<SEC-DOCUMENT>0001144204-14-073172.txt : 20141210
<SEC-HEADER>0001144204-14-073172.hdr.sgml : 20141210
<ACCEPTANCE-DATETIME>20141210163042
ACCESSION NUMBER:		0001144204-14-073172
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20141205
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20141210
DATE AS OF CHANGE:		20141210

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORNERSTONE BANCSHARES INC
		CENTRAL INDEX KEY:			0001038773
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				621173944
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-30497
		FILM NUMBER:		141278305

	BUSINESS ADDRESS:	
		STREET 1:		835 GEORGIA AVENUE
		CITY:			CHATTANOOGA
		STATE:			TN
		ZIP:			37402
		BUSINESS PHONE:		423-385-3000

	MAIL ADDRESS:	
		STREET 1:		6401 LEE HIGHWAY SUITE 119
		CITY:			CHATTANOOGA
		STATE:			TN
		ZIP:			37421

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EAST RIDGE BANCSHARES INC
		DATE OF NAME CHANGE:	19970507
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v396203_8k.htm
<DESCRIPTION>8-K CURRENT REPORT
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">UNITED
STATES</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">Washington,
D.C. 20549</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="tlogo.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">FORM 8-K</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal">CURRENT
REPORT</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B><BR>
<B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Date of Report (Date of earliest event
reported): December 5, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">CORNERSTONE
BANCSHARES, INC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact name of registrant as specified
in its charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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    <TD STYLE="width: 20%; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal">Tennessee</FONT></TD>
    <TD STYLE="width: 1%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 57%; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">000<B>-</B><FONT STYLE="font-weight: normal; font-style: normal">30497</FONT></FONT></TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 20%; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal">62-1173944</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(State or other<BR>
    jurisdiction of<BR>
    incorporation)</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B>(Commission
    File Number)</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B>(IRS Employer
    Identification No.)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 70%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal">835
    Georgia Avenue, Chattanooga, Tennessee 37402</FONT></TD>
    <TD STYLE="width: 15%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B>(Address of
    principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zip code)</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 70%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">(423) 385-3000</FONT></TD>
    <TD STYLE="width: 15%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-style: normal"><B>(Registrant's telephone number, including area code)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 70%; border-bottom: Black 1pt solid; text-align: center"><FONT STYLE="font-weight: normal; font-style: normal">Not Applicable</FONT></TD>
    <TD STYLE="width: 15%; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-style: normal"><B>(Former name or former address if changed since last report)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">x</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.4in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.75in; text-align: left"><B>Item 1.01</B></TD><TD STYLE="text-align: justify"><B>Entry into a Material Definitive Agreement.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Agreement and Plan of Merger</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 5, 2014, Cornerstone Bancshares,
Inc. (&ldquo;Cornerstone&rdquo;), its wholly owned subsidiary, Cornerstone Community Bank, SmartFinancial, Inc. (&ldquo;SmartFinancial&rdquo;),
and its wholly owned subsidiary, SmartBank, entered into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;),
pursuant to which SmartFinancial will be merged with and into Cornerstone (the &ldquo;Merger&rdquo;), and the entity surviving
the Merger (the &ldquo;Surviving Company&rdquo;) will be renamed SmartFinancial, Inc. The banks will initially remain separate
and operate under their respective names in their respective markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the terms of the Merger Agreement,
each outstanding share of SmartFinancial common stock will be converted into 4.20 shares of Cornerstone common stock, subject to
adjustment based on an anticipated reverse stock split of Cornerstone&rsquo;s common stock, which is expected to adjust the ratio
to 1.05 shares of Cornerstone common stock for each share of SmartFinancial common stock. Additionally, each outstanding share
of SmartFinancial preferred stock will be converted into a share of Cornerstone preferred stock with similar rights and preferences.
Current holders of Cornerstone&rsquo;s preferred stock will be asked to vote on an amendment to Cornerstone&rsquo;s charter to
allow Cornerstone to redeem its outstanding preferred stock prior to the completion of the Merger. Cornerstone will use its reasonable
best efforts to list its common stock on NASDAQ prior to closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on consideration of all the relevant
facts and circumstances of the Merger, for accounting purposes, SmartFinancial will be considered to have acquired Cornerstone.
As a result, following the completion of the Merger, the historical financial statements of the Surviving Company will be the historical
financial statements of SmartFinancial. The Merger will be effected by the issuance of shares of Cornerstone stock to SmartFinancial
shareholders. The assets and liabilities of Cornerstone as of the effective date of the Merger will be recorded at their estimated
fair values and added to those of SmartFinancial. Any excess of purchase price over the net estimated fair values of the acquired
assets and liabilities of Cornerstone will be allocated to all identifiable intangible assets. Any remaining excess will then be
allocated to goodwill, the goodwill resulting from the Merger will not be amortized to expense, but instead will be reviewed for
impairment at least annually. To the extent goodwill were impaired, its carrying value would be written down to its implied fair
value and a charge would be made to earnings. Intangibles with definite useful lives will be amortized to expense over their estimated
useful lives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After the Merger is complete, current SmartFinancial
shareholders will own approximately 65% of the Surviving Company&rsquo;s common stock and current Cornerstone shareholders will
own approximately 35% of the Surviving Company&rsquo;s common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Merger Agreement contains customary
representations, warranties and covenants by all parties. Conditions to each party&rsquo;s obligation to consummate the Merger
include the following, as well as other customary conditions: (1) approval of the Merger Agreement by shareholders of Cornerstone
and SmartFinancial, (2) approval of the Merger by regulatory authorities, (3) action by no more than 7% of the outstanding shares
of SmartFinancial common stock and Cornerstone common stock taken together that would establish the right to dissent from the Merger
under Tennessee law, (4) redemption of outstanding shares of Cornerstone&rsquo;s preferred stock and (5) the completion by Cornerstone
of financing transactions that may be necessary to obtain regulatory approval of the Merger. Conditions to SmartFinancial&rsquo;s
obligation to consummate the Merger include the following: (1) evidence that Cornerstone has amended its charter to allow the redemption
of its outstanding preferred stock, the conversion of SmartFinancial&rsquo;s outstanding preferred stock and the reverse stock
split, (2) approval by the Cornerstone shareholders of an amended and restated charter, (3) approval by the Cornerstone shareholders
of amended and restated bylaws, (4) adoption by the Cornerstone board of directors and approval by the Cornerstone shareholders
of an incentive compensation plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Billy Carroll will be the President and
Chief Executive Officer of the Surviving Company, Miller Welborn will be the Chairman and Bill Carroll will be the Vice Chairman.
There will be no change of the SmartBank executive officers, with Billy Carroll remaining as President and CEO and Bill Carroll
as Chairman. Barry Watson will become President of Cornerstone Community Bank and Miller Welborn will continue as Chairman. Frank
Hughes will serve as President and CEO of Cornerstone pending the Merger, and will assume an Investment Officer role working with
Billy Carroll for the Surviving Company, post-merger, focusing on the Surviving Company&rsquo;s investment portfolio and institutional
investor relations. All other executive team members will remain in their same roles and capacities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors at both banks will remain the
same except that Miller Welborn will be added to the SmartBank board and Billy Carroll will be added to the Cornerstone Community
Bank board. The board of the Surviving Company will consist of Miller Welborn (current Cornerstone director), Chair; Bill Carroll
(current SmartFinancial director), Vice Chair; Monique Berke (current Cornerstone director); Doyce Payne (current Cornerstone director);
Frank McDonald (current Cornerstone director); Vic Barrett (current SmartFinancial director); Billy Carroll (current SmartFinancial
director); Ted Miller (current SmartFinancial director); David Ogle (current SmartFinancial director); Keith Whaley (current SmartFinancial
director); and Geoff Wolpert (current SmartFinancial director).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Merger Agreement provides certain termination
rights for both Cornerstone and SmartFinancial and further provides that, upon termination of the Merger Agreement under certain
circumstances, Cornerstone or SmartFinancial, as applicable, will be obligated to pay the other party a termination fee of $1,200,000
plus expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Director Support Agreements</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a condition to Cornerstone&rsquo;s and
Cornerstone Community Bank&rsquo;s willingness to enter into the Merger Agreement, on December 5, 2014, each member of SmartFinancial&rsquo;s
board of directors entered into a Director Support Agreement with Cornerstone and Cornerstone Community Bank. Pursuant to the Director
Support Agreements each of the members of the SmartFinancial board agreed to vote his or her SmartFinancial shares, and to cause
any holder of record of the shares to vote the shares: (a) in favor of the Merger Agreement and the Merger and such other matters
as are required to be approved by the shareholders of SmartFinancial for the consummation of the transactions contemplated by the
Merger Agreement, and (b) against (i) any proposal opposing or in competition with the consummation of the Merger, (ii) any action,
proposal, transaction, agreement, or other matter which could reasonably be expected to result in a breach of any representation,
warranty, covenant, or other obligation or agreement of SmartFinancial or SmartBank under the Merger Agreement or of the director
under the Director Support &nbsp;Agreement, and (iii) any action, proposal, transaction, agreement, or other matter that could
reasonably be expected to impede, interfere with, delay, discourage, adversely affect, or inhibit the timely consummation of the
Merger, or the fulfillment of any condition to the consummation of the Merger set forth in the Merger Agreement, or change in any
manner the voting rights of any class or series of shares of capital stock of SmartFinancial (including any amendment to the charter
or bylaws of SmartFinancial).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing descriptions of the Merger
Agreement and the Director Support Agreements do not purport to be complete and are qualified in their entirety by reference to
the full text of the respective agreements, attached hereto as Exhibit 2.1 and 10.1, respectively, which are incorporated herein
by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The representations, warranties and covenants
of each party set forth in the Merger Agreement have been made only for purposes of, and were and are solely for the benefit of,
the parties to the Merger Agreement, may be subject to limitations agreed upon by the contracting parties, including being qualified
by confidential disclosures made for the purposes of allocating contractual risk between the parties to the Merger Agreement instead
of establishing these matters as facts, and may be subject to standards of materiality applicable to the contracting parties that
differ from those applicable to investors. Accordingly, the representations and warranties may not describe the actual state of
affairs at the date they were made or at any other time, and investors should not rely on them as statements of fact. In addition,
such representations and warranties (1) will not survive consummation of the Merger, and (2) were made only as of the date of the
Merger Agreement or such other date as is specified in the Merger Agreement. Moreover, information concerning the subject matter
of the representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may
not be fully reflected in the parties' public disclosures. Accordingly, the Merger Agreement is included with this filing only
to provide investors with information regarding the terms of the Merger Agreement, and not to provide investors with any other
factual information regarding the parties to the Merger Agreement, their affiliates or their businesses. The Merger Agreement should
not be read alone, but should instead be read in conjunction with the other information regarding the parties to the Merger Agreement,
their affiliates or their businesses, and the Merger that will be contained in, or incorporated by reference into, a registration
statement on Form S-4 that will be filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) and will include a
joint proxy statement of Cornerstone and SmartFinancial and a prospectus of Cornerstone, as well as in the Forms 10-K, Forms 10-Q
and other filings that Cornerstone makes with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Employment Agreements</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Merger, Cornerstone
and Cornerstone Community Bank terminated existing employment agreements with certain officers and entered into new employment
agreements. The employer and titles of certain officers covered by the new employment agreements are listed below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%; border-bottom: Black 1pt solid; text-align: center">Employee</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 28%; border-bottom: Black 1pt solid; text-align: center">Employer</TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; text-align: center">Title</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">*Nathaniel F. Hughes</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Cornerstone</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">President and Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Gary W. Petty, Jr.</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Cornerstone</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Executive Vice President and Chief Financial Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Cornerstone Community Bank</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Executive Vice President and Chief Operating Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Robert B. Watson</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Cornerstone Community Bank</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">James R. Vercoe, Jr.</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Cornerstone Community Bank</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Executive Vice President and Chief Credit Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><B>*</B></TD><TD><FONT STYLE="font-size: 10pt">After the Merger is completed, Mr. Hughes will become Executive Vice President, Investment Officer
and Institutional Investor Relations of the Surviving Company.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing summary is qualified in its
entirety by reference to the full text of the employment agreements, copies of which are attached as Exhibits 10.2, 10.3, 10.4
and 10.5 to this report and are incorporated by reference into this Item 1.01.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left"><B>Item 5.02</B></TD><TD STYLE="text-align: justify"><B>Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information in Item 1.01 is incorporated
by reference into this Item.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Important Information for Shareholders</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This communication shall not constitute
an offer to sell, the solicitation of an offer to sell, or the solicitation of an offer to buy any securities or the solicitation
of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. <FONT STYLE="background-color: white">In
connection with the proposed Merger, Cornerstone will file a registration statement on Form S-4 with the SEC, which will contain
the joint proxy statement/prospectus of SmartFinancial and Cornerstone. Shareholders of Cornerstone and SmartFinancial are encouraged
to read the registration statement, including the joint proxy statement/prospectus that will be part of the registration statement,
because it will contain important information about the Merger, Cornerstone and SmartFinancial. After the registration statement
is filed with the SEC, the joint proxy statement/prospectus and other relevant documents will be mailed to all Cornerstone and
SmartFinancial shareholders and will be available for free on the SEC&rsquo;s website (<U>www.sec.gov</U>). The joint proxy statement/prospectus
will also be made available for free by contacting the President and CEO of SmartFinancial at (865) 868-0613 or the President
and CEO of Cornerstone at 423-385-3009.</FONT> No offer of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cornerstone, SmartFinancial and their respective
directors, executive officers, and certain other members of management and employees of Cornerstone and SmartFinancial may be deemed
to be participants in the solicitation of proxies in connection with the proposed Merger. Information concerning the interests
of the persons who may be considered &ldquo;participants&rdquo; in the solicitation will be set forth in the joint proxy statement/prospectus
relating to the Merger and the other relevant documents filed with the SEC when they become available. Information about the directors
and executive officers of Cornerstone is also set forth in Cornerstone&rsquo;s proxy statement for its 2014 annual meeting of shareholders
and its Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><U>Forward-Looking Statements</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain of the statements made in this
report may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current
expectations of Cornerstone, SmartFinancial and their respective management regarding the companies&rsquo; strategic directions,
prospects, future results and benefits of the Merger, are subject to numerous risks and uncertainties. Certain factors may cause
actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions
in the markets in which Cornerstone and SmartFinancial operate, governmental regulations, the ability to obtain regulatory and
shareholder approvals, the possibility that conditions to completion of the Merger will not be satisfied, the ability to complete
the Merger in the expected timeframe, the companies&rsquo; competitive environment, cyclical and seasonal fluctuations in their
operating results, and other risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01&#9;Financial Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">(d)</TD><TD STYLE="text-align: justify"><U>Exhibits</U>.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">2.1*</TD><TD STYLE="text-align: justify">Agreement and Plan of Merger dated as of December 5,
2014 by and among SmartFinancial, Inc., SmartBank, Cornerstone Bancshares, Inc. and Cornerstone Community Bank.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-indent: -85.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">10.1</TD><TD STYLE="text-align: justify">Form of Director Support Agreements by and among each
current director of SmartFinancial and Cornerstone and Cornerstone Community Bank.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-indent: -85.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">10.2</TD><TD STYLE="text-align: justify">Employment Agreement with Nathaniel F. Hughes.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-indent: -85.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">10.3</TD><TD STYLE="text-align: justify">Employment Agreement with Gary W. Petty, Jr.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-indent: -85.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">10.4</TD><TD STYLE="text-align: justify">Employment Agreement with Robert B. Watson.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-indent: -85.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.5in; text-align: left">10.5</TD><TD STYLE="text-align: justify">Employment Agreement with James R. Vercoe, Jr.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-indent: -27pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-indent: -27pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">*</TD><TD><FONT STYLE="font-size: 10pt">Schedules and exhibits are omitted pursuant to Item 601(b)(2) of Regulation S-K. Cornerstone
agrees to furnish supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon request.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85.5pt; text-indent: -85.5pt">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%">CORNERSTONE BANCSHARES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>(Registrant)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%">Date: December 10, 2014</TD>
    <TD STYLE="width: 3%">By:</TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid; padding-left: 0.125in">/s/ Nathaniel F. Hughes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.125in">Nathaniel F. Hughes</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.125in">President and Chief Executive Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.75in; text-indent: -0.5in">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INDEX TO EXHIBITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 12%; border-bottom: Black 1pt solid; text-align: center"><B>Exhibit No.</B></TD>
    <TD STYLE="width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 86%; border-bottom: Black 1pt solid; text-align: justify"><B>Description</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">2.1*</TD>
    <TD>&nbsp;</TD>
    <TD>Agreement and Plan of Merger dated as of December 5, 2014 by and among SmartFinancial, Inc., SmartBank, Cornerstone Bancshares, Inc. and Cornerstone Community Bank.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.1</TD>
    <TD>&nbsp;</TD>
    <TD>Form of Director Support Agreements by and among each current director of SmartFinancial and Cornerstone and Cornerstone Community Bank.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.2</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement with Nathaniel F. Hughes.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.3</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement with Gary W. Petty, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.4</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement with Robert B. Watson.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">10.5</TD>
    <TD>&nbsp;</TD>
    <TD>Employment Agreement with James R. Vercoe, Jr.</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 27pt">*</TD><TD><FONT STYLE="font-size: 10pt">Schedules and exhibits are omitted pursuant to Item 601(b)(2) of Regulation S-K. Cornerstone
agrees to furnish supplementally a copy of any omitted schedule to the Securities and Exchange Commission upon request.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-indent: -27pt">&nbsp;</P>


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<DESCRIPTION>EXHIBIT 2.1
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 2.1</B></P>

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<P STYLE="margin: 0; text-align: right">Execution Version</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>AGREEMENT AND PLAN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>MERGER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SMARTFINANCIAL, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SMARTBANK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CORNERSTONE BANCSHARES, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-variant: small-caps"><B>and</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CORNERSTONE COMMUNITY BANK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">December 5, 2014</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt; text-transform: uppercase">TABLE OF CONTENTS</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    I&nbsp;&nbsp;DEFINITIONS</FONT></TD>
    <TD STYLE="width: 10%; text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">1</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 1.1&nbsp;&nbsp;Certain
    Definitions</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">1</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 1.2&nbsp;&nbsp;Other Definitions</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">8</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    II&nbsp;&nbsp;THE MERGER</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">8</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.1&nbsp;&nbsp;The Merger</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">8</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.2&nbsp;&nbsp;Closing</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">8</FONT></TD></TR>
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    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.3&nbsp;&nbsp;Effective
    Time</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">8</FONT></TD></TR>
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    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.4&nbsp;&nbsp;Effect of
    the Merger</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">9</FONT></TD></TR>
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    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.5&nbsp;&nbsp;Legal Name
    of Surviving Corporation</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">9</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.6&nbsp;&nbsp;Charter
    and Bylaws of Surviving Corporation</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">9</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 2.7&nbsp;&nbsp;Redemption
    of Bancshares Series A Stock</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">9</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    III&nbsp;&nbsp;MERGER CONSIDERATION</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">9</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.1&nbsp;&nbsp;Conversion
    and Exchange of SmartFinancial Stock</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">9</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.2&nbsp;&nbsp;Exchange
    Procedures</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">10</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.3&nbsp;&nbsp;Rights as
    SmartFinancial Shareholders</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">12</FONT></TD></TR>
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    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.4&nbsp;&nbsp;No Fractional
    Shares</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">12</FONT></TD></TR>
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    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.5&nbsp;&nbsp;Dissenting
    Shares</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">12</FONT></TD></TR>
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    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.6&nbsp;&nbsp;Excluded
    Shares</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">13</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.7&nbsp;&nbsp;Adjustment
    of Exchange Ratio</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">13</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.8&nbsp;&nbsp;SmartFinancial
    Options</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">13</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.9&nbsp;&nbsp;Withholding
    Rights</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.10&nbsp;&nbsp;Bancshares
    Common Stock</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 3.11&nbsp;&nbsp;Availability
    of Dissenters&rsquo; Rights</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    IV&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF BANCSHARES AND CORNERSTONE</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 4.1&nbsp;&nbsp;Cornerstone
    Disclosure Memorandum</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 4.2&nbsp;&nbsp;Bancshares
    and Cornerstone Representations and Warranties</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">14</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    V&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF SMARTFINANCIAL AND SMARTBANK</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">37</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 5.1&nbsp;&nbsp;SmartFinancial
    Disclosure Memorandum</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">37</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 5.2&nbsp;&nbsp;SmartFinancial
    and SmartBank Representations and Warranties</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">37</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    VI&nbsp;&nbsp;CONDUCT PENDING THE MERGER</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">58</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 6.1&nbsp;&nbsp;Bancshares
    and Cornerstone Forbearances</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">58</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 6.2&nbsp;&nbsp;SmartFinancial
    and SmartBank Forbearances</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">62</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 6.3&nbsp;&nbsp;Absence
    of Control</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">65</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    VII&nbsp;&nbsp;COVENANTS</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">65</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.1&nbsp;&nbsp;Acquisition
    Proposals</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">65</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.2&nbsp;&nbsp;Notice of
    Certain Matters</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">67</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.3&nbsp;&nbsp;Access and
    Information</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">67</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.4&nbsp;&nbsp;Regulatory
    Filings; Consents and Approvals</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">68</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.5&nbsp;&nbsp;Antitakeover
    Provisions</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">68</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.6&nbsp;&nbsp;Further
    Assurances</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">68</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.7&nbsp;&nbsp;Publicity</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">69</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.8&nbsp;&nbsp;Bancshares
    Shareholders Meeting</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">69</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.9&nbsp;&nbsp;SmartFinancial
    Shareholders Meeting</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">70</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.10&nbsp;&nbsp;Employee
    and Benefit Matters</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">71</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.11&nbsp;&nbsp;Indemnification</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">72</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.12&nbsp;&nbsp;Employment
    Agreements</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">73</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.13&nbsp;&nbsp;Financing
    Transactions</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">73</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-variant: small-caps">&nbsp;&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(continued)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.14&nbsp;&nbsp;Registration
    Statement</FONT></TD>
    <TD STYLE="width: 10%; padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">73</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.15&nbsp;&nbsp;Amendment
    of Bancshares Charter and Bylaws; Option Plan</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">75</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.16&nbsp;&nbsp;Exchange
    Listing</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">76</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.17&nbsp;&nbsp;Bancshares,
    Cornerstone, and SmartBank Directors and Officers</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">76</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.18&nbsp;&nbsp;Notice
    of Dissenters&rsquo; Rights Matters</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">77</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 7.19&nbsp;&nbsp;Decisions
    as to Post-Transaction Matters</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">77</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    VIII&nbsp;&nbsp;CONDITIONS TO CONSUMMATION OF THE MERGER</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">77</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 8.1&nbsp;&nbsp;Conditions
    to Each Party&rsquo;s Obligation to Consummate the Merger</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">77</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 8.2&nbsp;&nbsp;Conditions
    to Obligations of Cornerstone Parties to Consummate the Merger</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">79</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 8.3&nbsp;&nbsp;Conditions
    to Obligations of SmartFinancial Parties to Consummate the Merger</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">80</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    IX&nbsp;&nbsp;TERMINATION</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">82</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 9.1&nbsp;&nbsp;Termination</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">82</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 9.2&nbsp;&nbsp;Effect of
    Termination</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">84</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 9.3&nbsp;&nbsp;Termination
    Fee</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">84</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-transform: uppercase; font-weight: bold"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">ARTICLE
    X&nbsp;&nbsp;MISCELLANEOUS</FONT></TD>
    <TD STYLE="text-transform: uppercase; font-weight: bold; text-align: right; vertical-align: bottom"><FONT STYLE="font-weight: normal; font-style: normal; font-variant: normal">85</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.1&nbsp;&nbsp;Survival</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">85</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.2&nbsp;&nbsp;Interpretation</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">85</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.3&nbsp;&nbsp;Amendment;
    Waiver</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.4&nbsp;&nbsp;Counterparts</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.5&nbsp;&nbsp;Governing
    Law</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.6&nbsp;&nbsp;Expenses</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.7&nbsp;&nbsp;Notices</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">86</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.8&nbsp;&nbsp;Entire
    Agreement; Third Party Beneficiaries</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">87</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.9&nbsp;&nbsp;Severability</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">87</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.10&nbsp;&nbsp;Assignment</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">87</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.11&nbsp;&nbsp;Attorneys&rsquo;
    Fees</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">87</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.12&nbsp;&nbsp;Submission
    to Jurisdiction; Service of Process</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">88</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 9pt; font-variant: small-caps"><FONT STYLE="font-variant: normal">Section 10.13&nbsp;&nbsp;Jury Trial
    Waiver</FONT></TD>
    <TD STYLE="padding-left: 9pt; text-align: right; font-variant: small-caps; vertical-align: bottom"><FONT STYLE="font-variant: normal">88</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%"><FONT STYLE="font-size: 10pt">EXHIBIT A</FONT></TD>
    <TD STYLE="width: 85%"><FONT STYLE="font-size: 10pt">FORM OF DIRECTOR SUPPORT AGREEMENT FOR BANCSHARES DIRECTORS</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">EXHIBIT B</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">FORM OF DIRECTOR SUPPORT AGREEMENT FOR SMARTFINANCIAL DIRECTORS</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt">Schedule 1.1(e)(e)</FONT></TD>
    <TD STYLE="width: 75%"><FONT STYLE="font-size: 10pt">Stipulated Financing Transaction Terms</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Schedule 7.12</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Individuals to Execute and Deliver Employment Agreements</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Schedule 7.17(a)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Directors of Surviving Corporation</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>AGREEMENT AND PLAN OF MERGER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">THIS AGREEMENT AND PLAN OF MERGER (this
&ldquo;<U>Agreement</U>&rdquo;), dated as of the 5th day of December, 2014, is made and entered into by and among SmartFinancial,
Inc., a Tennessee corporation (&ldquo;<U>SmartFinancial</U>&rdquo;), SmartBank, a Tennessee-chartered commercial bank and wholly-owned
subsidiary of SmartFinancial (&ldquo;<U>SmartBank</U>&rdquo;), Cornerstone Bancshares, Inc., a Tennessee corporation (&ldquo;<U>Bancshares</U>&rdquo;),
and Cornerstone Community Bank, a Tennessee-chartered commercial bank and wholly-owned subsidiary of Bancshares (&ldquo;<U>Cornerstone</U>&rdquo;),
under authority of resolutions of their respective boards of directors duly adopted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>RECITALS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
board of directors of each of SmartFinancial, SmartBank, Bancshares, and Cornerstone has unanimously determined that this Agreement
and the transactions contemplated hereby are advisable and in the best interests of SmartFinancial, SmartBank, Bancshares, and
Cornerstone, respectively, and their respective shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a material inducement to SmartFinancial and SmartBank to enter into this Agreement, each member of the board of directors of Bancshares
has entered into a Director Support Agreement, dated as of the date hereof and substantially in the form attached hereto as <U>Exhibit&nbsp;A</U>,
pursuant to which he or she has agreed, among other things, to vote his or her shares of Bancshares Stock (as defined below) in
favor of this Agreement and the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a material inducement to Bancshares and Cornerstone to enter into this Agreement, each member of the board of directors of SmartFinancial
has entered into a Director Support Agreement, dated as of the date hereof and substantially in the form attached hereto as <U>Exhibit&nbsp;B</U>,
pursuant to which he or she has agreed, among other things, to vote his or her shares of SmartFinancial Stock (as defined below)
in favor of this Agreement and the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties (as defined below) intend for the Merger (as defined below) provided for herein to qualify as a &ldquo;reorganization&rdquo;
under the provisions of Section 368(a) of the Internal Revenue Code of 1986, as amended, and the regulations and formal guidance
issued thereunder (the &ldquo;<U>Code</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">NOW, THEREFORE,
for and in consideration of the foregoing, the mutual covenants, representations, warranties, and agreements set forth herein,
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending
to be legally bound, agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; background-color: white">ARTICLE I</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; background-color: white"><U>DEFINITIONS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain
Definitions</U>. For purposes of and as used in this Agreement, the terms defined below shall, when capitalized, have the indicated
meanings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Acquisition
Proposal</U>&rdquo; means, with respect to a Party, any inquiry, proposal, solicitation, or offer, or any filing of any regulatory
application or notice (whether in draft or final form), or any disclosure of any intention to do any of the foregoing, from or
by any Person relating to (i)&nbsp;any sale, lease, exchange, mortgage, pledge, transfer, or other disposition of 10% or more of
such Party&rsquo;s consolidated assets in a single transaction or series of transactions, other than the pledge by Bancshares of
the capital stock of any wholly-owned bank Subsidiary of Bancshares in connection with a Financing Transaction; (ii) any tender
offer or exchange offer with respect to, or direct or indirect purchase or acquisition of, 10% or more of the outstanding voting
securities of such Party entitled to vote in the election of such Party&rsquo;s directors, other than in connection with a Financing
Transaction; or (iii) any merger, share exchange, consolidation, business combination, recapitalization, or similar transaction
involving such Party or any of its Subsidiaries, in each case other than the transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Affiliate</U>&rdquo;
means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is
controlled by, or is under common control with such Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Common Stock</U>&rdquo; means the common stock, par value $1.00 per share, of Bancshares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Loan Property</U>&rdquo; means any property in which Bancshares (or a Subsidiary of Bancshares) holds a security interest, and,
where required by the context, includes the owner or operator of such property, but only with respect to such property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Material Adverse Effect</U>&rdquo; means an effect, circumstance, occurrence, event, development, or change that,
individually or in the aggregate with one or more other effects, circumstances, occurrences, events, developments, or
changes, (i) has had, or could reasonably be expected to have, a material and adverse effect on the business, financial
condition, or results of operations of Bancshares and its Subsidiaries taken as a whole or (ii) materially impairs the
ability of Bancshares or Cornerstone to perform its obligations under this Agreement or prevents or materially impedes the
consummation by Bancshares or Cornerstone of the transactions contemplated by this Agreement; <I>provided</I>, <I>however</I>,
that, with respect to clause (i), the term Bancshares Material Adverse Effect shall not be deemed to include the impact of
any effect, circumstance, occurrence, event, development, or change resulting from (1) changes after the date hereof in Laws
of general applicability that apply to insured depository institutions and/or registered bank holding companies generally, or
interpretations thereof by Governmental Entities, (2) changes after the date hereof in GAAP or regulatory accounting
requirements applicable to insured depository institutions and/or registered bank holding companies generally, (3) changes in
economic conditions, or changes in global, national, or regional political or market conditions (including changes in
prevailing interest or exchange rates), in either case affecting the banking and financial services industry generally, (4)
any outbreak or escalation of hostilities, declared or undeclared acts of war, or terrorism, (5) the public announcement or
pendency of this Agreement or the transactions contemplated hereby, or (6) actions or omissions of SmartFinancial, SmartBank,
Bancshares, and Cornerstone required under this Agreement or taken or omitted to be taken with the prior consent of the
SmartFinancial Parties (in the case of actions or omissions by the Cornerstone Parties) or the Cornerstone Parties (in
the case of actions or omissions by the SmartFinancial Parties), <I>provided </I>that effects, circumstances, occurrences,
events, developments, and changes resulting from the changes or other matters described in clauses (1), (2), (3), and (4)
shall not be excluded as a Bancshares Material Adverse Effect to the extent of any materially disproportionate impact they
have on Bancshares and its Subsidiaries taken as a whole as measured relative to similarly situated companies in the banking
and financial services industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Option</U>&rdquo; means an option to acquire shares of Bancshares Stock under the Bancshares Statutory-NonStatutory Stock Option
Plan or the Bancshares 2002 Long Term Incentive Plan, each as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Participation Facility</U>&rdquo; means any facility in which Bancshares (or a Subsidiary of Bancshares) participates in the management
thereof (including all property held as trustee or in any other fiduciary capacity), and, where required by the context, includes
the owner or operator of such property, but only with respect to such property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Preferred Stock</U>&rdquo; means the preferred stock, no par value, of Bancshares, including the Bancshares Series&nbsp;A Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Series&nbsp;A Stock</U>&rdquo; means the Series&nbsp;A Convertible Preferred Stock, no par value, of Bancshares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Bancshares
Stock</U>&rdquo; means, collectively, the Bancshares Common Stock and the Bancshares Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Banking
Act</U>&rdquo; means the Tennessee Banking Act, Tennessee Code Annotated &sect;&nbsp;45-1-101 <I>et seq.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>BHCA</U>&rdquo;
means the Bank Holding Company Act&nbsp;of 1956, as amended (12 U.S.C. &sect;&nbsp;1841 <I>et seq</I>.)&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Book-Entry
Shares</U>&rdquo; means non-certificated shares of SmartFinancial Stock prior to the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Business
Day</U>&rdquo; means Monday through Friday of each week, excluding legal holidays recognized as such by the United States government
and any day on which banking institutions in the State of Tennessee are authorized or obligated to close.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Certificate</U>&rdquo;
means a certificate which prior to the Effective Time represents shares of SmartFinancial Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Confidentiality
Agreement</U>&rdquo; means that certain Mutual Confidentiality and Nondisclosure Agreement, dated April 4, 2014, by and between
SmartFinancial and Bancshares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Contract</U>&rdquo;&nbsp;means
any contract, lease, deed, mortgage, license, instrument, note, commitment, undertaking, indenture, or other agreement, understanding,
or legally binding arrangement, whether written or oral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Cornerstone
Common Stock</U>&rdquo; means the common stock, par value $1.00 per share, of Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Cornerstone
Parties</U>&rdquo; means, collectively, Bancshares and Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Cornerstone
Preferred Stock</U>&rdquo; means the preferred stock, no par value, of Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Cornerstone
Stock</U>&rdquo; means, collectively, the Cornerstone Common Stock and the Cornerstone Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Corporation
Act</U>&rdquo; means the Tennessee Business Corporation Act, Tennessee Code Annotated &sect;&nbsp;48-11-101 <I>et seq</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Disclosure
Memoranda</U>&rdquo; means, collectively, the SmartFinancial Disclosure Memorandum and the Cornerstone Disclosure Memorandum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Environmental
Law</U>&rdquo; means any Law relating to (i) the protection, preservation, or restoration of the environment (which includes, without
limitation, air, water vapor, surface water, groundwater, drinking water supply, soil, surface land, subsurface land, plant and
animal life, and any other natural resource) or human health or safety, or (ii) exposure to, or the use, storage, recycling, treatment,
generation, transportation, processing, handling, labeling, production, release, or disposal of, Hazardous Materials, in each case
as amended. The term Environmental Law includes, without limitation, the Federal Comprehensive Environmental Response, Compensation
and Liability Act of 1980, the Federal Clean Air Act, the Federal Clean Water Act, the Federal Resource Conservation and Recovery
Act of 1976, and the Federal Occupational Safety and Health Act of 1970 as it relates to Hazardous Materials, each as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>ERISA</U>&rdquo;
means the Employee Retirement Income Security Act of 1974, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>ERISA
Affiliate</U>&rdquo; means any Person that is considered one employer with a Party or any of such Party&rsquo;s Subsidiaries under
Section 4001(b)(1) of ERISA or Section 414 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Exchange
Act</U>&rdquo; means the Securities Exchange Act of 1934, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Excluded
Shares</U>&rdquo; means shares of<FONT STYLE="color: #0070C0"> </FONT>SmartFinancial Common Stock<FONT STYLE="color: red"> </FONT>that,
immediately prior to the Effective Time, are owned or held, other than in a <I>bona fide</I> fiduciary or agency capacity, by SmartFinancial,
SmartBank, Bancshares, or Cornerstone, or any Subsidiary of SmartFinancial, SmartBank, Bancshares, or Cornerstone, including shares
of SmartFinancial Stock held by SmartFinancial as treasury stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>FDIC</U>&rdquo;
means the Federal Deposit Insurance Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Federal
Reserve</U>&rdquo; means the Board of Governors of the Federal Reserve System.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Financing
Transaction</U>&rdquo; means (i) the offer and sale by Bancshares of shares of Bancshares Common Stock having a market value up
to but not to exceed $10,000,000, on terms consistent with <U>Schedule&nbsp;1.1(e)(e)</U> hereto and on such other terms and conditions
mutually acceptable to the Parties, the consent of a Party to any such other terms or conditions not be unreasonably withheld,
and/or (ii) the incurrence by Bancshares of indebtedness in the form of one or more holding company loans on terms and conditions
mutually acceptable to the Parties, the consent of a Party to any such terms or conditions not be unreasonably withheld, in either
case to facilitate the transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>GAAP</U>&rdquo;
means United States generally accepted accounting principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Governmental
Entity</U>&rdquo; means any federal, state, provincial, local, or foreign court, agency, arbitrator, mediator, tribunal, commission,
governmental or regulatory authority, or other governmental or administrative body, instrumentality, or authority, including without
limitation the SEC, the Federal Trade Commission, the United States Department of Justice, the United States Department of Labor,
the IRS, the Federal Reserve, the FDIC, and the TDFI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Hazardous
Material</U>&rdquo; means any substance (whether solid, liquid, or gas) that is detrimental to human health or safety or to the
environment currently listed, defined, designated, or classified as hazardous, toxic, radioactive, or dangerous, or otherwise regulated,
under any Environmental Law, whether by type or by quantity, including any substance containing any such substance as a component.
