergers will become effective on the same date) and, unless this
        Agreement is sooner terminated in accordance with its terms, shall end on the date which is the second anniversary of the Effective Date. At the end of the Initial Term (and the end of any one-year renewal term(s) herein provided for), this
        Agreement will automatically renew for an additional, successive term of one year, unless Employer or Executive gives the other Party written notice of such Party’s election to terminate this Agreement as of the end of the Initial Term (or
        then-current renewal term) at least 60 days prior to the end of the Initial Term (or then-current renewal term). The Initial Term and any and all such renewal terms are referred to together herein as the “Term.”

   

    

  4. Compensation.
        Employer shall compensate Executive as follows during Executive’s period of employment, except as otherwise provided below:

   

    

  (a) Annual

        Base Salary.  Executive shall be compensated at a base annual rate of $250,000 per year (the “Annual Base Salary”). Executive’s
      Annual Base Salary will be reviewed by the compensation committee of Company’s board of directors at least annually, in accordance with the compensation committee’s charter and any procedures adopted by the compensation committee, for adjustment
      based on an evaluation of Executive’s performance. Executive’s Annual Base Salary shall be payable in accordance with Employer’s normal payroll practices.

   

    

  (b) Annual Incentive Compensation.

   

    

  (i) Executive shall be eligible to receive such annual incentive compensation, if any,
      as may be determined by, and based on performance measures established by, the board of directors of Company (or its designee) consistent with the strategic plan of Company, pursuant to any incentive compensation plan or program that may be adopted
      from time to time by the board of directors of Company (“Incentive Compensation”), including without limitation an annual cash bonus (the “ACIP Bonus”) based upon the achievement of performance goals under Employer’s Annual Cash Incentive Plan.

   

    

  (ii) Any Incentive Compensation earned shall be payable in cash not later than March
      15th of the year following the year in which the Incentive Compensation is earned in accordance with Employer’s normal practices for the payment of short-term incentives. The payment of any Incentive Compensation shall be subject to and conditioned
      on Executive being employed by Employer on December 31st of the year in which the Incentive Compensation is earned, Executive’s employment with Employer having not been terminated by Employer for Cause prior to the payment of such Incentive
      Compensation, and any approvals or non-objections required from or by any regulatory authority having jurisdiction over Company or Bank, and it is understood by the Parties that it is contemplated that Executive may not be eligible to receive any
      such Incentive Compensation or other short-term incentive compensation if Company or Bank is subject to restrictions imposed on Company or Bank by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the
      Tennessee Department of Financial Institutions, or any other regulatory authority, or if Company or Bank is otherwise restricted from making payment of such compensation under applicable law, rule, or regulation.

  
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  (c) Automobile.
      Employer will provide Executive with an Employer-owned automobile reasonably satisfactory to Executive and Employer for use by Executive. Executive acknowledges that Employer makes no representation with respect to the taxability or non-taxability of
      the benefits provided under this Section 4(c).

   

    

  (d) Cellular

        Telephone. Employer will provide Executive with an Employer-owned cellular telephone for use by Executive in the course of Executive’s employment. Executive acknowledges that Employer makes no representation with respect to the taxability or
      non-taxability of the benefits provided under this Section 4(d).

   

    

  (e) Business

        Expenses. Subject to the reimbursement policies of Employer in effect from time to time and consistent with the annual budget approved for the period during which an expense is incurred, Employer will reimburse Executive for reasonable and
      necessary business expenses incurred by Executive in the performance of Executive’s duties hereunder; provided, however, that, as a condition to any such reimbursement, Executive shall submit verification of the nature and amount of such expenses in accordance with said reimbursement policies. Executive
      acknowledges that Employer makes no representation with respect to the taxability or non-taxability of the benefits provided under this Section 4(e).

   

    

  (f) Paid

        Leave. On a non-cumulative basis, Executive shall be entitled to 25 days paid leave per calendar year, prorated for any partial calendar year of service. The provisions of this Section 4(f)
      shall apply notwithstanding any less generous paid leave policy then maintained by Employer, but Executive’s use of such paid leave shall otherwise be in accordance with Employer’s paid leave policy as in effect from time to time.

   

    

  (g) Other

        Benefits. In addition to the benefits specifically described in this Agreement, Executive shall be entitled to such other benefits as may be available from time to time to employees of Employer generally, including, by way of example only,
      retirement plan and health, dental, life, and disability insurance benefits. All such benefits shall be awarded and administered in accordance with the written terms of any applicable benefit plan or, if no written terms exist, Employer’s standard
      policies and practices relating to such benefits.

   

    

  (h) Reimbursement

        of Expenses; In-Kind Benefits. All expenses eligible for reimbursement described in this Agreement must be incurred by Executive during the Term of this Agreement to be eligible for reimbursement. Any in-kind benefits provided by Employer
      must be provided during the Term of this Agreement. The amount of reimbursable expenses incurred, and the amount of any in-kind benefits provided, in one taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits
      provided, in any other taxable year. Each category of reimbursement shall be paid as soon as administratively practicable, but in no event shall any such reimbursement be paid after the last day of the calendar year following the calendar year in
      which the expense was incurred. Neither rights to reimbursement, nor in-kind benefits, shall be subject to liquidation or exchange for other benefits.

