Document:

Form of Restricted Stock Grant Notice and Restricted Stock Agreement

 EXHIBIT 10.4 
 ALLOY, INC. 
 Restricted Stock Grant Notice 
 Grant of Restricted Stock under the Company’s 
 2007 Employee, Director and Consultant Stock Incentive Plan 
  

	1.	Name and Address of Participant: 

  

	2.	Date of Grant: 

  

	3.	Type of Grant: Restricted Common Stock 

  

	4.	Number of Shares Granted 

  

	5.	Lapsing Schedule: The shares of Restricted Stock granted shall lapse and become fully transferable by Participant as follows: 

  

	 	•	 	      

  

	 	•	 	      

  

	 	•	 	      

  

	6.	Effect of Termination Without “Cause”; Effect of “Change of Control”: 

  

	 	•	 	 In the event the Company terminates Participant’s employment or service without “Cause” the Company’s Lapsing Forfeiture Right with regard to
the shares of Restricted Stock granted shall terminate and Participant’s ownership of all such shares shall become immediately and fully vested. 

  

	 	•	 	 In the event the Company undergoes a “Change of Control” and a premium equal to or greater than
             is paid, the Company’s Lapsing Forfeiture Right with regard to the shares of Restricted Stock granted shall terminate and Participant’s ownership of all such
shares shall become immediately and fully vested. 

 Each of “Cause” and “Change of Control” are defined in the
                                        ,
dated as of                     , by and between Participant and the Company. 
 The Company and the Participant acknowledge receipt of this Restricted Stock Grant Notice and agree to the terms of the Restricted Stock Agreement attached hereto and incorporated by reference herein, the
Company’s 2007 Employee, Director and Consultant Stock Incentive Plan and the terms of this Restricted Stock Grant as set forth above. 
 UNLESS YOU
RETURN A SIGNED ORIGINAL COPY OF THE ATTACHED RESTRICTED STOCK AGREEMENT (INCLUDING APPLICABLE EXHIBITS ATTACHED THERETO) TO THE COMPANY WITHIN TEN (10) DAYS OF RECEIPT OF THIS NOTICE, YOU MAY BE DEEMED TO HAVE REJECTED THE RESTRICTED STOCK
GRANT SET FORTH ABOVE. 
 You may obtain a copy of the Company’s 2007 Employee, Director and Consultant Stock Incentive Plan and Plan Description
by logging in to your Merrill Lynch personal account and visiting https://www9.benefits.ml.com/menu/BOLMenu.asp?MenuListId=10001&&. Also, you may obtain a copy of the Company’s most recent Annual Report and other information
delivered to Company shareholders by visiting the investor relations pages of www.alloymarketing.com. 
  

			
	ALLOY, INC.
		
	By:	 	  

	Name:	 	  

 RESTRICTED STOCK AGREEMENT 
 ALLOY, INC. 
 This AGREEMENT is made effective as of the
     day of         , 200     (the “Grant Date”), by and between Alloy, Inc. (the “Company”), a Delaware corporation, and
                                       
  (the “Participant”). 
 WHEREAS, the Company has adopted the Alloy, Inc. 2007 Employee, Director and Consultant Stock
Incentive Plan (the “Plan”) to promote the interests of the Company by providing an incentive for employees, directors and consultants of the Company or its Affiliates; 
 WHEREAS, pursuant to the provisions of the Plan, the Company desires to offer to the Participant shares of the Company’s common stock, $0.01 par
value per share (“Common Stock”), in accordance with the provisions of the Plan, all on the terms and conditions hereinafter set forth; 
 WHEREAS, Participant wishes to accept said offer; and 
 WHEREAS, the parties hereto understand and agree that any terms used and
not defined herein have the meanings ascribed to such terms in the Plan. 
 NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Terms of Grant. The Participant hereby accepts the offer of the Company to issue to the Participant, in accordance with the terms of the Plan
and this Agreement,              Shares of the Company’s Common Stock (such shares, subject to adjustment pursuant to Section 22 of the Plan and Subsection 2.1(f)
hereof, the “Granted Shares”) at a purchase price of $0.01 per share (the “Purchase Price”), receipt of which is hereby acknowledged by the Participant’s prior service to the Company and which amount will be reported as
income on the Participant’s W-2 for this calendar year. 
 2.1. Forfeiture Provisions. 
 (a) Lapsing Forfeiture Right. In the event that for any reason the Participant is no longer an employee, director or consultant of the Company or
an Affiliate prior to                      (the “Termination”), the Participant (or the Participant’s Survivor) shall, on the
date of Termination, immediately forfeit to the Company (or its designee) all of the Granted Shares which have not yet lapsed in accordance with the schedule set forth below (the “Lapsing Forfeiture Right”). The Company’s Lapsing
Forfeiture Right shall lapse as to one hundred percent (100%) of the Granted Shares when the average closing price of a share of the Company’s Common Stock, as quoted on NASDAQ for ten (10) consecutive trading days, exceeds
                    ; provided, however, notwithstanding the foregoing, one-third of the Granted Shares shall vest no earlier than
                    ; the second one-third of the Granted Shares shall vest no earlier than
                    ; and the remaining one-third of the Granted Shares shall vest no earlier than
                    . Notwithstanding the foregoing, in the event: 
  

	 	(i)	that the Participant is terminated by the Company without “Cause”, the Company’s Lapsing Forfeiture Right with regard to the Granted Shares shall terminate and
Participant’s ownership of all such shares shall become immediately and fully vested. 

  

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	 	(ii)	the Company undergoes a “Change of Control” and a premium equal to or greater than              is paid,
the Company’s Lapsing Forfeiture Right with regard to the Granted Shares shall terminate and Participant’s ownership of all such shares shall become immediately and fully vested. 

 Each of “Cause” and “Change of Control” are defined in the
                                        ,
dated as of                     , by and between Participant and the Company. 
 (b) Effect of Termination for Disability or upon Death. To the extent the Company’s Lapsing Forfeiture Right has not lapsed as of the date of
Disability or death, as case may be, the Company’s Lapsing Forfeiture Right shall terminate, and the Participant’s ownership of all Granted Shares then owned by the Participant shall become fully vested. “Disability” is defined
in the
                                        ,
dated as of                     , by and between Participant and the Company. 
 (c) Escrow. The certificates representing all Granted Shares acquired by the Participant hereunder which from time to time are subject to the
Lapsing Forfeiture Right shall be delivered to the Company and the Company shall hold such Granted Shares in escrow as provided in this Subsection 2.1(c). The Company shall promptly release from escrow and deliver to the Participant a
certificate for the whole number of Granted Shares, if any, as to which the Company’s Lapsing Forfeiture Right has lapsed. In the event of forfeiture to the Company of Granted Shares subject to the Lapsing Forfeiture Right, the Company shall
release from escrow and cancel a certificate for the number of Granted Shares so forfeited. Any securities distributed in respect of the Granted Shares held in escrow, including, without limitation, shares issued as a result of stock splits, stock
dividends or other recapitalizations, shall also be held in escrow in the same manner as the Granted Shares. 
 (d) Prohibition on
Transfer. The Participant recognizes and agrees that all Granted Shares which are subject to the Lapsing Forfeiture Right may not be sold, transferred, assigned, hypothecated, pledged, encumbered or otherwise disposed of, whether voluntarily or
by operation of law, other than to the Company (or its designee). However, the Participant, with the approval of the Administrator, may transfer the Granted Shares for no consideration to or for the benefit of the Participant’s Immediate Family
(including, without limitation, to a trust for the benefit of the Participant’s Immediate Family or to a partnership or limited liability company for one or more members of the Participant’s Immediate Family), subject to such limits as the
Administrator may establish, and the transferee shall remain subject to all the terms and conditions applicable to this Agreement prior to such transfer and each such transferee shall so acknowledge in writing as a condition precedent to the
effectiveness of such transfer. The term “Immediate Family” shall mean the Participant’s spouse, former spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers, nieces and nephews and grandchildren (and, for
this purpose, shall also include the Participant. The Company shall not be required to transfer any Granted Shares on its books which shall have been sold, assigned or otherwise transferred in violation of this Subsection 2.1(d), or to treat
as the owner of such Granted Shares, or to accord the right to vote as such owner or to pay dividends to, any person or organization to which any such Granted Shares shall have been so sold, assigned or otherwise transferred, in violation of this
Subsection 2.1(d). 
 (e) Failure to Deliver Granted Shares to be Forfeited. In the event that the Granted Shares to be forfeited to
the Company under this Agreement are not in the Company’s possession pursuant to Subsection 2.1(d) above or otherwise and the Participant or the Participant’s Survivor fails to deliver such Granted Shares to the Company (or its designee),
the Company may immediately take such action as is appropriate to transfer record title of such Granted Shares from the Participant to the Company (or its designee) and treat the Participant and such Granted Shares in all respects as if delivery of
such Granted Shares had been made as required by this Agreement. The Participant hereby irrevocably grants the Company a power of attorney which shall be coupled with an interest for the purpose of effectuating the preceding sentence. 
  