Hazardous Material includes, without limitation, any toxic waste, pollutant, contaminant, hazardous substance, toxic substance,
hazardous waste, special waste, industrial substance, or radioactive material, oil and petroleum, or any derivative or by-product
thereof, radon, asbestos and any asbestos-containing material, urea formaldehyde foam insulation, lead, and polychlorinated biphenyl.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Intellectual
Property</U>&rdquo; means (i) all inventions, whether or not patentable and whether or not reduced to practice, and all improvements
thereon, and all patents, patent applications, and patent disclosures, together with all re-issues, continuations, continuations-in-part,
divisions, extensions, and re-examinations thereof; (ii) all trademarks, whether registered or unregistered, service marks, logos,
domain names, rights in or to Internet web sites, and corporate, assumed, and trade names; (iii) all copyrights, whether registered
or unregistered, and all applications, registrations, and renewals relative thereto; (iv) all datasets, databases, and related
information and documentation; and (v) any and all other intellectual property and proprietary rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Interim
Bancshares Financials</U>&rdquo; means the financial statements of the Cornerstone Parties included with the Bancshares quarterly
report on Form&nbsp;10-Q for the period ended September 30, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(kk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>IRS</U>&rdquo;
means the United States Internal Revenue Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Joint
Proxy Statement/Prospectus</U>&rdquo; means the joint proxy statement prepared by SmartFinancial and Bancshares to solicit approval
of this Agreement and the transactions contemplated hereby by the shareholders of SmartFinancial and Bancshares, and approval of
the Authorized Stock Amendment, the Amended and Restated Bancshares Charter, the Amended and Restated Bancshares Bylaws, the Series&nbsp;A
Redemption Amendment, the <FONT STYLE="background-color: white">Reverse Stock Split </FONT>Amendment, and the Bancshares Incentive
Plan by the shareholders of Bancshares, which will include the prospectus of Bancshares relating to the issuance of Bancshares
Common Stock to holders of SmartFinancial Common Stock and the issuance of Bancshares SBLF Equivalent Stock to the holders of SmartFinancial
Series&nbsp;A Stock pursuant to and in accordance with <U>Article&nbsp;III</U> of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(mm)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Knowledge</U>&rdquo;
means, with respect to a Party, the actual knowledge after reasonable inquiry of the chairman, president, chief executive officer,
chief financial officer, chief operating officer, chief lending officer, and chief credit officer of such Person, and other Persons
performing similar functions for such Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(nn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Laws</U>&rdquo;
means any and all federal, state, provincial, local, and foreign laws, constitutions, common law principles, ordinances, codes,
statutes, judgments, determinations, injunctions, decrees, orders, rules, and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(oo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Lien</U>&rdquo;
means any lien, claim, attachment, garnishment, imperfection of title, pledge, mortgage, deed of trust, hypothecation, security
interest, charge, option, restriction, easement, reversionary interest, right of refusal, voting trust arrangement, buy-sell agreement,
preemptive right, or other adverse claim, encumbrance, or right of any nature whatsoever.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(pp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Loan</U>&rdquo;
means a loan, lease, advance, credit enhancement, guarantee, or other extension of credit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(qq)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>NASDAQ</U>&rdquo;
means The NASDAQ Stock Market LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(rr)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Parties</U>&rdquo;
means, collectively, SmartFinancial, SmartBank, Bancshares, and Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ss)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Person</U>&rdquo;
means an individual, a corporation, a limited liability company, a partnership, an association, a trust, and any other entity or
organization, whether or not incorporated, including without limitation any Governmental Entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(tt)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Registration
Statement</U>&rdquo; means the registration statement on Form S-4, or other appropriate form, including any pre-effective or post-effective
amendments or supplements thereto, filed by Bancshares with the SEC under the Securities Act with respect to the shares of&nbsp;Bancshares
Common Stock to be issued by Bancshares to the holders of SmartFinancial Common Stock and the shares of Bancshares SBLF Equivalent
Stock to be issued by Bancshares to the holders of SmartFinancial Series&nbsp;A Stock, in each case in connection with the transactions
contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(uu)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SEC</U>&rdquo;
means the United States Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(vv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Securities
Act</U>&rdquo; means the Securities Act of 1933, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ww)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartBank
Common Stock</U>&rdquo; means the common stock, par value $1.00 per share, of SmartBank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(xx)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartBank
Preferred Stock</U>&rdquo; means the preferred stock, par value $1.00 per share, of SmartBank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(yy)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartBank
Stock</U>&rdquo; means, collectively, the SmartBank Common Stock and the SmartBank Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(zz)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Common Stock</U>&rdquo; means the common stock, par value $1.00 per share, of SmartFinancial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(aaa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Financial Statements</U>&rdquo; means, collectively, the Audited SmartFinancial Financials and the Interim SmartFinancial Financials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(bbb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Loan Property</U>&rdquo; means any property in which SmartFinancial (or a Subsidiary of SmartFinancial) holds a security interest,
and, where required by the context, includes the owner or operator of such property, but only with respect to such property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ccc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Material Adverse Effect</U>&rdquo; means an effect, circumstance, occurrence, event, development, or change that,
individually or in the aggregate with one or more other effects, circumstances, occurrences, events, developments, or
changes, (i) has had, or could reasonably be expected to have, a material and adverse effect on the business, financial
condition, or results of operations of SmartFinancial and its Subsidiaries taken as a whole or (ii) materially impairs the
ability of SmartFinancial or SmartBank to perform its obligations under this Agreement or prevents or materially impedes the
consummation by SmartFinancial or SmartBank of the transactions contemplated by this Agreement; <I>provided</I>, <I>however</I>,
that, with respect to clause (i), the term SmartFinancial Material Adverse Effect shall not be deemed to include the impact
of any effect, circumstance, occurrence, event, development, or change resulting from (1) changes after the date hereof in
Laws of general applicability that apply to insured depository institutions and/or registered bank holding companies
generally, or interpretations thereof by Governmental Entities, (2) changes after the date hereof in GAAP or regulatory
accounting requirements applicable to insured depository institutions and/or registered bank holding companies generally, (3)
changes in economic conditions, or changes in global, national, or regional political or market conditions (including changes
in prevailing interest or exchange rates), in either case affecting the banking and financial services industry generally,
(4) any outbreak or escalation of hostilities, declared or undeclared acts of war, or terrorism, (5) the public announcement
or pendency of this Agreement or the transactions contemplated hereby, or (6) actions or omissions of SmartFinancial,
SmartBank, Bancshares, and Cornerstone required under this Agreement or taken or omitted to be taken with the prior consent
of the SmartFinancial Parties (in the case of actions or omissions by the Cornerstone Parties) or the Cornerstone Parties (in
the case of actions or omissions by the SmartFinancial Parties), <I>provided </I>that effects, circumstances, occurrences,
events, developments, and changes resulting from the changes or other matters described in clauses (1), (2), (3), and (4)
shall not be excluded as a SmartFinancial Material Adverse Effect to the extent of any materially disproportionate
impact they have on SmartFinancial and its Subsidiaries taken as a whole as measured relative to similarly situated companies
in the banking and financial services industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ddd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Option</U>&rdquo; means an option to acquire shares of SmartFinancial Stock under the SmartBank Stock Option Plan, as amended,
or the SmartFinancial, Inc. 2010 Incentive Plan, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(eee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Participation Facility</U>&rdquo; means any facility in which SmartFinancial (or a Subsidiary of SmartFinancial) participates in
the management thereof (including all property held as trustee or in any other fiduciary capacity), and, where required by the
context, includes the owner or operator of such property, but only with respect to such property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(fff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Parties</U>&rdquo; means, collectively, SmartFinancial and SmartBank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ggg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Preferred Stock</U>&rdquo; means the preferred stock, par value $1.00 per share, of SmartFinancial, including the SmartFinancial
Series&nbsp;A Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(hhh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Series&nbsp;A Stock</U>&rdquo; means the Non-Cumulative Perpetual Preferred Stock, Series A, par value $1.00 per share, of SmartFinancial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>SmartFinancial
Stock</U>&rdquo; means, collectively, the SmartFinancial Common Stock and the SmartFinancial Preferred Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(jjj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Subsidiary</U>&rdquo;
means any corporation, limited liability company, partnership, joint venture, or other entity in which SmartFinancial, SmartBank,
Bancshares, or Cornerstone, as the case may be, has, directly or indirectly, an equity or ownership interest representing 50% or
more of any class of the capital stock thereof or other equity or ownership interests therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(kkk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Superior
Bancshares Proposal</U>&rdquo; means any <I>bona fide</I> written proposal made by a third party for or with respect to an Acquisition
Proposal which the Bancshares board of directors determines in good faith, after taking into account all legal, financial, regulatory,
and other aspects of the proposal (including without limitation the amount, form, and timing of payment of consideration, the financing
thereof, any associated break-up or termination fees, including those provided for in this Agreement, expense reimbursement provisions,
and all conditions to consummation) and the Person making the proposal, and after taking into account the advice of Bancshares&rsquo;
financial advisor (which shall be a nationally recognized investment banking firm) and outside legal counsel, is (i) more favorable
from a financial point of view to the shareholders of Bancshares than the transactions contemplated by this Agreement and (ii)
is reasonably likely to be consummated on the terms set forth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(lll)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Superior
SmartFinancial Proposal</U>&rdquo; means any <I>bona fide</I> written proposal made by a third party for or with respect to an
Acquisition Proposal which the SmartFinancial board of directors determines in good faith, after taking into account all legal,
financial, regulatory, and other aspects of the proposal (including without limitation the amount, form, and timing of payment
of consideration, the financing thereof, any associated break-up or termination fees, including those provided for in this Agreement,
expense reimbursement provisions, and all conditions to consummation) and the Person making the proposal, and after taking into
account the advice of SmartFinancial&rsquo;s financial advisor (which shall be a nationally recognized investment banking firm)
and outside legal counsel, is (i) more favorable from a financial point of view to the shareholders of SmartFinancial than the
transactions contemplated by this Agreement and (ii) is reasonably likely to be consummated on the terms set forth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(mmm)&nbsp;&nbsp;&nbsp;&ldquo;<U>Tax</U>&rdquo;
or &ldquo;<U>Taxes</U>&rdquo; means any and all federal, state, provincial, local, and foreign taxes, including without limitation
(i) any income, profits, alternative or add-on minimum, gross receipts, sales, use, value-added, ad valorem, transfer, franchise,
profits, license, withholding, payroll, employment, unemployment, excise, severance, stamp, occupation, net worth, premium, real
property, property, environmental, or windfall profit tax, custom, or duty, or other tax of any kind whatsoever, together with
any interest or penalty, addition to tax, or other additional amount imposed by any Governmental Entity or other Person responsible
for the imposition or collection of any such tax, and (ii) any liability for the payment of any amounts of the type described in
clause (i) above as a result of any express or implied agreement or obligation to indemnify any other Person or any contractual
arrangement or agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(nnn)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Tax
Return</U>&rdquo; means any return (including any amended return), declaration, or other report, including without limitation elections,
claims for refunds, schedules, estimates, and information returns and statements, with respect to any Taxes (including estimated
Taxes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ooo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>TDFI</U>&rdquo;
means the Tennessee Department of Financial Institutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ppp)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&ldquo;<U>Treasury
SBLF Agreement</U>&rdquo; means that certain Small Business Lending Fund &ndash; Securities Purchase Agreement, dated and effective
as of August 4, 2011, between SmartFinancial and the United States Secretary of the Treasury, including all annexes thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Other
Definitions</U>. Capitalized terms used in this Agreement and not defined in <U>Section 1.1</U>, but otherwise defined in this
Agreement, shall have the meanings otherwise ascribed thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE II</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>THE MERGER</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The
Merger</U>. Subject to and upon the terms and conditions set forth in this Agreement, at the Effective Time (as defined below),
SmartFinancial shall be merged with and into Bancshares in accordance with, and with the effect provided in, this Agreement and
applicable provisions of the Corporation Act (the &ldquo;<U>Merger</U>&rdquo;). At the Effective Time, the separate corporate existence
of SmartFinancial shall cease and Bancshares shall continue, as the surviving corporation of the Merger, as a corporation chartered
under the laws of the State of Tennessee unaffected and unimpaired by the Merger (Bancshares in such capacity as the surviving
corporation of the Merger being sometimes referred to herein as the &ldquo;<U>Surviving Corporation</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Closing</U>.
Subject to the satisfaction or waiver (subject to applicable Law) of the conditions precedent set forth in <U>Article&nbsp;VIII</U>
hereof (other than those conditions that by their nature are to be satisfied at the Closing), the closing of the transactions contemplated
by this Agreement, including without limitation the Merger (the &ldquo;<U>Closing</U>&rdquo;), shall take place at the offices
of Butler Snow LLP, The Pinnacle at Symphony Place, Suite 1600, 150 3rd Avenue South, Nashville, Tennessee 37201, on such date
and at such time as shall be mutually agreed upon by the Parties; <I>provided</I> that such date shall be not more than 30 days
after the satisfaction or waiver (subject to applicable Law) of all of the conditions precedent set forth in <U>Article&nbsp;VIII</U>
hereof (other than those conditions that by their nature are to be satisfied at the Closing). Notwithstanding the foregoing, the
Parties expressly agree that the Closing may take place by the electronic, facsimile, and/or overnight courier exchange of executed
documents. The actual date on which the Closing shall occur is referred to in this Agreement as the &ldquo;<U>Closing Date</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effective
Time</U>. Prior to or at the Closing, SmartFinancial and Bancshares shall duly execute and deliver, for filing with the Tennessee
Secretary of State, articles of merger in a form and substance mutually agreed upon by SmartFinancial and Bancshares (the &ldquo;<U>Articles
of Merger</U>&rdquo;). The Merger shall become effective on such date and at such time as the Articles of Merger are filed with
the Tennessee Secretary of State, or on such later date and/or at such later time as shall be set forth in the Articles of Merger
(the date and time the Merger becomes effective being referred to in this Agreement as the &ldquo;<U>Effective Time</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect
of the Merger</U>. The Merger shall have the effects set forth in this Agreement and applicable provisions of the Corporation Act.
Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all property, rights, interests,
privileges, powers, and franchises of SmartFinancial shall vest in the Surviving Corporation, and all debts, liabilities, obligations,
restrictions, disabilities, and duties of SmartFinancial shall become and be debts, liabilities, obligations, restrictions, disabilities,
and duties of the Surviving Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Legal
Name of Surviving Corporation</U>. The legal name of the Surviving Corporation at the Effective Time of the Merger will be &ldquo;Cornerstone
Bancshares, Inc.&rdquo; However, upon the effectiveness of the Amended and Restated Bancshares Charter (as defined in <U>Section&nbsp;7.15(c)</U>)
as herein provided, the legal name of the Surviving Corporation will be changed to &ldquo;SmartFinancial, Inc.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Charter
and Bylaws of Surviving Corporation</U>. The charter and bylaws of Bancshares as in effect immediately prior to the Effective Time
shall at and after the Effective Time be the charter and bylaws of the Surviving Corporation until such time as the same shall
be amended in accordance with applicable Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Redemption
of Bancshares Series&nbsp;A Stock</U>. At or prior to the Effective Time, each share of Bancshares Series A Stock issued and outstanding
shall be redeemed by Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares, as amended. Prior to
the Effective Time, Bancshares shall take all action necessary or advisable to redeem, or to provide for the redemption at the
Effective Time of, the Bancshares Series A Stock in such manner, including without limitation seeking and obtaining any approvals
of Governmental Entities required for the redemption of the Bancshares Series A Stock, giving notice of redemption of the Bancshares
Series A Stock to the holders thereof in accordance with the charter of Bancshares, and depositing all funds necessary for the
redemption of all shares of Bancshares Series A Stock in trust for the benefit of the holders thereof in accordance with the charter
of Bancshares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE III</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>MERGER CONSIDERATION</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conversion
and Exchange of SmartFinancial Stock</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the other provisions of this <U>Article&nbsp;III</U>, solely by virtue of and as a result of the Merger:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
share of SmartFinancial Common Stock issued and outstanding immediately prior to the Effective Time (other than shares of SmartFinancial
Common Stock that are Excluded Shares or Dissenting Shares) shall at the Effective Time, automatically and without any action on
the part of the holder(s) thereof, be converted into and canceled in exchange for the right to receive 4.20 shares (the &ldquo;<U>Exchange
Ratio</U>&rdquo;) of Bancshares Common Stock (the &ldquo;<U>Per Share Common Consideration</U>&rdquo;); <I>provided</I>, <I>however</I>,
that the Parties expressly acknowledge and agree that, in the event the <FONT STYLE="background-color: white">Reverse Stock Split
is consummated prior to the Effective Time as contemplated by <U>Section&nbsp;7.15(e)</U>, the Exchange Ratio as adjusted to account
for the Reverse Stock Split in accordance with <U>Section&nbsp;3.7</U> will be 1.05 shares; and </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
share of SmartFinancial Series&nbsp;A Stock issued and outstanding immediately prior to the Effective Time shall at the Effective
Time, automatically and without any action on the part of the holder(s) thereof, be converted into and cancelled in exchange for
one share of preference securities of Bancshares (such preference securities as described in this <U>Section&nbsp;3.1(a)(ii)</U>,
the &ldquo;<U>Bancshares&nbsp;SBLF Equivalent Stock</U>&rdquo;) (A) having a liquidation preference equal to that of the share
of SmartFinancial Series A Stock so converted and cancelled, (B) entitling the holder(s) thereof to dividends thereon from the
Effective Time on terms equivalent to those of the SmartFinancial Series A Stock, and (C) having such other rights, preferences,
privileges, and voting powers, and limitations and restrictions thereof, that are the same as the rights, preferences, privileges,
and voting powers, and limitations and restrictions thereof, of the SmartFinancial Series A Stock immediately prior to the Effective
Time, taken as a whole (the &ldquo;<U>Per Share Series&nbsp;A Consideration</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">The aggregate Per
Share Common Consideration payable or issuable by Bancshares to the holders of SmartFinancial Common Stock in accordance with this
Agreement, and the aggregate Per Share Series&nbsp;A Consideration payable or issuable by Bancshares to the holders of SmartFinancial
Series&nbsp;A Stock in accordance with this Agreement, are referred to herein collectively as the &ldquo;<U>Merger Consideration</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
exchange of shares of SmartFinancial Series&nbsp;A Stock for shares of Bancshares SBLF Equivalent Stock provided for in <U>Section&nbsp;3.1(a)</U>
shall be in accordance with the charter, bylaws, and other governing documents of SmartFinancial, the terms of the Treasury SBLF
Agreement, and the terms of any other agreements pursuant to which the shares of SmartFinancial Series A Stock were issued or required
to be entered into in order to effect such exchange. Bancshares shall, and agrees to, at and after the Effective Time, assume,
honor, observe, and perform all of the terms, provisions, obligations, rights, responsibilities, preferences, privileges, limitations,
and restrictions of or pertaining to the SmartFinancial Series&nbsp;A Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange
Procedures</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Deposit
with Exchange Agent</I>. At or prior to the Closing, Bancshares shall deliver or cause to be delivered to an exchange agent mutually
agreed upon by SmartFinancial and Bancshares, which the Parties agree may be Bancshares&rsquo; or SmartFinancial&rsquo;s customary
stock transfer agent (the &ldquo;<U>Exchange Agent</U>&rdquo;), for the benefit of holders of SmartFinancial Stock (other than
holders of Excluded Shares and holders of Dissenting Shares), a certificate or certificates or, at Bancshares&rsquo; option, evidence
of shares in book entry form representing the number of shares of Bancshares Common Stock and the number of shares of Bancshares
SBLF Equivalent Stock issuable to holders of SmartFinancial Stock (other than holders of Excluded Shares and holders of Dissenting
Shares) in the form of Merger Consideration. The Exchange Agent shall not be entitled to vote or exercise any other rights of ownership
with respect to the shares of Bancshares Common Stock or Bancshares SBLF Equivalent Stock held by it from time to time hereunder,
except that it shall receive and hold all dividends and other distributions payable or distributable with respect to such shares
for the account of the Persons entitled thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Letter
of Transmittal</I>. Provided that the SmartFinancial Parties have delivered or caused to be delivered to the Exchange Agent all
information which is necessary for the Exchange Agent to perform its obligations as specified herein, the Exchange Agent shall,
and the Cornerstone Parties shall cause the Exchange Agent to, promptly after the Effective Time (but in any event not later than
5 Business Days after the Effective Time), mail or deliver to each holder of record of shares of SmartFinancial Stock immediately
prior to the Effective Time, or, in the case of &ldquo;street holders,&rdquo; to the Depository Trust Company (other than holders
of Excluded Shares and holders of Dissenting Shares), a letter of transmittal in customary form and containing such provisions
as Bancshares shall reasonably require (including provisions confirming that delivery of Certificates and Book-Entry Shares shall
be effected, and that risk of loss of and title to Certificates and Book-Entry Shares shall pass, only upon proper delivery of
the Certificates or Book-Entry Shares to the Exchange Agent) and instructions for use in effecting the surrender of Certificates
and Book-Entry Shares in exchange for that portion of the Merger Consideration payable or issuable in respect of the shares of
SmartFinancial Stock previously represented by such Certificates or in respect of such Book-Entry Shares, as applicable, pursuant
to the provisions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Payment
of Merger Consideration</I>. Upon surrender of a Certificate or Book-Entry Shares to the Exchange Agent for exchange, together
with a duly executed letter of transmittal, or an &ldquo;agent&rsquo;s message,&rdquo; in the case of Book-Entry Shares held in
street name, and such other documents as may reasonably be required by the Exchange Agent, (i) the holder of such Certificate or
Book-Entry Shares shall be entitled to receive in exchange therefor, and the Exchange Agent shall pay and deliver to such holder,
that portion of the Merger Consideration to which such holder shall be entitled pursuant to the provisions of this Agreement, in
full satisfaction of all rights pertaining to the shares of SmartFinancial Stock formerly represented by such Certificate or to
such Book-Entry Shares, as applicable, and (ii) the Certificate or Book-Entry Shares so surrendered shall be canceled. In the event
Merger Consideration or any other amounts issuable or payable under this Agreement to a holder of shares of SmartFinancial Stock
is to be issued in the name of, or paid to, a Person other than the Person in whose name such shares are registered, it shall be
a condition to the issuance or payment of such Merger Consideration or other amounts that the Certificate formerly representing
such shares, or, in the case of non-certificated shares, the Book-Entry Shares, be presented to the Exchange Agent, together with
evidence of or appropriate documents or instruments for transfer and evidence that any applicable stock transfer or other Taxes
have been paid or are not applicable, all in such form as the Exchange Agent shall reasonably require.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Closing
of Stock Transfer Books</I>. At the Effective Time, the stock transfer books of SmartFinancial shall be closed and there shall
thereafter be no further transfers of shares of SmartFinancial Stock on the records of SmartFinancial, and, if any shares of SmartFinancial
Stock are thereafter presented to the Cornerstone Parties or the Exchange Agent for transfer, such shares shall be cancelled against
delivery of that portion of the Merger Consideration payable or issuable in respect thereof as herein provided. Until duly surrendered
to the Exchange Agent in accordance with the provisions of this Agreement, Certificates and Book-Entry Shares shall, at and after
the Effective Time, evidence and represent only the right to receive that portion of the Merger Consideration payable or issuable
in respect thereof (or the SmartFinancial Stock represented thereby) in accordance with this Agreement. No dividends or other distributions
payable or distributable on or with respect to shares of Bancshares Common Stock or Bancshares SBLF Equivalent Stock that are issued
or issuable in connection with the Merger in accordance with this Agreement will be remitted to any Person entitled to receive
such shares of Bancshares Common Stock or Bancshares SBLF Equivalent Stock, as applicable, until such Person surrenders his or
her Certificate(s) previously representing the shares of SmartFinancial Stock converted into such Bancshares Common Stock or Bancshares
SBLF Equivalent Stock, as applicable, or his or her Book-Entry Shares converted into such Bancshares Common Stock or Bancshares
SBLF Equivalent Stock, as applicable, at which time such dividends and other distributions shall be remitted to such Person, without
interest. No interest shall be paid or will accrue on any amounts payable to holders of SmartFinancial Stock under or in accordance
with this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Lost,
Stolen, or Destroyed Certificates</I>. In the event any Certificate shall have been lost, stolen, or destroyed, upon the making
of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen, or destroyed and the execution by such
Person of an indemnity agreement and/or the posting by such Person of a bond in such form and amount as the Cornerstone Parties
and the Exchange Agent may reasonably require as indemnity against any claim that may be made against them with respect to such
Certificate, the Exchange Agent will deliver in exchange for such lost, stolen, or destroyed Certificate that portion of the Merger
Consideration deliverable in respect of the shares of SmartFinancial Stock previously represented thereby pursuant to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Unclaimed
Merger Consideration</I>.&nbsp;&nbsp;Any portion of the Merger Consideration, and any other amounts payable by Bancshares to the
holders of shares of SmartFinancial Stock in accordance with this Agreement, in each case that remain(s) unclaimed by former shareholders
of SmartFinancial for 12 months after the Effective Time (as well as any dividends or other distributions payable in respect thereof)
shall be delivered by the Exchange Agent to Bancshares. Any former shareholder of SmartFinancial who has not theretofore complied
with the exchange procedures provided for in this Agreement shall thereafter look only to Bancshares for that portion of the Merger
Consideration (and any other amounts) deliverable in respect of the shares of SmartFinancial Stock previously held by such shareholder,
as determined pursuant to this Agreement, without any interest thereon. Neither the Exchange Agent nor any Party to this Agreement
shall be liable to any holder of SmartFinancial Stock for any portion of the Merger Consideration (or any other amounts) properly
paid to a Governmental Entity pursuant to applicable abandoned property, escheat, or similar Laws. Bancshares and the Exchange
Agent shall be entitled to rely upon the stock transfer books of SmartFinancial to establish the identity of those Persons entitled
to receive the Merger Consideration (and any other amounts) specified in this Agreement, which books shall be conclusive with respect
thereto. In the event of a dispute regarding the ownership of SmartFinancial Stock, Bancshares and the Exchange Agent shall be
entitled to deposit any portion of the Merger Consideration (or any other amounts) payable in respect thereof in escrow with an
independent third party and thereafter be relieved with respect to any claims thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Rights
as SmartFinancial Shareholders</U>. Holders of SmartFinancial Stock immediately prior to the Effective Time shall, at and after
the Effective Time, cease to be shareholders of SmartFinancial and shall have no further rights as shareholders of SmartFinancial,
other than the right to receive the Merger Consideration and any other amounts payable or issuable in respect of such holders&rsquo;
SmartFinancial Stock in accordance with this <U>Article&nbsp;III</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Fractional Shares</U>. Notwithstanding any other provision of this Agreement, no fraction of a share of Bancshares Common Stock,
and no certificate or scrip therefor, will be issued in connection with the Merger to any holder of shares of SmartFinancial Common
Stock. Rather, after aggregating and taking into account all Certificates and/or Book-Entry Shares delivered by a holder of SmartFinancial
Common Stock, the number of shares of Bancshares Common Stock issuable to such holder shall (if not a whole number) be rounded
up to the next whole share (i.e., both 9.1 and 9.9 would round to 10.0).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Dissenting
Shares</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
any provision of this Agreement to the contrary, but subject to <U>Section&nbsp;3.5(b)</U>, each issued and outstanding share of
SmartFinancial Common Stock the holder of which has perfected his or her right to dissent from the Merger pursuant to Chapter&nbsp;23
of the Corporation Act, and has not effectively withdrawn or lost such right as of the Effective Time (collectively, the &ldquo;<U>Dissenting
Shares</U>&rdquo;), shall not be converted into and canceled in exchange for, or represent a right to receive, the Per Share Common
Consideration hereunder, and the holder thereof shall be entitled only to such rights as are granted by the Corporation Act. Bancshares
shall be entitled to retain any Merger Consideration not paid on account of Dissenting Shares, and the shareholders of SmartFinancial
shall not be entitled to any portion of such retained Merger Consideration. Any payments made in respect of Dissenting Shares shall
be made by Bancshares within the time period set forth in the Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any holder of shares of SmartFinancial Common Stock who asserts such holder&rsquo;s right to dissent from the Merger pursuant to
Chapter 23 of the Corporation Act shall have effectively withdrawn or lost his or her right to dissent (through failure to perfect
or otherwise), then, as of the Effective Time or the occurrence of such event, whichever occurs later, the shares of SmartFinancial
Common Stock held by such holder shall be converted into and cancelled in exchange for, on a share by share basis, the right to
receive the Per Share Common Consideration in accordance with the applicable provisions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Excluded
Shares</U>. At the Effective Time, each Excluded Share shall, for no consideration, be automatically canceled and retired and shall
cease to exist, and, for the avoidance of doubt, no exchange or payment shall be made with respect thereto or in respect thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Adjustment
of Exchange Ratio</U>. If during the period from the date of this Agreement until immediately prior to the Effective Time any change
in the outstanding shares of capital stock of SmartFinancial or Bancshares shall occur, including without limitation by reason
of any stock dividend, distribution paid in stock, stock subdivision or reclassification, recapitalization, stock split or combination
(including without limitation the Reverse Stock Split), or exchange or readjustment of shares, then the consideration payable or
issuable to holders of SmartFinancial Stock pursuant to this Agreement shall be appropriately adjusted to reflect such change;
<I>provided</I>, <I>however</I>, that neither the issuance of shares of Bancshares Stock upon the exercise of Bancshares Options,
the issuance of shares of SmartFinancial Stock upon the exercise of SmartFinancial Options, nor the issuance of shares of Bancshares
Common Stock as part of a Financing Transaction shall cause or result in an adjustment of or to the consideration payable or issuable
to holders of SmartFinancial Stock hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SmartFinancial
Options</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the Effective Time, each outstanding SmartFinancial Option, whether vested or unvested immediately prior to the Effective Time,
shall be automatically cancelled and converted into an option to purchase that number of shares of Bancshares Common Stock equal
to the number of shares of SmartFinancial Stock issuable upon the exercise of such SmartFinancial Option immediately prior to the
Effective Time <I>multiplied by</I> the Exchange Ratio, and the per share exercise price of such option to purchase shares of Bancshares
Common Stock shall be equal to the per share exercise price of the SmartFinancial Option immediately prior to the Effective Time
<I>divided by</I> the Exchange Ratio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Those
SmartFinancial Options which are incentive stock options (as defined in Section 422 of the Code) shall, at the Effective Time upon
conversion as provided in <U>Section&nbsp;3.8(a)</U>, maintain their qualified status as such in accordance and compliance with
Section 422 and Section 424 of the Code, and, prior to or at the Effective Time, the SmartFinancial Parties shall take all actions
reasonably necessary to provide for the conversion of such SmartFinancial Options in such manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
less than 30&nbsp;days prior to the anticipated Closing Date, the SmartFinancial Parties shall send a written agreement and acknowledgement
(the same to be in form and substance reasonably acceptable to the Cornerstone Parties) to the holders of then-outstanding SmartFinancial
Options requesting that such holders execute and return the written agreement and acknowledgement to the SmartFinancial Parties
with regard to the cancellation and conversion of their SmartFinancial Options in accordance with the terms of this Agreement.