  
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  (i) Claw

        Back of Compensation. Executive agrees to repay any compensation previously paid or otherwise made available to Executive that is subject to recovery under any applicable law, rule, or regulation (including any rule of any exchange or
      service on or through which any securities of the Company are listed or traded). Executive agrees to repay promptly any such compensation identified by Company or Bank. If Executive fails to repay any such compensation promptly, Executive agrees that
      the amount of such compensation may be deducted from any and all other compensation owed to Executive under this Agreement or otherwise. Executive acknowledges that Employer may take appropriate disciplinary action (up to, and including, termination
      of Executive’s employment for Cause) if Executive fails to repay any such compensation. The provisions of this Section 4(i) shall be modified to the extent, and remain in
      effect for the period, required by applicable law, rule, or regulation.

   

    

  5. Termination of
          Employment.

   

    

  (a) Termination

        by Employer.  During the Term, Executive’s employment may be terminated by Employer:

   

    

   (i) at any time for Cause, as determined by the Chief Executive Officer of Company and
      Bank; or

   

    

  (ii) at any time without Cause (provided that Employer shall give Executive at least 60 days prior written notice of its intent to terminate), in which event Employer shall be required to (A) pay to Executive (or, in the event of Executive’s
      death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit equal to 2.5 times Executive’s Annual Base Salary as of the date of termination, said benefit to be payable in equal installments over the course
      of the 30-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, and (B) if Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation
      Act of 1985 (“COBRA”), timely pay on behalf of Executive the monthly (or other) COBRA premium for such coverage for Executive and his
      dependents until the earliest of (x) the 12-month anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA continuation coverage, and (z) the date on which Executive becomes
      eligible to receive substantially similar coverage from another employer (notice of which eligibility Executive shall promptly give to Employer). Notwithstanding the foregoing, if payments under clause (B) of this Section 5(a)(ii) would cause Employer to violate the nondiscrimination rules applicable to non-grandfathered plans under the Affordable Care Act (the “ACA”), or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform clause (B) of this Section 5(a)(ii) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided for in clause (B) of this Section 5(a)(ii). Notwithstanding the foregoing, Employer shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(a)(ii) unless within 45 days after the date of termination of Executive’s employment Executive executes and delivers to Employer a separation agreement containing a
      full release of claims and covenant not to sue in form and substance reasonably satisfactory to Employer and Executive (the “Separation Agreement”)

      and the Separation Agreement is not revoked within any revocation period specified in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer shall have no obligation to pay the severance benefit or the
      monthly (or other) COBRA premiums contemplated by this Section 5(a)(ii), and the payment of the same by Employer shall immediately cease, in the event of a breach by
      Executive of Section 7 or Section 8.   

  
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  (b) Termination

        by Executive. During the Term, Executive’s employment may be terminated by Executive:

   

    

  (i) at any time for Good Reason, provided that (A) before terminating his employment for Good Reason, (1) Executive shall give notice to Employer of the existence of Good Reason for termination, which notice must be given by Executive to
      Employer within 60 days of the initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable detail the condition(s) giving rise to Good Reason for termination and (2) Employer shall have 30 days
      from the effective date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (B) such termination must occur within 12 months of the initial existence of the condition(s) giving rise to Good Reason for termination.
      In the event of the termination of Executive’s employment for Good Reason, Employer shall be required to (A) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a
      severance benefit equal to (1) if termination is for Good Reason as defined in Section 1(l)(i) or Section 1(l)(iii),
      2.5 times Executive’s Annual Base Salary as of the date of termination, said benefit to be payable in equal installments over the course of the 30-month period beginning 60 days following termination in accordance with Employer’s normal payroll
      practices, or (2) if termination is for Good Reason as defined in Section 1(l)(ii), 2.5 times Executive’s Annual Base Salary immediately prior to the diminution in Annual
      Base Salary giving rise to termination, said benefit to be payable in equal installments over the course of the 30-month period beginning 60 days following termination in accordance with Employer’s normal payroll practices, and (B) if Executive
      timely and properly elects health continuation coverage under COBRA, timely pay on behalf of Executive the monthly (or other) COBRA premium for such coverage for Executive and his dependents until the earliest of (x) the 12-month anniversary of the
      date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA continuation coverage, and (z) the date on which Executive becomes eligible to receive substantially similar coverage from another employer,
      notice of which eligibility Executive shall promptly give to Employer (provided that, if Employer making payments under this clause (B) would violate the
      nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform this clause (B) in such
      manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided for in this clause (B)). Notwithstanding the foregoing, Employer shall have no obligation to pay the severance benefit or the
      monthly (or other) COBRA premiums contemplated by this Section 5(b)(i) unless within 45 days after the date of termination of Executive’s employment Executive executes and
      delivers to Employer the Separation Agreement and the Separation Agreement is not revoked within any revocation period specified in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer shall have no
      obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 5(b)(i), and the payment of the same by Employer shall
      immediately cease, in the event of a breach by Executive of Section 7 or Section 8; or

   

    

  (ii) at any time without Good Reason (provided that Executive shall give Employer at least 60 days prior written notice of Executive’s intent to terminate).