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 (f) Adjustments. The Plan contains provisions covering the treatment of Shares in a number of
contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to the Granted Shares and the related provisions with respect to successors to the business of the Company are hereby made applicable hereunder and
are incorporated herein by reference. 
 2.2 General Restrictions on Transfer of Granted Shares. 
 (a) The Participant acknowledges and agrees that neither the Company nor, its shareholders nor its directors and officers, has any duty or obligation to
disclose to the Participant any material information regarding the business of the Company or affecting the value of the Shares before, at the time of, or following a Termination, including, without limitation, any information concerning plans for
the Company to make a public offering of its securities or to be acquired by or merged with or into another firm or entity. 
 3.
Securities Law Compliance. The Participant specifically acknowledges and agrees that any sales of Granted Shares shall be made in accordance with the requirements of the Securities Act of 1933, as amended. 
 4. Rights as a Stockholder. The Participant shall have all the rights of a stockholder with respect to the Granted Shares, including voting and
dividend rights, subject to the transfer and other restrictions set forth herein and in the Plan. 
 5. Legend. In addition to any
legend required pursuant to the Plan, if certificates representing the Granted Shares are issued to the Participant pursuant to this Agreement, such certificates shall have endorsed thereon a legend substantially as follows: 
 “The shares represented by this certificate are subject to restrictions set forth in a Restricted Stock Agreement dated as of
                     with this Company, a copy of which Agreement is available for inspection at the offices of the Company or will be made
available upon request.” 
 6. Incorporation of the Plan. The Participant specifically understands and agrees that the Granted
Shares issued under the Plan are being sold to the Participant pursuant to the Plan, a copy of which Plan the Participant acknowledges he or she has read and understands and by which Plan he or she agrees to be bound. The provisions of the Plan are
incorporated herein by reference. 
 7. Tax Liability of the Participant and Payment of Taxes. The Participant acknowledges and agrees
that any income or other taxes due from the Participant with respect to the Granted Shares issued pursuant to this Agreement, including, without limitation, the Lapsing Forfeiture Right, shall be the Participant’s responsibility. Without
limiting the foregoing, the Participant agrees that, to the extent that the lapsing of restrictions on disposition of any of the Granted Shares or the declaration of dividends on any such shares before the lapse of such restrictions on disposition
results in the Participant’s being deemed to be in receipt of earned income under the provisions of the Code, the Company shall be entitled to immediate payment from the Participant of the amount of any tax required to be withheld by the
Company. The Company may withhold such amount from the Granted Shares to be delivered to the Participant as set forth in Section 26 of the Plan. 
 Upon execution of this Agreement, the Participant may file an election under Section 83 of the Code in substantially the form attached as Exhibit B. The Participant acknowledges that if he does 

  

 4 

 
not file such an election, as the Granted Shares are released from the Lapsing Forfeiture Right in accordance with Section 2.1, the Participant will
have income for tax purposes equal to the fair market value of the Granted Shares at such date, less the price paid for the Granted Shares by the Participant. The Participant has been given the opportunity to obtain the advice of his or her tax
advisors with respect to the tax consequences of the purchase of the Granted Shares and the provisions of this Agreement. 
 8. Equitable
Relief. The Participant specifically acknowledges and agrees that in the event of a breach or threatened breach of the provisions of this Agreement or the Plan, including the attempted transfer of the Granted Shares by the Participant in
violation of this Agreement, monetary damages may not be adequate to compensate the Company, and, therefore, in the event of such a breach or threatened breach, in addition to any right to damages, the Company shall be entitled to equitable relief
in any court having competent jurisdiction. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for any such breach or threatened breach. 
 9. No Obligation to Maintain Relationship. The Company is not by the Plan or this Agreement obligated to continue the Participant as an employee,
director or consultant of the Company or an Affiliate. The Participant acknowledges: (i) that the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (ii) that the grant of the Shares is a
one-time benefit which does not create any contractual or other right to receive future grants of shares, or benefits in lieu of shares; (iii) that all determinations with respect to any such future grants, including, but not limited to, the
times when shares shall be granted, the number of shares to be granted, the purchase price, and the time or times when each share shall be free from a lapsing repurchase or forfeiture right, will be at the sole discretion of the Company;
(iv) that the Participant’s participation in the Plan is voluntary; (v) that the value of the Shares is an extraordinary item of compensation which is outside the scope of the Participant’s employment contract, if any; and
(vi) that the Shares are not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

 10. Notices. Any notices required or permitted by the terms of this Agreement or the Plan shall be given by recognized courier
service, facsimile, registered or certified mail, return receipt requested, addressed as follows: 
 If to the Company: 
 Alloy, Inc. 
 151 W. 26th Street 
 11th Floor 
 New York, NY 10001 
 Attention: Chief Executive Officer 
 If to the Participant at the address set forth on the Company’s records 
 or to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been given on the earliest of receipt, one business day following delivery by
the sender to a recognized courier service, or three business days following mailing by registered or certified mail. 
 11. Benefit of
Agreement. Subject to the provisions of the Plan and the other provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

  

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 12. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of
the State of Delaware, without giving effect to the conflict of law principles thereof. For the purpose of litigating any dispute that arises under this Agreement, whether at law or in equity, the parties hereby consent to exclusive jurisdiction in
New York and agree that such litigation shall be conducted in the state courts of New York, New York or the federal courts of the United States for the Southern District of New York. 
 13. Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, then such
provision or provisions shall be modified to the extent necessary to make such provision valid and enforceable, and to the extent that this is impossible, then such provision shall be deemed to be excised from this Agreement, and the validity,
legality and enforceability of the rest of this Agreement shall not be affected thereby. 
 14. Entire Agreement. This Agreement,
together with the Plan, constitutes the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter
hereof. No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of this Agreement provided, however, in any
event, this Agreement shall be subject to and governed by the Plan. 
 15. Modifications and Amendments; Waivers and Consents. The
terms and provisions of this Agreement may be modified or amended as provided in the Plan. Except as provided in the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written
document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or
not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent. 
 16. Consent of Spouse/Domestic Partner. If the Participant has a spouse or domestic partner as of the date of this Agreement, the
Participant’s spouse or domestic partner shall execute a Consent of Spouse/Domestic Partner in the form of Exhibit A hereto, effective as of the date hereof. Such consent shall not be deemed to confer or convey to the spouse or domestic
partner any rights in the Granted Shares that do not otherwise exist by operation of law or the agreement of the parties. If the Participant subsequent to the date hereof, marries, remarries or applies to the Company for domestic partner benefits,
the Participant shall, not later than 60 days thereafter, obtain his or her new spouse/domestic partner’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by having such
spouse/domestic partner execute and deliver a Consent of Spouse/Domestic Partner in the form of Exhibit A. 
 17. Counterparts. This
Agreement may be executed in one or more counterparts, and by different parties hereto on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 18. Data Privacy. By entering into this Agreement, the Participant: (i) authorizes the Company and each Affiliate, and any agent of the
Company or any Affiliate administering the Plan or providing Plan record keeping services, to disclose to the Company or any of its Affiliates such information and data as the Company or any such Affiliate shall request in order to facilitate the
grant of Shares and the administration of the Plan; (ii) waives any data privacy rights he or she may have with respect to such information; and (iii) authorizes the Company and each Affiliate to store and transmit such information in
electronic form. 
  