The SmartFinancial Parties shall use commercially reasonable efforts to obtain a written agreement and acknowledgement from each
holder of a then-outstanding SmartFinancial Option with regard to the cancellation and conversion of such SmartFinancial Option
in accordance with the terms of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
as of the Effective Time, the SmartFinancial Parties shall terminate the SmartFinancial, Inc. 2010 Incentive Plan and the SmartBank
Stock Option Plan. The SmartFinancial Parties shall prior to the Effective Time take any and all action reasonably necessary to
effectuate the termination of such plans in such manner, including without limitation the adoption by the boards of directors of
the SmartFinancial Parties of such resolutions as may be necessary to effect and reflect such terminations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
as of the Effective Time, the Cornerstone Parties shall terminate the Cornerstone Bancshares, Inc. Statutory-NonStatutory Stock
Option Plan. The Cornerstone Parties shall prior to the Effective Time take any and all action reasonably necessary to effectuate
the termination of such plan in such manner, including without limitation the adoption by the boards of directors of the Cornerstone
Parties of such resolutions as may be necessary to effect and reflect such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Effective Time, Bancshares shall adopt, in accordance with applicable Law and applicable provisions of this Agreement, a
new incentive compensation plan pursuant to which the options to purchase shares of Bancshares Common Stock into which SmartFinancial
Options will be converted in accordance with this Agreement will be issued (the &ldquo;<U>Bancshares Incentive Plan</U>&rdquo;),
which Bancshares Incentive Plan shall be in a form and substance mutually agreed upon by the Parties. Bancshares shall take any
and all action reasonably necessary to provide for the adoption of the Bancshares Incentive Plan, including without limitation
the adoption by the board of directors of Bancshares of such resolutions as may be necessary to effect the adoption of the Bancshares
Incentive Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Withholding
Rights</U>. Bancshares (through the Exchange Agent, if applicable) shall be entitled to deduct and withhold from any amounts payable
pursuant to this Agreement to any holder of shares of SmartFinancial Stock such amounts as Bancshares is required under the Code
or any other applicable Law to deduct and withhold with respect to the making of such payment. Any amounts so deducted and withheld
shall be timely remitted to the appropriate Governmental Entity and shall be treated for all purposes of this Agreement as having
been paid to the holder of the SmartFinancial Stock in respect of which such deduction and withholding was made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bancshares
Common Stock</U>. The shares of Bancshares Common Stock issued and outstanding immediately prior to the Effective Time shall not
be affected by the Merger, and, accordingly, each share of Bancshares Common Stock issued and outstanding immediately prior to
the Effective Time shall, at and after the Effective Time, remain an issued and outstanding share of common stock of the Surviving
Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 3.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Availability
of Dissenters&rsquo; Rights</U>. Both the holders of shares of SmartFinancial Common Stock and the holders of shares of Bancshares
Common Stock shall have such rights to dissent from the Merger and obtain payment of the fair value of their shares as are afforded
to such holders by Chapter 23 of the Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE IV</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>REPRESENTATIONS
AND WARRANTIES OF BANCSHARES AND CORNERSTONE</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Cornerstone
Disclosure Memorandum</U>. Prior to the Parties&rsquo; execution and delivery of this Agreement, Bancshares and Cornerstone have
delivered to the SmartFinancial Parties a confidential memorandum (the &ldquo;<U>Cornerstone Disclosure Memorandum</U>&rdquo;)
setting forth, among other things, items the disclosure of which is necessary either in response to an express disclosure requirement
contained in a provision of this Agreement or as an exception to one or more representations or warranties of the Cornerstone Parties
contained in this <U>Article&nbsp;IV</U> or to one or more of their covenants contained in <U>Article&nbsp;VI</U>, making specific
reference in such Cornerstone Disclosure Memorandum to the Section(s) of this Agreement to which such items relate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bancshares
and Cornerstone Representations and Warranties</U>. Each of Bancshares and Cornerstone hereby represents and warrants to the SmartFinancial
Parties as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Organization
and Qualification</I>. Bancshares is a corporation duly organized, validly existing, and in good standing under the laws of the
State of Tennessee, and is duly registered as a bank holding company under the BHCA. Cornerstone is a banking corporation duly
organized, validly existing, and in good standing under the laws of the State of Tennessee. Each of Bancshares and Cornerstone
has the power and authority to own, lease, and operate its properties and assets and to conduct its respective business as presently
conducted. Each of Bancshares and Cornerstone is duly licensed or qualified to transact business and is in good standing in each
jurisdiction in which the character of the properties or assets owned or leased by it or the nature of the business conducted by
it makes such licensing or qualification necessary. The copies of the charters, bylaws, articles of organization, operating agreements,
and other organizational documents of Bancshares and Cornerstone and their respective Subsidiaries previously provided or made
available to the SmartFinancial Parties are true, correct, and complete copies of such documents as in effect as of the date of
this Agreement. Neither Bancshares or Cornerstone nor any Subsidiary of Bancshares or Cornerstone is in violation of its respective
charter, bylaws, articles of organization, operating agreement, or other organizational documents. The minute books of Bancshares
and Cornerstone and their Subsidiaries previously provided or made available to the SmartFinancial Parties constitute a true, complete,
and correct record of all meetings of and material corporate actions taken by their respective boards of directors (and each committee
thereof), shareholders, members, managers, and other governing bodies, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Subsidiaries
and Other Interests</I>. Set forth on <B><U>Schedule&nbsp;4.2(b)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct,
and complete list of all Subsidiaries of Bancshares (other than Cornerstone) and/or Cornerstone, as well as the name of each such
Subsidiary, each such Subsidiary&rsquo;s jurisdiction of incorporation, organization, or formation, and Bancshares&rsquo; and/or
Cornerstone&rsquo;s percentage ownership of each such Subsidiary. Each of Bancshares and Cornerstone owns beneficially and of record
the capital stock or other equity or ownership interest it owns in each of its Subsidiaries free and clear of any and all Liens.
There are no Contracts relating to the right of Bancshares or Cornerstone to vote or dispose of any capital stock or other equity
or ownership interest of any Subsidiary of Bancshares or Cornerstone. The ownership interests of Bancshares and Cornerstone in
their respective Subsidiaries are in compliance with all applicable Laws. Each of the Subsidiaries of Bancshares and/or Cornerstone
is a corporation, limited liability company, or other entity duly organized, validly existing, and in good standing under the laws
of its jurisdiction of incorporation, organization, or formation, has all requisite power and authority to own, lease, and operate
its properties and assets and to conduct its business as presently conducted, and is duly licensed or qualified to transact business
and is in good standing in each jurisdiction in which the character of the properties or assets owned or leased by it or the nature
of the business conducted by it makes such licensing or qualification necessary. The outstanding capital stock or other outstanding
equity or ownership interests of each Subsidiary of Bancshares and/or Cornerstone have been validly authorized and are validly
issued, fully paid, and non-assessable. No shares of capital stock or other equity or ownership interests of any Subsidiary of
Bancshares and/or Cornerstone are or may be required to be issued by virtue of any options, warrants, or other rights; no securities
exist that are convertible into or exchangeable for any shares of capital stock or other equity or ownership interests of any Subsidiary
of Bancshares and/or Cornerstone, or any other debt or equity security of any Subsidiary of Bancshares and/or Cornerstone; and
there are no Contracts for the issuance of any additional capital stock or other equity or ownership interests, or any other debt
or equity securities, of any Subsidiary of Bancshares and/or Cornerstone or any options, warrants, or other rights with respect
to such securities. Except (i) as set forth on <B><U>Schedule&nbsp;4.2(b)</U></B> of the Cornerstone Disclosure Memorandum and
(ii) for securities and other interests held in a fiduciary capacity and beneficially owned by third parties, neither Bancshares
nor Cornerstone owns, beneficially or of record, directly or indirectly, any equity securities of or any other equity or ownership
interest in any Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Capitalization</I>.
The authorized capital stock of Bancshares consists of (i) 20,000,000 shares of common stock, par value $1.00 per share, and (ii)
2,000,000 shares of preferred stock, no par value, of which 600,000 shares have been designated as Series A Convertible Preferred
Stock. The authorized capital stock of Cornerstone consists of (i) 2,000,000 shares of common stock, par value $1.00 per share,
and (ii) 2,000,000 shares of preferred stock, no par value. Set forth on <B><U>Schedule&nbsp;4.2(c)</U></B> of the Cornerstone
Disclosure Memorandum is a true, correct, and complete listing, by class and, if applicable, series, of the issued and outstanding
shares of Bancshares Stock and Cornerstone Stock. There are no other classes or series of authorized, issued, or outstanding capital
stock of Bancshares or Cornerstone. No shares of Bancshares Stock are held in treasury by Bancshares or otherwise owned, directly
or indirectly, by Bancshares, and no shares of Cornerstone Stock are held in treasury by Cornerstone or otherwise owned, directly
or indirectly, by Cornerstone. All of the issued and outstanding shares of Bancshares Stock and Cornerstone Stock have been duly
and validly authorized and issued in full compliance with all applicable Laws and are fully paid and non-assessable, and none of
the issued and outstanding shares of Bancshares Stock or Cornerstone Stock have been issued in violation of the preemptive rights
of any Person. Except as set forth on <B><U>Schedule 4.2(c)</U></B> of the Cornerstone Disclosure Memorandum, (i) there are no
outstanding options, warrants, subscriptions, agreements, contracts, rights, calls, or commitments, of any kind or character, that
require or obligate or could require or obligate Bancshares to issue, deliver, or sell, or cause to be issued, delivered, or sold,
any additional shares of Bancshares capital stock, or securities convertible into or exercisable for shares of Bancshares capital
stock, or that require or obligate or could require or obligate Bancshares to grant, extend, or enter into any such option, warrant,
subscription, agreement, contract, right, call, or commitment, and (ii) there are no outstanding options, warrants, subscriptions,
agreements, contracts, rights, calls, or commitments, of any kind or character, that require or obligate or could require or obligate
Cornerstone to issue, deliver, or sell, or cause to be issued, delivered, or sold, any additional shares of Cornerstone capital
stock, or securities convertible into or exercisable for shares of Cornerstone capital stock, or that require or obligate or could
require or obligate Cornerstone to grant, extend, or enter into any such option, warrant, subscription, agreement, contract, right,
call, or commitment. There are no outstanding obligations of Bancshares or Cornerstone to repurchase, redeem, or otherwise acquire
any shares of its capital stock. Set forth on <B><U>Schedule&nbsp;4.2(c)</U></B> of the Cornerstone Disclosure Memorandum is a
true, correct, and complete list of all outstanding Bancshares Options, including for each Bancshares Option the name of the optionee,
the date of grant, the exercise price, the date(s) of vesting, the date(s) of termination, the number and class or series of shares
subject to such Bancshares Option, and whether such Bancshares Option is qualified or nonqualified under Section 422 of the Code.
No bonds, debentures, notes, or other indebtedness having the right to vote on any matters on which shareholders of Bancshares
or Cornerstone may vote is issued or outstanding. Set forth on <B><U>Schedule&nbsp;4.2(c)</U></B> of the Cornerstone Disclosure
Memorandum is a listing of all cash, stock, and other dividends or distributions with respect to Bancshares Stock or Cornerstone
Stock that have been declared, set aside, or paid since June 30, 2011, as well as all shares of Bancshares capital stock and all
shares of Cornerstone capital stock that have been purchased, redeemed, or otherwise acquired, directly or indirectly, by Bancshares
and Cornerstone, respectively, since June 30, 2011. Except as set forth on <B><U>Schedule&nbsp;4.2(c)</U></B> of the Cornerstone
Disclosure Memorandum, Bancshares is current on all dividends payable on the Bancshares Series&nbsp;A Stock and has complied with
all of the terms and provisions of the Bancshares Series&nbsp;A Stock. Bancshares has, or will as of the Effective Time have, sufficient
authorized and unissued shares of Bancshares Common Stock and Bancshares&nbsp;SBLF Equivalent Stock to at the Effective Time issue
all shares of Bancshares Common Stock and Bancshares&nbsp;SBLF Equivalent Stock payable or issuable hereunder in the form of Merger
Consideration.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Authority</I>.
Each of Bancshares and Cornerstone has all requisite corporate power and authority to execute and deliver this Agreement and, subject
to the consents, approvals, waivers, and filings referred to in <U>Section&nbsp;4.2(f)</U>, to perform its obligations hereunder
and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by the Cornerstone Parties
and the consummation by the Cornerstone Parties of the transactions contemplated hereby have been duly and validly authorized by
all necessary corporate action on the part of the boards of directors of Bancshares and Cornerstone, and no other corporate actions
or proceedings on the part of Bancshares or Cornerstone are necessary to authorize the execution and delivery of this Agreement
by the Cornerstone Parties and the consummation by the Cornerstone Parties of the transactions contemplated hereby, other than
the approval of this Agreement by the shareholders of Bancshares in accordance with the charter and bylaws of Bancshares and applicable
Law. The board of directors of Bancshares has unanimously determined that this Agreement is advisable and in the best interests
of Bancshares and its shareholders and has directed that this Agreement be submitted to Bancshares&rsquo; shareholders for approval,
and has duly and validly adopted resolutions to the foregoing effect and to recommend that the shareholders of Bancshares approve
this Agreement. This Agreement has been duly and validly executed and delivered by each of Bancshares and Cornerstone and constitutes
a valid and legally binding obligation of each of Bancshares and Cornerstone enforceable against each of Bancshares and Cornerstone
in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, moratorium, and similar
Laws affecting creditors&rsquo; rights and remedies generally or general principles of equity, whether applied in a court of law
or a court of equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Violations</I>. The execution, delivery, and performance of this Agreement by Bancshares and Cornerstone and the consummation of
the transactions contemplated by this Agreement do not and will not (i)&nbsp;assuming that the consents, approvals, waivers, and
filings referred to in <U>Section&nbsp;4.2(f)</U>&nbsp;have been obtained and made and all applicable waiting periods have expired,
violate any Law, governmental permit, or license to which the Cornerstone Parties or any of their Subsidiaries (or the properties
or assets of the Cornerstone Parties or any of their Subsidiaries) are subject or by which the Cornerstone Parties or any of their
Subsidiaries (or the properties or assets of the Cornerstone Parties or any of their Subsidiaries) are bound; (ii)&nbsp;violate
the charter, bylaws, articles of organization, operating agreement, or other organizational documents of Bancshares or Cornerstone
or any of their Subsidiaries; or (iii)&nbsp;constitute a breach or violation of or a default under (or an event which, with due
notice or lapse of time or both, could constitute a default under), or result in the termination of, accelerate the performance
required by, or result in the creation of any Lien upon any of the properties or assets of Bancshares or Cornerstone or any of
their Subsidiaries under, any of the terms, conditions, or provisions of any note, bond, indenture, mortgage, deed of trust, loan
agreement, or other Contract to which Bancshares or Cornerstone, or any of their Subsidiaries, is a party or to or by which any
of the properties or assets of Bancshares or Cornerstone, or any of their Subsidiaries, may be subject or bound.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Consents
and Approvals</I>. No consents or approvals of, waivers by, notices to, or filings or registrations with any Governmental Entity
or other Person are required to be obtained, given, or made by Bancshares or Cornerstone, or any of their Subsidiaries, in connection
with the execution and delivery of this Agreement by the Cornerstone Parties or the consummation by the Cornerstone Parties of
the Merger and the other transactions contemplated hereby, except (i) applications, notices, and waiver requests required to be
filed with or given or made to and consents, approvals, and waivers required from, and the expiration of related waiting periods
imposed by, the Federal Reserve and the TDFI (collectively, the &ldquo;<U>Regulatory Approvals</U>&rdquo;); (ii) the filing of
the Articles of Merger with the Tennessee Secretary of State; (iii)&nbsp;such filings, registrations, consents, and approvals as
are required to be made or obtained under or pursuant to federal and state securities Laws in connection with the issuance by Bancshares
of shares of Bancshares Stock in accordance with this Agreement; (iv) the approval of this Agreement by the shareholders of Bancshares;
and (v) as set forth on <B><U>Schedule&nbsp;4.2(f)</U></B> of the Cornerstone Disclosure Memorandum. As of the date hereof, neither
Bancshares nor Cornerstone is aware of any reason why any of the consents, approvals, or waivers referred to in this&nbsp;<U>Section&nbsp;4.2(f)</U>&nbsp;will
not be obtained or received in a timely manner without the imposition of any Burdensome Condition (as defined in&nbsp;<U>Section&nbsp;8.1(b)</U>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Governmental
Filings</I>. Bancshares and Cornerstone, and each of their Subsidiaries, have filed all reports, notices, applications, schedules,
registration and proxy statements, and other documents and instruments that they have been required to file since June 30, 2011,
with the Federal Reserve, the FDIC, the TDFI, or any other Governmental Entity. As of their respective dates, such filings were
complete and accurate in all material respects, complied in all material respects with all applicable Laws, and did not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities
Filings</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
has filed with the SEC all reports, schedules, registration statements, definitive proxy statements, exhibits, and other filings
and materials that Bancshares has been required to file under the Securities Act or the Exchange Act, or the rules and regulations
promulgated thereunder, since June 30, 2011 (collectively, the &ldquo;<U>Cornerstone Securities Filings</U>&rdquo;). None of the
Cornerstone Securities Filings contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not
misleading. As of their respective dates of filing with the SEC, all of the Cornerstone Securities Filings complied in all material
respects with applicable requirements of the Securities Act and/or the Exchange Act, as the case may be, and the rules and regulations
promulgated thereunder. Each of the financial statements (including, in each case, any notes thereto) of Bancshares or its Subsidiaries
included in the Cornerstone Securities Filings complied as to form, as of the respective date of filing, in all material respects,
with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto. Since June
30, 2011, Bancshares and each of Bancshares&rsquo; directors and officers have been, and Bancshares and each of Bancshares&rsquo;
directors and officers are, in compliance in all material respects with applicable provisions of the Sarbanes-Oxley Act of 2002,
including without limitation Section 404 thereof and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
has not received notice from the SEC that either Bancshares itself or any of the Cornerstone Securities Filings are the subject
of any ongoing review by the SEC or any outstanding SEC investigation (whether formal or informal), including without limitation
any voluntary document request, and as of the date of this Agreement, there are no material outstanding or unresolved comments
in comment letters from the SEC staff with respect to any of the Cornerstone Securities Filings. Bancshares has made available
to the SmartFinancial Parties true, correct, and complete copies of all material correspondence since June 30, 2011, between the
SEC, on the one hand, and Bancshares or any of its Subsidiaries, on the other hand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
Bancshares nor any of its Subsidiaries is a party to, or has any commitment to become a party to, any joint venture agreement,
partnership agreement, or any similar Contract (including any Contract relating to any transaction, arrangement, or relationship
between or among Bancshares or any of its Subsidiaries, on the one hand, and any unconsolidated affiliate, including any structured
finance, special purpose, or limited purpose Person, on the other hand (such as any arrangement described in Section&nbsp;303(a)(4)
of Regulation S-K under the Securities Act)) where the purpose or effect of such arrangement is to avoid disclosure of any material
transaction involving Bancshares or any of its Subsidiaries in Bancshares&rsquo; consolidated financial statements.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
has made available to the SmartFinancial Parties true, correct, and complete copies of all amendments or modifications to any reports,
schedules, registration statements, definitive proxy statements, exhibits, and other filings and materials previously filed by
Bancshares with the SEC pursuant to the Securities Act or the Exchange Act, which amendments or modifications have not yet been,
but are required to be, filed with the SEC.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Financial
Statements; Internal Controls</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements of the Cornerstone Parties included in the Cornerstone Securities Filings since June 30, 2011 (including related
notes, where applicable) (A) have been prepared from, and are in accordance with, the books and records of Bancshares and its Subsidiaries,
(B) fairly present in all material respects the consolidated results of operations, changes in stockholders&rsquo; equity, and
cash flows, and the consolidated financial position, of Bancshares and its Subsidiaries for the respective fiscal periods or as
of the respective dates therein set forth (subject in the case of unaudited statements to year-end audit adjustments normal in
nature and amount), (C) complied as to form, as of their respective dates of filing with the SEC, in all material respects with
applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto, and (D) have been
prepared in accordance with GAAP consistently applied during the periods involved, except as indicated in such statements or in
the notes thereto. The books and records of Bancshares and its Subsidiaries have been and are being maintained in all material
respects in accordance with GAAP and any other applicable legal and accounting requirements and reflect only actual transactions.
Mauldin &amp; Jenkins, LLC has not resigned (or informed Bancshares or Cornerstone that it intends to resign) or been dismissed
as the independent public accountants of Bancshares as a result of or in connection with any disagreements with Bancshares on a
matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
records, systems, controls, data, and information of Bancshares and its Subsidiaries are recorded, stored, maintained, and operated
under means (including any electronic, mechanical, or photographic process, whether or not computerized) that are under the exclusive
ownership and direct control of Bancshares or its Subsidiaries or their respective accountants (including all means of access thereto
and therefrom), except for any instances of non-exclusive ownership or non-direct control that could not reasonably be expected
to have, either individually or in the aggregate, a Bancshares Material Adverse Effect. Bancshares (A) has implemented and maintains
disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) designed to ensure that material information
relating to Bancshares, including its Subsidiaries, is made known to the management of Bancshares to allow timely decisions regarding
required disclosures and to make the certifications required by the Exchange Act and Section 302 and Section 906 of the Sarbanes-Oxley
Act of 2002, and (B) has disclosed, based on its most recent evaluation prior to the date of this Agreement, to Bancshares&rsquo;
outside auditors and the audit committee of the board of directors of Bancshares (1) any significant deficiencies and material
weaknesses in the design or operation of internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange
Act) which are reasonably likely to adversely affect Bancshares&rsquo; ability to record, process, summarize, and report financial
information, and (2) any fraud, whether or not material, that involves management or other employees who have a significant role
in Bancshares&rsquo; internal controls over financial reporting. To the Knowledge of the Cornerstone Parties, there is no reason
to believe that Bancshares&rsquo; chief executive officer and chief financial officer will not be able to give the certifications
and attestations required pursuant to the rules and regulations adopted pursuant to Section 404 of the Sarbanes-Oxley Act of 2002,
without qualification, when next due.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since
June 30, 2011, (A) neither Bancshares nor any of its Subsidiaries, nor to the Knowledge of the Cornerstone Parties any director,
officer, auditor, accountant, or other representative of Bancshares or any of its Subsidiaries, has received or otherwise had or
obtained knowledge of any complaint, allegation, assertion, or claim, whether written or oral, regarding the accounting or auditing
practices, procedures, methodologies, or methods (including with respect to loan loss reserve write-downs, charge-offs, and accruals)
of Bancshares or any of its Subsidiaries or their respective internal accounting controls, including any complaint, allegation,
assertion, or claim that Bancshares or any of its Subsidiaries has engaged in questionable accounting or auditing practices, and
(B) no attorney representing Bancshares or any of its Subsidiaries, whether or not employed by Bancshares or any of its Subsidiaries,
has reported to the board of directors of Bancshares or any committee thereof, or to any director or officer of Bancshares, evidence
of a material violation of federal or state securities Laws, breach of fiduciary duty, or any similar violation or breach by Bancshares
or any of its officers, directors, employees, or agents.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Undisclosed
Liabilities</I>. Neither Bancshares nor any of its Subsidiaries has, or has incurred, any debt, liability, or obligation of any
kind, character, or nature whatsoever (whether accrued, contingent, absolute, known, unknown, or otherwise and whether due or to
become due), other than (i) debts, liabilities, and obligations reflected on or reserved against in the Interim Bancshares Financials
and (ii) debts, liabilities, and obligations incurred since September 30, 2014, in the ordinary course of business consistent with
past practice that, either alone or when combined with all such debts, liabilities, and obligations, have not had, and could not
reasonably be expected to have, a Bancshares Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Absence
of Certain Changes or Events</I>. Since June 30, 2014, Bancshares and Cornerstone and their Subsidiaries have conducted their
respective businesses only in the ordinary and usual course consistent with past practices, and there has been no event or occurrence
and no circumstance has arisen that, individually or taken together with all other events, occurrences, and circumstances, has
had or is reasonably likely to have a Bancshares Material Adverse Effect. Since June 30, 2014, neither Bancshares nor Cornerstone,
nor any of their Subsidiaries, has taken or permitted, or entered into any Contract with respect to, or otherwise agreed or committed
to do or take, any action that, if taken after the date hereof, would constitute a breach of any of the covenants set forth in
<U>Section&nbsp;6.1</U>, except as set forth on <B><U>Schedule&nbsp;4.2(k)</U></B> of the Cornerstone Disclosure Memorandum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Litigation</I>.
Except as set forth on <B><U>Schedule&nbsp;4.2(l)</U></B> of the Cornerstone Disclosure Memorandum, there are no suits, actions,
claims, investigations, or legal, administrative, arbitration, or other proceedings pending or, to the Knowledge of the Cornerstone
Parties, threatened against or affecting Bancshares or Cornerstone or any of their Subsidiaries or any property, asset, right,
or interest of Bancshares or Cornerstone or any of their Subsidiaries, and, to the Knowledge of the Cornerstone Parties, there
are no facts or circumstances that could reasonably be expected to give rise to any such suit, action, claim, investigation, or
legal, administrative, arbitration, or other proceeding. Neither Bancshares or Cornerstone nor any of their Subsidiaries, nor any
of the properties or assets of Bancshares or Cornerstone or any of their Subsidiaries, is a party or subject to or bound by any
judgment, decree, injunction, order, or ruling of any Governmental Entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Absence
of Regulatory Actions</I>. Except as set forth on <B><U>Schedule&nbsp;4.2(m)</U></B> of the Cornerstone Disclosure Memorandum,
since June 30, 2011, neither Bancshares nor Cornerstone, nor any of their Subsidiaries, has been a party to any cease and desist
order, written agreement, or memorandum of understanding issued by or with, or any commitment letter or similar undertaking to,
or has been subject to any action, proceeding, order, or directive by, any Governmental Entity, or has adopted any board resolutions
at the request of any Governmental Entity, or has been advised by any Governmental Entity that such Governmental Entity is contemplating
issuing or requesting (or is considering the appropriateness of issuing or requesting) any such action, proceeding, order, directive,
cease and desist order, written agreement, memorandum of understanding, commitment letter, board resolutions, or similar undertaking.
To the Knowledge of the Cornerstone Parties, there are no facts or circumstances which could reasonably be expected to result in
any Governmental Entity issuing or requesting any such action, proceeding, order, directive, cease and desist order, written agreement,
memorandum of understanding, commitment letter, board resolutions, or similar undertaking. There are no material unresolved violations,
criticisms, or exceptions noted by any Governmental Entity in or with respect to any report or statement relating to any examination
or inspection of Bancshares or Cornerstone or any of their Subsidiaries.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compliance
with Laws</I>. Except as set forth on <B><U>Schedule&nbsp;4.2(n)</U></B> of the Cornerstone Disclosure Memorandum, the Cornerstone
Parties and their Subsidiaries have complied, and are in compliance, in all material respects, with all applicable Laws, including
without limitation Section 23A and Section 23B of the Federal Reserve Act and the regulations promulgated pursuant thereto, the
Equal Credit Opportunity Act, the Fair Housing Act, the Community Reinvestment Act (the &ldquo;<U>CRA</U>&rdquo;), the Home Mortgage
Disclosure Act, the Bank Secrecy Act, and the USA PATRIOT Act, each as amended. The Cornerstone Parties and their Subsidiaries
have, and have had, all permits, licenses, franchises, certificates of authority, orders, authorizations, and approvals, and have
made all filings, applications, and registrations with all Governmental Entities, that are required in order to permit them to
own, lease, and operate their properties and assets and to carry on their respective businesses as presently conducted, and all
such permits, licenses, franchises, certificates of authority, orders, authorizations, and approvals are in full force and effect
and, to the Knowledge of the Cornerstone Parties, no suspension or cancellation of any of them is threatened. The deposit accounts
of Cornerstone are insured by the FDIC in the manner and to the maximum extent provided by Law, and Cornerstone has paid all deposit
insurance premiums and assessments required by applicable Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxes</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cornerstone Parties and their Subsidiaries have timely filed all Tax Returns required to be filed by or with respect to them (the
&ldquo;<U>Cornerstone Returns</U>&rdquo;). Neither the Cornerstone Parties nor any of their Subsidiaries currently are the beneficiary
of any extension of time within which to file any Cornerstone Returns. All of the Cornerstone Returns are true, correct, and complete,
and all Taxes due and payable by the Cornerstone Parties and their Subsidiaries with respect to the periods covered by such Cornerstone
Returns have been paid. The accruals and reserves for Taxes reflected in the Interim Bancshares Financials are adequate, in accordance
with GAAP, to cover all unpaid Taxes of Bancshares and its Subsidiaries for periods ending on or prior to the date(s) of the Interim
Bancshares Financials, and all such accruals and reserves for Taxes, as adjusted for operations and transactions and the passage
of time for periods ending on or prior to the Closing Date in accordance with past custom and practice of Bancshares and its Subsidiaries,
are adequate, in accordance with GAAP, to cover all unpaid Taxes of Bancshares and its Subsidiaries accruing through the Closing
Date. No claim (whether formal or informal) has ever been made against the Cornerstone Parties or any of their Subsidiaries by
an authority in a jurisdiction where Bancshares or Cornerstone or their Subsidiaries do not file Tax Returns that Bancshares or
Cornerstone or any of their Subsidiaries are or may be subject to taxation in that jurisdiction. No outstanding agreement, arrangement,
extension, or waiver of or with respect to the limitation period applicable to any Cornerstone Return has been agreed or entered
into or granted (by the Cornerstone Parties or any other Person), and no such agreement, arrangement, extension, or waiver has
been requested, formally or informally, by or from the Cornerstone Parties or any of their Subsidiaries, and neither the Cornerstone
Parties nor any of their Subsidiaries has executed or is bound by any extension or waiver of any statute of limitations on the
assessment or collection of any Tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
estimated Taxes required to be paid by or with respect to the Cornerstone Parties or any of their Subsidiaries have been paid to
the proper taxing authorities. All Taxes that the Cornerstone Parties or any of their Subsidiaries are or were required to withhold
or collect in connection with any amounts paid or owing to any employee, director, manager, independent contractor, shareholder,
member, nonresident, creditor, or other third party (including amounts paid or owing by or to the Cornerstone Parties or any of
their Subsidiaries and any such Taxes due as a result of a plan intended to be a &ldquo;nonqualified deferred compensation plan&rdquo;
under Section 409A(d)(1) of the Code that has not been operated in good faith compliance with Section 409A of the Code and associated
guidance) have been duly withheld or collected and have been paid, to the extent required, to the proper taxing authorities; the
Cornerstone Parties and their Subsidiaries have complied with all information reporting and backup withholding requirements, including
the maintenance of required records, with respect to such amounts; and the Cornerstone Parties and their Subsidiaries have paid
all employer contributions and premiums and filed all Tax Returns with respect to any employee income Tax withholding, and social
security and unemployment Taxes and premiums, all in compliance with the withholding provisions of the Code and other applicable
Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the Cornerstone Returns have been examined and closed or are Tax Returns with respect to which the applicable period for assessment
under applicable Law, after giving effect to extensions or waivers, has expired. The Cornerstone Parties have delivered or made
available to the SmartFinancial Parties true, correct, and complete copies of all audit reports and similar documents issued by
a Governmental Entity relating to the Cornerstone Returns which the Cornerstone Parties have in their possession or control. Set
forth on <B><U>Schedule&nbsp;4.2(o)(iii)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list
of all Cornerstone Returns filed by or with respect to the Cornerstone Parties or any of their Subsidiaries during the past five
years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
audit, investigation, examination, deficiency assessment, refund litigation, or other proceeding is pending or, to the Knowledge
of the Cornerstone Parties, threatened against or with respect to the Cornerstone Parties or any of their Subsidiaries in respect
of any Taxes or Tax matters, and to the Knowledge of the Cornerstone Parties there are no facts or circumstances that could reasonably
be expected to give rise to any such audit, investigation, examination, deficiency assessment, refund litigation, or other proceeding.