   

    

  (c) Termination

        Upon Disability. During the Term, Executive’s employment may be terminated by Employer upon the Disability of Executive (provided that Employer shall
      give Executive at least 60 days prior written notice of its intent to terminate). For the avoidance of doubt, termination for Disability under this Section 5(c) shall not
      be considered termination without Cause.

   

    

  (d) Termination

        Upon Death. Executive’s employment shall terminate automatically upon the death of Executive. For the avoidance of doubt, termination of Executive’s employment upon the death of Executive under this Section 5(d) shall not be considered termination without Cause.

  
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  (e) Termination

        by Mutual Agreement. During the Term, Executive’s employment may be terminated at any time by mutual written agreement of the Parties.

   

    

  (f) Non-Renewal

        of Agreement. For the avoidance of doubt, the Parties expressly acknowledge and agree that neither the election by a Party to not renew or extend this Agreement pursuant to Section 3
      nor the termination of Executive’s employment in connection with any such election shall give rise to any severance or other payment or benefit to Executive under this Agreement.

   

    

  (g) Effect

        of Termination; Resignation. Upon the termination of Executive’s employment, Employer shall have no further obligations to Executive or Executive’s estate, heirs, beneficiaries, executors, administrators, or legal or personal representatives
      under or with respect to this Agreement, except for the payment of any amounts earned and owing under Sections 4(a) and 4(b) as of the effective date of the termination of Executive’s employment and any payment(s) required by Section 5(a)(ii), Section 5(b)(i), or Section 6 of this Agreement. Further, upon the termination of Executive’s
      employment, (i) if Executive is a member of the board of directors of Company or the board of directors of Bank, or the board of directors of any Affiliate of Company or Bank, Executive shall, at the request of Employer, resign from Executive’s
      position(s) on such boards, and (ii) Executive shall, at the request of Employer, resign from any officer position(s) held by Executive at any Affiliate of Company or Bank, in each case with any and all such resignations to be effective not later
      than the date on which Executive’s employment is terminated unless a later effective date is agreed to by Employer.

   

    

  6. Change in Control.

   

    

  (a) If, within 18 months following a Change in Control, Employer (or any successor of or
      to Employer) terminates Executive’s employment without Cause, Employer (or its successor) shall be required to (i) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a
      severance benefit in an amount equal to 2.5 times the sum of (A) Executive’s Annual Base Salary as of the date of termination plus (B) the average of the two most recent ACIP Bonuses paid to Executive prior to the Change in Control (the “ACIP Bonus Amount”), said benefit to be payable in one lump sum payment within 60 days following the date of termination of Executive’s
      employment, and (ii) if Executive timely and properly elects health continuation coverage under COBRA, timely pay on behalf of Executive the monthly (or other) COBRA premium for such coverage for Executive and his dependents until the earliest of (x)
      the 18-month anniversary of the date of termination of Executive’s employment, (y) the date Executive is no longer eligible to receive COBRA continuation coverage, and (z) the date on which Executive becomes eligible to receive substantially similar
      coverage from another employer (notice of which eligibility Executive shall promptly give to Employer). Notwithstanding the foregoing, if payments under clause (ii) of this Section 6(a) would

      cause Employer to violate the nondiscrimination rules applicable to non-grandfathered plans under the ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to
      reform clause (ii) of this Section 6(a) in such manner as is necessary to comply with the ACA while, to the extent reasonably practicable, preserving the benefit provided
      for in clause (ii) of this Section 6(a). Notwithstanding the foregoing, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or
      other) COBRA premiums contemplated by this Section 6(a) unless within 45 days after the date of termination of Executive’s employment Executive executes and delivers to
      Employer (or its successor) the Separation Agreement and the Separation Agreement is not revoked within any revocation period specified in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer (or its
      successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(a), and the payment of the same by
      Employer (or its successor) shall immediately cease, in the event of a breach by Executive of Section 7 or Section 8.