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 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 7 

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

			
	ALLOY, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Participant:
	
	  

  

 8 

 EXHIBIT A 
 CONSENT OF SPOUSE/DOMESTIC PARTNER 
 I,
                                        ,
spouse or domestic partner of
                                        ,
acknowledge that I have read the RESTRICTED STOCK AGREEMENT dated as of                      (the “Agreement”) to which this Consent
is attached as Exhibit A and that I know its contents. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Agreement. I am aware that by its provisions the Granted Shares granted to my spouse/domestic
partner pursuant to the Agreement are subject to a Lapsing Forfeiture Right in favor of Alloy, Inc. (the “Company”) and that, accordingly, I may be required to forfeit to the Company any or all of the Granted Shares of which I may become
possessed as a result of a gift from my spouse/domestic partner or a court decree and/or any property settlement in any domestic litigation. 
 I hereby agree that my interest, if any, in the Granted Shares subject to the Agreement shall be irrevocably bound by the Agreement and further understand and agree that any community property interest I may have in the Granted Shares shall
be similarly bound by the Agreement. 
 I agree to the Lapsing Forfeiture Right described in the Agreement and I hereby consent to the
forfeiture of the Granted Shares to the Company by my spouse/domestic partner or my spouse/domestic partner’s legal representative in accordance with the provisions of the Agreement. Further, as part of the consideration for the Agreement, I
agree that at my death, if I have not disposed of any interest of mine in the Granted Shares by an outright bequest of the Granted Shares to my spouse or domestic partner, then the Company shall have the same rights against my legal representative
to exercise its rights to the Granted Shares with respect to any interest of mine in the Granted Shares as it would have had pursuant to the Agreement if I had acquired the Granted Shares pursuant to a court decree in domestic litigation.

 I AM AWARE THAT THE LEGAL, FINANCIAL AND RELATED MATTERS CONTAINED IN THE AGREEMENT ARE COMPLEX AND THAT I AM FREE TO SEEK INDEPENDENT
PROFESSIONAL GUIDANCE OR COUNSEL WITH RESPECT TO THIS CONSENT. I HAVE EITHER SOUGHT SUCH GUIDANCE OR COUNSEL OR DETERMINED AFTER REVIEWING THE AGREEMENT CAREFULLY THAT I WILL WAIVE SUCH RIGHT. 
 Dated as of the      day of         , 200    .

  

	
	  

	Print name:

  

 A-1 

 EXHIBIT B 
 Election to Include Gross Income in Year 
 of Transfer Pursuant to Section 83(b)

 of the Internal Revenue Code of 1986, as amended 
 In accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), the undersigned hereby elects to include in his gross income as compensation for services the excess, if
any, of the fair market value of the property (described below) at the time of transfer over the amount paid for such property. 
 The following sets for the
information required in accordance with the Code and the regulations promulgated hereunder: 
  

	1.	The name, address and social security number of the undersigned are: 

 Name: 
 Address: 
 Social Security No.: 
  

	2.	The description of the property with respect to which the election is being made is as follows: 

                     
(            ) shares (the “Shares”) of Common Stock, $0.01 par value per share, of Alloy, Inc., a Delaware corporation (the “Company”). 
  

	3.	This election is made for the calendar year         , with respect to the transfer of the property to the Taxpayer on
                    . 

  

	4.	Description of restrictions: The property is subject to the following restrictions: 

 In the event taxpayer’s employment with the Company or an Affiliate is terminated, the taxpayer shall forfeit the Shares as set forth below: 
  

	 	A.	If the termination takes place on or prior to                      all of
the Shares will be forfeited. 

  

	 	B.	If the termination takes place after             , 200    , the number of Shares
forfeited shall be                      (            ) Shares less
                     (            ) Shares for each full twelve
(12) month period elapsed after             , 200     if the taxpayer is employed by the Company or an Affiliate. 

  

	5.	The fair market value at time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the property with respect
to which this election is being made was not more than $             per Share. 

  

	6.	The amount paid by taxpayer for said property was $             per Share. 

  

	7.	A copy of this statement has been furnished to the Company. 

  

 A-1 

 Signed this      day of         ,
200    . 
  

	
	  

	Print Name:
	
	Print Name:

  

 A-2Employment Agreement of Robert T. Braswell

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (this “Agreement”) is entered into effective as of this 20th day of May, 2008, by and among Carolina Bank Holdings, Inc., a North Carolina corporation (the “Corporation”), Carolina Bank, a North Carolina-chartered bank and wholly owned subsidiary of Carolina Bank Holdings,
Inc. (the “Bank”), and Robert T. Braswell, President and Chief Executive Officer of the Corporation and the Bank (the “Executive”). The Corporation and the Bank are referred to in this Agreement
individually and together as the “Employer.” 
 WHEREAS, the Executive is the
President and Chief Executive Officer of the Employer, possessing unique skills, knowledge, and experience relating to the Employer’s business, and the Executive has made and is expected to continue to make major contributions to the
profitability, growth, and financial strength of the Employer and affiliates, 
 WHEREAS, the Employer
and the Executive intend that this Agreement supersede and replace in its entirety the May 21, 1996 Employment Agreement, as the same may have been amended, between the Executive and Carolina Savings Bank, Inc., SSB, and 
 WHEREAS, none of the conditions or events included in the definition of the term “golden parachute
payment” that is set forth in Section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)] exists or, to the best
knowledge of the Employer, is contemplated insofar as the Employer or any affiliates are concerned. 
 NOW
THEREFORE, in consideration of these premises, the mutual covenants contained herein, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows. 
 ARTICLE 1 
 EMPLOYMENT 
 1.1 Employment. The Employer hereby employs the Executive to serve
as President and Chief Executive Officer according to the terms and conditions of this Agreement and for the period stated in section 1.4. The Executive hereby accepts employment according to the terms and conditions of this Agreement and for the
period stated in section 1.4. 
 1.2 Duties. As President and Chief Executive Officer, the Executive shall serve under the direction
of the Employer’s board of directors and in accordance with the Employer’s Articles of Incorporation and Bylaws, as each may be amended or restated from time to time. The Executive shall report directly to the board of directors. The
Executive shall serve the Employer faithfully, diligently, competently, and to the best of the Executive’s ability. The Executive shall exclusively devote full working time, energy, and attention to the business of the Employer and to the
promotion of the Employer’s interests throughout the term of this Agreement. Without the written consent of the Corporation and the Bank, the Executive shall 