There are no unsatisfied debts, liabilities, or obligations for Taxes with respect to any notice of deficiency or similar document
received by the Cornerstone Parties or any of their Subsidiaries with respect to any Taxes. No deficiencies have been asserted
against the Cornerstone Parties or any of their Subsidiaries as a result of an examination by a taxing authority and no issue has
been raised by any examination conducted by any taxing authority that, by application of the same principles, might result in a
proposed deficiency for any other period not so examined. There are no Liens for Taxes upon any of the properties or assets of
the Cornerstone Parties or any of their Subsidiaries, other than statutory Liens for current Taxes not yet due and payable for
which adequate reserves have been established.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
Bancshares nor Cornerstone, nor any of their Subsidiaries, has granted to any Person a power of attorney with respect to any Taxes
or Tax matters that is currently in effect. Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, is subject to any
private letter ruling of the IRS or any comparable ruling of any other taxing authority, and no request for any such ruling is
pending. No closing agreement pursuant to Section 7121 of the Code (or any predecessor provision), or any similar provision of
Law, has been entered into by or with respect to Bancshares or Cornerstone or any of their Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no Contract or plan (including without limitation this Agreement and the arrangements contemplated hereby) covering any employee
or independent contractor, or any former employee or independent contractor, of Bancshares or Cornerstone or any of their Subsidiaries
that, individually or collectively with any other such Contracts or Plans, will, or could be expected to, (A) give rise, directly
or indirectly, to the payment of any amount that would not be deductible pursuant to Section 280G or Section 162 of the Code (as
determined without regard to Section&nbsp;280G(b)(4) of the Code), except those payments that will not be made in the absence of
shareholder approval in accordance with the requirements of Section&nbsp;280G(b)(5)(B) of the Code, or (B) subject any such Person
to additional taxes under Section&nbsp;409A of the Code. Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, is
a party to or bound by any Contract or plan, or has any obligation (current or contingent), to compensate any Person for Tax-related
payments, including Taxes paid pursuant to Section&nbsp;4999 of the Code and Taxes under Section&nbsp;409A of the Code. All disqualified
individuals (as defined in Section&nbsp;280G(c) of the Code) with respect to Bancshares and Cornerstone and each of their Subsidiaries
are set forth on <B><U>Schedule&nbsp;4.2(o)(vi)</U></B> of the Cornerstone Disclosure Memorandum.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;4.2(o)(vii)</U></B> of the Cornerstone Disclosure Memorandum, (A) neither Bancshares nor Cornerstone,
nor any of their Subsidiaries, has at any time been a member of a group with which it has filed or been included in a combined,
consolidated, or unitary Tax Return; (B) neither Bancshares nor Cornerstone, nor any of their Subsidiaries, is or has ever been
a party to or bound by any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement, or similar Contract; and (C)
neither Bancshares nor Cornerstone, nor any of their Subsidiaries, is liable for the Taxes of any other Person, whether as a transferee
or successor, by Contract (including any Tax allocation agreement, Tax sharing agreement, or Tax indemnity agreement), or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cornerstone Parties and their Subsidiaries are, and have at all times been, in compliance with the provisions of Section&nbsp;6011,
Section 6111, and Section 6112 of the Code relating to tax shelter disclosure, registration, list maintenance, and record keeping,
and with the Treasury Regulations thereunder (including any predecessor or successor Code provisions or Treasury Regulations, as
applicable), and neither the Cornerstone Parties nor their Subsidiaries have at any time engaged in or entered into (A) any transaction
that would be defined as a &ldquo;reportable transaction&rdquo; within the meaning of Treasury Regulations Section&nbsp;1.6011-4(b),
(B) any confidential corporate tax shelter within the meaning of Treasury Regulations Section&nbsp;1.6111-2, or (C) any &ldquo;listed
transaction&rdquo; within the meaning of Treasury Regulations&nbsp;Section&nbsp;1.6011, Section&nbsp;301.6111, or Section&nbsp;301.6112,
or any transaction that would have been such a &ldquo;listed transaction&rdquo; if current Law was in effect at the time the transaction
was entered into. No IRS Form 8886 has been filed with respect to the Cornerstone Parties or any of their Subsidiaries. Neither
Bancshares nor Cornerstone, nor any of their Subsidiaries, has entered into any tax shelter or listed transaction with the sole
or dominant purpose of the avoidance or reduction of a Tax liability in a jurisdiction outside the United States with respect to
which there is a significant risk of challenge of such transaction by a Governmental Entity in a jurisdiction outside the United
States. The Cornerstone Parties and their Subsidiaries have disclosed on all Cornerstone Returns all positions taken therein that
could give rise to a substantial understatement of Tax within the meaning of Section&nbsp;6662 of the Code. Neither Bancshares
nor Cornerstone, nor any of their Subsidiaries, has incurred, and no state of affairs exist that could result in Bancshares or
Cornerstone, or any of their Subsidiaries, incurring, any penalty under Section&nbsp;6662(e) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the assets, properties, or rights of the Cornerstone Parties or their Subsidiaries (A) are &ldquo;tax-exempt use property&rdquo;
within the meaning of Section&nbsp;168(h) of the Code, (B) are assets, properties, or rights required to be treated as owned by
any other Person pursuant to the so-called &ldquo;safe harbor lease&rdquo; provisions of Section&nbsp;168(f)(8) of the Internal
Revenue Code of 1954 as in effect after the Economic Recovery Tax Act of 1981 and before the Tax Reform Act of 1986, or (C) directly
or indirectly secure any debt the interest on which is Tax-exempt under Section&nbsp;103(a) of the Code. Neither the Cornerstone
Parties nor any of their Subsidiaries have participated in or cooperated with an international boycott within the meaning of Section
999 of the Code. Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, has a &ldquo;permanent establishment&rdquo;
within the meaning of any applicable Tax law in any foreign jurisdiction, nor is Bancshares or Cornerstone, or any of their Subsidiaries,
required to file any Tax Returns in any foreign jurisdiction. No Subsidiary of Bancshares or Cornerstone which is not a &ldquo;United
States Person&rdquo; within the meaning of Section 7701(a)(30) of the Code has a permanent establishment within the United States
or derives any income effectively connected with the conduct of a trade or business within the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(o)(x)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list of
(i) all Tax abatement, Tax reduction, Tax credit, and similar agreements or programs to which the Cornerstone Parties or their
Subsidiaries are parties or in which the Cornerstone Parties or their Subsidiaries participate and (ii) the amount of each Tax
abatement, Tax reduction, Tax credit, or similar benefit that the Cornerstone Parties or their Subsidiaries have received as of
the date hereof and the period(s) to which each such Tax abatement, Tax reduction, Tax credit, or similar benefit applied. The
consummation of the transactions contemplated by this Agreement will not result in any recoupment, claw-back, or decrease in any
such Tax abatement, Tax reduction, Tax credit, or similar benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this <U>Section&nbsp;4.2(o)</U>, (A) references to Bancshares shall be deemed to include any predecessor to Bancshares,
any Person which merged or was liquidated with or into Bancshares, any direct or indirect Subsidiary of Bancshares, and any Person
from which Bancshares has incurred any liability for Taxes as a result of transferee liability and (B) references to Cornerstone
shall be deemed to include any predecessor to Cornerstone, any Person which merged or was liquidated with or into Cornerstone,
any direct or indirect Subsidiary of Cornerstone, and any Person from which Cornerstone has incurred any liability for Taxes as
a result of transferee liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Material
Contracts</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(p)(i)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list of
the following Contracts to which Bancshares or Cornerstone, or any of their Subsidiaries, is a party, by which Bancshares or Cornerstone,
or any of their Subsidiaries, is bound, or to which Bancshares or Cornerstone, or any of their Subsidiaries, or any of the properties
or assets of Bancshares or Cornerstone, or any of their Subsidiaries, are subject (collectively, the &ldquo;<U>Cornerstone Material
Contracts</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that involves, or could reasonably be expected to involve, annual receipts or disbursements of $25,000 or more;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that requires Bancshares or Cornerstone, or any of their Subsidiaries, to purchase all of its requirements for a given
product, good, or service from a given Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that provides for the indemnification by Bancshares or Cornerstone, or any of their Subsidiaries, of&nbsp;any Person,
or the express assumption&nbsp;by Bancshares or Cornerstone, or any of their Subsidiaries, of&nbsp;any Tax, environmental, or other
liability or obligation (whether accrued, contingent, absolute, or otherwise) of&nbsp;any Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract relating to the disposition or acquisition, directly or indirectly (by merger&nbsp;or otherwise), by Bancshares or Cornerstone,
or any of their Subsidiaries, after the date of&nbsp;this Agreement of properties, assets, or securities with a fair market value
of $25,000 or more;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
employment agreement, consulting agreement, severance agreement, change of control agreement, bonus agreement, deferred compensation
agreement, non-competition agreement, non-solicitation agreement, confidentiality or non-disclosure agreement, or other Contract
with any current or former director, officer, employee, or consultant of or to Bancshares or Cornerstone, or any of their Subsidiaries;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(F)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract not disclosed under <U>Section&nbsp;4.2(p)(i)(E)</U> with or for the benefit of any shareholder, director, officer, employee,
or Affiliate of Bancshares or Cornerstone or any of their Subsidiaries, or any Affiliate of or member of the immediate family of
any such Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(G)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that limits or purports to limit the right of Bancshares or Cornerstone, or any of their Subsidiaries, to engage in any
line of business, compete with any Person, or operate in any geographic location;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(H)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
partnership, joint venture, limited liability company, or similar Contract;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(I)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contact with respect to the occupancy, management, lease, or operation of real property;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(J)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
data processing or information technology Contract;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(K)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that grants to any Person any right of first refusal, right of first offer, or similar right with respect to any assets,
rights, properties, or securities of Bancshares or Cornerstone, or any of their Subsidiaries;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(L)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that relates to indebtedness of or borrowings of money by Bancshares or Cornerstone, or any of their Subsidiaries, in
excess of $25,000 (other than Federal Home Loan Bank borrowings and repurchase agreements with customers entered into in the ordinary
course of business);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(M)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract relating to the acquisition, transfer, or issuance of, or affecting or dealing with, any securities of Bancshares or Cornerstone
or any of their Subsidiaries, including without limitation any voting, shareholders, or underwriting agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(N)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other Contract not previously disclosed that is material to Bancshares or Cornerstone, or any of their Subsidiaries, or the business,
operations, or financial condition of Bancshares or Cornerstone, or any of their Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
true, correct, and complete copy (or, in the case of any oral Contract, a complete and accurate written description) of each Cornerstone
Material Contract, as amended through the date of this Agreement, has been previously provided or made available to the SmartFinancial
Parties. Each of the Cornerstone Material Contracts is in full force and effect and is a valid and binding obligation of Bancshares
or Cornerstone, or their Subsidiaries, as applicable, and each of the other parties thereto, enforceable against Bancshares or
Cornerstone, or their Subsidiaries, as applicable, and each of the other parties thereto in accordance with its terms. Bancshares
and Cornerstone and their Subsidiaries have performed all duties and obligations required to be performed by them under each Cornerstone
Material Contract. Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, nor to the Knowledge of the Cornerstone Parties
any other party thereto, is in breach or violation of or default under any Cornerstone Material Contact, and to the Knowledge of
the Cornerstone Parties there has not occurred any event that, with the lapse of time or the giving of notice or both, would constitute
such a breach, violation, or default. No event has occurred and no circumstance or condition exists that, with or without notice
or lapse of time or both, gives any Person, or will or could give any Person, (A)&nbsp;the right to declare a breach or default
or exercise any remedy under any Cornerstone Material Contract, (B)&nbsp;the right to accelerate the maturity of or performance
under any Cornerstone Material Contract, or (C)&nbsp;the right to cancel, terminate, or modify any Cornerstone Material Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;4.2(p)(iii)</U></B> of the Cornerstone Disclosure Memorandum, (A) no consents, approvals, waivers,
or notices are required to be obtained, given, or delivered pursuant to the terms and conditions of any Cornerstone Material Contract
as a result of the Cornerstone Parties&rsquo; execution, delivery, or performance of this Agreement or the consummation of the
transactions contemplated hereby and (B) assuming the consents, approvals, and notices referred to in clause (A) are obtained,
given, and delivered, neither the Cornerstone Parties&rsquo; execution, delivery, or performance of this Agreement nor the consummation
of the transactions contemplated hereby will result in any Person having the right to declare a breach or default or exercise any
remedy under any Cornerstone Material Contract; accelerate the maturity of or performance under any Cornerstone Material Contract;
or cancel, terminate, or modify any Cornerstone Material Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Intellectual
Property; Information Technology Systems</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(q)(i)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list,
and where appropriate a description, of all of the Intellectual Property owned, leased, or licensed by Bancshares or Cornerstone
or any of their Subsidiaries, or used by Bancshares or Cornerstone or any of their Subsidiaries in the conduct of their respective
businesses (collectively, the &ldquo;<U>Cornerstone Intellectual Property</U>&rdquo;). All required filings and fees related to
Cornerstone Intellectual Property registrations have been timely filed with and paid to the relevant Governmental Entities and
authorized registrars, and all Cornerstone Intellectual Property registrations are in good standing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(q)(ii)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list
of all licenses and other Contracts relating to or affecting the Cornerstone Intellectual Property. There is no breach or default
or alleged breach or default, or state of facts or circumstances which with notice or lapse of time or both would constitute a
breach or default, on the part of any party to any such license or other Contract in the performance of any obligation to be performed,
paid, or observed by any party under or pursuant to any such license or other Contract. The Cornerstone Parties have previously
provided to the SmartFinancial Parties true, correct, and complete copies (or, in the case of any oral Contract, a complete and
accurate written description) of the above-mentioned licenses and other Contracts, including all modifications, amendments, and
supplements thereto and waivers thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
or Cornerstone, or one of their Subsidiaries, is the sole and exclusive owner of all of the Cornerstone Intellectual Property not
leased or licensed to Bancshares or Cornerstone or one of their Subsidiaries, free and clear of any Liens, and, with respect to
any Cornerstone Intellectual Property leased or licensed to Bancshares or Cornerstone or one of their Subsidiaries, has a valid
and enforceable lease, license, or other right to use such Cornerstone Intellectual Property, and except as set forth on <B><U>Schedule&nbsp;4.2(q)(iii)</U></B>
of the Cornerstone Disclosure Memorandum, no leases, licenses, or other rights have been granted by Bancshares or Cornerstone,
or their Subsidiaries, to third Persons with respect to any such Cornerstone Intellectual Property. Bancshares and Cornerstone
and their Subsidiaries own or possess all requisite rights to use all of the Cornerstone Intellectual Property required or necessary
for the conduct of the business of Bancshares and Cornerstone and their Subsidiaries as presently conducted, without any conflict
with the rights of others or any known use by others which conflicts with the rights of Bancshares or Cornerstone or any of their
Subsidiaries. Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, owes any royalties, honoraria, or fees to any
Person by reason of the use by Bancshares or Cornerstone, or any of their Subsidiaries, of any of the Cornerstone Intellectual
Property. Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, has received notice of, and to the Knowledge of the
Cornerstone Parties there is no basis for, any claimed conflict with respect to any of the Cornerstone Intellectual Property or
any claim against Bancshares or Cornerstone or any of their Subsidiaries that their respective operations, activities, products,
publications, goods, or services infringe upon any patent, trademark, trade name, copyright, or other intellectual property or
proprietary right of a third party, or that Bancshares or Cornerstone or any of their Subsidiaries is illegally or otherwise impermissibly
using any patent, trademark, trade name, copyright, trade secret, or other intellectual property or proprietary right of others,
nor has there been any claim or assertion that any of the Cornerstone Intellectual Property is invalid or defective in any way.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(q)(iv)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list
of all consents, waivers, authorizations, and approvals with respect to or involving the Cornerstone Intellectual Property that
must be obtained, and all filings that must be made and all other actions that must be taken in respect of the Cornerstone Intellectual
Property, in connection with the Parties&rsquo; execution and delivery of this Agreement or the consummation of the transactions
contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the Knowledge of the Cornerstone Parties, all information technology and computer systems (including software, information technology
and telecommunications hardware, and other equipment) relating to or for the transmission, storage, maintenance, organization,
presentation, generation, processing, or analysis of data and information, whether or not in electronic format, necessary for or
used in the conduct of the businesses of the Cornerstone Parties and their Subsidiaries (collectively, the &ldquo;<U>Cornerstone
IT Systems</U>&rdquo;) have been properly maintained by technically competent personnel, in accordance with standards set by manufacturers
or otherwise in accordance with standards in the industry, to ensure proper operation, monitoring, and use. The Cornerstone IT
Systems are in good working condition to effectively perform all information technology (including data processing) operations
necessary to conduct business as currently conducted. Since June 30, 2011, neither Bancshares nor Cornerstone, nor any of their
Subsidiaries, has experienced any material disruption to, or material interruption in, its conduct of its business attributable
to a defect, bug, breakdown, or other failure or deficiency in or of the Cornerstone IT Systems. The Cornerstone Parties and their
Subsidiaries have taken reasonable measures to provide for the back-up and recovery of the data and information necessary for the
conduct of their respective businesses (including such data and information that is stored on magnetic or optical media in the
ordinary course) without material disruption to, or material interruption in, the conduct of their respective businesses. Neither
Bancshares nor Cornerstone, nor any of their Subsidiaries, is in breach of or default under any Contract relating to any of the
Cornerstone IT Systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Labor
Matters</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cornerstone Parties and their Subsidiaries are in compliance in all material respects with all applicable Laws respecting employment,
retention of independent contractors, employment practices, terms and conditions of employment, and wages and hours. Neither Bancshares
nor Cornerstone, nor any of their Subsidiaries, is or has ever been a party to, or is or has ever been bound by, any collective
bargaining agreement or contract or other agreement or understanding with a labor union or labor organization with respect to its
employees, nor is Bancshares or Cornerstone, or any of their Subsidiaries, the subject of any proceeding in which it is asserted
that Bancshares or Cornerstone, or any of their Subsidiaries, has committed an unfair labor practice or seeking to compel Bancshares
or Cornerstone, or any of their Subsidiaries, to bargain with any labor organization as to wages and conditions of employment,
nor, to the Knowledge of the Cornerstone Parties, has any such proceeding been threatened, nor is there any strike, labor dispute,
or organizational effort involving Bancshares or Cornerstone, or any of their Subsidiaries, pending or, to the Knowledge of the
Cornerstone Parties, threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule 4.2(r)(ii)</U></B> of the Cornerstone Disclosure Memorandum is (A)&nbsp;a true, correct, and complete list
of all employees (including any leased or temporary employees) of the Cornerstone Parties and their Subsidiaries; (B)&nbsp;each
such employee&rsquo;s current rate of compensation; and (C)&nbsp;each such employee&rsquo;s date of hire and accrued vacation,
sick leave, and personal leave, as applicable. Set forth or identified on <B><U>Schedule 4.2(r)(ii)</U></B> of the Cornerstone
Disclosure Memorandum are the names of any employees of the Cornerstone Parties or any of their Subsidiaries who are absent from
work due to a leave of absence (including without limitation in accordance with the requirements of the Family and Medical Leave
Act or the Uniformed Services Employment and Reemployment Rights Act) or a work-related injury, or who are receiving workers&rsquo;
compensation or disability compensation. There are no unpaid wages, salaries, bonuses, commissions, or other amounts owed to any
employee of Bancshares or Cornerstone or any of their Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">To
</FONT>the <FONT STYLE="font-family: Times New Roman, Times, Serif">Knowledge of the Cornerstone Parties, no director, officer,
employee, independent contractor, or consultant of or to Bancshares or Cornerstone, or any of their Subsidiaries, is a party to
or is otherwise bound by any Contract, including without limitation any confidentiality, non-competition, non-solicitation, or
proprietary rights agreement, that could adversely affect the ability of </FONT>Bancshares or Cornerstone, or any of their Subsidiaries,<FONT STYLE="font-family: Times New Roman, Times, Serif">
to conduct its business as currently conducted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">Neither
</FONT>Bancshares nor Cornerstone, nor any of their Subsidiaries,<FONT STYLE="font-family: Times New Roman, Times, Serif"> has
classified any Person as an &ldquo;independent contractor&rdquo; or any similar status who, under applicable Law or the provisions
of any </FONT>Cornerstone <FONT STYLE="font-family: Times New Roman, Times, Serif">Benefit Plan (as defined below), should have
been classified as an employee. Neither </FONT>Bancshares nor Cornerstone, nor any of their Subsidiaries, <FONT STYLE="font-family: Times New Roman, Times, Serif">has
any liability for improperly excluding any Person who provides or provided services to </FONT>Bancshares or Cornerstone, or any
of their Subsidiaries, <FONT STYLE="font-family: Times New Roman, Times, Serif">in any capacity from participating in any </FONT>Cornerstone
<FONT STYLE="font-family: Times New Roman, Times, Serif">Benefit Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">None
of the officers or employees of </FONT>Bancshares or Cornerstone (<FONT STYLE="font-family: Times New Roman, Times, Serif">or any
of their Subsidiaries) have informed </FONT>Bancshares or Cornerstone (<FONT STYLE="font-family: Times New Roman, Times, Serif">or
their Subsidiaries) of their intent, and </FONT>the Cornerstone Parties <FONT STYLE="font-family: Times New Roman, Times, Serif">do
not have Knowledge that any of the officers or employees of </FONT>Bancshares or Cornerstone (<FONT STYLE="font-family: Times New Roman, Times, Serif">or
any of their Subsidiaries) have an intention, to terminate their employment with </FONT>Bancshares or Cornerstone<FONT STYLE="font-family: Times New Roman, Times, Serif">
(or their Subsidiaries) during the next 12&nbsp;months.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no pending or, to the Knowledge of the Cornerstone Parties, threatened suit, action, claim, or legal, administrative, arbitration,
or other proceeding by or on behalf of any current or former employee of Bancshares or Cornerstone or any of their Subsidiaries,
including without limitation any suit, action, claim, or legal, administrative, arbitration, or other proceeding alleging noncompliance
with applicable Laws respecting employment, employment practices, or terms and conditions of employment, but excluding workers&rsquo;
compensation matters, and there are no facts or circumstances that could reasonably be expected to give rise to any such suit,
action, claim, or legal, administrative, arbitration, or other proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Benefit
Plans</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(s)(i)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list of
all pension, retirement, stock option, stock purchase, stock ownership, savings, stock appreciation right, profit sharing, deferred
compensation, consulting, bonus, group insurance, severance, change of control, fringe benefit, incentive, cafeteria or Code Section&nbsp;125,
welfare, and other benefit plans, contracts, agreements, and arrangements, including without limitation &ldquo;employee benefit
plans&rdquo; as defined in Section&nbsp;3(3) of ERISA, incentive and welfare policies, contracts, plans, and arrangements, including
split dollar life insurance arrangements, and all trust agreements and funding arrangements related thereto, which are or have
been maintained by, contributed to (or required to be contributed to), or sponsored by Bancshares or Cornerstone or an ERISA Affiliate
with respect to any present or former directors, officers, or employees of Bancshares or Cornerstone or any of their Subsidiaries
(herein referred to collectively as the &ldquo;<U>Cornerstone Benefit Plans</U>&rdquo;), including any and all plans or policies
offered to employees of Bancshares or Cornerstone, or any of their Subsidiaries, with respect to which Bancshares or Cornerstone
or an ERISA Affiliate has claimed or is claiming the safe harbor for &ldquo;voluntary plans&rdquo; under ERISA for group and group-type
insurance arrangements (&ldquo;<U>Cornerstone Voluntary Plans</U>&rdquo;). The Cornerstone Parties have previously delivered or
made available to the SmartFinancial Parties true, correct, and complete copies of all plans, contracts, agreements, arrangements,
and other documents referenced in <B><U>Schedule&nbsp;4.2(s)(i)</U></B> of the Cornerstone Disclosure Memorandum, along with, where
applicable, copies of the IRS Form 5500 for the most recently completed year. There has been no announcement or commitment by Bancshares
or Cornerstone, or any of their Subsidiaries, to create any additional Cornerstone Benefit Plan, to amend any Cornerstone Benefit
Plan (except for amendments required by applicable Law which do not materially increase the cost of such Cornerstone Benefit Plan),
or to terminate any Cornerstone Benefit Plan. Each Cornerstone Benefit Plan that provides for the payment of &ldquo;deferred compensation,&rdquo;
including any employment agreement between Bancshares or Cornerstone, or any of their Subsidiaries, and any employee, complies
in all material respects with Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no pending, threatened, or suspected claim, litigation, action, administrative action, suit, audit, arbitration, mediation,
or other proceeding relating to any Cornerstone Benefit Plan. All of the Cornerstone Benefit Plans comply in all material respects
with applicable requirements of ERISA and the Code and other applicable Laws (including without limitation the portability, privacy,
and security provisions of the Health Insurance Portability and Accountability Act of 1996; the Patient Protection and Affordable
Care Act of 2009; the coverage continuation requirements of Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985;
the Family and Medical Leave Act; the Mental Health Parity Act of 1996; the Mental Health Parity and Addiction Equity Act of 2008;
the Uniformed Services Employment and Reemployment Rights Act; the Newborns&rsquo; and Mothers&rsquo; Health Protection Act of
1996; the Women&rsquo;s Health and Cancer Rights Act; and the Genetic Information Nondiscrimination Act of 2008), and have been
established, maintained, and administered in compliance, in all material respects, with all applicable requirements of ERISA and
the Code and other applicable Laws and the terms and provisions of all documents, contracts, or agreements establishing the Cornerstone
Benefit Plans or pursuant to which they are maintained or administered. No audit of any Cornerstone Benefit Plan by the IRS or
the United States Department of Labor is ongoing or threatened or was ongoing, threatened, or closed since June 30, 2011. There
has occurred no &ldquo;prohibited transaction&rdquo; (as defined in Section&nbsp;406 of ERISA or Section&nbsp;4975 of the Code)
with respect to any Cornerstone Benefit Plan that is likely to result in, or has already resulted in, the imposition of any penalties
or Taxes upon Bancshares or Cornerstone, or any of their Subsidiaries, under Section&nbsp;502(i) of ERISA or Section&nbsp;4975
of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
liability to the Pension Benefit Guaranty Corporation has been, or is expected by the Cornerstone Parties or their Subsidiaries
to be, incurred with respect to any Cornerstone Benefit Plan that is subject to Title IV of ERISA (a &ldquo;<U>Cornerstone Pension
Plan</U>&rdquo;), or with respect to any &ldquo;single-employer plan&rdquo; (as defined in Section&nbsp;4001(a) of ERISA) currently
or formerly maintained by Bancshares or Cornerstone or any ERISA Affiliate. No Cornerstone Pension Plan had an &ldquo;accumulated
funding deficiency&rdquo; (as defined in Section&nbsp;302 of ERISA), whether or not waived, as of the last day of the end of the
most recent plan year ending prior to the date hereof; the fair market value of the assets of each Cornerstone Pension Plan exceeds
the present value of the &ldquo;benefit liabilities&rdquo; (as defined in Section&nbsp;4001(a)(16) of ERISA) under such Cornerstone
Pension Plan as of the end of the most recent plan year ending prior to the date hereof, calculated on the basis of the actuarial
assumptions used in the most recent actuarial valuation for such Cornerstone Pension Plan as of the date hereof; and no notice
of a &ldquo;reportable event&rdquo; (as defined in Section&nbsp;4043 of ERISA) for which the 30-day reporting requirement has not
been waived has been required to be filed for any Cornerstone Pension Plan within the 12-month period ending on the date hereof.
Neither Bancshares nor Cornerstone, nor any of their Subsidiaries, has provided, or is required to provide, security to any Cornerstone
Pension Plan or to any single-employer plan of an ERISA Affiliate pursuant to Section&nbsp;401(a)(29) of the Code. Neither Bancshares
nor Cornerstone, nor any of their Subsidiaries or any ERISA Affiliate, has contributed to or been obligated to contribute to any
&ldquo;multiemployer plan,&rdquo; as defined in Section&nbsp;3(37) of ERISA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Cornerstone Benefit Plan that is an &ldquo;employee pension benefit plan&rdquo; (as defined in Section&nbsp;3(2) of ERISA) and
which is intended to be qualified under Section&nbsp;401(a) of the Code (a &ldquo;<U>Cornerstone Qualified Plan</U>&rdquo;) has
received a current favorable determination letter from the IRS (or, in the case of an IRS pre-approved plan, the pre-approved plan
has a current IRS opinion or advisory letter upon which the Cornerstone Parties are entitled to rely under applicable IRS guidance),
and to the Knowledge of the Cornerstone Parties there are no facts or circumstances that could result in the revocation of any
such favorable determination letter. Each Cornerstone Qualified Plan that is an &ldquo;employee stock ownership plan&rdquo; (as
defined in Section&nbsp;4975(e)(7) of the Code) has satisfied all of the applicable requirements of Sections 409 and 4975(e)(7)
of the Code and the regulations thereunder in all material respects, and any assets of any such Cornerstone Qualified Plan that,
as of the end of the most recent plan year, are not allocated to participants&rsquo; individual accounts are pledged as security
for, and may be applied to satisfy, any securities acquisition indebtedness.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
Bancshares nor Cornerstone, nor any of their Subsidiaries, has any obligations for post-retirement or post-employment benefits
under any Cornerstone Benefit Plan that cannot be amended or terminated upon 60&nbsp;days or less notice without incurring any
liability thereunder, except for coverage required by Part 6 of Title I of ERISA or Section&nbsp;4980B of the Code or similar state
Laws, the cost of which is borne by the insured individuals.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
contributions and payments (both employer and employee) required to be made with respect to any Cornerstone Benefit Plan by applicable
Law or by any plan document or other contractual undertaking, and all premiums due or payable (both employer and employee) with
respect to insurance policies funding any Cornerstone Benefit Plan, for any period through the date hereof have been timely made
or paid in full by the applicable due date, with extensions, or to the extent not required to be made or paid on or before the
date hereof, have been fully reflected or reserved against in the Interim Bancshares Financials to the extent required by GAAP
or regulatory accounting requirements. Each Cornerstone Benefit Plan that is an employee welfare benefit plan under Section&nbsp;3(1)
of ERISA either (A)&nbsp;is funded through an insurance company contract and is not a &ldquo;welfare benefit fund&rdquo; within
the meaning of Section&nbsp;419 of the Code or (B)&nbsp;is unfunded. Any unfunded Cornerstone Benefit Plan pays benefits solely
from the general assets of Bancshares or Cornerstone, or their applicable Subsidiary, for which arrangement the establishment of
a trust under ERISA is not required. All unfunded benefits for which claims have been filed under a Cornerstone Benefit Plan have
been or are being processed for payment or otherwise adjudicated in accordance with the terms of the applicable Cornerstone Benefit
Plan and paid (to the extent payment is due), or will be paid, within the customary, normal, and routine claims processing and
payment time frames followed by the Cornerstone Benefit Plan and as required by ERISA. No unfunded Cornerstone Benefit Plan is
delinquent in the payment of benefits, and neither Bancshares nor Cornerstone, nor any of their Subsidiaries, is delinquent in
making its required contributions to any such unfunded Cornerstone Benefit Plan so that the Cornerstone Benefit Plan can pay benefits
on a timely basis.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
required reports, notice, disclosures, and descriptions (including without limitation Form&nbsp;5500 annual reports and required
attachments, Forms&nbsp;1099-R, summary annual reports, Forms PBGC-1, and summary plan descriptions) have been filed or distributed
in accordance with applicable Law with respect to each Cornerstone Benefit Plan. All required Tax filings with respect to each
Cornerstone Benefit Plan have been made, and any Taxes due in connection with such filings have been paid. Since June 30, 2011,
neither Bancshares nor Cornerstone, nor any of their Subsidiaries, has filed or been required to file with the IRS a Form 8928
in order to self-report any health plan violations which are subject to excise taxes under applicable provisions of the Code, and
to the Knowledge of the Cornerstone Parties there are no facts or circumstances that could reasonably be expected to result in
Bancshares or Cornerstone, or any of their Subsidiaries, being required by the Code to file any such Form 8928.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;4.2(s)(viii)</U></B> of the Cornerstone Disclosure Memorandum, neither Bancshares nor Cornerstone,
nor any of their Subsidiaries, is a party to or bound by any Contract (including without limitation any severance, change of control,
or employment agreement) that will, as a result or consequence of the execution or delivery of this Agreement, shareholder approval
of this Agreement or the transactions contemplated hereby, or the consummation of the transactions, including the Merger, contemplated
hereby, either alone or in connection with any other event, (A)&nbsp;entitle any current or former director, officer, employee,
or independent contractor of Bancshares or Cornerstone, or of any of their Subsidiaries, to severance pay or change of control
or other benefits, or any increase in severance pay or other benefits, upon any termination of employment or of such Contract after
the date hereof, (B)&nbsp;accelerate the time of payment or vesting or trigger any payment or funding (through a grantor trust
or otherwise) of compensation or benefits under, increase the amount payable under, or trigger any withdrawal liability under or
any other material obligation pursuant to, any of the Cornerstone Benefit Plans, (C)&nbsp;result in any breach or violation of,
or a default under, any of the Cornerstone Benefit Plans, or (D)&nbsp;result in the payment of any &ldquo;excess parachute payments&rdquo;
within the meaning of Section&nbsp;280G of the Code.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons
being provided coverage in or under each Cornerstone Benefit Plan are described in such Cornerstone Benefit Plan as being eligible
for coverage under such Cornerstone Benefit Plan, and neither Bancshares nor Cornerstone, nor any of their Subsidiaries, has any
liability for improperly including any Person as a participant in any Cornerstone Benefit Plan in which such Person is or was not
eligible for coverage.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the Cornerstone Benefit Plans are nondiscriminatory with respect to eligibility and benefits under applicable provisions of
the Code and other Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Cornerstone Voluntary Plans satisfy the regulatory safe-harbor requirements provided by ERISA in order for such Cornerstone Voluntary
Plans to be considered not to be or to have been established, sponsored, or maintained by Bancshares or Cornerstone or any of their
Subsidiaries and not to constitute an &ldquo;employee benefit plan&rdquo; subject to ERISA.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Properties</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(t)(i)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list of
all real property owned or leased by Bancshares or Cornerstone, or any of their Subsidiaries, as of the date of this Agreement
(including without limitation property carried on the books of Cornerstone as &ldquo;Other Real Estate Owned&rdquo;). Bancshares
and Cornerstone and each of their Subsidiaries have good and marketable title to all real property owned by them (including any
property acquired in a judicial foreclosure proceeding or by way of a deed in lieu of foreclosure or similar transfer), in each
case free and clear of any and all Liens, except Liens for current Taxes and assessments not yet due and payable for which adequate
reserves have been established. Each lease pursuant to which Bancshares or Cornerstone or any of their Subsidiaries leases real
property is valid and binding and in full force and effect, and neither Bancshares nor Cornerstone nor any of their Subsidiaries,
nor any other party to any such lease, is in breach or default under or in violation of any provision of any such lease. The Cornerstone
Parties have previously delivered or made available to the SmartFinancial Parties a true, correct, and complete copy of each such
lease, including any amendments thereto. All real property owned or leased by Bancshares or Cornerstone, or any of their Subsidiaries,
is in good condition (normal wear and tear excepted), conforms with all applicable ordinances, regulations, and zoning and other
Laws, and is reasonably considered by the Cornerstone Parties to be adequate for the current business of the Cornerstone Parties
and their Subsidiaries. None of the buildings, structures, or other improvements located on any real property owned or leased by
Bancshares or Cornerstone, or any of their Subsidiaries, encroaches upon or over any adjoining parcel of real estate or any easement
or right-of-way.`</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the real property owned or leased by Bancshares or Cornerstone, or any of their Subsidiaries, nor any building, structure, fixture,
or improvement thereon, is the subject of, or affected by, any condemnation, taking, eminent domain, or inverse condemnation proceeding
currently instituted or pending, and the Cornerstone Parties have no Knowledge that any of such real property, or any such building,
structure, fixture, or improvement, will or may the subject of, or affected by, any such proceeding. Neither Bancshares nor Cornerstone,
nor any of their Subsidiaries, has experienced any restriction in access to or from public roads or any restriction in access to
any utilities, including water, sewer, gas, electric, telephone, drainage, and other utilities used by Bancshares or Cornerstone
or any of their Subsidiaries in the operation of their business as presently conducted; there is no pending or, to the Knowledge
of the Cornerstone Parties, threatened governmental action that could prohibit or interfere with such access; and, to the Knowledge
of the Cornerstone Parties, no fact or condition exists which, with the passage of time or the giving of notice, or both, may result
in the termination, reduction, or impairment of such access.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
and Cornerstone and their Subsidiaries have good and marketable title to all personal property owned by them, in each case free
and clear of any and all Liens. Each lease pursuant to which Bancshares or Cornerstone, or any of their Subsidiaries, leases, as
lessee, personal property is valid and binding and in full force and effect, and neither Bancshares nor Cornerstone, nor any of
their Subsidiaries, nor any other party to any such lease, is in default under or in breach or violation of any provision of any
such lease. The personal property owned or leased by Bancshares and Cornerstone and their Subsidiaries is in good condition, normal
wear and tear excepted, and is sufficient for the carrying on of the business of Bancshares and Cornerstone and their Subsidiaries
in the ordinary course consist with past practice.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Environmental
Matters</I>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the properties of Bancshares and Cornerstone and their Subsidiaries, the Bancshares Participation Facilities, and to the Knowledge
of the Cornerstone Parties the Bancshares Loan Properties are, and, as applicable, have been during the period of Bancshares&rsquo;
or Cornerstone&rsquo;s, or their Subsidiaries&rsquo;, ownership or operation thereof, in compliance with all Environmental Laws.