  
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  (b) If, within 18
      months following a Change in Control, Executive terminates his employment with Employer (or its successor) for Good Reason (provided that (x) before
      terminating his employment for Good Reason, Executive shall give notice to Employer (or its successor) of the existence of Good Reason for termination, which notice must be given by Executive to Employer (or its successor) within 60 days of the
      initial existence of the condition(s) giving rise to Good Reason for termination and shall state with reasonable detail the condition(s) giving rise to Good Reason for termination, and Employer (or its successor) shall have 30 days from the effective
      date of such notice to remedy the condition(s) giving rise to Good Reason for termination and (y) such termination must occur within 12 months of the initial existence of the condition(s) giving rise to Good Reason for termination), Employer (or its
      successor) shall be required to (i) pay to Executive (or, in the event of Executive’s death, Executive’s estate, heirs, or designated beneficiaries, as the case may be) a severance benefit in an amount equal to (A) if termination is for Good Reason
      as defined in Section 1(l)(i) or Section 1(l)(iii), 2.5 times the sum of (1) Executive’s
      Annual Base Salary as of the date of termination plus (2) the ACIP Bonus Amount, said benefit to be payable in one lump sum payment within 60 days following the date of termination of Executive’s employment, or (B) if termination is for Good Reason
      as defined in Section 1(l)(ii), 2.5 times the sum of (1) Executive’s Annual Base Salary immediately prior to the diminution in Annual Base Salary giving rise to termination
      and (2) the ACIP Bonus Amount, said benefit to be payable in one lump sum payment within 60 days following the date of termination of Executive’s employment, and (ii) if Executive timely and properly elects health continuation coverage under COBRA,
      timely pay on behalf of Executive the monthly (or other) COBRA premium for such coverage for Executive and his dependents until the earliest of (x) the 18-month anniversary of the date of termination of Executive’s employment, (y) the date Executive
      is no longer eligible to receive COBRA continuation coverage, and (z) the date on which Executive becomes eligible to receive substantially similar coverage from another employer, notice of which eligibility Executive shall promptly give to Employer
      (provided that, if Employer making payments under this clause (ii) would violate the nondiscrimination rules applicable to non-grandfathered plans under the
      ACA, or result in the imposition of penalties under the ACA and the related regulations and guidance promulgated thereunder, the Parties agree to reform this clause (ii) in such manner as is necessary to comply with the ACA while, to the extent
      reasonably practicable, preserving the benefit provided for in this clause (ii)). Notwithstanding the foregoing, Employer (or its successor) shall have no obligation to pay the severance benefit or the monthly (or other) COBRA premiums contemplated
      by this Section 6(b) unless within 45 days after the date of termination of Executive’s employment Executive executes and delivers to Employer (or its successor) the
      Separation Agreement and the Separation Agreement is not revoked within any revocation period specified in the Separation Agreement or provided by applicable law, rule, or regulation. Additionally, Employer (or its successor) shall have no obligation
      to pay the severance benefit or the monthly (or other) COBRA premiums contemplated by this Section 6(b), and the payment of the same by Employer (or its successor) shall
      immediately cease, in the event of a breach by Executive of Section 7 or Section 8.

   

    

  7. Confidential
          Information.

   

    

  (a) Executive understands and acknowledges that, during the course of Executive’s
      employment with Employer, Executive will have access to and learn of and about Confidential Information. Executive acknowledges and agrees that all Confidential Information of Company or Bank or their respective Affiliates that Executive accesses,
      receives, learns of, or develops while Executive is employed by Employer shall be and will remain the sole and exclusive property of Company and Bank and their respective Affiliates.

   

    

  (b) Executive understands and acknowledges that Company and Bank and their respective
      Affiliates have invested, and continue to invest, substantial time, money, and specialized knowledge into developing their resources, creating a customer base, generating customer and potential customer lists, training their employees, and improving
      their offerings in the field of banking and financial services. Executive understands and acknowledges that, as a result of these efforts, Company and Bank and their respective Affiliates have created and continue to use and create Confidential
      Information, and that the Confidential Information provides Company and Bank and their respective Affiliates with a competitive advantage over others in the marketplace.

  
    10

    
      

  

  (c) Executive covenants and agrees (i) to treat all Confidential Information as strictly
      confidential; (ii) not to directly or indirectly disclose, communicate, or make available Confidential Information, or allow it to be disclosed, communicated, or made available, in whole or in part, to any person (including other employees of Company
      or Bank or their respective Affiliates) not having a need to know and authority to know and use the Confidential Information in connection with the business of Company or Bank or their respective Affiliates, and, in any event, not to anyone outside
      of the direct employ of Company or Bank or their respective Affiliates except as required in the performance of Executive’s authorized employment duties to Employer or with the prior consent of the Chief Executive Officer of Company and Bank in each
      instance (in which case such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other
      resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of Company or Bank or any of their respective Affiliates, except as required in the performance of
      Executive’s authorized employment duties to Employer or with the prior consent of the Chief Executive Officer of Company and Bank in each instance (in which case such access, use, copying, or removal shall be only within the limits and to the extent
      of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law, rule, or regulation or pursuant to the valid order of a court of competent jurisdiction or an
      authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, rule, regulation, or order. Executive
      shall promptly provide written notice of any such order to the Chief Executive Officer of Company and Bank.

   

    

  (d) Notwithstanding any other provision of this Agreement:

   

    

  (i) Executive will not be held criminally or civilly liable under any federal or state
      trade secret law for any disclosure of a trade secret that (A) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (2) solely for the purpose of reporting or investigating
      a suspected violation of law, or (B) is made in a complaint or other document filed under seal in a lawsuit or other proceeding; and

   

    

  (ii) If Executive files a lawsuit for retaliation by Employer for reporting a suspected
      violation of law, Executive may disclose trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive (A) files any document containing trade secrets under seal and (B) does not disclose trade
      secrets, except pursuant to court order.