 
not render services to or for any person, firm, corporation, or other entity or organization in exchange for compensation, regardless of the form in which
the compensation is paid and regardless of whether it is paid directly or indirectly to the Executive. Nothing in this section 1.2 shall prevent the Executive from managing personal investments and affairs, provided that doing so does not interfere
with the proper performance of the Executive’s duties and responsibilities under this Agreement. 
 1.3 Service on the Board of
Directors. The Executive is currently serving as a director of each of the Corporation and the Bank. The Corporation shall nominate the Executive for election as a director at such times as necessary so that the Executive will, if elected by
stockholders, remain a director of the Corporation throughout the term of this Agreement. The Executive hereby consents to serving as a director and to being named as a director of the Corporation in documents filed with the Securities and Exchange
Commission. The board of directors of each of the Corporation and the Bank shall undertake every lawful effort to ensure that the Executive continues throughout the term of employment to be elected or reelected as a director of the Bank. The
Executive shall be deemed to have resigned as a director of each of the Corporation and the Bank effective immediately after termination of the Executive’s employment under Article 3 of this Agreement, regardless of whether the Executive
submits a formal, written resignation as director. 
 1.4 Term. The initial term of this Agreement shall be for a period of three
years, commencing on the effective date first written above. On the first anniversary of the effective date and on each anniversary thereafter, this Agreement shall be extended automatically for one additional year unless the Employer’s board
of directors determines that the term shall not be extended. If the board of directors determines not to extend the term, it shall promptly notify the Executive in writing. If the board decides not to extend the term of this Agreement, this
Agreement shall nevertheless remain in force until its term expires. The board’s decision not to extend the term of this Agreement shall not – by itself – give the Executive any rights under this Agreement to claim an adverse change
in position, compensation, or circumstances or otherwise to claim entitlement to severance benefits under Articles 4 or 5 of this Agreement. References herein to the term of this Agreement mean the initial term, as the same may be extended. Unless
sooner terminated, the Executive’s employment shall terminate when the Executive attains age 65. 
 ARTICLE 2

 COMPENSATION 
 2.1 Base Salary. In consideration of the Executive’s performance of the obligations under this Agreement, the Employer shall pay or cause to be paid to the Executive a salary at the annual rate of not less than $260,000, payable
in installments twice monthly. The Executive’s salary shall be reviewed annually by the Governance Committee of the Employer’s board of directors or by such other board committee as has jurisdiction over executive compensation. In the
discretion of the committee having jurisdiction over executive compensation (x) the Executive’s salary may be increased to account for increases in the cost of living, but cost-of-living increases, if any, shall not occur more
frequently than annually, and (y) the Executive’s salary also may be increased beyond the amount necessary to account for cost of living increases. However, the Executive’s salary shall not be reduced. The Executive’s
salary, as the same may be increased from time to time, is referred to in this Agreement as the “Base Salary.” 
  

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 2.2 Benefit Plans and Perquisites. The Executive shall be entitled throughout the term of this
Agreement to participate in any and all officer or employee compensation, bonus, incentive, and benefit plans in effect from time to time, including without limitation plans providing pension, medical, dental, disability, and group life benefits,
including the Employer’s 401(k) Plan, and to receive any and all other fringe benefits provided from time to time, provided that the Executive satisfies the eligibility requirements for any such plans or benefits. Without limiting the
generality of the foregoing – 
 (a) Participation in stock plans. The Executive shall be eligible to participate in stock option
plans and other stock-based compensation, incentive, bonus, or purchase plans existing on the date of this Agreement or adopted during the term of this Agreement. 
 (b) Club dues. During the term of this Agreement, the Employer shall pay or cause to be paid the Executive’s membership dues in the Greensboro Country Club and reimburse the Executive for expenses
associated with use of the club for business purposes. 
 (c) Automobile. The Employer shall provide the Executive with a new
automobile every three years, which automobile shall be either owned or leased by the Employer and of a make and model appropriate to the Executive’s status. Insurance, taxes, and maintenance expenses shall also be paid by the Employer. As
additional compensation, the Executive may use the automobile for personal purposes, provided that the Executive renders an accounting of business and personal use to the Employer in accordance with regulations under the Internal Revenue Code of
1986, as amended. 
 (d) Reimbursement of business expenses. The Executive shall be entitled to reimbursement for all reasonable
business expenses incurred performing the obligations under this Agreement, including but not limited to all reasonable business travel and entertainment expenses incurred while acting at the request of or in the service of the Employer and
reasonable expenses for attendance at annual and other periodic meetings of trade associations. 
 2.3 Vacation. The Executive shall
be entitled to paid annual vacation and sick leave in accordance with the policies established from time to time by the Employer. 
 ARTICLE 3 
 EMPLOYMENT TERMINATION 
 3.1 Termination Because of Death or Disability. (a) Death. The Executive’s employment shall terminate automatically at the
Executive’s death. If the Executive dies in active service to the Employer, the Executive’s estate shall receive any sums due to the Executive as Base Salary and reimbursement of expenses through the end of the month in which death
occurred, any bonus earned or accrued through the date of death, including any unvested amounts awarded for previous years, and for twelve months after the Executive’s death the Employer shall provide without cost to the Executive’s family
continuing health care coverage under COBRA substantially identical to that provided for the Executive before death. 
  

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 (b) Disability. By delivery of written notice 30 days in advance to the Executive, the Employer
may terminate the Executive’s employment if the Executive is disabled. For purposes of this Agreement the Executive shall be considered “disabled” if an independent physician selected by the Employer and reasonably
acceptable to the Executive or the Executive’s legal representative determines that, because of illness or accident, the Executive is unable to perform the Executive’s duties and will be unable to perform the Executive’s duties for a
period of 90 consecutive days. The Executive shall not be considered disabled, however, if the Executive returns to work on a full-time basis within 30 days after the Employer gives notice of termination due to disability. If the Executive’s
employment terminates because of disability, the Executive shall receive the salary earned through the date on which termination became effective, any unpaid bonus or incentive compensation due to the Executive for the calendar year preceding the
calendar year in which the termination became effective, any payments the Executive is eligible to receive under any disability insurance program in which the Executive participates, and such other benefits to which the Executive may be entitled
under the Employer’s benefit plans, policies, and agreements, or the provisions of this Agreement. 
 3.2 Involuntary Termination
with Cause. The Employer may terminate the Executive’s employment with Cause. If the Executive’s employment terminates with Cause, the Executive shall receive the Base Salary through the date on which termination becomes effective and
reimbursement of expenses to which the Executive is entitled when termination becomes effective. The Executive shall not be deemed to have been terminated with Cause under this Agreement unless and until there is delivered to the Executive a copy of
a resolution adopted at a meeting of the board of directors called and held for the purpose, which resolution shall (x) contain findings that in the board’s good faith opinion the Executive has committed an act constituting Cause,
and (y) specify the particulars thereof. For purposes of this Agreement “Cause” means any of the following – 
 (a) an intentional act of fraud, embezzlement, or theft by the Executive in the course of employment. For purposes of this Agreement no act or failure to act on the Executive’s part shall be deemed to have been
intentional if it was due primarily to an error in judgment or negligence. An act or failure to act on the Executive’s part shall be considered intentional if it is not in good faith and if it is without a reasonable belief that the action or
failure to act is in the Employer’s best interests, or 
 (b) a willful violation by the Executive of any applicable law or significant
policy of the Employer or an affiliate that, in the Employer’s judgement, results in an adverse effect on the Employer or the affiliate, regardless of whether the violation leads to criminal prosecution or conviction. For purposes of this
Agreement applicable laws include any statute, rule, regulatory order, statement of policy, or final cease-and-desist order of any governmental agency or body having regulatory authority over the Bank, or 
 (c) the Executive’s gross negligence or gross neglect of duties or intentional and material failure to perform stated duties after written notice
thereof, or 
  