There is no suit, claim, action, demand, executive or administrative order, directive, investigation, or proceeding pending or,
to the Knowledge of the Cornerstone Parties, threatened against Bancshares or Cornerstone, or any of their Subsidiaries, or any
Bancshares Participation Facility (A)&nbsp;for alleged noncompliance (including by any predecessor) with or liability under any
Environmental Law or (B)&nbsp;relating to the presence of or release into the environment of any Hazardous Material, whether or
not occurring at or on a site owned, leased, or operated by Bancshares or Cornerstone, or any of their Subsidiaries, or any Bancshares
Participation Facility. To the Knowledge of the Cornerstone Parties, there is no suit, claim, action, demand, executive or administrative
order, directive, investigation, or proceeding pending or threatened against or relating to any Bancshares Loan Property (or Bancshares
or Cornerstone, or any of their Subsidiaries, in respect of any Bancshares Loan Property) and (A)&nbsp;relating to alleged noncompliance
(including by any predecessor) with or liability under any Environmental Law or (B)&nbsp;relating to the presence of or release
into the environment of any Hazardous Material, whether or not occurring at or on a Bancshares Loan Property. Neither Bancshares
nor Cornerstone, nor any of their Subsidiaries, has received any notice, demand letter, executive or administrative order, directive,
or request for information from any Governmental Entity or other third party indicating that it may be in violation of or have
any liability under any Environmental Law.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no underground storage tanks at or on any properties owned or operated by Bancshares or Cornerstone, or any of their Subsidiaries,
or any Bancshares Participation Facility. Neither Bancshares nor Cornerstone nor any of their Subsidiaries, nor to the Knowledge
of the Cornerstone Parties any other Person, has closed or removed any underground storage tank on or from any property owned or
operated by Bancshares or Cornerstone, or any of their Subsidiaries, or any Bancshares Participation Facility.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the period of (A)&nbsp;the Cornerstone Parties&rsquo; and their Subsidiaries&rsquo; ownership or operation of their respective
properties and (B)&nbsp;the Cornerstone Parties&rsquo; or their Subsidiaries&rsquo; participation in the management of any Bancshares
Participation Facility, there has been no contamination by or release of Hazardous Materials in, on, under, or affecting such properties,
except for releases of Hazardous Materials, individually or in the aggregate, in quantities below the level at which they were
regulated under any Environmental Law in effect at the time of such release(s). To the Knowledge of the Cornerstone Parties, prior
to the period of (A)&nbsp;the Cornerstone Parties&rsquo; or their Subsidiaries&rsquo; ownership or operation of any of their respective
properties or (B)&nbsp;the Cornerstone Parties&rsquo; or their Subsidiaries&rsquo; participation in the management of any Bancshares
Participation Facility, there was no contamination by or release of Hazardous Material in, on, under, or affecting such properties,
except for releases of Hazardous Materials, individually or in the aggregate, in quantities below the level at which they were
regulated under any Environmental Law in effect at the time of such release(s).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cornerstone Parties and their Subsidiaries have all permits, licenses, consents, orders, authorizations, and approvals required
by the Environmental Laws for the use and occupancy of, and for all operations and activities conducted on, any properties owned,
leased, operated, or occupied by the Cornerstone Parties or their Subsidiaries, and the Cornerstone Parties and their Subsidiaries
are in compliance in all material respects with all such permits, licenses, consents, orders, authorizations, and approvals. All
such permits, licenses, consents, orders, authorizations, and approvals were duly issued, are in full force and effect, and will
remain in full force and effect as of and after the Effective Time.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fairness
Opinion</I>. The board of directors of Bancshares has received from Raymond James &amp; Associates, Inc. an opinion to the effect
that, as of the date of such opinion and subject to the assumptions and qualifications set forth therein, the Exchange Ratio is
fair from a financial point of view to the holders of Bancshares Common Stock.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Broker
Fees</I>. Except as set forth on <B><U>Schedule&nbsp;4.2(w)</U></B> of the Cornerstone Disclosure Memorandum, neither Bancshares
nor Cornerstone, nor any of their Subsidiaries, nor any of their respective officers, directors, employees, or agents, has employed
any broker, investment banker, or finder or incurred any liability (whether contingent or otherwise) for any financial advisory,
investment banking, brokerage, or finder&rsquo;s fees, commissions, or expenses, and no broker, investment banker, or finder has
acted directly or indirectly for or on behalf of Bancshares or Cornerstone or any of their Subsidiaries, in connection with this
Agreement or the transactions contemplated hereby.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Loan
Matters</I>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Loans held by Bancshares or Cornerstone or any of their Subsidiaries were made for good, valuable, and adequate consideration in
the ordinary course of business and in accordance with sound banking practices, and none of such Loans are subject to any defenses,
setoffs, or counterclaims, including without limitation any of such as are afforded by usury or truth in lending Laws, except,
however, such as may be provided by bankruptcy, insolvency, or similar Laws or by general principles of equity. The promissory
notes or other evidences of indebtedness evidencing such Loans and all pledges, mortgages, deeds of trust, and other collateral
documents and security agreements related thereto are legal, valid, binding, and enforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;4.2(x)(ii)</U></B> of the Cornerstone Disclosure Memorandum, neither the terms of any Loan
held, originated, made, administered, or serviced by Bancshares or Cornerstone or any of their Subsidiaries, any of the documentation
for any such Loan, the manner in which any such Loan has been administered or serviced, nor Bancshares&rsquo; or Cornerstone&rsquo;s
or their Subsidiaries&rsquo; practices of approving or rejecting Loan applications violate any Law applicable thereto, including
without limitation the Truth in Lending Act, Regulation B, Regulation O, and Regulation Z of the Federal Reserve, the CRA, the
Equal Credit Opportunity Act, and any state Laws relating to consumer protection, installment sales, and usury.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cornerstone Parties&rsquo; allowance for loan and lease losses is, and shall be as of the Effective Time, in compliance with their
existing methodology for determining the adequacy of their allowance for loan and lease losses as well as the standards established
by applicable Governmental Entities and the Financial Accounting Standards Board, and is and shall be adequate under all such standards.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;4.2(x)(iv)</U></B> of the Cornerstone Disclosure Memorandum, none of the Contracts pursuant
to which Bancshares or Cornerstone or any of their Subsidiaries has sold Loans or pools of Loans, or participations in Loans or
pools of Loans, contain any liability or obligation on the part of Bancshares or Cornerstone or any of their Subsidiaries to repurchase
such Loans or interests therein.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(x)(v)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list of
all Loans, as of the date hereof, by Bancshares or Cornerstone or any of their Subsidiaries to any director, executive officer,
or principal shareholder (as such terms are defined in Regulation&nbsp;O of the Federal Reserve (12&nbsp;C.F.R. Part&nbsp;215))
of Bancshares or Cornerstone or any of their Subsidiaries. All such Loans are, and were originated, in compliance with all applicable
Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;4.2(x)(vi)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete listing,
as of November 30, 2014, by account of: (A)&nbsp;each borrower, customer, or other Person who has notified Bancshares or Cornerstone
or any of their Subsidiaries during the past 12&nbsp;months of, or has asserted against Bancshares or Cornerstone or any of their
Subsidiaries, any &ldquo;lender liability&rdquo; or similar claim; and (B)&nbsp;all Loans of Bancshares and Cornerstone and their
Subsidiaries (1)&nbsp;that are contractually past due 90&nbsp;days or more in the payment of principal and/or interest, (2)&nbsp;that
are on non-accrual status, (3)&nbsp;that are classified as &ldquo;special mention,&rdquo; &ldquo;substandard,&rdquo; &ldquo;doubtful,&rdquo;
&ldquo;loss,&rdquo; or words of similar import, (4)&nbsp;where the interest rate terms have been reduced and/or the maturity dates
have been extended subsequent to the origination of the Loans due to concerns regarding the borrowers&rsquo; ability to pay in
accordance with the Loans&rsquo; original terms, or (5)&nbsp;where a specific reserve allocation exists in connection therewith;
and (C)&nbsp;all assets classified by Bancshares or Cornerstone or any of their Subsidiaries as real estate acquired through foreclosure
or in lieu of foreclosure, including in-substance foreclosures, and all other assets currently held that were acquired through
foreclosure or in lieu of foreclosure, in each case including the book value thereof as of November 30, 2014.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Material
Interests of Certain Persons</I>. Except for deposit and loan relationships entered into in the ordinary course of business and
as otherwise set forth on <B><U>Schedule&nbsp;4.2(y)</U></B> of the Cornerstone Disclosure Memorandum , no current or former officer
or director of Bancshares or Cornerstone or any of their Subsidiaries, or any family member or Affiliate of any such Person, has
any material direct or indirect interest in any Contract or property, real or personal, tangible or intangible, of, used in or
pertaining to the business of, or owned or leased by Bancshares or Cornerstone or any of their Subsidiaries.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Insurance</I>.
Set forth on <B><U>Schedule&nbsp;4.2(z)</U></B> of the Cornerstone Disclosure Memorandum is a true, correct, and complete list
of all policies of insurance currently held or maintained by or providing coverage for Bancshares or Cornerstone or any of their
Subsidiaries, including without limitation bank-owned life insurance (collectively, the &ldquo;<U>Cornerstone Insurance Policies</U>&rdquo;),
including for each such Cornerstone Insurance Policy (i) the name of the insurer, (ii) the named insured(s), (iii) the nature of
the coverage, (iv) the policy limits (on a per occurrence and aggregate basis), (v) the annual premiums, and (vi) the expiration
date. Bancshares and Cornerstone and their Subsidiaries are insured with reputable insurers against such risks and in such amounts
as are customary and prudent in accordance with industry practices. All of the Cornerstone Insurance Policies are in full force
and effect, neither Bancshares nor Cornerstone nor any of their Subsidiaries is in default thereunder, and no event has occurred
which, with notice or lapse of time or both, would constitute a default or permit a termination, modification, or acceleration
under any of the Cornerstone Insurance Policies; all premiums due and payable with respect to the Cornerstone Insurance Policies
have been timely and fully paid; and all claims thereunder have been filed in a timely fashion. There is no claim for coverage
by Bancshares or Cornerstone or any of their Subsidiaries pending under any of the Cornerstone Insurance Policies as to which coverage
has been questioned, denied, or disputed. Neither Bancshares nor Cornerstone nor any of their Subsidiaries has received notice
of any threatened termination of, material premium increase with respect to, or material alteration of coverage under any of the
Cornerstone Insurance Policies.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment
Securities; Derivatives</I>. Except for restrictions that exist for securities that are classified as &ldquo;held to maturity,&rdquo;
none of the investment securities held by Bancshares or Cornerstone or any of their Subsidiaries are subject to any restriction
(whether contractual, statutory, or otherwise) that could materially impair the ability of the entity holding such investment securities
freely to dispose of such investment securities at any time. Neither Bancshares nor Cornerstone nor any of their Subsidiaries is
a party to or has agreed to enter into any exchange-traded or over-the-counter equity, interest rate, foreign exchange, or other
swap, forward, future, option, cap, floor, or collar, or any other Contract that is a derivative contract (including various combinations
thereof), or owns securities that (A) are referred to generically as &ldquo;structured notes,&rdquo; &ldquo;high risk mortgage
derivatives,&rdquo; &ldquo;capped floating rate notes,&rdquo; or &ldquo;capped floating rate mortgage derivatives&rdquo; or (B)
are likely to have changes in value as a result of interest or exchange rate changes that materially exceed normal changes in value
attributable to interest or exchange rate changes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transactions
in Securities</I>. All offers and sales of Bancshares Stock by Bancshares, and all offers and sales of Cornerstone Stock by Cornerstone,
were at all relevant times exempt from, or complied with, the registration requirements of the Securities Act and applicable state
securities or &ldquo;Blue Sky&rdquo; Laws. Neither the Cornerstone Parties nor, to the Knowledge of the Cornerstone Parties, (i)
any director or officer of Bancshares or Cornerstone, (ii) any Person related to any such director or officer by blood, marriage,
or adoption and residing in the same household, or (iii) any Person who has been knowingly provided material nonpublic information
by any one or more of any of the foregoing Persons has purchased or sold, or caused to be purchased or sold, any shares of Bancshares
Stock or Cornerstone Stock or other securities issued by Bancshares or Cornerstone in violation of any applicable provision of
federal or state securities Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transactions
with Affiliates</I>. All &ldquo;covered transactions&rdquo; between Cornerstone and any &ldquo;affiliate&rdquo; within the meaning
of Section&nbsp;23A and Section 23B of the Federal Reserve Act and the regulations promulgated pursuant thereto have been in compliance
with such provisions of Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fiduciary
Accounts</I>. Bancshares and Cornerstone and their Subsidiaries have properly administered all accounts for which they serve or
act as a fiduciary, including without limitation accounts for which they serves as trustee, agent, custodian, personal representative,
guardian, conservator, or investment advisor, in accordance with the terms of all governing documents and applicable Laws. Neither
Bancshares nor Cornerstone nor any of their Subsidiaries, nor to the Knowledge of the Cornerstone Parties any of their or their
Subsidiaries&rsquo; respective directors, officers, or employees, have committed any breach of trust with respect to any fiduciary
account, and the records for each such fiduciary account are true and correct and accurately reflect the assets of such fiduciary
account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax
Treatment of Transaction</I>. The Cornerstone Parties have no Knowledge of any fact or circumstance relating to them or any of
their Subsidiaries that would or could be expected to prevent the Merger contemplated by this Agreement from qualifying as a &ldquo;reorganization&rdquo;
under Section&nbsp;368(a) of the Code.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>CRA,
Anti-Money Laundering, OFAC, and Customer Information Security</I>. Cornerstone received a rating of &ldquo;Satisfactory&rdquo;
or better in its most recent examination or interim review with respect to the CRA. The Cornerstone Parties do not have Knowledge
of any facts or circumstances that would or could be expected to cause Cornerstone (i)&nbsp;to be deemed not to be in satisfactory
compliance with the CRA and the regulations promulgated thereunder, or to be assigned a rating for CRA purposes by federal banking
regulators of lower than &ldquo;Satisfactory&rdquo;; (ii)&nbsp;to be deemed to be operating in violation of the Bank Secrecy Act,
the USA PATRIOT Act, any order issued with respect to anti-money laundering by the United States Department of the Treasury&rsquo;s
Office of Foreign Assets Control, or any other applicable anti-money laundering Law; or (iii)&nbsp;to be deemed not to be in satisfactory
compliance with applicable privacy of customer or consumer information requirements contained in any federal or state privacy Laws,
including without limitation in Title V of the Gramm-Leach-Bliley Act of 1999 and the regulations promulgated thereunder, as well
as the provisions of the information security program adopted by Cornerstone. To the Knowledge of the Cornerstone Parties, no non-public
customer information has been disclosed to or accessed by an unauthorized third party in a manner which could, or could be expected
to, cause Cornerstone to undertake any remedial action. The board of directors of Cornerstone has adopted, and Cornerstone has
implemented, an anti-money laundering program that contains adequate and appropriate customer identification verification procedures
that comply with Section&nbsp;326 of the USA PATRIOT Act, and such anti-money laundering program meets the requirements of Section&nbsp;352
of the USA PATRIOT Act and the regulations thereunder, and Cornerstone has complied in all material respects with any requirements
to file reports and other necessary documents as required by the USA PATRIOT Act and the regulations thereunder.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Internal
Controls</I>. Bancshares and Cornerstone and their Subsidiaries have devised and maintained a system of internal control over financial
reporting sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with GAAP and to provide reasonable assurances that (i)&nbsp;transactions are executed
in accordance with management&rsquo;s general or specific authorizations, (ii)&nbsp;transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain accountability for assets, and (iii)&nbsp;access to
assets is permitted only in accordance with management&rsquo;s general or specific authorizations. There are no significant deficiencies
or material weaknesses in the design or operation of internal controls over financial reporting which could adversely affect the
ability of Bancshares or Cornerstone or their Subsidiaries to record, process, summarize, and report financial information. There
has occurred no fraud, whether or not material, that involves management or other employees who have a role in the Cornerstone
Parties&rsquo; internal controls over financial reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Regulatory
Capital</I>. Bancshares and Cornerstone are &ldquo;well-capitalized&rdquo; as such term is defined in 12 C.F.R. 225.2 and 12 C.F.R.
325.103, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Required
Shareholder Votes</I>. The affirmative vote of (i) holders of at least 3,313,700 of the issued and outstanding shares of Bancshares
Common Stock is required for the approval of this Agreement and the Merger by the shareholders of Bancshares under the charter
and bylaws of Bancshares and the Corporation Act; (ii) holders of at least 3,313,700 of the issued and outstanding shares of Bancshares
Common Stock is required for the approval of the Authorized Stock Amendment by the shareholders of Bancshares under the charter
and bylaws of Bancshares and the Corporation Act; (iii) holders of at least 300,001 of the issued and outstanding shares of Bancshares
Series&nbsp;A Stock is required for the approval of the Series&nbsp;A Redemption Amendment by the shareholders of Bancshares under
the charter and bylaws of Bancshares and the Corporation Act; (iv) holders of at least (A) 3,313,700 of the issued and outstanding
shares of Bancshares Common Stock and (B) 300,001 of the issued and outstanding shares of Bancshares Series&nbsp;A Stock (if the
approval of the holders of Bancshares Series&nbsp;A Stock is required by applicable Law) is required for the approval of the Amended
and Restated Bancshares Charter by the shareholders of Bancshares under the charter and bylaws of Bancshares and the Corporation
Act; and (v) holders of at least 3,313,700 of the issued and outstanding shares of Bancshares Common Stock is required for the
approval of the Amended and Restated Bancshares Bylaws by the shareholders of Bancshares under the charter and bylaws of Bancshares
and the Corporation Act. Approval of the Bancshares SBLF Equivalent Stock Amendment by the shareholders of Bancshares is not required
by the charter or bylaws of Bancshares or the Corporation Act.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Disclosure</I>.
No representation or warranty of the Cornerstone Parties contained in this Agreement, and no statement contained in the Cornerstone
Disclosure Memorandum or in any certificate delivered by Bancshares or Cornerstone, contains any untrue statement of a material
fact or omits any material fact necessary to make the statements contained herein and therein, in light of the circumstances under
which they were made, not misleading.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE V</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>REPRESENTATIONS
AND WARRANTIES OF SMARTFINANCIAL AND SMARTBANK</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SmartFinancial
Disclosure Memorandum</U>. Prior to the Parties&rsquo; execution and delivery of this Agreement, SmartFinancial and SmartBank have
delivered to the Cornerstone Parties a confidential memorandum (the &ldquo;<U>SmartFinancial Disclosure Memorandum</U>&rdquo;)
setting forth, among other things, items the disclosure of which is necessary either in response to an express disclosure requirement
contained in a provision of this Agreement or as an exception to one or more representations or warranties of the SmartFinancial
Parties contained in this <U>Article&nbsp;V</U> or to one or more of their covenants contained in <U>Article&nbsp;VI</U>, making
specific reference in such SmartFinancial Disclosure Memorandum to the Section(s) of this Agreement to which such items relate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SmartFinancial
and SmartBank Representations and Warranties</U>. Each of SmartFinancial and SmartBank hereby represents and warrants to the Cornerstone
Parties as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Organization
and Qualification</I>. SmartFinancial is a corporation duly organized, validly existing, and in good standing under the laws of
the State of Tennessee, and is duly registered as a bank holding company under the BHCA. SmartBank is a banking corporation duly
organized, validly existing, and in good standing under the laws of the State of Tennessee. Each of SmartFinancial and SmartBank
has the power and authority to own, lease, and operate its properties and assets and to conduct its respective business as presently
conducted. Each of SmartFinancial and SmartBank is duly licensed or qualified to transact business and is in good standing in each
jurisdiction in which the character of the properties or assets owned or leased by it or the nature of the business conducted by
it makes such licensing or qualification necessary. The copies of the charters, bylaws, articles of organization, operating agreements,
and other organizational documents of SmartFinancial and SmartBank and their respective Subsidiaries previously provided or made
available to the Cornerstone Parties are true, correct, and complete copies of such documents as in effect as of the date of this
Agreement. Neither SmartFinancial or SmartBank nor any Subsidiary of SmartFinancial or SmartBank is in violation of its respective
charter, bylaws, articles of organization, operating agreement, or other organizational documents. The minute books of SmartFinancial
and SmartBank and their Subsidiaries previously provided or made available to the Cornerstone Parties constitute a true, complete,
and correct record of all meetings of and material corporate actions taken by their respective boards of directors (and each committee
thereof), shareholders, members, managers, and other governing bodies, as applicable.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Subsidiaries
and Other Interests</I>. Set forth on <B><U>Schedule&nbsp;5.2(b)</U></B> of the SmartFinancial Disclosure Memorandum is a true,
correct, and complete list of all Subsidiaries of SmartFinancial (other than SmartBank) and/or SmartBank, as well as the name of
each such Subsidiary, each such Subsidiary&rsquo;s jurisdiction of incorporation, organization, or formation, and SmartFinancial&rsquo;s
and/or SmartBank&rsquo;s percentage ownership of each such Subsidiary. Each of SmartFinancial and SmartBank owns beneficially and
of record the capital stock or other equity or ownership interest it owns in each of its Subsidiaries free and clear of any and
all Liens. There are no Contracts relating to the right of SmartFinancial or SmartBank to vote or dispose of any capital stock
or other equity or ownership interest of any Subsidiary of SmartFinancial or SmartBank. The ownership interests of SmartFinancial
and SmartBank in their respective Subsidiaries are in compliance with all applicable Laws. Each of the Subsidiaries of SmartFinancial
and/or SmartBank is a corporation, limited liability company, or other entity duly organized, validly existing, and in good standing
under the laws of its jurisdiction of incorporation, organization, or formation, has all requisite power and authority to own,
lease, and operate its properties and assets and to conduct its business as presently conducted, and is duly licensed or qualified
to transact business and is in good standing in each jurisdiction in which the character of the properties or assets owned or leased
by it or the nature of the business conducted by it makes such licensing or qualification necessary. The outstanding capital stock
or other outstanding equity or ownership interests of each Subsidiary of SmartFinancial and/or SmartBank have been validly authorized
and are validly issued, fully paid, and non-assessable. No shares of capital stock or other equity or ownership interests of any
Subsidiary of SmartFinancial and/or SmartBank are or may be required to be issued by virtue of any options, warrants, or other
rights; no securities exist that are convertible into or exchangeable for any shares of capital stock or other equity or ownership
interests of any Subsidiary of SmartFinancial and/or SmartBank, or any other debt or equity security of any Subsidiary of SmartFinancial
and/or SmartBank; and there are no Contracts for the issuance of any additional capital stock or other equity or ownership interests,
or any other debt or equity securities, of any Subsidiary of SmartFinancial and/or SmartBank or any options, warrants, or other
rights with respect to such securities. Except (i) as set forth on <B><U>Schedule&nbsp;5.2(b)</U></B> of the SmartFinancial Disclosure
Memorandum and (ii) for securities and other interests held in a fiduciary capacity and beneficially owned by third parties, neither
SmartFinancial nor SmartBank owns, beneficially or of record, directly or indirectly, any equity securities of or any other equity
or ownership interest in any Person.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Capitalization</I>.
The authorized capital stock of SmartFinancial consists of (i) 8,000,000 shares of common stock, par value $1.00 per share, and
(ii) 2,000,000 shares of preferred stock, par value $1.00 per share, of which 12,000 shares have been designated as Non-Cumulative
Perpetual Preferred Stock, Series A. The authorized capital stock of SmartBank consists of (i) 8,000,000 shares of common stock,
par value $1.00 per share, and (ii) 2,000,000 shares of preferred stock, par value $1.00 per share. Set forth on <B><U>Schedule
5.2(c)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete listing, by class and, if applicable,
series, of the issued and outstanding shares of SmartFinancial Stock and SmartBank Stock. There are no other classes or series
of authorized, issued, or outstanding capital stock of SmartFinancial or SmartBank. No shares of SmartFinancial Stock are held
in treasury by SmartFinancial or otherwise owned, directly or indirectly, by SmartFinancial, and no shares of SmartBank Stock are
held in treasury by SmartBank or otherwise owned, directly or indirectly, by SmartBank. All of the issued and outstanding shares
of SmartFinancial Stock and SmartBank Stock have been duly and validly authorized and issued in full compliance with all applicable
Laws and are fully paid and non-assessable, and none of the issued and outstanding shares of SmartFinancial Stock or SmartBank
Stock have been issued in violation of the preemptive rights of any Person. Except as set forth on <B><U>Schedule 5.2(c)</U></B>
of the SmartFinancial Disclosure Memorandum, (i) there are no outstanding options, warrants, subscriptions, agreements, contracts,
rights, calls, or commitments, of any kind or character, that require or obligate or could require or obligate SmartFinancial to
issue, deliver, or sell, or cause to be issued, delivered, or sold, any additional shares of SmartFinancial capital stock, or securities
convertible into or exercisable for shares of SmartFinancial capital stock, or that require or obligate or could require or obligate
SmartFinancial to grant, extend, or enter into any such option, warrant, subscription, agreement, contract, right, call, or commitment,
and (ii) there are no outstanding options, warrants, subscriptions, agreements, contracts, rights, calls, or commitments, of any
kind or character, that require or obligate or could require or obligate SmartBank to issue, deliver, or sell, or cause to be issued,
delivered, or sold, any additional shares of SmartBank capital stock, or securities convertible into or exercisable for shares
of SmartBank capital stock, or that require or obligate or could require or obligate SmartBank to grant, extend, or enter into
any such option, warrant, subscription, agreement, contract, right, call, or commitment. There are no outstanding obligations of
SmartFinancial or SmartBank to repurchase, redeem, or otherwise acquire any shares of its capital stock. Set forth on <B><U>Schedule&nbsp;5.2(c)</U></B>
of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list of all outstanding SmartFinancial Options, including
for each SmartFinancial Option the name of the optionee, the date of grant, the exercise price, the date(s) of vesting, the date(s)
of termination, the number and class or series of shares subject to such SmartFinancial Option, and whether such SmartFinancial
Option is qualified or nonqualified under Section 422 of the Code. No bonds, debentures, notes, or other indebtedness having the
right to vote on any matters on which shareholders of SmartFinancial or SmartBank may vote is issued or outstanding. Set forth
on <B><U>Schedule&nbsp;5.2(c)</U></B> of the SmartFinancial Disclosure Memorandum is a listing of all cash, stock, and other dividends
or distributions with respect to SmartFinancial Stock or SmartBank Stock that have been declared, set aside, or paid since June
30, 2011, as well as all shares of SmartFinancial capital stock and all shares of SmartBank capital stock that have been purchased,
redeemed, or otherwise acquired, directly or indirectly, by SmartFinancial and SmartBank, respectively, since June 30, 2011. SmartFinancial
is current on all dividends payable on the SmartFinancial Series&nbsp;A Stock and has complied with all of the terms and provisions
of the SmartFinancial Series&nbsp;A Stock.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Authority</I>.
Each of SmartFinancial and SmartBank has all requisite corporate power and authority to execute and deliver this Agreement and,
subject to the consents, approvals, waivers, and filings referred to in <U>Section&nbsp;5.2(f)</U>, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by the SmartFinancial
Parties and the consummation by the SmartFinancial Parties of the transactions contemplated hereby have been duly and validly authorized
by all necessary corporate action on the part of the boards of directors of SmartFinancial and SmartBank, and no other corporate
actions or proceedings on the part of SmartFinancial or SmartBank are necessary to authorize the execution and delivery of this
Agreement by the SmartFinancial Parties and the consummation by the SmartFinancial Parties of the transactions contemplated hereby,
other than the approval of this Agreement by the shareholders of SmartFinancial in accordance with the charter and bylaws of SmartFinancial
and applicable Law. The board of directors of SmartFinancial has unanimously determined that this Agreement is advisable and in
the best interests of SmartFinancial and its shareholders and has directed that this Agreement be submitted to SmartFinancial&rsquo;s
shareholders for approval, and has duly and validly adopted resolutions to the foregoing effect and to recommend that the shareholders
of SmartFinancial approve this Agreement. This Agreement has been duly and validly executed and delivered by each of SmartFinancial
and SmartBank and constitutes a valid and legally binding obligation of each of SmartFinancial and SmartBank enforceable against
each of SmartFinancial and SmartBank in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, and similar Laws affecting creditors&rsquo; rights and remedies generally or general principles of equity,
whether applied in a court of law or a court of equity.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Violations</I>. The execution, delivery, and performance of this Agreement by SmartFinancial and SmartBank and the consummation
of the transactions contemplated by this Agreement do not and will not (i)&nbsp;assuming that the consents, approvals, waivers,
and filings referred to in <U>Section&nbsp;5.2(f)</U>&nbsp;have been obtained and made and all applicable waiting periods have
expired, violate any Law, governmental permit, or license to which the SmartFinancial Parties or any of their Subsidiaries (or
the properties or assets of the SmartFinancial Parties or any of their Subsidiaries) are subject or by which the SmartFinancial
Parties or any of their Subsidiaries (or the properties or assets of the SmartFinancial Parties or any of their Subsidiaries) are
bound; (ii)&nbsp;violate the charter, bylaws, articles of organization, operating agreement, or other organizational documents
of SmartFinancial or SmartBank or any of their Subsidiaries; or (iii)&nbsp;constitute a breach or violation of or a default under
(or an event which, with due notice or lapse of time or both, could constitute a default under), or result in the termination of,
accelerate the performance required by, or result in the creation of any Lien upon any of the properties or assets of SmartFinancial
or SmartBank or any of their Subsidiaries under, any of the terms, conditions, or provisions of any note, bond, indenture, mortgage,
deed of trust, loan agreement, or other Contract to which SmartFinancial or SmartBank, or any of their Subsidiaries, is a party
or to or by which any of the properties or assets of SmartFinancial or SmartBank, or any of their Subsidiaries, may be subject
or bound.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Consents
and Approvals</I>. No consents or approvals of, waivers by, notices to, or filings or registrations with any Governmental Entity
or other Person are required to be obtained, given, or made by SmartFinancial or SmartBank, or any of their Subsidiaries, in connection
with the execution and delivery of this Agreement by the SmartFinancial Parties or the consummation by the SmartFinancial Parties
of the Merger and the other transactions contemplated hereby, except (i) the Regulatory Approvals; (ii) the filing of the Articles
of Merger with the Tennessee Secretary of State; (iii) the approval of this Agreement by the shareholders of SmartFinancial; and
(iv) as set forth on <B><U>Schedule&nbsp;5.2(f)</U></B> of the SmartFinancial Disclosure Memorandum. As of the date hereof, neither
SmartFinancial nor SmartBank is aware of any reason why any of the consents, approvals, or waivers referred to in this&nbsp;<U>Section&nbsp;5.2(f)</U>&nbsp;will
not be obtained or received in a timely manner without the imposition of any Burdensome Condition (as defined in&nbsp;<U>Section&nbsp;8.1(b)</U>).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Governmental
Filings</I>. SmartFinancial and SmartBank, and each of their Subsidiaries, have filed all reports, notices, applications, schedules,
registration and proxy statements, and other documents and instruments that they have been required to file since June 30, 2011,
with the Federal Reserve, the FDIC, the TDFI, or any other Governmental Entity. As of their respective dates, such filings were
complete and accurate in all material respects, complied in all material respects with all applicable Laws, and did not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities
Filings</I>. SmartFinancial and SmartBank, and each of their Subsidiaries, have filed with the SEC and the Federal Reserve all
reports, schedules, registration statements, definitive proxy statements, exhibits, and other filings and materials that they have
been required to file under the Securities Act or the Exchange Act, or the rules and regulations promulgated thereunder, since
June 30, 2011 (collectively, the &ldquo;<U>SmartFinancial Securities Filings</U>&rdquo;). None of the SmartFinancial Securities
Filings contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading. As of
their respective dates of filing with the SEC and/or Federal Reserve, as appropriate, all of the SmartFinancial Securities Filings
complied in all material respects with applicable requirements of the Securities Act and/or the Exchange Act, as the case may be,
and the rules and regulations promulgated thereunder. Each of the financial statements (including, in each case, any notes thereto)
of SmartFinancial or SmartBank, or any of their Subsidiaries, included in the SmartFinancial Securities Filings complied as to
form, as of the respective date of filing, in all material respects, with applicable accounting requirements and with the published
rules and regulations of the SEC and Federal Reserve with respect thereto.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Financial
Statements</I>. The SmartFinancial Parties have previously delivered to the Cornerstone Parties true, complete, and correct copies
of (i)&nbsp;the consolidated balance sheets of SmartFinancial and its Subsidiaries as of the fiscal years ended December&nbsp;31,
2013, 2012, and 2011, and the related consolidated statements of income, comprehensive income, changes in stockholders&rsquo; equity,
and cash flows for each of the fiscal years then ended, together with the notes thereto, accompanied by the audit report of SmartFinancial&rsquo;s
independent registered public accounting firm (the &ldquo;<U>Audited SmartFinancial Financials</U>&rdquo;), and (ii)&nbsp;the unaudited
consolidated balance sheet of SmartFinancial and its Subsidiaries as of September 30, 2014, and the related consolidated statements
of income, comprehensive income, changes in stockholders&rsquo; equity, and cash flows for the nine-month period ended September
30, 2014 (the &ldquo;<U>Interim SmartFinancial Financials</U>&rdquo;). The SmartFinancial Financial Statements were prepared from
and in accordance with the books and records of SmartFinancial and its Subsidiaries, fairly present the consolidated financial
position of SmartFinancial and its Subsidiaries in each case at and as of the dates indicated and the consolidated results of operations,
changes in stockholders&rsquo; equity, and cash flows of SmartFinancial and its Subsidiaries for the periods indicated, and, except
as otherwise set forth in the notes thereto, were prepared in accordance with GAAP consistently applied throughout the periods
covered thereby;&nbsp;<I>provided</I>,<I> however</I>,&nbsp;that unaudited financial statements for interim periods are subject
to normal year-end adjustments (which will not be material individually or in the aggregate) and lack footnotes to the extent permitted
under applicable regulations. The books and records of SmartFinancial and its Subsidiaries have been, and are being, maintained
in accordance with GAAP consistently applied and other legal, accounting, and regulatory requirements and reflect only actual transactions.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Undisclosed
Liabilities</I>. Neither SmartFinancial nor any of its Subsidiaries has, or has incurred, any debt, liability, or obligation of
any kind, character, or nature whatsoever (whether accrued, contingent, absolute, known, unknown, or otherwise and whether due
or to become due), other than (i) debts, liabilities, and obligations reflected on or reserved against in the Interim SmartFinancial
Financials and (ii) debts, liabilities, and obligations incurred since September 30, 2014, in the ordinary course of business consistent
with past practice that, either alone or when combined with all such debts, liabilities, and obligations, have not had, and could
not reasonably be expected to have, a SmartFinancial Material Adverse Effect.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Absence
of Certain Changes or Events</I>. Since June 30, 2014, SmartFinancial and SmartBank and their Subsidiaries have conducted their
respective businesses only in the ordinary and usual course consistent with past practices, and there has been no event or occurrence
and no circumstance has arisen that, individually or taken together with all other events, occurrences, and circumstances, has
had or is reasonably likely to have a SmartFinancial Material Adverse Effect. Since June 30, 2014, neither SmartFinancial nor SmartBank,
nor any of their Subsidiaries, has taken or permitted, or entered into any Contract with respect to, or otherwise agreed or committed
to do or take, any action that, if taken after the date hereof, would constitute a breach of any of the covenants set forth in
<U>Section&nbsp;6.2</U>, except as set forth on <B><U>Schedule&nbsp;5.2(k)</U></B> of the SmartFinancial Disclosure Memorandum.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Litigation</I>.