   

    

  (e) Executive understands and acknowledges that Executive’s obligations under this
      Agreement with regard to any particular Confidential Information shall commence, or shall be deemed to have commenced, immediately upon Executive first having access to such Confidential Information (whether before or after the Effective Date) and
      shall continue during and after Executive’s employment by Employer until such time as such Confidential Information has become public knowledge other than as a result of Executive’s breach of this Agreement or a breach by any person acting in concert
      with or at the direction of Executive or acting on Executive’s behalf.

   

    

  (f) At any time upon request by Employer, and in any event upon termination of
      Executive’s employment with Employer, Executive will promptly deliver to Employer all property of or belonging to Employer, including without limitation all Confidential Information, then in Executive’s possession or control.      

  
    11

    
      

  

  8. Non-Competition; Non-Solicitation; Non-Disparagement.

   

    

  (a) Non-Competition.
      Executive agrees that, during the period of Executive’s employment by Employer hereunder and, in the event of the termination of Executive’s employment during the Term by Executive without Good Reason or in connection with an election by Executive to
      not renew (and thus terminate) this Agreement pursuant to Section 3, for the duration of the Post-Termination Period, Executive will not (except on behalf of or with the
      prior written consent of Company or Bank) (i) within the Restricted Area, either directly or indirectly, on Executive’s own behalf or in the service of or on behalf of others, engage in any business, activity, enterprise, or venture competitive with
      the Business of Employer; (ii) within the Restricted Area, either directly or indirectly, perform for any Competing Business any services that are the same as, or substantially the same as, the services Executive performs or performed for Employer;
      (iii) within the Restricted Area, accept employment with or be employed by any person engaged in any business, activity, enterprise, or venture competitive with the Business of Employer; or (iv) work for or with, consult for, or otherwise be
      affiliated with or be employed by any person or group of persons proposing to establish a new bank or other financial institution within the Restricted Area.

   

    

  (b) Non-Solicitation

        of Customers. Executive agrees that, during the period of Executive’s employment by Employer hereunder and, in the event of the termination of Executive’s employment for any reason, for the duration of the Post-Termination Period, Executive
      will not directly or indirectly (except on behalf of or with the prior written consent of Company or Bank), on Executive’s own behalf or in the service of or on behalf of others, solicit, divert, or appropriate, or attempt to solicit, divert, or
      appropriate, any business from any customers of Company or Bank or any customers of any Affiliate of Company or Bank, including prospective customers actively sought by Company or Bank or any Affiliate of Company or Bank with whom Executive has or
      had contact during the last two years of Executive’s employment with Employer, for purposes of selling, offering, or providing products or services that are competitive with those sold, offered, or provided by Company or Bank or any Affiliate of
      Company or Bank.

   

    

  (c) Non-Solicitation

        of Employees. Executive agrees that, during the period of Executive’s employment by Employer hereunder and, following the termination of Executive’s employment for any reason, for the duration of the Post-Termination Period, Executive will
      not directly or indirectly (except on behalf of or with the prior written consent of Company or Bank), on Executive’s own behalf or in the service of or on behalf of others, solicit, recruit, or hire away, or attempt to solicit, recruit, or hire
      away, any employee of Company or Bank or any Affiliate of Company or Bank with whom Executive had contact during the last two years of Executive’s employment, regardless of whether such employee is a full-time, part-time, or temporary employee of
      Company or Bank or an Affiliate of Company or Bank or such employee’s employment is pursuant to a written agreement, for a determined period, or at will.

   

    

  (d) Non-Disparagement.
      Executive agrees that, both during the period of Executive’s employment by Employer hereunder and following the termination of Executive’s employment, Executive will not make any disparaging statements or remarks (written or oral) about Company or
      Bank or any Affiliate of Company or Bank or any of their respective officers, directors, employees, shareholders, agents, or representatives. Employer agrees that, following the termination of Executive’s employment, Employer will instruct its
      directors and senior executive officers to refrain from making any disparaging statements or remarks (written or oral) about Executive.

  
    12

    
      

  

  (e) Modification.
      The Parties agree that the provisions of this Agreement represent a reasonable balancing of their respective interests and have attempted to limit the restrictions imposed on Executive to those necessary to protect Employer from inevitable disclosure
      of Confidential Information and unfair competition. The Parties agree that, if the scope or enforceability of this Agreement is in any way disputed at any time and an arbitrator, court, or other trier of fact determines that the scope of the
      restrictions contained in this Agreement is overbroad, then such arbitrator, court, or other trier of fact may modify the scope of the restrictions contained in this Agreement.

   

    

  (f) Tolling.
      Executive agrees that, in the event Executive breaches this Section 8, the Post-Termination Period shall be tolled during, and therefore extended by, the period of such
      breach.