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 (d) intentional wrongful damage by the Executive to the Employer’s business or property, including
without limitation the Employer’s reputation, which in the Employer’s sole judgment causes material harm to the Employer, or 
 (e)
disloyalty or dishonesty by the Executive in the performance of the Executive’s duties, or a breach of the Executive’s fiduciary duties for personal profit, in any case whether in the Executive’s capacity as a director or officer, or

 (f) failure of the Executive to comply with this Agreement, which in the sole judgment of the Employer is a material failure to comply and
is not corrected by the Executive within ten days after receiving written notice from the Employer, or 
 (g) removal of the Executive from
office or permanent prohibition of the Executive from participating in the Employer’s affairs by an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 
 (h) occurrence of any event that results in the Executive being excluded from coverage, or having coverage limited for the Executive as compared to other
executives of the Employer, under the Employer’s blanket bond or other fidelity or insurance policy covering its directors, officers, or employees, or 
 (i) conviction of the Executive for or plea of no contest to a felony or conviction of or plea of no contest to a misdemeanor involving moral turpitude, or the actual incarceration of the Executive for 45 consecutive
days or more. 
 3.3 Involuntary Termination Without Cause and Voluntary Termination with Good Reason. With written notice to the
Executive 90 days in advance, the Employer may terminate the Executive’s employment without Cause. Termination shall take effect at the end of the 90-day period. With advance written notice to the Employer as provided in clause (y), the
Executive may terminate employment with Good Reason. If the Executive’s employment terminates involuntarily without Cause or voluntarily but with Good Reason, the Executive shall be entitled to the benefits specified in Article 4 of this
Agreement. For purposes of this Agreement a voluntary termination by the Executive shall be considered a voluntary termination with Good Reason if the conditions stated in both clauses (x) and (y) are satisfied –

 (x) a voluntary termination by the Executive shall be considered a voluntary termination with Good Reason if any of the following
occur without the Executive’s advance written consent, and the term Good Reason shall mean the occurrence of any of the following without the Executive’s advance written consent – 
 1) a material diminution of the Executive’s Base Salary, 
 2) a material diminution of the Executive’s authority, duties, or responsibilities, 
 3) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report,
including a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the board of directors, 
  

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 4) a material diminution in the budget over which the Executive retains authority,

 5) a material change in the geographic location at which the Executive must perform services for the Employer, or

 6) any other action or inaction that constitutes a material breach by the Employer of this Agreement. 
 (y) the Executive must give notice to the Employer of the existence of one or more of the conditions described in clause (x) within 90
days after the initial existence of the condition, and the Employer shall have 30 days thereafter to remedy the condition. In addition, the Executive’s voluntary termination because of the existence of one or more of the conditions described in
clause (x) must occur within 24 months after the initial existence of the condition. 
 3.4 Voluntary Termination by the
Executive Without Good Reason. If the Executive terminates employment voluntarily but without Good Reason, the Executive shall receive the Base Salary and expense reimbursement to which the Executive is entitled through the date on which
termination becomes effective. 
 ARTICLE 4 
 SEVERANCE COMPENSATION 
 4.1 Cash Severance after Termination
Without Cause or Termination with Good Reason. (a) Subject to the possibility that cash severance after employment termination might be delayed under section 4.1(b), if the Executive’s employment terminates involuntarily but without
Cause or voluntarily but with Good Reason, 30 days after employment termination the Employer shall pay to the Executive in a single lump sum cash in an amount equal to two times the Executive’s Base Salary on the date notice of employment
termination is given, without discount for the time value of money. The Employer and the Executive acknowledge and agree that the compensation and benefits under this section 4.1 shall not be payable if compensation and benefits are payable or shall
have been paid to the Executive under Article 5 of this Agreement. 
 (b) If when employment termination occurs the Executive is a specified
employee within the meaning of section 409A of the Internal Revenue Code of 1986, if the cash severance payment under section 4.1(a) would be considered deferred compensation under section 409A, and finally if an exemption from the six-month delay
requirement of section 409A(a)(2)(B)(i) is not available, the Executive’s cash severance payment under section 4.1(a) shall be paid to the Executive in a single lump sum without interest on the first day of the seventh month after the month in
which the Executive’s employment terminates. References in this Agreement to Internal Revenue Code section 409A include rules, regulations, and guidance of general application issued by the Department of the Treasury under section 409A.

  

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 4.2 Post-Termination Insurance Coverage. (a) Subject to section 4.2(b), if the
Executive’s employment terminates involuntarily but without Cause, voluntarily but with Good Reason, or because of disability, the Employer shall continue or cause to be continued at the Employer’s expense and on behalf of the Executive
and the Executive’s dependents and beneficiaries medical and dental insurance coverage as in effect during and in accordance with the same schedule prevailing in the 12 months preceding the date of the Executive’s termination. The
insurance benefits provided by this section 4.2(a) shall be reduced if the Executive obtains disability, medical, or dental insurance benefits through another employer, or eliminated entirely if the other employer’s insurance benefits are
equivalent or superior to the benefits provided under this section 4.2(a). If the insurance benefits are reduced, they shall be reduced by an amount such that the Executive’s aggregate insurance benefits for the period specified in this section
4.2(a) are equivalent to the benefits to which the Executive would have been entitled had the Executive not obtained disability, medical, or dental insurance benefits through another employer. The medical and dental insurance coverage shall continue
until the first to occur of (w) the Executive’s return to employment with the Employer or another employer providing equivalent or superior insurance benefits, (x) the Executive’s attainment of age 65,
(y) the Executive’s death, or (z) the end of the term remaining under this Agreement when the Executive’s employment terminates. This section 4.2 shall not be interpreted to limit any benefits to which the Executive
or the Executive’s dependents or beneficiaries may be entitled under any of the Employer’s employee benefit plans, agreements, programs, or practices after the Executive’s employment termination, including without limitation retiree
medical benefits. 
 (b) If (x) under the terms of the applicable policy or policies for the insurance benefits specified in
section 4.2(a) it is not possible to continue the Executive’s coverage or (y) when employment termination occurs the Executive is a specified employee within the meaning of section 409A of the Internal Revenue Code of 1986, if any
of the continued insurance benefits specified in section 4.2(a) would be considered deferred compensation under section 409A, and finally if an exemption from the six-month delay requirement of section 409A(a)(2)(B)(i) is not available for that
particular insurance benefit, instead of continued insurance coverage under section 4.2(a) the Employer shall pay to the Executive in a single lump sum an amount in cash equal to the present value of the Employer’s projected cost to maintain
that particular insurance benefit had the Executive’s employment not terminated, assuming continued coverage for the lesser of 36 months or the number of months until the Executive attains age 65. The lump-sum payment shall be made 30 days
after employment termination or, if section 4.1(b) applies and a six-month delay is required under Internal Revenue Code section 409A, on the first day of the seventh month after the month in which the Executive’s employment terminates.

 4.3 Release. The Executive shall be entitled to no compensation or other benefits under this Article 4 unless the Executive enters
into a release in form satisfactory to the Executive and the Employer acknowledging the Employer’s and the Executive’s remaining obligations and discharging both parties, as well as the Employer’s officers, directors, and employees
for their actions for or on behalf of the Employer, from any other claims or obligations arising out of the Executive’s employment by the Employer, including the circumstances of the Executive’s employment termination. The non-compete and
other covenants contained in Article 7 of this Agreement are not contingent on the Executive entering into a release under this section 4.3 and shall be effective regardless of whether the Executive enters into the release. 
  