Except as set forth on <B><U>Schedule&nbsp;5.2(l)</U></B> of the SmartFinancial Disclosure Memorandum, there are no suits, actions,
claims, investigations, or legal, administrative, arbitration, or other proceedings pending or, to the Knowledge of the SmartFinancial
Parties, threatened against or affecting SmartFinancial or SmartBank or any of their Subsidiaries or any property, asset, right,
or interest of SmartFinancial or SmartBank or any of their Subsidiaries, and, to the Knowledge of the SmartFinancial Parties, there
are no facts or circumstances that could reasonably be expected to give rise to any such suit, action, claim, investigation, or
legal, administrative, arbitration, or other proceeding. Neither SmartFinancial or SmartBank nor any of their Subsidiaries, nor
any of the properties or assets of SmartFinancial or SmartBank or any of their Subsidiaries, is a party or subject to or bound
by any judgment, decree, injunction, order, or ruling of any Governmental Entity.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Absence
of Regulatory Actions</I>. Except as set forth on <B><U>Schedule&nbsp;5.2(m)</U></B> of the SmartFinancial Disclosure Memorandum,
since June 30, 2011, neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, has been a party to any cease and desist
order, written agreement, or memorandum of understanding issued by or with, or any commitment letter or similar undertaking to,
or has been subject to any action, proceeding, order, or directive by, any Governmental Entity, or has adopted any board resolutions
at the request of any Governmental Entity, or has been advised by any Governmental Entity that such Governmental Entity is contemplating
issuing or requesting (or is considering the appropriateness of issuing or requesting) any such action, proceeding, order, directive,
cease and desist order, written agreement, memorandum of understanding, commitment letter, board resolutions, or similar undertaking.
To the Knowledge of the SmartFinancial Parties, there are no facts or circumstances which could reasonably be expected to result
in any Governmental Entity issuing or requesting any such action, proceeding, order, directive, cease and desist order, written
agreement, memorandum of understanding, commitment letter, board resolutions, or similar undertaking. There are no material unresolved
violations, criticisms, or exceptions noted by any Governmental Entity in or with respect to any report or statement relating to
any examination or inspection of SmartFinancial or SmartBank or any of their Subsidiaries.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compliance
with Laws</I>. Except as set forth on <B><U>Schedule&nbsp;5.2(n)</U></B> of the SmartFinancial Disclosure Memorandum, the SmartFinancial
Parties and their Subsidiaries have complied, and are in compliance, in all material respects, with all applicable Laws, including
without limitation Section 23A and Section 23B of the Federal Reserve Act and the regulations promulgated pursuant thereto, the
Equal Credit Opportunity Act, the Fair Housing Act, the CRA, the Home Mortgage Disclosure Act, the Bank Secrecy Act, and the USA
PATRIOT Act, each as amended. The SmartFinancial Parties and their Subsidiaries have, and have had, all permits, licenses, franchises,
certificates of authority, orders, authorizations, and approvals, and have made all filings, applications, and registrations with
all Governmental Entities, that are required in order to permit them to own, lease, and operate their properties and assets and
to carry on their respective businesses as presently conducted, and all such permits, licenses, franchises, certificates of authority,
orders, authorizations, and approvals are in full force and effect and, to the Knowledge of the SmartFinancial Parties, no suspension
or cancellation of any of them is threatened. The deposit accounts of SmartBank are insured by the FDIC in the manner and to the
maximum extent provided by Law, and SmartBank has paid all deposit insurance premiums and assessments required by applicable Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Taxes</I>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 112.5pt; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial Parties and their Subsidiaries have timely filed all Tax Returns required to be filed by or with respect to them
(the &ldquo;<U>SmartFinancial Returns</U>&rdquo;). Neither the SmartFinancial Parties nor any of their Subsidiaries currently are
the beneficiary of any extension of time within which to file any SmartFinancial Returns. All of the SmartFinancial Returns are
true, correct, and complete, and all Taxes due and payable by the SmartFinancial Parties and their Subsidiaries with respect to
the periods covered by such SmartFinancial Returns have been paid. The accruals and reserves for Taxes reflected in the Interim
SmartFinancial Financials are adequate, in accordance with GAAP, to cover all unpaid Taxes of SmartFinancial and its Subsidiaries
for periods ending on or prior to the date(s) of the Interim SmartFinancial Financials, and all such accruals and reserves for
Taxes, as adjusted for operations and transactions and the passage of time for periods ending on or prior to the Closing Date in
accordance with past custom and practice of SmartFinancial and its Subsidiaries, are adequate, in accordance with GAAP, to cover
all unpaid Taxes of SmartFinancial and its Subsidiaries accruing through the Closing Date. No claim (whether formal or informal)
has ever been made against the SmartFinancial Parties or any of their Subsidiaries by an authority in a jurisdiction where SmartFinancial
or SmartBank or their Subsidiaries do not file Tax Returns that SmartFinancial or SmartBank or any of their Subsidiaries are or
may be subject to taxation in that jurisdiction. No outstanding agreement, arrangement, extension, or waiver of or with respect
to the limitation period applicable to any SmartFinancial Return has been agreed or entered into or granted (by the SmartFinancial
Parties or any other Person), and no such agreement, arrangement, extension, or waiver has been requested, formally or informally,
by or from the SmartFinancial Parties or any of their Subsidiaries, and neither the SmartFinancial Parties nor any of their Subsidiaries
has executed or is bound by any extension or waiver of any statute of limitations on the assessment or collection of any Tax.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
estimated Taxes required to be paid by or with respect to the SmartFinancial Parties or any of their Subsidiaries have been paid
to the proper taxing authorities. All Taxes that the SmartFinancial Parties or any of their Subsidiaries are or were required to
withhold or collect in connection with any amounts paid or owing to any employee, director, manager, independent contractor, shareholder,
member, nonresident, creditor, or other third party (including amounts paid or owing by or to the SmartFinancial Parties or any
of their Subsidiaries and any such Taxes due as a result of a plan intended to be a &ldquo;nonqualified deferred compensation plan&rdquo;
under Section 409A(d)(1) of the Code that has not been operated in good faith compliance with Section 409A of the Code and associated
guidance) have been duly withheld or collected and have been paid, to the extent required, to the proper taxing authorities; the
SmartFinancial Parties and their Subsidiaries have complied with all information reporting and backup withholding requirements,
including the maintenance of required records, with respect to such amounts; and the SmartFinancial Parties and their Subsidiaries
have paid all employer contributions and premiums and filed all Tax Returns with respect to any employee income Tax withholding,
and social security and unemployment Taxes and premiums, all in compliance with the withholding provisions of the Code and other
applicable Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the SmartFinancial Returns have been examined and closed or are Tax Returns with respect to which the applicable period for
assessment under applicable Law, after giving effect to extensions or waivers, has expired. The SmartFinancial Parties have delivered
or made available to the Cornerstone Parties true, correct, and complete copies of all audit reports and similar documents issued
by a Governmental Entity relating to the SmartFinancial Returns which the SmartFinancial Parties have in their possession or control.
Set forth on <B><U>Schedule&nbsp;5.2(o)(iii)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete
list of all SmartFinancial Returns filed by or with respect to the SmartFinancial Parties or any of their Subsidiaries during the
past five years.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
audit, investigation, examination, deficiency assessment, refund litigation, or other proceeding is pending or, to the Knowledge
of the SmartFinancial Parties, threatened against or with respect to the SmartFinancial Parties or any of their Subsidiaries in
respect of any Taxes or Tax matters, and to the Knowledge of the SmartFinancial Parties there are no facts or circumstances that
could reasonably be expected to give rise to any such audit, investigation, examination, deficiency assessment, refund litigation,
or other proceeding. There are no unsatisfied debts, liabilities, or obligations for Taxes with respect to any notice of deficiency
or similar document received by the SmartFinancial Parties or any of their Subsidiaries with respect to any Taxes. No deficiencies
have been asserted against the SmartFinancial Parties or any of their Subsidiaries as a result of an examination by a taxing authority
and no issue has been raised by any examination conducted by any taxing authority that, by application of the same principles,
might result in a proposed deficiency for any other period not so examined. There are no Liens for Taxes upon any of the properties
or assets of the SmartFinancial Parties or any of their Subsidiaries, other than statutory Liens for current Taxes not yet due
and payable for which adequate reserves have been established.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
SmartFinancial nor SmartBank, nor any of their Subsidiaries, has granted to any Person a power of attorney with respect to any
Taxes or Tax matters that is currently in effect. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, is subject
to any private letter ruling of the IRS or any comparable ruling of any other taxing authority, and no request for any such ruling
is pending. No closing agreement pursuant to Section 7121 of the Code (or any predecessor provision), or any similar provision
of Law, has been entered into by or with respect to SmartFinancial or SmartBank or any of their Subsidiaries.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no Contract or plan (including without limitation this Agreement and the arrangements contemplated hereby) covering any employee
or independent contractor, or any former employee or independent contractor, of SmartFinancial or SmartBank or any of their Subsidiaries
that, individually or collectively with any other such Contracts or Plans, will, or could be expected to, (A) give rise, directly
or indirectly, to the payment of any amount that would not be deductible pursuant to Section 280G or Section 162 of the Code (as
determined without regard to Section&nbsp;280G(b)(4) of the Code), except those payments that will not be made in the absence of
shareholder approval in accordance with the requirements of Section&nbsp;280G(b)(5)(B) of the Code, or (B) subject any such Person
to additional taxes under Section&nbsp;409A of the Code. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, is
a party to or bound by any Contract or plan, or has any obligation (current or contingent), to compensate any Person for Tax-related
payments, including Taxes paid pursuant to Section&nbsp;4999 of the Code and Taxes under Section&nbsp;409A of the Code. All disqualified
individuals (as defined in Section&nbsp;280G(c) of the Code) with respect to SmartFinancial and SmartBank and each of their Subsidiaries
are set forth on <B><U>Schedule&nbsp;5.2(o)(vi)</U></B> of the SmartFinancial Disclosure Memorandum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;5.2(o)(vii)</U></B> of the SmartFinancial Disclosure Memorandum, (A) neither SmartFinancial
nor SmartBank, nor any of their Subsidiaries, has at any time been a member of a group with which it has filed or been included
in a combined, consolidated, or unitary Tax Return; (B) neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, is
or has ever been a party to or bound by any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement, or similar
Contract; and (C) neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, is liable for the Taxes of any other Person,
whether as a transferee or successor, by Contract (including any Tax allocation agreement, Tax sharing agreement, or Tax indemnity
agreement), or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial Parties and their Subsidiaries are, and have at all times been, in compliance with the provisions of Section&nbsp;6011,
Section 6111, and Section 6112 of the Code relating to tax shelter disclosure, registration, list maintenance, and record keeping,
and with the Treasury Regulations thereunder (including any predecessor or successor Code provisions or Treasury Regulations, as
applicable), and neither the SmartFinancial Parties nor their Subsidiaries have at any time engaged in or entered into (A) any
transaction that would be defined as a &ldquo;reportable transaction&rdquo; within the meaning of Treasury Regulations Section&nbsp;1.6011-4(b),
(B) any confidential corporate tax shelter within the meaning of Treasury Regulations Section&nbsp;1.6111-2, or (C) any &ldquo;listed
transaction&rdquo; within the meaning of Treasury Regulations&nbsp;Section&nbsp;1.6011, Section&nbsp;301.6111, or Section&nbsp;301.6112,
or any transaction that would have been such a &ldquo;listed transaction&rdquo; if current Law was in effect at the time the transaction
was entered into. No IRS Form 8886 has been filed with respect to the SmartFinancial Parties or any of their Subsidiaries. Neither
SmartFinancial nor SmartBank, nor any of their Subsidiaries, has entered into any tax shelter or listed transaction with the sole
or dominant purpose of the avoidance or reduction of a Tax liability in a jurisdiction outside the United States with respect to
which there is a significant risk of challenge of such transaction by a Governmental Entity in a jurisdiction outside the United
States. The SmartFinancial Parties and their Subsidiaries have disclosed on all SmartFinancial Returns all positions taken therein
that could give rise to a substantial understatement of Tax within the meaning of Section&nbsp;6662 of the Code. Neither SmartFinancial
nor SmartBank, nor any of their Subsidiaries, has incurred, and no state of affairs exist that could result in SmartFinancial or
SmartBank, or any of their Subsidiaries, incurring, any penalty under Section&nbsp;6662(e) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the assets, properties, or rights of the SmartFinancial Parties or their Subsidiaries (A) are &ldquo;tax-exempt use property&rdquo;
within the meaning of Section&nbsp;168(h) of the Code, (B) are assets, properties, or rights required to be treated as owned by
any other Person pursuant to the so-called &ldquo;safe harbor lease&rdquo; provisions of Section&nbsp;168(f)(8) of the Internal
Revenue Code of 1954 as in effect after the Economic Recovery Tax Act of 1981 and before the Tax Reform Act of 1986, or (C) directly
or indirectly secure any debt the interest on which is Tax-exempt under Section&nbsp;103(a) of the Code. Neither the SmartFinancial
Parties nor any of their Subsidiaries have participated in or cooperated with an international boycott within the meaning of Section
999 of the Code. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, has a &ldquo;permanent establishment&rdquo;
within the meaning of any applicable Tax law in any foreign jurisdiction, nor is SmartFinancial or SmartBank, or any of their Subsidiaries,
required to file any Tax Returns in any foreign jurisdiction. No Subsidiary of SmartFinancial or SmartBank which is not a &ldquo;United
States Person&rdquo; within the meaning of Section 7701(a)(30) of the Code has a permanent establishment within the United States
or derives any income effectively connected with the conduct of a trade or business within the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(o)(x)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of (i) all Tax abatement, Tax reduction, Tax credit, and similar agreements or programs to which the SmartFinancial Parties or
their Subsidiaries are parties or in which the SmartFinancial Parties or their Subsidiaries participate and (ii) the amount of
each Tax abatement, Tax reduction, Tax credit, or similar benefit that the SmartFinancial Parties or their Subsidiaries have received
as of the date hereof and the period(s) to which each such Tax abatement, Tax reduction, Tax credit, or similar benefit applied.
The consummation of the transactions contemplated by this Agreement will not result in any recoupment, claw-back, or decrease in
any such Tax abatement, Tax reduction, Tax credit, or similar benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this <U>Section&nbsp;5.2(o)</U>, (A) references to SmartFinancial shall be deemed to include any predecessor to SmartFinancial,
any Person which merged or was liquidated with or into SmartFinancial, any direct or indirect Subsidiary of SmartFinancial, and
any Person from which SmartFinancial has incurred any liability for Taxes as a result of transferee liability and (B) references
to SmartBank shall be deemed to include any predecessor to SmartBank, any Person which merged or was liquidated with or into SmartBank,
any direct or indirect Subsidiary of SmartBank, and any Person from which SmartBank has incurred any liability for Taxes as a result
of transferee liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Material
Contracts</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(p)(i)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of the following Contracts to which SmartFinancial or SmartBank, or any of their Subsidiaries, is a party, by which SmartFinancial
or SmartBank, or any of their Subsidiaries, is bound, or to which SmartFinancial or SmartBank, or any of their Subsidiaries, or
any of the properties or assets of SmartFinancial or SmartBank, or any of their Subsidiaries, are subject (collectively, the &ldquo;<U>SmartFinancial
Material Contracts</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that involves, or could reasonably be expected to involve, annual receipts or disbursements of $25,000 or more;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that requires SmartFinancial or SmartBank, or any of their Subsidiaries, to purchase all of its requirements for a given
product, good, or service from a given Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that provides for the indemnification by SmartFinancial or SmartBank, or any of their Subsidiaries, of&nbsp;any Person,
or the express assumption&nbsp;by SmartFinancial or SmartBank, or any of their Subsidiaries, of&nbsp;any Tax, environmental, or
other liability or obligation (whether accrued, contingent, absolute, or otherwise) of&nbsp;any Person;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract relating to the disposition or acquisition, directly or indirectly (by merger&nbsp;or otherwise), by SmartFinancial or
SmartBank, or any of their Subsidiaries, after the date of&nbsp;this Agreement of properties, assets, or securities with a fair
market value of $25,000 or more;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
employment agreement, consulting agreement, severance agreement, change of control agreement, bonus agreement, deferred compensation
agreement, non-competition agreement, non-solicitation agreement, confidentiality or non-disclosure agreement, or other Contract
with any current or former director, officer, employee, or consultant of or to SmartFinancial or SmartBank, or any of their Subsidiaries;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(F)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract not disclosed under <U>Section&nbsp;5.2(p)(i)(E)</U> with or for the benefit of any shareholder, director, officer, employee,
or Affiliate of SmartFinancial or SmartBank or any of their Subsidiaries, or any Affiliate of or member of the immediate family
of any such Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(G)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that limits or purports to limit the right of SmartFinancial or SmartBank, or any of their Subsidiaries (or, at any time
after the consummation of the Merger, Bancshares or Cornerstone or any of their Subsidiaries), to engage in any line of business,
compete with any Person, or operate in any geographic location;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(H)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
partnership, joint venture, limited liability company, or similar Contract;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(I)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contact with respect to the occupancy, management, lease, or operation of real property;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(J)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
data processing or information technology Contract;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(K)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that grants to any Person any right of first refusal, right of first offer, or similar right with respect to any assets,
rights, properties, or securities of SmartFinancial or SmartBank, or any of their Subsidiaries;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(L)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract that relates to indebtedness of or borrowings of money by SmartFinancial or SmartBank, or any of their Subsidiaries, in
excess of $25,000 (other than Federal Home Loan Bank borrowings and repurchase agreements with customers entered into in the ordinary
course of business);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(M)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Contract relating to the acquisition, transfer, or issuance of, or affecting or dealing with, any securities of SmartFinancial
or SmartBank or any of their Subsidiaries, including without limitation any voting, shareholders, or underwriting agreement; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 2in; background-color: white">(N)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
other Contract not previously disclosed that is material to SmartFinancial or SmartBank, or any of their Subsidiaries, or the business,
operations, or financial condition of SmartFinancial or SmartBank, or any of their Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
true, correct, and complete copy (or, in the case of any oral Contract, a complete and accurate written description) of each SmartFinancial
Material Contract, as amended through the date of this Agreement, has been previously provided or made available to the Cornerstone
Parties. Each of the SmartFinancial Material Contracts is in full force and effect and is a valid and binding obligation of SmartFinancial
or SmartBank, or their Subsidiaries, as applicable, and each of the other parties thereto, enforceable against SmartFinancial or
SmartBank, or their Subsidiaries, as applicable, and each of the other parties thereto in accordance with its terms. SmartFinancial
and SmartBank and their Subsidiaries have performed all duties and obligations required to be performed by them under each SmartFinancial
Material Contract. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, nor any other party thereto, is in breach
or violation of or default under any SmartFinancial Material Contact, and to the Knowledge of the SmartFinancial Parties there
has not occurred any event that, with the lapse of time or the giving of notice or both, would constitute such a breach, violation,
or default. No event has occurred and no circumstance or condition exists that, with or without notice or lapse of time or both,
gives any Person, or will or could give any Person, (A)&nbsp;the right to declare a breach or default or exercise any remedy under
any SmartFinancial Material Contract, (B)&nbsp;the right to accelerate the maturity of or performance under any SmartFinancial
Material Contract, or (C)&nbsp;the right to cancel, terminate, or modify any SmartFinancial Material Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;5.2(p)(iii)</U></B> of the SmartFinancial Disclosure Memorandum, (A) no consents, approvals,
waivers, or notices are required to be obtained, given, or delivered pursuant to the terms and conditions of any SmartFinancial
Material Contract as a result of the SmartFinancial Parties&rsquo; execution, delivery, or performance of this Agreement or the
consummation of the transactions contemplated hereby and (B) assuming the consents, approvals, and notices referred to in clause
(A) are obtained, given, and delivered, neither the SmartFinancial Parties&rsquo; execution, delivery, or performance of this Agreement
nor the consummation of the transactions contemplated hereby will result in any Person having the right to declare a breach or
default or exercise any remedy under any SmartFinancial Material Contract; accelerate the maturity of or performance under any
SmartFinancial Material Contract; or cancel, terminate, or modify any SmartFinancial Material Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Intellectual
Property; Information Technology Systems</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(q)(i)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list,
and where appropriate a description, of all of the Intellectual Property owned, leased, or licensed by SmartFinancial or SmartBank
or any of their Subsidiaries, or used by SmartFinancial or SmartBank or any of their Subsidiaries in the conduct of their respective
businesses (collectively, the &ldquo;<U>SmartFinancial Intellectual Property</U>&rdquo;). All required filings and fees related
to SmartFinancial Intellectual Property registrations have been timely filed with and paid to the relevant Governmental Entities
and authorized registrars, and all SmartFinancial Intellectual Property registrations are in good standing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(q)(ii)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of all licenses and other Contracts relating to or affecting the SmartFinancial Intellectual Property. There is no breach or default
or alleged breach or default, or state of facts or circumstances which with notice or lapse of time or both would constitute a
breach or default, on the part of any party to any such license or other Contract in the performance of any obligation to be performed,
paid, or observed by any party under or pursuant to any such license or other Contract. The SmartFinancial Parties have previously
provided or made available to the Cornerstone Parties true, correct, and complete copies (or, in the case of any oral Contract,
a complete and accurate written description) of the above-mentioned licenses and other Contracts, including all modifications,
amendments, and supplements thereto and waivers thereunder.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SmartFinancial
or SmartBank, or one of their Subsidiaries, is the sole and exclusive owner of all of the SmartFinancial Intellectual Property
not leased or licensed to SmartFinancial or SmartBank or one of their Subsidiaries, free and clear of any Liens, and, with respect
to any SmartFinancial Intellectual Property leased or licensed to SmartFinancial or SmartBank or one of their Subsidiaries, has
a valid and enforceable lease, license, or other right to use such SmartFinancial Intellectual Property, and except as set forth
on <B><U>Schedule&nbsp;5.2(q)(iii)</U></B> of the SmartFinancial Disclosure Memorandum, no leases, licenses, or other rights have
been granted by SmartFinancial or SmartBank, or their Subsidiaries, to third Persons with respect to any such SmartFinancial Intellectual
Property. SmartFinancial and SmartBank and their Subsidiaries own or possess all requisite rights to use all of the SmartFinancial
Intellectual Property required or necessary for the conduct of the business of SmartFinancial and SmartBank and their Subsidiaries
as presently conducted, without any conflict with the rights of others or any known use by others which conflicts with the rights
of SmartFinancial or SmartBank or any of their Subsidiaries. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries,
owes any royalties, honoraria, or fees to any Person by reason of the use by SmartFinancial or SmartBank, or any of their Subsidiaries,
of any of the SmartFinancial Intellectual Property. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, has received
notice of, and to the Knowledge of the SmartFinancial Parties there is no basis for, any claimed conflict with respect to any of
the SmartFinancial Intellectual Property or any claim against SmartFinancial or SmartBank or any of their Subsidiaries that their
respective operations, activities, products, publications, goods, or services infringe upon any patent, trademark, trade name,
copyright, or other intellectual property or proprietary right of a third party, or that SmartFinancial or SmartBank or any of
their Subsidiaries is illegally or otherwise impermissibly using any patent, trademark, trade name, copyright, trade secret, or
other intellectual property or proprietary right of others, nor has there been any claim or assertion that any of the SmartFinancial
Intellectual Property is invalid or defective in any way.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(q)(iv)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of all consents, waivers, authorizations, and approvals with respect to or involving the SmartFinancial Intellectual Property that
must be obtained, and all filings that must be made and all other actions that must be taken in respect of the SmartFinancial Intellectual
Property, in connection with the Parties&rsquo; execution and delivery of this Agreement or the consummation of the transactions
contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the Knowledge of the SmartFinancial Parties, all information technology and computer systems (including software, information technology
and telecommunications hardware, and other equipment) relating to or for the transmission, storage, maintenance, organization,
presentation, generation, processing, or analysis of data and information, whether or not in electronic format, necessary for or
used in the conduct of the businesses of the SmartFinancial Parties and their Subsidiaries (collectively, the &ldquo;<U>SmartFinancial
IT Systems</U>&rdquo;) have been properly maintained by technically competent personnel, in accordance with standards set by manufacturers
or otherwise in accordance with standards in the industry, to ensure proper operation, monitoring, and use. The SmartFinancial
IT Systems are in good working condition to effectively perform all information technology (including data processing) operations
necessary to conduct business as currently conducted. Since June 30, 2011, neither SmartFinancial nor SmartBank, nor any of their
Subsidiaries, has experienced any material disruption to, or material interruption in, its conduct of its business attributable
to a defect, bug, breakdown, or other failure or deficiency in or of the SmartFinancial IT Systems. The SmartFinancial Parties
and their Subsidiaries have taken reasonable measures to provide for the back-up and recovery of the data and information necessary
for the conduct of their respective businesses (including such data and information that is stored on magnetic or optical media
in the ordinary course) without material disruption to, or material interruption in, the conduct of their respective businesses.
Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, is in breach of or default under any Contract relating to
any of the SmartFinancial IT Systems.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Labor
Matters</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial Parties and their Subsidiaries are in compliance in all material respects with all applicable Laws respecting employment,
retention of independent contractors, employment practices, terms and conditions of employment, and wages and hours. Neither SmartFinancial
nor SmartBank, nor any of their Subsidiaries, is subject to any employment-related grievance pending in or before any Governmental
Entity, including without limitation the Equal Employment Opportunity Commission, the Tennessee Human Rights Commission, and the
United States Department of Labor, and there are no facts or circumstances that could result in any such grievance. Neither SmartFinancial
nor SmartBank, nor any of their Subsidiaries, is or has ever been a party to, or is or has ever been bound by, any collective bargaining
agreement or contract or other agreement or understanding with a labor union or labor organization with respect to its employees,
nor is SmartFinancial or SmartBank, or any of their Subsidiaries, the subject of any proceeding in which it is asserted that SmartFinancial
or SmartBank, or any of their Subsidiaries, has committed an unfair labor practice or seeking to compel SmartFinancial or SmartBank,
or any of their Subsidiaries, to bargain with any labor organization as to wages and conditions of employment, nor, to the Knowledge
of the SmartFinancial Parties, has any such proceeding been threatened, nor is there any strike, labor dispute, or organizational
effort involving SmartFinancial or SmartBank, or any of their Subsidiaries, pending or, to the Knowledge of the SmartFinancial
Parties, threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule 5.2(r)(ii)</U></B> of the SmartFinancial Disclosure Memorandum is (A)&nbsp;a true, correct, and complete
list of all employees (including any leased or temporary employees) of the SmartFinancial Parties and their Subsidiaries; (B)&nbsp;each
such employee&rsquo;s current rate of compensation; and (C)&nbsp;each such employee&rsquo;s date of hire and accrued vacation,
sick leave, and personal leave, as applicable. Set forth or identified on <B><U>Schedule 5.2(r)(ii)</U></B> of the SmartFinancial
Disclosure Memorandum are the names of any employees of the SmartFinancial Parties or any of their Subsidiaries who are absent
from work due to a leave of absence (including without limitation in accordance with the requirements of the Family and Medical
Leave Act or the Uniformed Services Employment and Reemployment Rights Act) or a work-related injury, or who are receiving workers&rsquo;
compensation or disability compensation. There are no unpaid wages, salaries, bonuses, commissions, or other amounts owed to any
employee of SmartFinancial or SmartBank or any of their Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">To
</FONT>the <FONT STYLE="font-family: Times New Roman, Times, Serif">Knowledge of the </FONT>SmartFinancial <FONT STYLE="font-family: Times New Roman, Times, Serif">Parties,
no director, officer, employee, independent contractor, or consultant of or to </FONT>SmartFinancial or SmartBank<FONT STYLE="font-family: Times New Roman, Times, Serif">,
or any of their Subsidiaries, is a party to or is otherwise bound by any Contract, including without limitation any confidentiality,
non-competition, non-solicitation, or proprietary rights agreement, that could adversely affect the ability of </FONT>SmartFinancial
or SmartBank, or any of their Subsidiaries,<FONT STYLE="font-family: Times New Roman, Times, Serif"> to conduct its business as
currently conducted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">Neither
</FONT>SmartFinancial nor SmartBank, nor any of their Subsidiaries,<FONT STYLE="font-family: Times New Roman, Times, Serif"> has
classified any Person as an &ldquo;independent contractor&rdquo; or any similar status who, under applicable Law or the provisions
of any </FONT>SmartFinancial <FONT STYLE="font-family: Times New Roman, Times, Serif">Benefit Plan (as defined below), should have
been classified as an employee. Neither </FONT>SmartFinancial nor SmartBank, nor any of their Subsidiaries, <FONT STYLE="font-family: Times New Roman, Times, Serif">has
any liability for improperly excluding any Person who provides or provided services to </FONT>SmartFinancial or SmartBank, or any
of their Subsidiaries, <FONT STYLE="font-family: Times New Roman, Times, Serif">in any capacity from participating in any </FONT>SmartFinancial
<FONT STYLE="font-family: Times New Roman, Times, Serif">Benefit Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">None
of the officers or employees of </FONT>SmartFinancial or SmartBank (<FONT STYLE="font-family: Times New Roman, Times, Serif">or
any of their Subsidiaries) have informed </FONT>SmartFinancial or SmartBank (<FONT STYLE="font-family: Times New Roman, Times, Serif">or
their Subsidiaries) of their intent, and </FONT>the SmartFinancial Parties <FONT STYLE="font-family: Times New Roman, Times, Serif">do
not have Knowledge that any of the officers or employees of </FONT>SmartFinancial or SmartBank (<FONT STYLE="font-family: Times New Roman, Times, Serif">or
any of their Subsidiaries) have an intention, to terminate their employment relationship with </FONT>SmartFinancial or SmartBank
<FONT STYLE="font-family: Times New Roman, Times, Serif">(or their Subsidiaries) during the next 12&nbsp;months.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no pending or, to the Knowledge of the SmartFinancial Parties, threatened suit, action, claim, or legal, administrative, arbitration,
or other proceeding by or on behalf of any current or former employee of SmartFinancial or SmartBank or any of their Subsidiaries,
including without limitation any suit, action, claim, or legal, administrative, arbitration, or other proceeding alleging noncompliance
with applicable Laws respecting employment, employment practices, or terms and conditions of employment, but excluding workers&rsquo;
compensation matters, and there are no facts or circumstances that could reasonably be expected to give rise to any such suit,
action, claim, or legal, administrative, arbitration, or other proceeding.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Benefit
Plans</I>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 112.5pt; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(s)(i)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of all pension, retirement, stock option, stock purchase, stock ownership, savings, stock appreciation right, profit sharing, deferred
compensation, consulting, bonus, group insurance, severance, change of control, fringe benefit, incentive, cafeteria or Code Section&nbsp;125,
welfare, and other benefit plans, contracts, agreements, and arrangements, including without limitation &ldquo;employee benefit
plans&rdquo; as defined in Section&nbsp;3(3) of ERISA, incentive and welfare policies, contracts, plans, and arrangements, including
split dollar life insurance arrangements, and all trust agreements and funding arrangements related thereto, which are or have
been maintained by, contributed to (or required to be contributed to), or sponsored by SmartFinancial or SmartBank or an ERISA
Affiliate with respect to any present or former directors, officers, or employees of SmartFinancial or SmartBank or any of their
Subsidiaries (herein referred to collectively as the &ldquo;<U>SmartFinancial Benefit Plans</U>&rdquo;), including any and all
plans or policies offered to employees of SmartFinancial or SmartBank, or any of their Subsidiaries, with respect to which SmartFinancial
or SmartBank or an ERISA Affiliate has claimed or is claiming the safe harbor for &ldquo;voluntary plans&rdquo; under ERISA for
group and group-type insurance arrangements (&ldquo;<U>SmartFinancial Voluntary Plans</U>&rdquo;). The SmartFinancial Parties have
previously delivered or made available to the Cornerstone Parties true, correct, and complete copies of all plans, contracts, agreements,
arrangements, and other documents referenced in <B><U>Schedule&nbsp;5.2(s)(i)</U></B> of the SmartFinancial Disclosure Memorandum,
along with, where applicable, copies of the IRS Form 5500 for the most recently completed year. There has been no announcement
or commitment by SmartFinancial or SmartBank, or any of their Subsidiaries, to create any additional SmartFinancial Benefit Plan,
to amend any SmartFinancial Benefit Plan (except for amendments required by applicable Law which do not materially increase the
cost of such SmartFinancial Benefit Plan), or to terminate any SmartFinancial Benefit Plan. Each SmartFinancial Benefit Plan that
provides for the payment of &ldquo;deferred compensation,&rdquo; including any employment agreement between SmartFinancial or SmartBank,
or any of their Subsidiaries, and any employee, complies in all material respects with Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no pending, threatened, or suspected claim, litigation, action, administrative action, suit, audit, arbitration, mediation,
or other proceeding relating to any SmartFinancial Benefit Plan. All of the SmartFinancial Benefit Plans comply in all material
respects with applicable requirements of ERISA and the Code and other applicable Laws (including without limitation the portability,
privacy, and security provisions of the Health Insurance Portability and Accountability Act of 1996; the Patient Protection and
Affordable Care Act of 2009; the coverage continuation requirements of Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985; the Family and Medical Leave Act; the Mental Health Parity Act of 1996; the Mental Health Parity and Addiction Equity
Act of 2008; the Uniformed Services Employment and Reemployment Rights Act; the Newborns&rsquo; and Mothers&rsquo; Health Protection
Act of 1996; the Women&rsquo;s Health and Cancer Rights Act; and the Genetic Information Nondiscrimination Act of 2008), and have
been established, maintained, and administered in compliance, in all material respects, with all applicable requirements of ERISA
and the Code and other applicable Laws and the terms and provisions of all documents, contracts, or agreements establishing the
SmartFinancial Benefit Plans or pursuant to which they are maintained or administered. No audit of any SmartFinancial Benefit Plan
by the IRS or the United States Department of Labor is ongoing or threatened or was ongoing, threatened, or closed since June 30,
2011. There has occurred no &ldquo;prohibited transaction&rdquo; (as defined in Section&nbsp;406 of ERISA or Section&nbsp;4975
of the Code) with respect to any SmartFinancial Benefit Plan that is likely to result in, or has already resulted in, the imposition
of any penalties or Taxes upon SmartFinancial or SmartBank, or any of their Subsidiaries, under Section&nbsp;502(i) of ERISA or
Section&nbsp;4975 of the Code.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
liability to the Pension Benefit Guaranty Corporation has been, or is expected by the SmartFinancial Parties or their Subsidiaries
to be, incurred with respect to any SmartFinancial Benefit Plan that is subject to Title IV of ERISA (a &ldquo;<U>SmartFinancial
Pension Plan</U>&rdquo;), or with respect to any &ldquo;single-employer plan&rdquo; (as defined in Section&nbsp;4001(a) of ERISA)
currently or formerly maintained by SmartFinancial or SmartBank or any ERISA Affiliate. No SmartFinancial Pension Plan had an &ldquo;accumulated
funding deficiency&rdquo; (as defined in Section&nbsp;302 of ERISA), whether or not waived, as of the last day of the end of the
most recent plan year ending prior to the date hereof; the fair market value of the assets of each SmartFinancial Pension Plan
exceeds the present value of the &ldquo;benefit liabilities&rdquo; (as defined in Section&nbsp;4001(a)(16) of ERISA) under such
SmartFinancial Pension Plan as of the end of the most recent plan year ending prior to the date hereof, calculated on the basis
of the actuarial assumptions used in the most recent actuarial valuation for such SmartFinancial Pension Plan as of the date hereof;
and no notice of a &ldquo;reportable event&rdquo; (as defined in Section&nbsp;4043 of ERISA) for which the 30-day reporting requirement
has not been waived has been required to be filed for any SmartFinancial Pension Plan within the 12-month period ending on the
date hereof. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, has provided, or is required to provide, security
to any SmartFinancial Pension Plan or to any single-employer plan of an ERISA Affiliate pursuant to Section&nbsp;401(a)(29) of
the Code. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries or any ERISA Affiliate, has contributed to or been
obligated to contribute to any &ldquo;multiemployer plan,&rdquo; as defined in Section&nbsp;3(37) of ERISA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
SmartFinancial Benefit Plan that is an &ldquo;employee pension benefit plan&rdquo; (as defined in Section&nbsp;3(2) of ERISA) and
which is intended to be qualified under Section&nbsp;401(a) of the Code (a &ldquo;<U>SmartFinancial Qualified Plan</U>&rdquo;)
has received a current favorable determination letter from the IRS (or, in the case of an IRS pre-approved plan, the pre-approved
plan has a current IRS opinion or advisory letter upon which the SmartFinancial Parties are entitled to rely under applicable IRS
guidance), and to the Knowledge of the SmartFinancial Parties there are no facts or circumstances that could result in the revocation
of any such favorable determination letter. Each SmartFinancial Qualified Plan that is an &ldquo;employee stock ownership plan&rdquo;
(as defined in Section&nbsp;4975(e)(7) of the Code) has satisfied all of the applicable requirements of Sections 409 and 4975(e)(7)
of the Code and the regulations thereunder in all material respects, and any assets of any such SmartFinancial Qualified Plan that,
as of the end of the most recent plan year, are not allocated to participants&rsquo; individual accounts are pledged as security
for, and may be applied to satisfy, any securities acquisition indebtedness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
SmartFinancial nor SmartBank, nor any of their Subsidiaries, has any obligations for post-retirement or post-employment benefits
under any SmartFinancial Benefit Plan that cannot be amended or terminated upon 60&nbsp;days or less notice without incurring any
liability thereunder, except for coverage required by Part 6 of Title I of ERISA or Section&nbsp;4980B of the Code or similar state
Laws, the cost of which is borne by the insured individuals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
contributions and payments (both employer and employee) required to be made with respect to any SmartFinancial Benefit Plan by
applicable Law or by any plan document or other contractual undertaking, and all premiums due or payable (both employer and employee)
with respect to insurance policies funding any SmartFinancial Benefit Plan, for any period through the date hereof have been timely
made or paid in full by the applicable due date, with extensions, or to the extent not required to be made or paid on or before
the date hereof, have been fully reflected or reserved against in the Interim SmartFinancial Financials to the extent required
by GAAP or regulatory accounting requirements. Each SmartFinancial Benefit Plan that is an employee welfare benefit plan under
Section&nbsp;3(1) of ERISA either (A)&nbsp;is funded through an insurance company contract and is not a &ldquo;welfare benefit
fund&rdquo; within the meaning of Section&nbsp;419 of the Code or (B)&nbsp;is unfunded. Any unfunded SmartFinancial Benefit Plan
pays benefits solely from the general assets of SmartFinancial or SmartBank, or their applicable Subsidiary, for which arrangement
the establishment of a trust under ERISA is not required. All unfunded benefits for which claims have been filed under a SmartFinancial
Benefit Plan have been or are being processed for payment or otherwise adjudicated in accordance with the terms of the applicable
SmartFinancial Benefit Plan and paid (to the extent payment is due), or will be paid, within the customary, normal, and routine
claims processing and payment time frames followed by the SmartFinancial Benefit Plan and as required by ERISA. No unfunded SmartFinancial
Benefit Plan is delinquent in the payment of benefits, and neither SmartFinancial nor SmartBank, nor any of their Subsidiaries,
is delinquent in making its required contributions to any such unfunded SmartFinancial Benefit Plan so that the SmartFinancial
Benefit Plan can pay benefits on a timely basis.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
required reports, notice, disclosures, and descriptions (including without limitation Form&nbsp;5500 annual reports and required
attachments, Forms&nbsp;1099-R, summary annual reports, Forms PBGC-1, and summary plan descriptions) have been filed or distributed
in accordance with applicable Law with respect to each SmartFinancial Benefit Plan. All required Tax filings with respect to each
SmartFinancial Benefit Plan have been made, and any Taxes due in connection with such filings have been paid. Since June 30, 2011,
neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, has filed or been required to file with the IRS a Form 8928
in order to self-report any health plan violations which are subject to excise taxes under applicable provisions of the Code, and
to the Knowledge of the SmartFinancial Parties there are no facts or circumstances that could reasonably be expected to result
in SmartFinancial or SmartBank, or any of their Subsidiaries, being required by the Code to file any such Form 8928.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;5.2(s)(viii)</U></B> of the SmartFinancial Disclosure Memorandum, neither SmartFinancial nor
SmartBank, nor any of their Subsidiaries, is a party to or bound by any Contract (including without limitation any severance, change
of control, or employment agreement) that will, as a result or consequence of the execution or delivery of this Agreement, shareholder
approval of this Agreement or the transactions contemplated hereby, or the consummation of the transactions, including the Merger,
contemplated hereby, either alone or in connection with any other event, (A)&nbsp;entitle any current or former director, officer,
employee, or independent contractor of SmartFinancial or SmartBank, or of any of their Subsidiaries, to severance pay or change
of control or other benefits, or any increase in severance pay or other benefits, upon any termination of employment or of such
Contract after the date hereof, (B)&nbsp;accelerate the time of payment or vesting or trigger any payment or funding (through a
grantor trust or otherwise) of compensation or benefits under, increase the amount payable under, or trigger any withdrawal liability
under or any other material obligation pursuant to, any of the SmartFinancial Benefit Plans, (C)&nbsp;result in any breach or violation
of, or a default under, any of the SmartFinancial Benefit Plans, or (D)&nbsp;result in the payment of any &ldquo;excess parachute
payments&rdquo; within the meaning of Section&nbsp;280G of the Code.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons
being provided coverage in or under each SmartFinancial Benefit Plan are described in such SmartFinancial Benefit Plan as being
eligible for coverage under such SmartFinancial Benefit Plan, and neither SmartFinancial nor SmartBank, nor any of their Subsidiaries,
has any liability for improperly including any Person as a participant in any SmartFinancial Benefit Plan in which such Person
is or was not eligible for coverage.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the SmartFinancial Benefit Plans are nondiscriminatory with respect to eligibility and benefits under applicable provisions
of the Code and other Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
SmartFinancial Voluntary Plans satisfy the regulatory safe arbor requirements provided by ERISA in order for such SmartFinancial
Voluntary Plans to be considered not to be or to have been established, sponsored, or maintained by SmartFinancial or SmartBank
or any of their Subsidiaries and not to constitute an &ldquo;employee benefit plan&rdquo; subject to ERISA.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Properties</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(t)(i)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of all real property owned or leased by SmartFinancial or SmartBank, or any of their Subsidiaries, as of the date of this Agreement
(including without limitation property carried on the books of SmartBank as &ldquo;Other Real Estate Owned&rdquo;). SmartFinancial
and SmartBank and each of their Subsidiaries have good and marketable title to all real property owned by them (including any property
acquired in a judicial foreclosure proceeding or by way of a deed in lieu of foreclosure or similar transfer), in each case free
and clear of any and all Liens, except Liens for current Taxes and assessments not yet due and payable for which adequate reserves
have been established. Each lease pursuant to which SmartFinancial or SmartBank or any of their Subsidiaries leases real property
is valid and binding and in full force and effect, and neither SmartFinancial nor SmartBank nor any of their Subsidiaries, nor
any other party to any such lease, is in breach or default under or in violation of any provision of any such lease. The SmartFinancial
Parties have previously delivered or made available to the Cornerstone Parties a true, correct, and complete copy of each such
lease, including any amendments thereto. All real property owned or leased by SmartFinancial or SmartBank, or any of their Subsidiaries,
is in good condition (normal wear and tear excepted), conforms with all applicable ordinances, regulations, and zoning and other
Laws, and is reasonably considered by the SmartFinancial Parties to be adequate for the current business of the SmartFinancial
Parties and their Subsidiaries. None of the buildings, structures, or other improvements located on any real property owned or
leased by SmartFinancial or SmartBank, or any of their Subsidiaries, encroaches upon or over any adjoining parcel of real estate
or any easement or right-of-way.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None
of the real property owned or leased by SmartFinancial or SmartBank, or any of their Subsidiaries, nor any building, structure,
fixture, or improvement thereon, is the subject of, or affected by, any condemnation, taking, eminent domain, or inverse condemnation
proceeding currently instituted or pending, and the SmartFinancial Parties have no Knowledge that any of such real property, or
any such building, structure, fixture, or improvement, will or may the subject of, or affected by, any such proceeding. Neither
SmartFinancial nor SmartBank, nor any of their Subsidiaries, has experienced any restriction in access to or from public roads
or any restriction in access to any utilities, including water, sewer, gas, electric, telephone, drainage, and other utilities
used by SmartFinancial or SmartBank or any of their Subsidiaries in the operation of their business as presently conducted; there
is no pending or, to the Knowledge of the SmartFinancial Parties, threatened governmental action that could prohibit or interfere
with such access; and, to the Knowledge of the SmartFinancial Parties, no fact or condition exists which, with the passage of time
or the giving of notice or both, may result in the termination, reduction, or impairment of such access.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SmartFinancial
and SmartBank and their Subsidiaries have good and marketable title to all personal property owned by them, in each case free and
clear of any and all Liens. Each lease pursuant to which SmartFinancial or SmartBank, or any of their Subsidiaries, leases, as
lessee, personal property is valid and binding and in full force and effect, and neither SmartFinancial nor SmartBank, nor any
of their Subsidiaries, nor any other party to any such lease, is in default under or in breach or violation of any provision of
any such lease. The personal property owned or leased by SmartFinancial and SmartBank and their Subsidiaries is in good condition,
normal wear and tear excepted, and is sufficient for the carrying on of the business of SmartFinancial and SmartBank and their
Subsidiaries in the ordinary course consist with past practice.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Environmental
Matters</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the properties of SmartFinancial and SmartBank and their Subsidiaries, the SmartFinancial Participation Facilities, and to the
Knowledge of the SmartFinancial Parties the SmartFinancial Loan Properties are, and, as applicable, have been during the period
of SmartFinancial&rsquo;s or SmartBank&rsquo;s, or their Subsidiaries&rsquo;, ownership or operation thereof, in compliance with
all Environmental Laws. There is no suit, claim, action, demand, executive or administrative order, directive, investigation, or
proceeding pending or, to the Knowledge of the SmartFinancial Parties, threatened against SmartFinancial or SmartBank, or any of
their Subsidiaries, or any SmartFinancial Participation Facility (A)&nbsp;for alleged noncompliance (including by any predecessor)
with or liability under any Environmental Law or (B)&nbsp;relating to the presence of or release into the environment of any Hazardous
Material, whether or not occurring at or on a site owned, leased, or operated by SmartFinancial or SmartBank, or any of their Subsidiaries,
or any SmartFinancial Participation Facility. To the Knowledge of the SmartFinancial Parties, there is no suit, claim, action,
demand, executive or administrative order, directive, investigation, or proceeding pending or threatened against or relating to
any SmartFinancial Loan Property (or SmartFinancial or SmartBank, or any of their Subsidiaries, in respect of any SmartFinancial
Loan Property) and (A)&nbsp;relating to alleged noncompliance (including by any predecessor) with or liability under any Environmental
Law or (B)&nbsp;relating to the presence of or release into the environment of any Hazardous Material, whether or not occurring
at or on a SmartFinancial Loan Property. Neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, has received any
notice, demand letter, executive or administrative order, directive, or request for information from any Governmental Entity or
other third party indicating that it may be in violation of or have any liability under any Environmental Law.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;5.2(u)(ii)</U></B> of the SmartFinancial Disclosure Memorandum, there are no underground storage
tanks at or on any properties owned or operated by SmartFinancial or SmartBank, or any of their Subsidiaries, or any SmartFinancial
Participation Facility, and neither SmartFinancial nor SmartBank nor any of their Subsidiaries, nor to the Knowledge of the SmartFinancial
Parties any other Person, has closed or removed any underground storage tank on or from any property owned or operated by SmartFinancial
or SmartBank, or any of their Subsidiaries, or any SmartFinancial Participation Facility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the period of (A)&nbsp;the SmartFinancial Parties&rsquo; and their Subsidiaries&rsquo; ownership or operation of their respective
properties and (B)&nbsp;the SmartFinancial Parties&rsquo; or their Subsidiaries&rsquo; participation in the management of any SmartFinancial
Participation Facility, there has been no contamination by or release of Hazardous Materials in, on, under, or affecting such properties,
except for releases of Hazardous Materials, individually or in the aggregate, in quantities below the level at which they were
regulated under any Environmental Law in effect at the time of such release(s). To the Knowledge of the SmartFinancial Parties,
prior to the period of (A)&nbsp;the SmartFinancial Parties&rsquo; or their Subsidiaries&rsquo; ownership or operation of any of
their respective properties or (B)&nbsp;the SmartFinancial Parties&rsquo; or their Subsidiaries&rsquo; participation in the management
of any SmartFinancial Participation Facility, there was no contamination by or release of Hazardous Material in, on, under, or
affecting such properties, except for releases of Hazardous Materials, individually or in the aggregate, in quantities below the
level at which they were regulated under any Environmental Law in effect at the time of such release(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial Parties and their Subsidiaries have all permits, licenses, consents, orders, authorizations, and approvals required
by the Environmental Laws for the use and occupancy of, and for all operations and activities conducted on, any properties owned,
leased, operated, or occupied by the SmartFinancial Parties or their Subsidiaries, and the SmartFinancial Parties and their Subsidiaries
are in compliance in all material respects with all such permits, licenses, consents, orders, authorizations, and approvals. All
such permits, licenses, consents, orders, authorizations, and approvals were duly issued, are in full force and effect, and will
remain in full force and effect as of and after the Effective Time.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fairness
Opinion</I>. The board of directors of SmartFinancial has received from Hovde Group, LLC an opinion to the effect that, as of the
date of such opinion and subject to the assumptions and qualifications set forth therein, the Exchange Ratio is fair from a financial
point of view to the holders of SmartFinancial Common Stock.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Broker
Fees</I>. Except as set forth on <B><U>Schedule&nbsp;5.2(w)</U></B> of the SmartFinancial Disclosure Memorandum, neither SmartFinancial
nor SmartBank, nor any of their Subsidiaries, nor any of their respective officers, directors, employees, or agents, has employed
any broker, investment banker, or finder or incurred any liability (whether contingent or otherwise) for any financial advisory,
investment banking, brokerage, or finder&rsquo;s fees, commissions, or expenses, and no broker, investment banker, or finder has
acted directly or indirectly for or on behalf of SmartFinancial or SmartBank or any of their Subsidiaries, in connection with this
Agreement or the transactions contemplated hereby.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Loan
Matters</I>.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Loans held by SmartFinancial or SmartBank or any of their Subsidiaries were made for good, valuable, and adequate consideration
in the ordinary course of business and in accordance with sound banking practices, and none of such Loans are subject to any defenses,
setoffs, or counterclaims, including without limitation any of such as are afforded by usury or truth in lending Laws, except,
however, such as may be provided by bankruptcy, insolvency, or similar Laws or by general principles of equity. The promissory
notes or other evidences of indebtedness evidencing such Loans and all pledges, mortgages, deeds of trust, and other collateral
documents and security agreements related thereto are legal, valid, binding, and enforceable.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;5.2(x)(ii)</U></B> of the SmartFinancial Disclosure Memorandum, neither the terms of any Loan
held, originated, made, administered, or serviced by SmartFinancial or SmartBank or any of their Subsidiaries, any of the documentation
for any such Loan, the manner in which any such Loan has been administered or serviced, nor SmartFinancial&rsquo;s or SmartBank&rsquo;s
or their Subsidiaries&rsquo; practices of approving or rejecting Loan applications violate any Law applicable thereto, including
without limitation the Truth in Lending Act, Regulation B, Regulation O, and Regulation Z of the Federal Reserve, the CRA, the
Equal Credit Opportunity Act, and any state Laws relating to consumer protection, installment sales, and usury.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial Parties&rsquo; allowance for loan and lease losses is, and shall be as of the Effective Time, in compliance with
their existing methodology for determining the adequacy of their allowance for loan and lease losses as well as the standards established
by applicable Governmental Entities and the Financial Accounting Standards Board, and is and shall be adequate under all such standards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;5.2(x)(iv)</U></B> of the SmartFinancial Disclosure Memorandum, none of the Contracts pursuant
to which SmartFinancial or SmartBank or any of their Subsidiaries has sold Loans or pools of Loans, or participations in Loans
or pools of Loans, contain any liability or obligation on the part of SmartFinancial or SmartBank or any of their Subsidiaries
to repurchase such Loans or interests therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(x)(v)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of all Loans, as of the date hereof, by SmartFinancial or SmartBank or any of their Subsidiaries to any director, executive officer,
or principal shareholder (as such terms are defined in Regulation&nbsp;O of the Federal Reserve (12&nbsp;C.F.R. Part&nbsp;215))
of SmartFinancial or SmartBank or any of their Subsidiaries. All such Loans are, and were originated, in compliance with all applicable
Laws.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth on <B><U>Schedule&nbsp;5.2(x)(vi)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete listing,
as of November 30, 2014, by account of: (A)&nbsp;each borrower, customer, or other Person who has notified SmartFinancial or SmartBank
or any of their Subsidiaries during the past 12&nbsp;months of, or has asserted against SmartFinancial or SmartBank or any of their
Subsidiaries, any &ldquo;lender liability&rdquo; or similar claim; and (B)&nbsp;all Loans of SmartFinancial and SmartBank and their
Subsidiaries (1)&nbsp;that are contractually past due 90&nbsp;days or more in the payment of principal and/or interest, (2)&nbsp;that
are on non-accrual status, (3)&nbsp;that are classified as &ldquo;special mention,&rdquo; &ldquo;substandard,&rdquo; &ldquo;doubtful,&rdquo;
&ldquo;loss,&rdquo; or words of similar import, (4)&nbsp;where the interest rate terms have been reduced and/or the maturity dates
have been extended subsequent to the origination of the Loans due to concerns regarding the borrowers&rsquo; ability to pay in
accordance with the Loans&rsquo; original terms, or (5)&nbsp;where a specific reserve allocation exists in connection therewith;
and (C)&nbsp;all assets classified by SmartFinancial or SmartBank or any of their Subsidiaries as real estate acquired through
foreclosure or in lieu of foreclosure, including in-substance foreclosures, and all other assets currently held that were acquired
through foreclosure or in lieu of foreclosure, in each case including the book value thereof as of November 30, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Material
Interests of Certain Persons</I>. Except for deposit and loan relationships entered into in the ordinary course of business and
as otherwise set forth on <B><U>Schedule&nbsp;5.2(y)</U></B> of the SmartFinancial Disclosure Memorandum , no current or former
officer or director of SmartFinancial or SmartBank or any of their Subsidiaries, or any family member or Affiliate of any such
Person, has any material direct or indirect interest in any Contract or property, real or personal, tangible or intangible, of,
used in or pertaining to the business of, or owned or leased by SmartFinancial or SmartBank or any of their Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Insurance</I>.
Set forth on <B><U>Schedule&nbsp;5.2(z)</U></B> of the SmartFinancial Disclosure Memorandum is a true, correct, and complete list
of all policies of insurance currently held or maintained by or providing coverage for SmartFinancial or SmartBank or any of their
Subsidiaries, including without limitation bank-owned life insurance (collectively, the &ldquo;<U>SmartFinancial Insurance Policies</U>&rdquo;),
including for each such SmartFinancial Insurance Policy (i) the name of the insurer, (ii) the named insured(s), (iii) the nature
of the coverage, (iv) the policy limits (on a per occurrence and aggregate basis), (v) the annual premiums, and (vi) the expiration
date. SmartFinancial and SmartBank and their Subsidiaries are insured with reputable insurers against such risks and in such amounts
as are customary and prudent in accordance with industry practices. All of the SmartFinancial Insurance Policies are in full force
and effect, neither SmartFinancial nor SmartBank nor any of their Subsidiaries is in default thereunder, and no event has occurred
which, with notice or lapse of time or both, would constitute a default or permit a termination, modification, or acceleration
under any of the SmartFinancial Insurance Policies; all premiums due and payable with respect to the SmartFinancial Insurance Policies
have been timely and fully paid; and all claims thereunder have been filed in a timely fashion. There is no claim for coverage
by SmartFinancial or SmartBank or any of their Subsidiaries pending under any of the SmartFinancial Insurance Policies as to which
coverage has been questioned, denied, or disputed. Neither SmartFinancial nor SmartBank nor any of their Subsidiaries has received
notice of any threatened termination of, material premium increase with respect to, or material alteration of coverage under any
of the SmartFinancial Insurance Policies.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(aa)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment
Securities; Derivatives</I>. Except for restrictions that exist for securities that are classified as &ldquo;held to maturity,&rdquo;
none of the investment securities held by SmartFinancial or SmartBank or any of their Subsidiaries are subject to any restriction
(whether contractual, statutory, or otherwise) that could materially impair the ability of the entity holding such investment securities
freely to dispose of such investment securities at any time. Neither SmartFinancial nor SmartBank nor any of their Subsidiaries
is a party to or has agreed to enter into any exchange-traded or over-the-counter equity, interest rate, foreign exchange, or other
swap, forward, future, option, cap, floor, or collar, or any other Contract that is a derivative contract (including various combinations
thereof), or owns securities that (A) are referred to generically as &ldquo;structured notes,&rdquo; &ldquo;high risk mortgage
derivatives,&rdquo; &ldquo;capped floating rate notes,&rdquo; or &ldquo;capped floating rate mortgage derivatives&rdquo; or (B)
are likely to have changes in value as a result of interest or exchange rate changes that materially exceed normal changes in value
attributable to interest or exchange rate changes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transactions
in Securities</I>. All offers and sales of SmartFinancial Stock by SmartFinancial, and all offers and sales of SmartBank Stock
by SmartBank, were at all relevant times exempt from, or complied with, the registration requirements of the Securities Act and
applicable state securities or &ldquo;Blue Sky&rdquo; Laws. Neither the SmartFinancial Parties nor, to the Knowledge of the SmartFinancial
Parties, (i) any director or officer of SmartFinancial or SmartBank, (ii) any Person related to any such director or officer by
blood, marriage, or adoption and residing in the same household, or (iii) any Person who has been knowingly provided material nonpublic
information by any one or more of any of the foregoing Persons has purchased or sold, or caused to be purchased or sold, any shares
of SmartFinancial Stock or SmartBank Stock or other securities issued by SmartFinancial or SmartBank in violation of any applicable
provision of federal or state securities Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(cc)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transactions
with Affiliates</I>. All &ldquo;covered transactions&rdquo; between SmartBank and any &ldquo;affiliate&rdquo; within the meaning
of Section&nbsp;23A and Section 23B of the Federal Reserve Act and the regulations promulgated pursuant thereto have been in compliance
with such provisions of Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(dd)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fiduciary
Accounts</I>. SmartFinancial and SmartBank and their Subsidiaries have properly administered all accounts for which they serve
or act as a fiduciary, including without limitation accounts for which they serves as trustee, agent, custodian, personal representative,
guardian, conservator, or investment advisor, in accordance with the terms of all governing documents and applicable Laws. Neither
SmartFinancial nor SmartBank nor any of their Subsidiaries, nor to the Knowledge of the SmartFinancial Parties any of their or
their Subsidiaries&rsquo; respective directors, officers, or employees, have committed any breach of trust with respect to any
fiduciary account, and the records for each such fiduciary account are true and correct and accurately reflect the assets of such
fiduciary account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ee)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax
Treatment of Transaction</I>. The SmartFinancial Parties have no Knowledge of any fact or circumstance relating to them or any
of their Subsidiaries that would or could be expected to prevent the Merger contemplated by this Agreement from qualifying as a
&ldquo;reorganization&rdquo; under Section&nbsp;368(a) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ff)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>CRA,
Anti-Money Laundering, OFAC, and Customer Information Security</I>. SmartBank received a rating of &ldquo;Satisfactory&rdquo; or
better in its most recent examination or interim review with respect to the CRA. The SmartFinancial Parties do not have Knowledge
of any facts or circumstances that would or could be expected to cause SmartBank (i)&nbsp;to be deemed not to be in satisfactory
compliance with the CRA and the regulations promulgated thereunder, or to be assigned a rating for CRA purposes by federal banking
regulators of lower than &ldquo;Satisfactory&rdquo;; (ii)&nbsp;to be deemed to be operating in violation of the Bank Secrecy Act,
the USA PATRIOT Act, any order issued with respect to anti-money laundering by the United States Department of the Treasury&rsquo;s
Office of Foreign Assets Control, or any other applicable anti-money laundering Law; or (iii)&nbsp;to be deemed not to be in satisfactory
compliance with applicable privacy of customer or consumer information requirements contained in any federal or state privacy Laws,
including without limitation in Title V of the Gramm-Leach-Bliley Act of 1999 and the regulations promulgated thereunder, as well
as the provisions of the information security program adopted by SmartBank. To the Knowledge of the SmartFinancial Parties, no
non-public customer information has been disclosed to or accessed by an unauthorized third party in a manner which could, or could
be expected to, cause SmartBank to undertake any remedial action. The board of directors of SmartBank has adopted, and SmartBank
has implemented, an anti-money laundering program that contains adequate and appropriate customer identification verification procedures
that comply with Section&nbsp;326 of the USA PATRIOT Act, and such anti-money laundering program meets the requirements of Section&nbsp;352
of the USA PATRIOT Act and the regulations thereunder, and SmartBank has complied in all material respects with any requirements
to file reports and other necessary documents as required by the USA PATRIOT Act and the regulations thereunder.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(gg)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Internal
Controls</I>. SmartFinancial and SmartBank and their Subsidiaries have devised and maintained a system of internal control over
financial reporting sufficient to provide reasonable assurances regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP and to provide reasonable assurances that (i)&nbsp;transactions
are executed in accordance with management&rsquo;s general or specific authorizations, (ii)&nbsp;transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets, and (iii)&nbsp;access
to assets is permitted only in accordance with management&rsquo;s general or specific authorizations. There are no significant
deficiencies or material weaknesses in the design or operation of internal controls over financial reporting which could adversely
affect the ability of SmartFinancial or SmartBank or their Subsidiaries to record, process, summarize, and report financial information.
There has occurred no fraud, whether or not material, that involves management or other employees who have a role in the SmartFinancial
Parties&rsquo; internal controls over financial reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(hh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Regulatory
Capital</I>. SmartFinancial and SmartBank are &ldquo;well-capitalized&rdquo; as such term is defined in 12 C.F.R. 225.2 and 12
C.F.R. 325.103, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Required
Shareholder Vote</I>. The affirmative vote of holders of at least a majority of the issued and outstanding shares of SmartFinancial
Common Stock is required for the approval of this Agreement and the Merger by the shareholders of SmartFinancial under the charter
and bylaws of SmartFinancial and the Corporation Act. Approval of this Agreement and the Merger by the holder(s) of SmartFinancial
Series&nbsp;A Stock is not required by the charter or bylaws of SmartFinancial or the Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Disclosure</I>.
No representation or warranty of the SmartFinancial Parties contained in this Agreement, and no statement contained in the SmartFinancial
Disclosure Memorandum or in any certificate delivered by SmartFinancial or SmartBank, contains any untrue statement of a material
fact or omits any material fact necessary to make the statements contained herein and therein, in light of the circumstances under
which they were made, not misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE VI</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>CONDUCT PENDING
THE MERGER</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bancshares
and Cornerstone Forbearances</U>. Except (i) as expressly contemplated or permitted by this Agreement, (ii) as required by applicable
Law or at the direction of a Governmental Entity, or (iii) with the prior written consent of the SmartFinancial Parties, which
consent will not be unreasonably withheld, from the date of this Agreement until the Effective Time, neither Bancshares nor Cornerstone
shall, and each of Bancshares and Cornerstone shall cause its Subsidiaries not to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conduct
its business other than in the regular, ordinary, and usual course consistent with past practice; fail to use commercially reasonable
best efforts to maintain and preserve intact its business organizations and customer and other business relationships, and retain
the services of its current officers and employees; or take any action that would adversely affect or delay its ability to perform
its obligations under this Agreement or to consummate the transactions contemplated hereby;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incur,
renew, modify, extend, or renegotiate any indebtedness for borrowed money or assume, guarantee, endorse, or otherwise as an accommodation
become responsible for the obligations of any other Person, other than (i)&nbsp;the creation of deposit liabilities in the ordinary
course of business consistent with past practice and (ii)&nbsp;Federal Home Loan Bank advances with a maturity of not more than
two years; prepay any indebtedness or other similar arrangements so as to cause Bancshares or Cornerstone, or any of their Subsidiaries,
to incur any prepayment penalty thereunder; or purchase any brokered deposits;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjust,
split, combine, or reclassify any of its capital stock; make, declare, pay, or set aside for payment any dividend or other distribution
on or in respect of its capital stock, other than (i) dividends due and payable by Bancshares to holders of Bancshares Series&nbsp;A
Stock in accordance with the terms of the Bancshares Series&nbsp;A Stock (the &ldquo;<U>Bancshares Preferred Stock Dividends</U>&rdquo;)
and (ii) dividends by Cornerstone to Bancshares for the purpose of funding the payment by Bancshares of the Bancshares Preferred
Stock Dividends, expenses incurred by Bancshares in connection with the transactions contemplated by this Agreement, and other
ordinary course operating expenses of Bancshares; grant any Person any right to acquire any shares of its capital stock or any
securities or rights convertible into or exercisable for its capital stock, except in connection with a Financing Transaction;
issue any additional shares of capital stock or any securities or obligations convertible into or exercisable for any shares of
its capital stock, except pursuant to the exercise of Bancshares Options outstanding as of the date hereof or in connection with
a Financing Transaction; or directly or indirectly redeem, purchase, repurchase, or otherwise acquire any shares of its capital
stock;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than in the ordinary course of business consistent with past practice, (i)&nbsp;sell, transfer, mortgage, encumber, or otherwise
dispose of any of its properties, assets, or business (including without limitation &ldquo;Other Real Estate Owned&rdquo;) or (ii)&nbsp;cancel,
release, or assign any material indebtedness or claims or waive any rights of substantial value;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any equity investment, either by purchase of stock or other securities, contributions to capital, property transfers, or purchase
of any property or assets of any other Person, or form any new Subsidiary or dissolve, liquidate, or terminate any existing Subsidiary;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
(i) as contemplated by <U>Section&nbsp;6.1(g)</U> or (ii) as set forth on <B><U>Schedule&nbsp;6.1(f)</U></B> of the Cornerstone
Disclosure Memorandum, enter into, renew or fail to renew, amend, modify, cancel, or terminate any new or existing Cornerstone
Material Contract;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make,
renew, increase the amount of, extend the term of, or modify any Loan, or commit to make, renew, increase the amount of, extend
the term of, or modify any Loan, except (i)&nbsp;in conformity with existing lending practices where the principal amount of the
subject Loan does not exceed $500,000 or (ii)&nbsp;Loans as to which Bancshares and Cornerstone, or their Subsidiaries, have binding
obligations to make such Loans (including without limitation lines of credit and letters of credit) as of the date of this Agreement
and which are disclosed on <B><U>Schedule&nbsp;6.1(g)</U></B> of the Cornerstone Disclosure Memorandum; <I>provided</I>, <I>however</I>,
that neither Bancshares nor Cornerstone, nor any of their Subsidiaries, shall make, renew, increase the amount of, extend the term
of, or modify any Loan, or commit to make, renew, increase the amount of, extend the term of, or modify any Loan, to any Person
if, when aggregated with all other outstanding Loans and commitments for Loans to such Person and such Person&rsquo;s family members
and Affiliates, the aggregate principal amount of all such Loans and commitments would exceed $1,000,000;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extend
credit to, directly or indirectly, any Person who has a Loan with Bancshares or Cornerstone or any of their Subsidiaries that has
been and remains classified by Bancshares or Cornerstone (or any of their Subsidiaries) or the FDIC or TDFI as &ldquo;doubtful,&rdquo;
&ldquo;substandard,&rdquo; or &ldquo;special mention&rdquo; or that has been and remains on non-accrual status (a &ldquo;<U>Cornerstone
Classified Borrower</U>&rdquo;), except (i) in conformity with existing lending practices and regulatory requirements and (ii)
where all outstanding Loans and commitments for Loans to such Cornerstone Classified Borrower and such Cornerstone Classified Borrower&rsquo;s
family members and Affiliates do not and would not exceed $250,000 in the aggregate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renegotiate,
renew, increase the amount of, extend the term of, or modify any Loan with or to a Cornerstone Classified Borrower, except (i)
in conformity with existing lending practices and regulatory requirements and (ii) where all outstanding Loans and commitments
for Loans to such Cornerstone Classified Borrower and such Cornerstone Classified Borrower&rsquo;s family members and Affiliates
do not and would not exceed $250,000 in the aggregate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
for Loans made in strict compliance with Regulation&nbsp;O of the Federal<FONT STYLE="color: red"> </FONT>Reserve (12&nbsp;C.F.R.