   

    

  (g) Remedies.
      Executive agrees that the covenants contained in Section 7 and Section 8 of this Agreement are
      of the essence of this Agreement; that each of such covenants is reasonable and necessary to protect the business, interests, and properties of Company and Bank and their respective Affiliates; and that irreparable loss and damage will be suffered by
      Employer should Executive breach any of such covenants. Therefore, Executive agrees and consents that, in addition to all other remedies provided by or available at law or in equity, Employer shall be entitled to a temporary restraining order and
      temporary and permanent injunctions to prevent a breach or contemplated or threatened breach of any of the covenants contained in Section 7 or Section 8 of this Agreement and that, in such event, Employer shall not be required to post a bond. Employer and Executive agree that all remedies available to Employer shall be cumulative.

   

    

  9. Severability.
        The Parties agree that each of the provisions included in this Agreement is separate, distinct, and severable from the other provisions of this Agreement and that the invalidity or unenforceability of any provision of this Agreement shall not
        affect the validity or enforceability of any other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid or unenforceable by a court of competent jurisdiction because of a conflict between the provision and any
        applicable law, rule, regulation, or public policy, the provision shall be redrawn to make the provision consistent with, and valid and enforceable under, such law, rule, regulation, or public policy.

   

    

  10. No Set-Off by
          Executive. The existence of any claim, demand, action, or cause of action by Executive against Company or Bank or any Affiliate of Company or Bank, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the
        enforcement by Employer of any of its rights under this Agreement.

   

    

  11. Notices. All notices, requests, waivers, and other communications required or
      permitted hereunder shall be in writing and shall be either personally delivered; sent by national overnight courier service, postage prepaid, next-business-day delivery guaranteed; or mailed by first class United States Mail, postage prepaid return
      receipt requested, to the recipient at the address below indicated:          

   

    

  	
          If to Company or Bank:

        	
          If to Executive:

        
	 	 
	
          SmartFinancial, Inc.

        	
          Ryan M. Scaggs

        
	
          SmartBank

        	
          Post Office Box 2761

        
	
          5401 Kingston Pike, Suite 600

        	
          Bryson City, North Carolina 28713

        
	
          Knoxville, Tennessee 37919

        	 
	
          Attention: President/CEO

        	 

  

  

  or to such other address or to the attention of such other person as the recipient Party shall have specified by prior written notice to the sending Party. All
      such notices, requests, waivers, and other communications shall be deemed to have been effectively given: (a) when personally delivered to the Party to be notified; (b) two business days after deposit with a national overnight courier service,
      postage prepaid, addressed to the Party to be notified as set forth above with next-business-day delivery guaranteed; or (c) four business days after deposit in the United States Mail, first class, postage prepaid with return receipt requested, at
      any time other than during a general discontinuance of postal service due to strike, lockout, or otherwise (in which case such notice, request, waiver, or other communication shall be effectively given upon receipt), and addressed to the Party to be
      notified as set forth above.

  
    13

    
      

  

  12. Assignment.
        Each of Company and Bank may assign this Agreement and its rights hereunder, and may delegate is duties and obligations under this Agreement, in each case without notice to or the consent of Executive, in connection with the consummation of a
        Change in Control. This Agreement is a personal contract, and neither this Agreement nor the rights, interest, duties, or obligations of Executive hereunder may be assigned or delegated by Executive. Subject to the preceding provisions of this
        Section 12, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns.

   

    

  13. Waiver. A
        waiver by a Party of any provision of this Agreement or of any breach of this Agreement by any other Party shall not be effective unless in a writing signed by the Party granting such waiver, and no waiver shall operate or be construed as a waiver
        of the same or any other provision or breach on any other occasion.

   

    

  14. Mediation.
        Except with respect to Section 7, Section 8, and Section 22, in the event of any dispute arising out of or relating to this Agreement or a breach hereof, which dispute cannot be settled through direct discussions among the
        Parties, the Parties agree to first endeavor to settle the dispute in an amicable manner by non-binding, confidential mediation in Knoxville, Knox County, Tennessee before resorting to any other process for resolving the dispute.

   

      

  15. Applicable Law and Choice of Forum. This Agreement shall be governed by and construed and enforced under and in accordance with the laws of the State of Tennessee, without regard to or
        the application of principles of conflicts of laws. The Parties agree that any litigation, suit, action, or proceeding arising out of or related to this Agreement shall be instituted exclusively in the United States District Court for the Eastern
        District of Tennessee, Knoxville Division, or the courts of the State of Tennessee sitting in Knoxville, Knox County, Tennessee, and each Party irrevocably submits to the exclusive jurisdiction of and venue in such courts and waives any objection
        it might otherwise have to the jurisdiction of or venue in such courts.

   

    

  16. Interpretation.
        Words used herein importing any gender include all genders. Words used herein importing the singular shall include the plural and vice versa. When used herein, the terms “herein,” “hereunder,” “hereby,” “hereto,” and “hereof,” and any similar
        terms, refer to this Agreement. When used herein, the term “person” shall include an individual, a corporation, a limited liability company, a partnership, an association, a trust, and any other entity or organization, whether or not incorporated.
        Any captions, titles, or headings preceding the text of any section or subsection of this Agreement are solely for convenience of reference and shall not constitute part of this Agreement or affect its meaning, construction, or effect.