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 ARTICLE 5 
 CHANGE IN CONTROL 
 5.1 Change
in Control Benefits. (a) If a Change in Control occurs during the term of this Agreement, the Employer shall make or cause to be made a lump-sum payment to the Executive in an amount in cash equal to three times the Executive’s annual
compensation. For this purpose annual compensation means (x) the Executive’s Base Salary when the Change in Control occurs plus (y) any cash bonus or cash incentive compensation earned for the calendar year ended
immediately before the year in which the Change in Control occurs, regardless of when the cash bonus or cash incentive compensation earned for the preceding calendar year is paid and regardless of whether all or part of the bonus or incentive
compensation is subject to elective deferral or vesting. Annual compensation shall be calculated without regard to any deferrals under qualified or nonqualified plans, but annual compensation shall not include interest or other earnings credited to
the Executive under qualified or nonqualified plans or any compensation paid to the Executive in the Executive’s capacity as a director. The amount payable to the Executive hereunder shall not be reduced to account for the time value of money
or discounted to present value. The payment required under this paragraph (a) is payable no later than five business days after the Change in Control occurs. If the Executive receives payment under section 5.1 the Executive shall not be
entitled to any additional severance benefits under section 4.1 of this Agreement after employment termination. The Executive shall be entitled to benefits under this section 5.1 on no more than one occasion. 
 (b) If a Change in Control occurs during the term of this Agreement the Employer shall cause the Executive to become fully vested in awards under any
stock option, stock incentive, or other non-qualified plans, programs, or arrangements in which the Executive participated if (x) the plan, program, or arrangement does not address the effect of a change in control or termination after a
change in control and (y) award vesting occurs automatically with the passage of time or years of service. Provided the Executive is at the time a covered employee within the meaning of Internal Revenue Code section 162(m), accelerated
vesting in or entitlement to awards shall not occur under this section 5.1(b) in the case of any award for which vesting or entitlement is based on achievement of performance conditions, whether the conditions have to do with individual performance
or corporate performance measures, including but not limited to stock price or financial statement or other financial measures. 
 5.2
Change in Control Defined. For purposes of this Agreement “Change in Control” means a change in control as defined in Internal Revenue Code section 409A and rules, regulations, and guidance of general application
thereunder issued by the Department of the Treasury, including – 
 (a) Change in ownership: a change in ownership of the Employer
occurs on the date any one person or group accumulates ownership of Employer stock constituting more than 50% of the total fair market value or total voting power of Employer stock, or 
 (b) Change in effective control: (x) any one person or more than one person acting as a group acquires within a 12-month period
ownership of Employer stock possessing 30% or more of the total voting power of Employer stock, or (y) a majority of the Employer’s board of directors is replaced during any 12-month period by directors whose appointment or election
is not endorsed in advance by a majority of the Employer’s board of directors, or 
  

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 (c) Change in ownership of a substantial portion of assets: a change in ownership of a substantial
portion of the Employer’s assets occurs if in a 12-month period any one person or more than one person acting as a group acquires from the Employer assets having a total gross fair market value equal to or exceeding 40% of the total gross fair
market value of all of the Employer’s assets immediately before the acquisition or acquisitions. For this purpose, gross fair market value means the value of the Employer’s assets, or the value of the assets being disposed of, determined
without regard to any liabilities associated with the assets. 
 ARTICLE 6 
 CONFIDENTIALITY AND CREATIVE WORK 
 6.1 Non-disclosure. The Executive covenants and agrees not to reveal to any person, firm, or corporation any confidential information of any
nature concerning the Employer or its business, or anything connected therewith. As used in this Article 6, the term “confidential information” means all of the Employer’s and affiliates’ confidential and
proprietary information and trade secrets in existence on the date hereof or existing at any time during the term of this Agreement, including but not limited to – 
 (a) the whole or any portion or phase of any business plans, financial information, purchasing data, supplier data, accounting data, or other financial information, 
 (b) the whole or any portion or phase of any research and development information, design procedures, algorithms or processes, or other technical
information, 
 (c) the whole or any portion or phase of any marketing or sales information, sales records, customer lists, prices, sales
projections, or other sales information, and 
 (d) trade secrets, as defined from time to time by the laws of the State of North Carolina.

 However, confidential information excludes information that – as of the date hereof or at any time after the date hereof – is
published or disseminated without obligation of confidence or that becomes a part of the public domain (x) by or through action of the Employer, or (y) otherwise than by or at the direction of the Executive. This section 6.1
does not prohibit disclosure required by an order of a court having jurisdiction or a subpoena from an appropriate governmental agency or disclosure made by the Executive in the ordinary course of business and within the scope of the
Executive’s authority. 
 6.2 Return of Materials. The Executive agrees to deliver or return to the Employer upon termination,
upon expiration of this Agreement, or as soon thereafter as possible, all written information and any other similar items furnished by the Employer or prepared by the Executive in connection with the Executive’s services hereunder. The
Executive will retain no copies thereof after termination of this Agreement or termination of the Executive’s employment. 
  

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 6.3 Creative Work. The Executive agrees that all creative work and work product, including but not
limited to all technology, business management tools, processes, software, patents, trademarks, and copyrights developed by the Executive during the term of this Agreement, regardless of when or where such work or work product was produced,
constitutes work made for hire, all rights of which are owned by the Employer. The Executive hereby assigns to the Employer all rights, title, and interest, whether by way of copyrights, trade secret, trademark, patent, or otherwise, in all such
work or work product, regardless of whether the same is subject to protection by patent, trademark, or copyright laws. This section 6.3 shall not be construed to require assignment to the Employer of the Executive’s right, title, and interest
in creative work and work product, including but not limited to inventions, patents, trademarks, and copyrights, developed by the Executive entirely on the Executive’s own time and without using the Employer’s equipment, supplies,
facilities, or trade secrets unless the creative work or work product (x) relates to the Employer’s business or actual or demonstrably anticipated research or development or (y) results from any work performed by the
Executive for the Employer. However, to enable the Employer to determine the rights of the Employer and the Executive in any creative work and work product developed by the Executive that the Executive considers nonassignable under this section 6.3,
including but not limited to inventions, patents, trademarks, and copyrights, the Executive shall during the term of this Agreement timely report to the Employer all such creative work and work product. 
 6.4 Injunctive Relief. The Executive acknowledges that it is impossible to measure in money the damages that will be suffered by the Employer if
the Executive fails to observe the obligations imposed by this Article 6. Accordingly, if the Employer institutes an action to enforce the provisions hereof, the Executive hereby waives the claim or defense that an adequate remedy at law is
available to the Employer and the Executive agrees not to urge in any such action the claim or defense that an adequate remedy at law exists. 
 6.5 Affiliates’ Confidential Information is Covered. For purposes of this Agreement the term “affiliate” includes the Corporation, the Bank, and any entity that directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control with the Corporation or the Bank. 
 6.6 Acknowledgments. The
Executive hereby acknowledges that the enforcement of Article 6 of this Agreement is necessary to ensure the preservation, protection, and continuity of the business, trade secrets, and goodwill of the Employer, and that the restrictions set forth
in Article 6 are reasonable in terms of time, scope, territory, and in all other respects. The Executive acknowledges that it is impossible to measure in money the damages that will accrue to the Employer if the Executive fails to observe the
obligations imposed by Article 6. Accordingly, if the Employer institutes an action to enforce the provisions of Article 6, the Executive hereby waives the claim or defense that an adequate remedy at law is available to the Employer and the
Executive agrees not to urge in any such action the claim or defense that an adequate remedy at law exists. The existence of any claim or cause of action by the Executive against the Employer shall not constitute and shall not be asserted as a
defense by the Executive to enforcement of Article 6. 
  