   

    

  17. Entire Agreement;
          No Duplication of Benefits.

   

      

  (a) This

        Agreement embodies the entire and final, integrated agreement of the Parties on the subject matter stated in this Agreement and supersedes all prior understandings and agreements (oral and written) of the Parties relating to the subject matter of
        this Agreement. No amendment or supplement to or modification of this Agreement shall be valid or binding upon any Party unless made in writing and signed by all Parties.

  
    14

    
      

  

  (b) The 2014 Entegra Agreement is expressly terminated and superseded
      by this Agreement as of the Effective Date, and neither Executive, ENFC, Entegra, Company, nor Bank shall have any further or continuing rights, duties, obligations, or liability under the 2014 Entegra Agreement. Without limiting the foregoing,
      Executive expressly acknowledges and agrees that Executive is owed no, and hereby waives any and all rights to any, further or additional compensation or benefits under the 2014 Entegra Agreement.

   

    

  (c) Any severance payments or benefits received by Executive pursuant
      to this Agreement shall be in lieu of any payments or benefits pursuant any general severance policy or other severance plan maintained by Company or Bank for the benefit of its employees generally.

   

    

  18. Counterparts.
        This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail, or other means of
        electronic transmission shall be deemed to have the same legal effect as delivery of an original manually signed copy of this Agreement.

   

    

  19. Rights of Third
          Parties. Nothing herein expressed is intended to or shall be construed to confer upon or give to any person, other than the Parties hereto and their respective successors and permitted assigns, any rights or remedies under or by reason of
        this Agreement.

   

    

  20. Legal Fees. In
        the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement, the prevailing Party or Parties shall be entitled to recover from the non-prevailing Party or Parties all reasonable fees, expenses, and
        disbursements, including without limitation reasonable attorneys’ fees and court costs, incurred by such prevailing Party or Parties in connection with such claim, action, suit, or proceeding, in addition to any other relief to which such
        prevailing Party or Parties may be entitled at law or in equity.

   

    

  21. Survival. The
        rights and obligations of the Parties under Sections 4(i), 5(a)(ii), 5(b)(i), 5(g), 6, 7, 8, 10, 14, 15, 20, 21, 23, 24, and 26
        shall survive the expiration and/or termination of this Agreement and the termination of Executive’s employment hereunder for the periods expressly designated in such sections or, if no such period is designated, for the maximum period permissible
        under applicable law.

   

    

  22. Representations
          Regarding Restrictive Covenants and Other Agreements. Executive represents and warrants to Employer that (a) the execution, delivery, and performance of this Agreement by Executive do not and will not conflict with, breach, violate, or cause
        a default under any contract, agreement, instrument, order, judgment, or decree to which Executive is a party or by which Executive is bound and (b) Executive is not, and will not become, a party to or bound by (i) any employment, non-competition,
        non-solicitation, or confidentiality agreement with any other person or (ii) any other agreement which would prohibit or impair Executive from providing or performing for Employer the services contemplated by this Agreement.

   

    

  23. Code Section 409A.
        Notwithstanding anything in this Agreement to the contrary, the following provisions shall apply to all benefits and payments provided under this Agreement by Employer to Executive:

   

      

  (a) The
        payment (or commencement of a series of payments) hereunder of any non-qualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as Executive has also
        undergone a Separation from Service, at which time such non-qualified deferred compensation (calculated as of the date of Executive’s termination of employment hereunder) shall be paid (or commence to be paid) to Executive as set forth in this
        Agreement as if Executive had undergone such termination of employment (under the same circumstances) on the date of Executive’s ultimate Separation from Service.

  
    15

    
      

  

  (b) If
        Executive is a specified employee (as determined by Employer in accordance with Section 409A of the Code and Treasury Regulations § 1.409A-3(i)(2)) as of Executive’s Separation from Service with Employer, and if any payment, benefit, or entitlement
        provided for in this Agreement or otherwise both (i) constitutes non-qualified deferred compensation (within the meaning of Section 409A of the Code) and (ii) cannot be paid or provided in a manner otherwise provided herein without subjecting
        Executive to additional tax or interest (or both) under Section 409A of the Code, then any such payment, benefit, or entitlement that is payable during the first six months following the Separation from Service shall be paid or provided to
        Executive in a lump sum cash payment to be made on the earlier of (x) Executive’s death and (y) the first business day of the seventh month immediately following Executive’s Separation from Service.

   

    

  (c) Any
        payment or benefit paid or provided under this Agreement due to a Separation from Service that is exempt from Section 409A of the Code pursuant to Treasury Regulations § 1.409A-1(b)(9)(v) will be paid or provided to Executive only to the extent
        that expenses are not incurred or the benefits are not provided beyond the last day of Executive’s second taxable year following Executive’s taxable year in which the Separation from Service occurs, provided that Employer reimburses such expenses no later than the last day of the third taxable year following Executive’s
        taxable year in which Executive’s Separation from Service occurs.

   

    

  (d) It
        is the Parties’ intent that the payments, benefits, and entitlements to which Executive could become entitled in connection with Executive’s employment under this Agreement be exempt from or comply with Section 409A of the Code and the regulations
        and other guidance promulgated thereunder, and, accordingly, this Agreement will be interpreted to be consistent with such intent. For purposes of the limitations on non-qualified deferred compensation under Section 409A of the Code, each payment
        of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the exclusion under Section 409A of the Code for short-term deferral amounts, the separation pay exception, or any other exception
        or exclusion under Section 409A of the Code.

   

    

  (e) While

        the payments and benefits provided for hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall Company or Bank or their respective Affiliates be
        liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other
        obligations applicable to employers, if any, under Section 409A of the Code).

   

    

  (f) No
        deferred compensation payments provided for under this Agreement shall be accelerated to Executive, except as permitted by Treasury Regulations § 1.409A-3(j)(4).

   

    

  (g) Notwithstanding

        any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Section 409A of
        the Code be subject to offset by any other amount unless permitted by Section 409A of the Code.

  
    16

    
      

  

  24. Tax Matters.

   

    

  (a) Withholding

        of Taxes.  Employer may deduct and withhold from any amounts payable under this Agreement all federal, state, local, or other taxes Employer is required to deduct or withhold pursuant to applicable law, rule, regulation, or ruling.

   

    

  (b) Excise

        Tax.

   

    

  (i) In the event that any payments or benefits provided or to be provided by Company or
      Bank or their respective Affiliates to Executive or for Executive’s benefit pursuant to the terms of this Agreement or otherwise (“Covered Payments”)

      constitute “parachute payments” within the meaning of Section 280G of the Code (or any successor provision thereto) and would, but for this Section 24(b), be subject to the
      excise tax imposed by Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making the Covered Payments the Parties will, to the extent practicable and reasonable, take such action and execute such documents as may be
      necessary to ensure that none of the Covered Payments will constitute “parachute payments” within the meaning of Section 280G of the Code (or any successor provision thereto), and in the event (but only in the event) it is not practicable and
      reasonable to take such action and execute such documents or it is not reasonably possible to ensure that none of the Covered Payments will constitute “parachute payments” within the meaning of Section 280G of the Code (or any successor provision
      thereto), then a calculation shall be made comparing (A) the Net Benefit (as defined below) to Executive of the Covered Payments after payment of the Excise Tax to (B) the Net Benefit to Executive if the Covered Payments are reduced to the extent
      necessary to avoid being subject to the Excise Tax. Only if the amount calculated under clause (A) above is less than the amount calculated under clause (B) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no
      portion of the Covered Payments is subject to the Excise Tax. The term “Net Benefit” shall mean the present value of the Covered Payments net
      of all federal, state, local, foreign income, employment, and excise taxes. Any reduction made pursuant to this Section 24(b) shall be made in a manner determined by
      Employer that is consistent with the requirements of Section 409A of the Code.

   

    

  (ii) All determinations and calculations required under this Section 24(b), including any determination of whether any payments or benefits constitute “parachute payments,” shall be made by Employer in its sole discretion and shall be final and binding on
      Employer and Executive for all purposes. For purposes of making the determinations and calculations required by this Section 24(b), Employer may rely on reasonable, good
      faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. Executive shall furnish Employer with such information and documents as Employer may reasonably request in order for Employer to make its
      determinations and calculations under this Section 24(b).

   

    

  25. Regulatory
          Restrictions. The Parties expressly acknowledge and agree that (a) any and all payments contemplated by this Agreement are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and 12 C.F.R. Part 359, as such laws and
        regulations may be amended from time to time, and (b) the obligations of the Parties under this Agreement are generally subject to such conditions, restrictions, and limitations as may be imposed from time to time by applicable state and/or federal
        banking laws, rules, and regulations.

   

    

  26. Right to Contact.
      Executive acknowledges and agrees that Employer shall have the right to contact any new or potential employer of Executive (or other business) and apprise such person of Executive’s responsibilities and obligations owed under this Agreement.

   

    

  27. Effectiveness of
          the Agreement. For the avoidance of doubt, this Agreement shall not become effective and shall have not force or effect, and the Parties shall have no rights, duties, obligations, or liability hereunder, in the event the Mergers are
      not consummated.

  

  

  (Signature Page Follows)

  
    17

    
      

  

  IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement on the date first written above.

   

    

  	
          COMPANY:

        	
          SMARTFINANCIAL, INC.

        
	 	 	 
	 	
          By:

        	
          /s/ William. Y Carroll, Jr.

        
	 	 	
          William Y. Carroll, Jr.

        
	 	 	
          President and Chief Executive Officer

        

  

  

  

  

  	
          BANK:

        	
          SMARTBANK

        
	 	 	 
	 	
          By:

        	
          /s/ William. Y Carroll, Jr.

        
	 	 	
          William Y. Carroll, Jr.

        
	 	 	
          President and Chief Executive Officer

        

  

  

  

  

  	
          EXECUTIVE:

        	 
	 	 
	 	
          /s/ Ryan M. Scaggs

        
	 	
          Ryan M. Scaggs

        

  

  

  

  

  
    (Signature Page to Scaggs Employment Agreement)

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