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 6.7 Survival of Obligations. The Executive’s obligations under Article 6 shall survive
employment termination regardless of the manner in which termination occurs and shall be binding upon the Executive’s heirs, executors, and administrators. 
 ARTICLE 7 
 COMPETITION AFTER EMPLOYMENT
TERMINATION 
 7. Restrictions on the Executive’s Post-Employment Activities. These restrictions have been
negotiated, presented to and accepted by the Executive contemporaneous with the offer and acceptance by the Executive of this Agreement and the benefits promised in a Salary Continuation Agreement signed or to be signed in 2008 by the Executive and
the Bank. The Employer’s decision to enter into this Agreement and the Salary Continuation Agreement is conditioned upon the Executive’s agreement to be bound by the restrictions contained in this Article 7. 
 (a) Promise of no solicitation. The Executive promises and agrees that during the Restricted Period (as defined below), and in the Restricted
Territory (as defined below), the Executive will1: 
 1. not directly or indirectly solicit, or attempt to solicit any Customer (as defined below) to accept or purchase Financial Products or Services (as defined below) of the same nature, kind or variety as
provided to the Customer by the Employer during the two years immediately preceding the Executive’s employment termination with the Employer, 
 2. not directly or indirectly influence, or attempt to influence any Customer, joint venturer or other business partner of the Employer to alter that person or entity’s business relationship with the Employer in any respect, and

 3. not accept the Financial Products or Services business of any Customer or provide Financial Products or Services to any Customer
on behalf of anyone other than the Employer. 
 (b) Promise of no competition. The Executive promises and agrees that during the
Restricted Period in the Restricted Territory, the Executive will not engage, undertake or participate in the business of providing, selling, marketing or distributing Financial Products or Services of a similar nature, kind or variety
(x) as offered by the Employer to Customers during the two years immediately preceding the Executive’s employment termination with the Employer, or (y) as offered by the Employer to any of its Customers during the
Restricted Period.2 Subject to the above provisions and conditions of this subparagraph (b), the Executive 
  

	1	For Example, the promise of no solicitation applies if the Executive is conducting prohibited business in the Restricted Territory or if the entity with, for or to whom the
Executive is conducting prohibited business is located within the Restricted Territory. 

	2	For Example, the promise of no competition applies if the Executive is conducting prohibited business in the Restricted Territory or if the entity with, for or to whom the
Executive is conducting prohibited business is located within the Restricted Territory. 

  

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promises that during the Restricted Period the Executive will not become employed by or serve as a director, partner, consultant, agent, or owner of
5% or more of the outstanding stock of or contractor to any entity providing these prohibited Financial Products or Services which is located in, or conducts business in the Restricted Territory. 
 (c) Promise of no raiding/hiring. The Executive promises and agrees that during the Restricted Period, the Executive will not solicit or
attempt to solicit and will not encourage or induce in any way, any employee, joint venturer or business partner of the Employer to terminate an employment or contractual relationship with the Employer. The Executive agrees that the Executive
will not hire any person employed by Employer during the two-year period prior to the Executive’s employment termination with the Employer or any person employed by the Employer during the Restricted Period. 
 (d) Promise of no disparagement. The Executive promises and agrees that during the Restricted Period, the Executive will not cause
statements to be made (whether written or oral) that reflect negatively on the business reputation of the Employer. 
 (e)
Acknowledgment. The Executive and the Employer acknowledge and agree that the provisions of this Article 7 have been negotiated and carefully determined to be reasonable and necessary for the protection of legitimate business interests of the
Employer. Both parties agree that a violation of Article 7 is likely to cause immediate and irreparable harm that will give rise to the need for court ordered injunctive relief. In the event of a breach or threatened breach by the Executive of any
provision of this Agreement, the Employer shall be entitled to obtain an injunction restraining the Executive from violating the terms of this Agreement and to institute an action against the Executive to recover damages from the Employee for such
breach. These remedies for default or breach are in addition to any other remedy or form of redress provided under North Carolina law. The parties acknowledge that the provisions of this Article 7 survive termination of the employment relationship,
but the provisions of this Article 7 shall be null and void if a Change in Control occurs before employment termination. The parties agree that if any of the provisions of this Article 7 are deemed unenforceable by a court of competent jurisdiction,
that such provisions may be stricken as independent clauses by the court in order to enforce the remaining territory restrictions and that the intent of the parties is to afford the broadest restriction on post-employment activities as set forth in
this agreement. Without limiting the generality of the foregoing, without limiting the remedies available to the Employer for violation of this Agreement, and without constituting an election of remedies, if the Executive violates any of the terms
of Article 7 the Executive shall forfeit on the Executive’s own behalf and that of beneficiary(ies) any rights to and interest in any severance or other benefits under this Agreement or other contract the Executive has with the Bank or the
Corporation. 
 (f) Definitions: 
 1. “Restricted Period” as used herein means one year immediately following the Executive’s termination and/or separation of employment with the Employer, regardless of the reason for termination and/or separation. The
Restricted Period shall be extended in an amount equal to any time period during which a violation of Article 7 of this Agreement is proven. 
  

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 2. “Restricted Territory” as used herein means all of Alamance, Forsyth, Guilford, and Randolph
Counties in North Carolina and any other county in which the Bank has an office when the Executive’s employment termination occurs. The parties agree that if any of these separate territories are deemed too broad to be enforced by a court of
competent jurisdiction, that the territories are divisible and severable territories which may be stricken as independent clauses by the court in order to enforce the remaining territory restrictions. 
 3. “Customer” as used herein means any individual, joint venturer, entity of any sort, or other business partner of the Employer, with, for or
to whom the Employer has provided Financial Products or Services during the last two years of the Executive’s employment with the Employer; or any individual, joint venturer, entity of any sort, or business partner whom the Employer has
identified as a prospective customer of Financial Products or Services within the last two years of the Executive’s employment with the Employer. 
 4. “Financial Products or Services” as used herein means any product or service that a financial institution or a financial holding company could offer by engaging in any activity that is financial in nature
or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956 and that is offered by the Employer or an affiliate on the date of the Executive’s employment termination, including but not limited to
banking activities and activities that are closely related and a proper incident to banking, or other products or services of the type of which the Executive was involved during the Executive’s employment with the Employer. 
 ARTICLE 8 
 MISCELLANEOUS 
 8.1 Successors and Assigns. (a) This Agreement is binding on successors.
This Agreement shall be binding upon the Employer and any successor to the Employer, including any persons acquiring directly or indirectly all or substantially all of the business or assets of the Employer by purchase, merger, consolidation,
reorganization, or otherwise. But this Agreement and the Employer’s obligations under this Agreement are not otherwise assignable, transferable, or delegable by the Employer. By agreement in form and substance satisfactory to the Executive, the
Employer shall require any successor to all or substantially all of the business or assets of the Employer expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Employer would be required to perform
had no succession occurred. 
 (b) This Agreement is enforceable by the Executive’s heirs. This Agreement shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, and legatees. 
 (c) This Agreement is personal in nature and is not assignable. This Agreement is personal in nature. Without written consent of the other parties, no party shall assign, transfer, or delegate this Agreement or
any rights or obligations under this Agreement except as expressly provided herein. Without limiting the generality or effect of the foregoing, the Executive’s right to receive payments hereunder is not assignable or transferable, whether by
pledge, creation of a security interest, or otherwise, except for a transfer by the Executive’s will or by the laws of 

  

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descent and distribution. If the Executive attempts an assignment or transfer that is contrary to this section 8.1, the Employer shall have no liability to
pay any amount to the assignee or transferee. 
 8.2 Governing Law, Jurisdiction and Forum. This Agreement shall be construed under
and governed by the internal laws of the State of North Carolina, without giving effect to any conflict of laws provision or rule (whether of the State of North Carolina or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of North Carolina. By entering into this Agreement, the Executive acknowledges that the Executive is subject to the jurisdiction of both the federal and state courts in the State of North Carolina. Any actions or
proceedings instituted under this Agreement shall be brought and tried solely in courts located in Guilford County, North Carolina or in the federal court having jurisdiction in Greensboro, North Carolina. The Executive expressly waives the right to
have any such actions or proceedings brought or tried elsewhere. 
 8.3 Entire Agreement. This Agreement sets forth the entire
agreement of the parties concerning the employment of the Executive. Any oral or written statements, representations, agreements, or understandings made or entered into prior to or contemporaneously with the execution of this Agreement are hereby
rescinded, revoked, and rendered null and void. This Agreement supersedes and replaces in its entirety the May 21, 1996 Employment Agreement between the Executive and Carolina Savings Bank, Inc., SSB, as the same may have been amended, and from
and after the date of this Agreement the May 21, 1996 Employment Agreement shall be of no further force or effect. 
 8.4
Notices. Any notice under this Agreement shall be deemed to have been effectively made or given if in writing and personally delivered, delivered by mail properly addressed in a sealed envelope, postage prepaid by certified or registered mail,
delivered by a reputable overnight delivery service, or sent by facsimile. Unless otherwise changed by notice, notice shall be properly addressed to the Executive if addressed to the address of the Executive on the books and records of the Employer
at the time of the delivery of such notice, and properly addressed to the Employer if addressed to Carolina Bank, 528 College Road, Greensboro, North Carolina 27410, Attention: Corporate Secretary. 
 8.5 Severability. If there is a conflict between any provision of this Agreement and any statute, regulation, or judicial precedent, the latter
shall prevail, but the affected provisions of this Agreement shall be curtailed and limited solely to the extent necessary to bring them within the requirements of law. If any provision of this Agreement is held by a court of competent jurisdiction
to be indefinite, invalid, void or voidable, or otherwise unenforceable, the remainder of this Agreement shall continue in full force and effect unless that would clearly be contrary to the intentions of the parties or would result in an injustice.

 8.6 Captions and Counterparts. The captions in this Agreement are solely for convenience. The captions do not define, limit, or
describe the scope or intent of this Agreement. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. 
  

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 8.7 Amendment and Waiver. This Agreement may not be amended, released, discharged, abandoned,
changed, or modified except by an instrument in writing signed by each of the parties hereto. The failure of any party hereto to enforce at any time any of the provisions of this Agreement shall not be construed to be a waiver of any such provision
or affect the validity of this Agreement or any part thereof or the right of any party thereafter to enforce each and every such provision. No waiver or any breach of this Agreement shall be held to be a waiver of any other or subsequent breach.

 8.8 Payment of Legal Fees. The Employer is aware that after a Change in Control management could cause or attempt to cause the
Employer to refuse to comply with its obligations under this Agreement, or could institute or cause or attempt to cause the Employer to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take
other action to deny Executive the benefits intended under this Agreement. In these circumstances the purpose of this Agreement would be frustrated. The Employer desires that the Executive not be required to incur the expenses associated with the
enforcement of rights under this Agreement, whether by litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits intended to be granted to the Executive hereunder. The Employer desires that
the Executive not be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control occurs it appears to the Executive that (x) the Employer has failed to
comply with any of its obligations under this Agreement, or (y) the Employer or any other person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation or other legal action designed to deny,
diminish, or to recover from the Executive the benefits intended to be provided to the Executive hereunder, the Employer irrevocably authorizes the Executive from time to time to retain counsel of the Executive’s choice, at the Employer’s
expense as provided in this section 8.8, to represent the Executive in the initiation or defense of any litigation or other legal action, whether by or against the Employer or any director, officer, stockholder, or other person affiliated with the
Employer, in any jurisdiction. Despite any existing or previous attorney-client relationship between the Employer and any counsel chosen by the Executive under this section 8.8, the Employer irrevocably consents to the Executive entering into an
attorney-client relationship with that counsel, and the Employer and the Executive agree that a confidential relationship shall exist between the Executive and that counsel. The fees and expenses of counsel selected from time to time by the
Executive as provided in this section shall be paid or reimbursed to the Executive by the Employer on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by counsel in accordance with counsel’s
customary practices, up to a maximum aggregate amount of $125,000, whether suit be brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. The Employer’s obligation to pay the Executive’s legal fees
provided by this section 8.8 operates separately from and in addition to any legal fee reimbursement obligation the Employer may have with the Executive under any separate severance or other agreement. Despite anything in this Agreement to the
contrary, however, the Employer shall not be required to pay or reimburse Executive’s legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit
Insurance Corporation [12 CFR 359.3]. 
 8.9 Consultation with Counsel and Interpretation of this Agreement. The Executive has had the
assistance of counsel of the Executive’s choosing in the negotiation of this 

  

 15 

 
Agreement or the Executive has chosen not to have the assistance of counsel. Both parties hereto having participated in the negotiation and drafting of this
Agreement, they hereby agree that there shall not be strict interpretation against either party in any review of this Agreement in which interpretation of the Agreement is an issue. 
 8.10 Compliance with Internal Revenue Code Section 409A. The Employer and the Executive intend that their exercise of authority or discretion
under this Agreement shall comply with section 409A of the Internal Revenue Code of 1986. If when the Executive’s employment terminates the Executive is a specified employee, as defined in section 409A of the Internal Revenue Code of 1986, and
if any payments under this Agreement, including Articles 4 or 5, will result in additional tax or interest to the Executive because of section 409A, then despite any provision of this Agreement to the contrary the Executive shall not be entitled to
the payments until the earliest of (x) the date that is at least six months after termination of the Executive’s employment for reasons other than the Executive’s death, (y) the date of the Executive’s death,
or (z) any earlier date that does not result in additional tax or interest to the Executive under section 409A. As promptly as possible after the end of the period during which payments are delayed under this provision, the entire amount
of the delayed payments shall be paid to the Executive in a single lump sum. If any provision of this Agreement does not satisfy the requirements of section 409A, the provision shall be applied in a manner consistent with those requirements despite
any contrary provision of this Agreement. If any provision of this Agreement would subject the Executive to additional tax or interest under section 409A, the Employer shall reform the provision. However, the Employer shall maintain to the maximum
extent practicable the original intent of the applicable provision without subjecting the Executive to additional tax or interest, and the Employer shall not be required to incur any additional compensation expense as a result of the reformed
provision. References in this Agreement to section 409A of the Internal Revenue Code of 1986 include rules, regulations, and guidance of general application issued by the Department of the Treasury under Internal Revenue Code section 409A.

  

 16 

 IN WITNESS WHEREOF, the parties have
executed this Employment Agreement as of the date first written above. 
  

							
	EXECUTIVE	 		 	CAROLINA BANK HOLDINGS, INC.
				
	 /s/ Robert T. Braswell
	 		 	By:	 	 /s/ T. Allen Liles

	Robert T. Braswell	 		 	Its:	 	Secretary and Treasurer
			
		 		 	CAROLINA BANK
				
		 		 	By:	 	 /s/ T. Allen Liles

		 		 	Its:	 	EVP & CFO

  

					
	Guilford County	  	)	  	
		  	)	  	ss:
	State of North Carolina	  	)	  	

 Before me this 20th day of May, 2008, personally appeared the above named Robert T. Braswell and
T. Allen Liles , who acknowledged that they did sign the foregoing instrument and that the same was their free act and deed. 
  

			
	(Notary Seal)	  	Notary Public /s/ Jane E. McConnell
		  	My Commission Expires: July 7, 2008

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