Part&nbsp;215), make or increase the amount of any Loan, or commit to make or increase the amount of any Loan, to any director,
executive officer, or principal shareholder (as such terms are defined in Regulation&nbsp;O) of Bancshares or Cornerstone or any
of their Subsidiaries, or any entity controlled, directly or indirectly, by any such Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commence
any claim, action, suit, or proceeding, other than to enforce an obligation owed to Bancshares or Cornerstone or any of their Subsidiaries
and in accordance with past practice, or enter into any settlement or similar agreement with respect to any claim, action, suit,
or proceeding, which claim, action, suit, proceeding, or settlement or other agreement (i) involves the payment by it of an amount
in excess of $25,000 or (ii) would impose any material restriction on its business or operations or the operations of any of its
Subsidiaries;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;6.1(l)</U></B> of the Cornerstone Disclosure Memorandum, (i) increase in any manner the salary,
wages, bonuses, compensation, or other benefits of, for, or payable to any of its directors, officers, or employees (except for
normal employee wage and salary increases in the ordinary course of business consistent with past practice not exceeding 3% per
year on a per employee basis), or pay any bonus, pension, retirement allowance, or contribution not required by or accrued for
under any existing plan, agreement, or arrangement to any such directors, officers, or employees; (ii) become a party to, amend,
renew, terminate, extend, or commit to any pension, retirement, profit-sharing, welfare, or other benefit plan, agreement, or arrangement,
or any employment, severance, retention, change of control, consulting, or other Contact, with or for the benefit of any director,
officer, or employee, except as required by applicable Law; (iii) amend, modify, or revise the terms of any outstanding stock option
or voluntarily accelerate the vesting of, or the lapsing of restrictions with respect to, any stock options or other stock-based
compensation; (iv) elect or appoint to any office with the title of executive vice president or higher any Person who does not
hold such office as of the date of this Agreement or elect or appoint, or propose or recommend for election or appointment, to
its board of directors any Person who is not a member of its board of directors as of the date of this Agreement; or (v) hire any
employee with an annualized salary (excluding health insurance and retirement plan benefits) in excess of $50,000, except as may
be necessary to replace an employee (other than an officer with a title of executive vice president or higher) whose employment
is terminated, whether voluntarily or involuntarily;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amend
its charter, bylaws, articles of organization, operating agreement, or other governing documents, or enter into any plan or agreement
of consolidation, merger, share exchange, or reorganization with any Person or any letter of intent or agreement in principle with
respect thereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
or decrease the rates of interest paid on time deposits or certificates of deposit, except in the ordinary course of business consistent
with past practice;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase
any debt security, including mortgage-backed and mortgage-related securities, other than United States government and United States
government agency securities with final maturities of less than two years;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any capital expenditures in excess of $25,000 individually or $50,000 in the aggregate, other than pursuant to binding commitments
existing on the date hereof or as currently budgeted by the Cornerstone Parties and, in each case, disclosed on <B><U>Schedule&nbsp;6.1(p)</U></B>
of the Cornerstone Disclosure Memorandum;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Establish
or commit to the establishment of any new branch office, loan or deposit production office, or other banking office or facilities,
or file any application or notice to relocate or close or terminate the operations of any banking office or facilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter
into any futures contract, option, swap agreement, interest rate cap, interest rate floor, or interest rate exchange agreement,
or take any other action for purposes of hedging the exposure of its interest-earning assets or interest-bearing liabilities to
changes in market rates of interest;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any material changes in policies or procedures in existence on the date of this Agreement with regard to the extension of credit,
or the establishment of reserves with respect to possible loss thereon or the charge off of losses incurred thereon, investments,
or asset/liability management, or in any other material banking policies or procedures, except as may be required by changes in
applicable Law or GAAP or at the direction of a Governmental Entity;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
with respect to foreclosures in process as of the date of this Agreement, foreclose upon or take a deed or title to any real estate
without providing prior notice to the SmartFinancial Parties;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
or change any material election in respect of Taxes, settle or compromise any material Tax liability, agree to an extension or
waiver of the statute of limitations with respect to the assessment, collection, or determination of any Taxes, enter into any
closing agreement with respect to any Taxes or surrender any right to claim a material Tax refund, adopt or change any method of
accounting with respect to Taxes, or file any amended Tax Return;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
any action that is intended or could be expected to result in (i) any of the representations or warranties of the Cornerstone Parties
set forth in this Agreement being or becoming untrue at any time prior to the Effective Time, (ii) any of the conditions to the
Merger set forth in <U>Article&nbsp;VIII</U> not being satisfied, or (iii) a breach or violation of any provision of this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adopt
or implement any change in its accounting principles, practices, or methods, other than as may be required by GAAP or regulatory
guidelines;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter
into any new line of business, introduce any new products or services, or change the manner in which its investment securities
or loan portfolio is classified or reported;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
any action that would prevent or impede the Merger from qualifying as a &ldquo;reorganization&rdquo; within the meaning of Section&nbsp;368(a)
of the Code; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agree
to do, make any commitment to do, or adopt any resolutions of its board of directors (or other governing body) in support of, recommending,
or proposing any of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SmartFinancial
and SmartBank Forbearances</U>. Except (i) as expressly contemplated or permitted by this Agreement, (ii) as required by applicable
Law or at the direction of a Governmental Entity, or (iii) with the prior written consent of the Cornerstone Parties, which consent
will not be unreasonably withheld, from the date of this Agreement until the Effective Time, neither SmartFinancial nor SmartBank
shall, and each of SmartFinancial and SmartBank shall cause its Subsidiaries not to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conduct
its business other than in the regular, ordinary, and usual course consistent with past practice; fail to use commercially reasonable
best efforts to maintain and preserve intact its business organizations and customer and other business relationships, and retain
the services of its current officers and employees; or take any action that would adversely affect or delay its ability to perform
its obligations under this Agreement or to consummate the transactions contemplated hereby;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incur,
renew, modify, extend, or renegotiate any indebtedness for borrowed money or assume, guarantee, endorse, or otherwise as an accommodation
become responsible for the obligations of any other Person, other than (i)&nbsp;the creation of deposit liabilities in the ordinary
course of business consistent with past practice and (ii)&nbsp;Federal Home Loan Bank advances with a maturity of not more than
two years; prepay any indebtedness or other similar arrangements so as to cause SmartFinancial or SmartBank, or any of their Subsidiaries,
to incur any prepayment penalty thereunder; or purchase any brokered deposits;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjust,
split, combine, or reclassify any of its capital stock; make, declare, pay, or set aside for payment any dividend or other distribution
on or in respect of its capital stock, other than (i) dividends due and payable by SmartFinancial to holders of SmartFinancial
Series&nbsp;A Stock in accordance with the terms of the SmartFinancial Series&nbsp;A Stock (the &ldquo;<U>SmartFinancial Preferred
Stock Dividends</U>&rdquo;) and (ii) dividends by SmartBank to SmartFinancial for the purpose of funding the payment by SmartFinancial
of the SmartFinancial Preferred Stock Dividends, expenses incurred by SmartFinancial in connection with the transactions contemplated
by this Agreement, and other ordinary course operating expenses of SmartFinancial; grant any Person any right to acquire any shares
of its capital stock or any securities or rights convertible into or exercisable for its capital stock; issue any additional shares
of capital stock or any securities or obligations convertible into or exercisable for any shares of its capital stock, except pursuant
to the exercise of SmartFinancial Options outstanding as of the date hereof; or directly or indirectly redeem, purchase, repurchase,
or otherwise acquire any shares of its capital stock;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
than in the ordinary course of business consistent with past practice, (i)&nbsp;sell, transfer, mortgage, encumber, or otherwise
dispose of any of its properties, assets, or business (including without limitation &ldquo;Other Real Estate Owned&rdquo;) or (ii)&nbsp;cancel,
release, or assign any material indebtedness or claims or waive any rights of substantial value;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any equity investment, either by purchase of stock or other securities, contributions to capital, property transfers, or purchase
of any property or assets of any other Person, or form any new Subsidiary or dissolve, liquidate, or terminate any existing Subsidiary;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
(i) as contemplated by <U>Section&nbsp;6.2(g)</U> or (ii) as set forth on <B><U>Schedule&nbsp;6.2(f)</U></B> of the SmartFinancial
Disclosure Memorandum, enter into, renew or fail to renew, amend, modify, cancel, or terminate any new or existing SmartFinancial
Material Contract;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make,
renew, increase the amount of, extend the term of, or modify any Loan, or commit to make, renew, increase the amount of, extend
the term of, or modify any Loan, except (i)&nbsp;in conformity with existing lending practices where the principal amount of the
subject Loan does not exceed $500,000 or (ii)&nbsp;Loans as to which SmartFinancial and SmartBank, or their Subsidiaries, have
binding obligations to make such Loans (including without limitation lines of credit and letters of credit) as of the date of this
Agreement and which are disclosed on <B><U>Schedule&nbsp;6.2(g)</U></B> of the SmartFinancial Disclosure Memorandum; <I>provided</I>,
<I>however</I>, that neither SmartFinancial nor SmartBank, nor any of their Subsidiaries, shall make, renew, increase the amount
of, extend the term of, or modify any Loan, or commit to make, renew, increase the amount of, extend the term of, or modify any
Loan, to any Person if, when aggregated with all other outstanding Loans and commitments for Loans to such Person and such Person&rsquo;s
family members and Affiliates, the aggregate principal amount of all such Loans and commitments would exceed $1,000,000;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extend
credit to, directly or indirectly, any Person who has a Loan with SmartFinancial or SmartBank or any of their Subsidiaries that
has been and remains classified by SmartFinancial or SmartBank (or any of their Subsidiaries) or the Federal Reserve or TDFI as
&ldquo;doubtful,&rdquo; &ldquo;substandard,&rdquo; or &ldquo;special mention&rdquo; or that has been and remains on non-accrual
status (a &ldquo;<U>SmartFinancial Classified Borrower</U>&rdquo;), except (i) in conformity with existing lending practices and
regulatory requirements and (ii) where all outstanding Loans and commitments for Loans to such SmartFinancial Classified Borrower
and such SmartFinancial Classified Borrower&rsquo;s family members and Affiliates do not and would not exceed $250,000 in the aggregate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renegotiate,
renew, increase the amount of, extend the term of, or modify any Loan with or to a SmartFinancial Classified Borrower, except (i)
in conformity with existing lending practices and regulatory requirements and (ii) where all outstanding Loans and commitments
for Loans to such SmartFinancial Classified Borrower and such SmartFinancial Classified Borrower&rsquo;s family members and Affiliates
do not and would not exceed $250,000 in the aggregate;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
for Loans made in strict compliance with Regulation&nbsp;O of the Federal<FONT STYLE="color: red"> </FONT>Reserve (12&nbsp;C.F.R.
Part&nbsp;215), make or increase the amount of any Loan, or commit to make or increase the amount of any Loan, to any director,
executive officer, or principal shareholder (as such terms are defined in Regulation&nbsp;O) of SmartFinancial or SmartBank or
any of their Subsidiaries, or any entity controlled, directly or indirectly, by any such Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commence
any claim, action, suit, or proceeding, other than to enforce an obligation owed to SmartFinancial or SmartBank or any of their
Subsidiaries and in accordance with past practice, or enter into any settlement or similar agreement with respect to any claim,
action, suit, or proceeding, which claim, action, suit, proceeding, or settlement or other agreement (i) involves the payment by
it of an amount in excess of $25,000 or (ii) would impose any material restriction on its business or operations or the operations
of any of its Subsidiaries;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;6.2(l)</U></B> of the SmartFinancial Disclosure Memorandum, (i) increase in any manner the
salary, wages, bonuses, compensation, or other benefits of, for, or payable to any of its directors, officers, or employees (except
for normal employee wage and salary increases in the ordinary course of business consistent with past practice not exceeding 3%
per year on a per employee basis), or pay any bonus, pension, retirement allowance, or contribution not required by or accrued
for under any existing plan, agreement, or arrangement to any such directors, officers, or employees; (ii) become a party to, amend,
renew, terminate, extend, or commit to any pension, retirement, profit-sharing, welfare, or other benefit plan, agreement, or arrangement,
or any employment, severance, retention, change of control, consulting, or other Contact, with or for the benefit of any director,
officer, or employee, except as required by applicable Law; (iii) amend, modify, or revise the terms of any outstanding stock option
or voluntarily accelerate the vesting of, or the lapsing of restrictions with respect to, any stock options or other stock-based
compensation; (iv) elect or appoint to any office with the title of executive vice president or higher any Person who does not
hold such office as of the date of this Agreement or elect or appoint, or propose or recommend for election or appointment, to
its board of directors any Person who is not a member of its board of directors as of the date of this Agreement; or (v) hire any
employee with an annualized salary (excluding health insurance and retirement plan benefits) in excess of $50,000, except as may
be necessary to replace an employee (other than an officer with a title of executive vice president or higher) whose employment
is terminated, whether voluntarily or involuntarily;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amend
its charter, bylaws, articles of organization, operating agreement, or other governing documents, or enter into any plan or agreement
of consolidation, merger, share exchange, or reorganization with any Person or any letter of intent or agreement in principle with
respect thereto;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
or decrease the rates of interest paid on time deposits or certificates of deposit, except in the ordinary course of business consistent
with past practice;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase
any debt security, including mortgage-backed and mortgage-related securities, other than United States government and United States
government agency securities with final maturities of less than two years;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any capital expenditures in excess of $25,000 individually or $50,000 in the aggregate, other than pursuant to binding commitments
existing on the date hereof or as currently budgeted by the SmartFinancial Parties and, in each case, disclosed on <B><U>Schedule&nbsp;6.2(p)</U></B>
of the SmartFinancial Disclosure Memorandum;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth on <B><U>Schedule&nbsp;6.2(q)</U></B> of the SmartFinancial Disclosure Memorandum, establish or commit to the establishment
of any new branch office, loan or deposit production office, or other banking office or facilities, or file any application or
notice to relocate or close or terminate the operations of any banking office or facilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter
into any futures contract, option, swap agreement, interest rate cap, interest rate floor, or interest rate exchange agreement,
or take any other action for purposes of hedging the exposure of its interest-earning assets or interest-bearing liabilities to
changes in market rates of interest;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
any material changes in policies or procedures in existence on the date of this Agreement with regard to the extension of credit,
or the establishment of reserves with respect to possible loss thereon or the charge off of losses incurred thereon, investments,
or asset/liability management, or in any other material banking policies or procedures, except as may be required by changes in
applicable Law or GAAP or at the direction of a Governmental Entity;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
with respect to foreclosures in process as of the date of this Agreement, foreclose upon or take a deed or title to any real estate
without providing prior notice to the Cornerstone Parties;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(u)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Make
or change any material election in respect of Taxes, settle or compromise any material Tax liability, agree to an extension or
waiver of the statute of limitations with respect to the assessment, collection, or determination of any Taxes, enter into any
closing agreement with respect to any Taxes or surrender any right to claim a material Tax refund, adopt or change any method of
accounting with respect to Taxes, or file any amended Tax Return;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
any action that is intended or could be expected to result in (i) any of the representations or warranties of the SmartFinancial
Parties set forth in this Agreement being or becoming untrue at any time prior to the Effective Time, (ii) any of the conditions
to the Merger set forth in <U>Article&nbsp;VIII</U> not being satisfied, or (iii) a breach or violation of any provision of this
Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(w)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adopt
or implement any change in its accounting principles, practices, or methods, other than as may be required by GAAP or regulatory
guidelines;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enter
into any new line of business, introduce any new products or services, or change the manner in which its investment securities
or loan portfolio is classified or reported;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(y)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take
any action that would prevent or impede the Merger from qualifying as a &ldquo;reorganization&rdquo; within the meaning of Section&nbsp;368(a)
of the Code; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(z)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agree
to do, make any commitment to do, or adopt any resolutions of its board of directors (or other governing body) in support of, recommending,
or proposing any of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Absence
of Control</U>. It is the mutual intent of the Parties that (i) neither SmartFinancial nor SmartBank shall, by reason of this Agreement,
be deemed to control, directly or indirectly, Bancshares or Cornerstone or to exercise, directly or indirectly, a controlling influence
over the management or policies of Bancshares or Cornerstone and (ii) neither Bancshares nor Cornerstone shall, by reason of this
Agreement, be deemed to control, directly or indirectly, SmartFinancial or SmartBank or to exercise, directly or indirectly, a
controlling influence over the management or policies of SmartFinancial or SmartBank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE VII</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>COVENANTS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acquisition
Proposals</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Party shall, and shall direct and use its reasonable best efforts to cause its Subsidiaries and its and its Subsidiaries&rsquo;
Affiliates, directors, officers, employees, agents, and representatives (including without limitation any investment banker, financial
advisor, attorney, accountant, or other representative retained by such Party or any of its Subsidiaries) to, immediately cease
and cause to be terminated any existing activities, discussions, or negotiations with any Person other than the other Parties hereto
with respect to the possibility, consideration, or consummation of any Acquisition Proposal, and will use its reasonable best efforts
to enforce, and will direct and use its reasonable best efforts to cause its Subsidiaries to use their reasonable best efforts
to enforce, any confidentiality or similar agreement relating to any Acquisition Proposal, including by requesting any other party
or parties thereto to promptly return or destroy any confidential information previously furnished by or on behalf of such Party
or any of its Subsidiaries thereunder and by specifically enforcing the terms thereof in a court of competent jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
the date of this Agreement until the earlier of the Effective Time or the termination of this Agreement in accordance with its
terms, each Party shall not, and shall direct and cause its Subsidiaries and its and its Subsidiaries&rsquo; Affiliates, directors,
officers, employees, agents, and representatives (including without limitation any investment banker, financial advisor, attorney,
accountant, or other representative retained by such Party or any of its Subsidiaries) not to, directly or indirectly through another
Person, (i)&nbsp;solicit, initiate, or encourage (including by way of furnishing information or assistance), or take any other
action to facilitate or that could result in, any inquiries or discussions regarding, or the making of any proposal or offer that
constitutes or could be expected to lead to, an Acquisition Proposal; (ii)&nbsp;provide any non-public information or data regarding
such Party or any of its Subsidiaries to any Person other than the other Parties hereto relating to or in connection with any Acquisition
Proposal or any inquiry or indication of interest that could be expected to lead to an Acquisition Proposal; (iii)&nbsp;continue
or participate in any discussions or negotiations, or otherwise communicate in any way with any Person other than the other Parties
hereto, regarding any Acquisition Proposal; (iv)&nbsp;approve, endorse, or recommend, or execute, enter into, or consummate, any
indication of interest, letter of intent, or other Contract relating to any Acquisition Proposal or requiring such Party to abandon,
terminate, or fail to consummate the transactions contemplated hereby, or propose to do any of the foregoing; or (v)&nbsp;make
or authorize any statement, recommendation, or solicitation in support of any Acquisition Proposal; <I>provided</I>, <I>however</I>,
that (y) prior to the date of the SmartFinancial Meeting, if the SmartFinancial board of directors determines in good faith, after
consultation with its outside legal and financial advisors, that the failure to do so would cause the SmartFinancial board of directors
to breach its fiduciary duties under applicable Law, SmartFinancial and SmartBank may, in response to a <I>bona fide</I>, written
Acquisition Proposal not solicited in violation of this <U>Section&nbsp;7.1</U> that the SmartFinancial board of directors determines
in good faith constitutes a Superior SmartFinancial Proposal, subject to providing 48&nbsp;hours prior written notice of their
decision to take such action to the Cornerstone Parties and identifying the Person making the Superior SmartFinancial Proposal
and all of the material terms and conditions of such Superior SmartFinancial Proposal and compliance with <U>Section&nbsp;7.1(c)</U>,
(1)&nbsp;furnish information with respect to SmartFinancial and SmartBank and their Subsidiaries to any Person making such Superior
SmartFinancial Proposal pursuant to a customary confidentiality agreement on terms no more favorable to such Person than the terms
contained in the Confidentiality Agreement, and (2)&nbsp;participate in discussions or negotiations with such Person regarding
such Superior SmartFinancial Proposal, and (z) prior to the date of the Bancshares Meeting, if the Bancshares board of directors
determines in good faith, after consultation with its outside legal and financial advisors, that the failure to do so would cause
the Bancshares board of directors to breach its fiduciary duties under applicable Law, Bancshares and Cornerstone may, in response
to a <I>bona fide</I>, written Acquisition Proposal not solicited in violation of this <U>Section&nbsp;7.1</U> that the Bancshares
board of directors determines in good faith constitutes a Superior Bancshares Proposal, subject to providing 48&nbsp;hours prior
written notice of their decision to take such action to the SmartFinancial Parties and identifying the Person making the Superior
Bancshares Proposal and all of the material terms and conditions of such Superior Bancshares Proposal and compliance with <U>Section&nbsp;7.1(c)</U>,
(1)&nbsp;furnish information with respect to Bancshares and Cornerstone and their Subsidiaries to any Person making such Superior
Bancshares Proposal pursuant to a customary confidentiality agreement on terms no more favorable to such Person than the terms
contained in the Confidentiality Agreement, and (2)&nbsp;participate in discussions or negotiations with such Person regarding
such Superior Bancshares Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the obligations of the Parties set forth above, each Party shall promptly (within not more than 24&nbsp;hours) advise
the other Parties orally and in writing of its receipt of any Acquisition Proposal, or any request for information or inquiry which
could be expected to lead to an Acquisition Proposal, and shall keep the other Parties informed, on a current basis, of the continuing
status thereof, including the terms and conditions thereof and any changes thereto, and shall provide to the other Parties any
written materials received by such Party or any of its Subsidiaries in connection therewith. Additionally, each Party shall contemporaneously
provide or make available to the other Parties all materials provided or made available to any third party pursuant to this <U>Section&nbsp;7.1</U>
which have not been previously provided or made available to such other Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the avoidance of doubt, each Party expressly agrees that any breach or violation of the provisions of this <U>Section&nbsp;7.1</U>
by any of its Subsidiaries or by any of its or its Subsidiaries&rsquo; Affiliates, directors, officers, employees, agents, or representatives
(including without limitation any investment banker, financial advisor, attorney, accountant, or other representative retained
by such Party or any of its Subsidiaries) shall be deemed a breach or violation of this <U>Section&nbsp;7.1</U> by such Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing
contained in this <U>Section&nbsp;7.1</U> shall prevent a Party or such Party&rsquo;s board of directors from (i)&nbsp;taking the
actions permitted by <U>Section&nbsp;7.8(b)</U> and <U>Section&nbsp;7.9(b)</U> of this Agreement or (ii)&nbsp;informing any Person
who submits an unsolicited, <I>bona fide</I> Acquisition Proposal of such Party&rsquo;s obligations pursuant to this <U>Section&nbsp;7.1</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
of Certain Matters</U>. Prior to the Effective Time, each Party shall promptly notify the other Parties in writing of any fact,
event, occurrence, circumstance, or condition known to it that (a) constitutes or has caused, or could be expected to cause, a
material breach of any of the representations, warranties, covenants, or agreements of such Party set forth in this Agreement,
<I>provided</I>, <I>however</I>, that no such notification shall (i) affect the representations, warranties, covenants, or agreements
of the Parties, or the conditions to the obligations of the Parties, contained in this Agreement or (ii) be deemed to amend or
supplement the Disclosure Memoranda; (b) has had, or is reasonably likely to have, either individually or taken together with all
other facts, events, occurrences, circumstances, and conditions known to such Party, a Bancshares Material Adverse Effect (as to
any notice required to be given by the Cornerstone Parties) or a SmartFinancial Material Adverse Effect (as to any notice required
to be given by the SmartFinancial Parties); (c) would, or could be expected to, prohibit, impede, or materially delay the consummation
of the transactions contemplated by this Agreement. Further, each Party shall promptly give notice to the other Parties of any
notice or other communication from any third party alleging that the consent or approval of such third party is or may be required
in connection with any of the transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Access
and Information</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Effective Time, upon reasonable notice and subject to applicable Laws relating to the exchange of information, the Cornerstone
Parties shall, and shall cause their Subsidiaries to, afford to the SmartFinancial Parties and their representatives (including
without limitation their directors, officers, and employees and financial advisors, legal counsel, accountants, and other professionals
retained by the SmartFinancial Parties) reasonable access during normal business hours to the books, records (including without
limitation Tax Returns and work papers of independent auditors and materials prepared in connection with meetings of the boards
of directors of Bancshares and Cornerstone), Contracts, properties, assets, and personnel of the Cornerstone Parties and their
Subsidiaries, as well as such other information relating to the Cornerstone Parties or their Subsidiaries as the SmartFinancial
Parties may reasonably request. Likewise, prior to the Effective Time, upon reasonable notice and subject to applicable Laws relating
to the exchange of information, the SmartFinancial Parties shall, and shall cause their Subsidiaries to, afford to the Cornerstone
Parties and their representatives (including without limitation their directors, officers, and employees and financial advisors,
legal counsel, accountants, and other professionals retained by the Cornerstone Parties) reasonable access during normal business
hours to the books, records (including without limitation Tax Returns and work papers of independent auditors and materials prepared
in connection with meetings of the boards of directors of SmartFinancial and SmartBank), Contracts, properties, assets, and personnel
of the SmartFinancial Parties and their Subsidiaries, as well as such other information relating to the SmartFinancial Parties
or their Subsidiaries as the Cornerstone Parties may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
the date of this Agreement until the Effective Time, each of the Cornerstone Parties shall, and shall cause it Subsidiaries to,
promptly furnish to the SmartFinancial Parties, and each of the SmartFinancial Parties shall, and shall cause its Subsidiaries
to, promptly furnish to the Cornerstone Parties, (i)&nbsp;a copy of any report, application, notice, schedule, or other document
or instrument filed with or received from any Governmental Entity, (ii)&nbsp;a copy of any report or other materials provided by
it to its senior management or board of directors, and (iii)&nbsp;such other information regarding its or its Subsidiaries&rsquo;
business, properties, assets, or personnel as any other Party may reasonably request, subject to the attorney-client privilege.
Additionally, prior to the Effective Time, each of the Cornerstone Parties shall deliver to the SmartFinancial Parties, and each
of the SmartFinancial Parties shall deliver to the Cornerstone Parties, (i) as soon as practicable, but in no event more than 20&nbsp;days,
after the end of each calendar quarter ending after the date of this Agreement (other than the last quarter of each fiscal year
ending December 31) its consolidated statement of financial condition and consolidated statements of income, comprehensive income,
changes in stockholders&rsquo; equity, and cash flows, without related notes, for such quarter prepared in accordance with GAAP,
and (ii) as soon as practicable, but in no event more than 60&nbsp;days after the end of each fiscal year ending after the date
of this Agreement, its consolidated statement of financial condition and consolidated statements of income, comprehensive income,
changes in stockholders&rsquo; equity, and cash flows for such year prepared in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
investigation by the Parties or their representatives pursuant to this <U>Section&nbsp;7.3</U> shall affect or be deemed to modify
any of the representations, warranties, covenants, or agreements of the Parties set forth in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Regulatory
Filings; Consents and Approvals</U>.&nbsp;&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties shall cooperate with each other and use their respective reasonable best efforts to prepare all documentation, to effect
all filings, and to obtain all permits, consents, approvals, waivers, and authorizations of all Governmental Entities and other
third parties, including the Regulatory Approvals, necessary or advisable to consummate the Merger and the other transactions contemplated
by this Agreement. The SmartFinancial Parties shall use their reasonable best efforts to make any initial application, notice,
and waiver filings required by the Federal Reserve or the TDFI in connection with the Merger within 45&nbsp;days after the date
of this Agreement. Each Party shall have the right to review in advance, and to the extent practicable each Party shall consult
with the other Parties with respect to, in each case subject to applicable Laws relating to the exchange of information, all written
applications, notices, and waiver requests, and any other written information, submitted to any Governmental Entity or other third
party in connection with the transactions contemplated hereby. In exercising the foregoing rights, each Party agrees to act reasonably
and as promptly as practicable. Each Party agrees that it shall consult with the other Parties with respect to the obtaining of
all permits, consents, approvals, waivers, and authorizations of all Governmental Entities and other third parties, including the
Regulatory Approvals, necessary or advisable to consummate the transactions contemplated by this Agreement, and each Party shall
keep the other Parties reasonably apprised of the status of material matters relating to the consummation of such transactions.
Each Party further agrees to provide the other Parties with a copy of all written correspondence to or from any Governmental Entity
relating to the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Party agrees to, upon request, furnish the other Parties with all information concerning itself, its Subsidiaries, and its directors,
officers, and shareholders, as well as such other matters, as may be necessary or advisable in connection with any filing, notice,
or application made or given by or on behalf of such other Parties or any of their Subsidiaries with or to any Governmental Entity
or other third party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Antitakeover
Provisions</U>. Bancshares and Cornerstone shall take all steps required by any applicable Law or under any relevant agreement
or other document to exempt or continue to exempt the SmartFinancial Parties, this Agreement, and the transactions contemplated
by this Agreement from any provisions of an antitakeover nature in Bancshares&rsquo; or Cornerstone&rsquo;s charter, bylaws, or
other governing documents and the provisions of any federal or state antitakeover Laws. Likewise, SmartFinancial and SmartBank
shall take all steps required by any applicable Law or under any relevant agreement or other document to exempt or continue to
exempt the Cornerstone Parties, this Agreement, and the transactions contemplated by this Agreement from any provisions of an antitakeover
nature in SmartFinancial&rsquo;s or SmartBank&rsquo;s charter, bylaws, or other governing documents and the provisions of any federal
or state antitakeover Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Assurances</U>. Subject to the terms and conditions of this Agreement, each of the Parties agrees to use its reasonable best efforts
to promptly take, or cause to be promptly taken, all actions, and to promptly do, or cause to be promptly done, all things, necessary,
proper, or advisable under applicable Laws to consummate and make effective the transactions contemplated by this Agreement as
expeditiously as reasonably possible, including using its reasonable best efforts to obtain all necessary actions or non-actions,
extensions, waivers, consents, and approvals from Governmental Entities, effecting all necessary registrations, applications, and
filings (including without limitation filings under any applicable federal or state securities Laws), and obtaining any required
contractual consents and regulatory approvals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Publicity</U>.
The Parties shall consult with each other before issuing any press release or making any public statements or disclosures (including
without limitation written communications to shareholders) with respect to this Agreement or the transactions, including the Merger,
contemplated hereby and shall not issue any such press release or make any such public statements or disclosures without the prior
consent of the other Parties, which consent shall not be unreasonably withheld; <I>provided</I>, <I>however</I>, that nothing contained
in this&nbsp;<U>Section&nbsp;7.7</U><I>&nbsp;</I>shall be deemed to prohibit a Party from making any disclosure that legal counsel
to such Party determines necessary in order to satisfy such Party&rsquo;s disclosure obligations under applicable Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bancshares
Shareholders Meeting</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
shall take, in accordance with applicable Law and its charter and bylaws, all action necessary to call, give notice of, convene,
and hold, as promptly as reasonably practicable after the date on which the Registration Statement becomes effective under the
Securities Act, a meeting of Bancshares&rsquo; shareholders (including any adjournment or postponement thereof, the &ldquo;<U>Bancshares
Meeting</U>&rdquo;) for the purpose of Bancshares&rsquo; shareholders considering and voting on approval of this Agreement, the
Authorized Stock Amendment, the Amended and Restated Bancshares Charter, the Amended and Restated Bancshares Bylaws, the Series&nbsp;A
Redemption Amendment, the <FONT STYLE="background-color: white">Reverse Stock Split </FONT>Amendment, the Bancshares Incentive
Plan, and any other matters required to be approved by Bancshares&rsquo; shareholders for the consummation of the transactions
contemplated hereby. Except with the prior approval of the SmartFinancial Parties (which will not be unreasonably withheld), no
other matters shall be submitted for consideration by or approval of Bancshares&rsquo; shareholders at the Bancshares Meeting.
Subject to <U>Section&nbsp;7.8(b)</U>, Bancshares and its board of directors (i) shall at all times prior to and during the Bancshares
Meeting recommend to Bancshares&rsquo; shareholders the approval of this Agreement, the Authorized Stock Amendment, the Amended
and Restated Bancshares Charter, the Amended and Restated Bancshares Bylaws, the Series&nbsp;A Redemption Amendment, the <FONT STYLE="background-color: white">Reverse
Stock Split </FONT>Amendment, and the Bancshares Incentive Plan, and shall take all reasonable and lawful action to solicit and
obtain such approvals of Bancshares&rsquo; shareholders, and (ii) shall not withdraw, modify, or qualify in any manner adverse
to the SmartFinancial Parties their recommendation of this Agreement, the Authorized Stock Amendment, the Amended and Restated
Bancshares Charter, the Amended and Restated Bancshares Bylaws, the Series&nbsp;A Redemption Amendment, the <FONT STYLE="background-color: white">Reverse
Stock Split </FONT>Amendment, or the Bancshares Incentive Plan to Bancshares&rsquo; shareholders, or take any other action or make
any other public statement inconsistent with such recommendation (the actions prohibited by this clause (ii) being referred to
as a &ldquo;<U>Bancshares Change of Recommendation</U>&rdquo;). Notwithstanding any Bancshares Change of Recommendation, this Agreement
and the Authorized Stock Amendment, the Amended and Restated Bancshares Charter, the Amended and Restated Bancshares Bylaws, the
Series&nbsp;A Redemption Amendment, the <FONT STYLE="background-color: white">Reverse Stock Split </FONT>Amendment, and the Bancshares
Incentive Plan shall be submitted to the shareholders of Bancshares at the Bancshares Meeting for the purpose of Bancshares&rsquo;
shareholders considering and voting on approval of this Agreement, the Authorized Stock Amendment, the Amended and Restated Bancshares
Charter, the Amended and Restated Bancshares Bylaws, the Series&nbsp;A Redemption Amendment, the <FONT STYLE="background-color: white">Reverse
Stock Split </FONT>Amendment, the Bancshares Incentive Plan and any other matters required to be approved by Bancshares&rsquo;
shareholders for the consummation of the transactions contemplated hereby. Additionally, neither Bancshares nor Cornerstone shall
submit to or for a vote of its shareholder(s) any Acquisition Proposal other than the transactions contemplated by this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, Bancshares and its board of directors may make a Bancshares Change of Recommendation if, but only if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Cornerstone Parties have complied in all material respects with <U>Section&nbsp;7.1</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bancshares board of directors determines in good faith (after consultation with and based on the advice of outside legal counsel)
that its failure to do so would result in a violation of its fiduciary duties under applicable Law; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the Bancshares Change of Recommendation stems from or is a result of, or relates in any manner to, an Acquisition Proposal,
(A) the Bancshares board of directors has concluded in good faith, after giving effect to all of the adjustments which may be offered
by the SmartFinancial Parties pursuant to clause&nbsp;(C) below, that such Acquisition Proposal constitutes a Superior Bancshares
Proposal, (B)&nbsp;Bancshares notifies the SmartFinancial Parties at least five Business Days in advance of its intention to effect
a Bancshares Change of Recommendation in response to such Superior Bancshares Proposal, and furnishes to the SmartFinancial Parties
the identity of the Person making such Superior Bancshares Proposal and a copy of the proposed transaction agreements and all other
documents relating to such Superior Bancshares Proposal, and (C)&nbsp;prior to effecting the Bancshares Change of Recommendation,
the Cornerstone Parties shall, and shall cause their financial, legal, and other advisors to, for a period of five Business Days
following Bancshares&rsquo; delivery of the notice referred to in clause&nbsp;(B) above, negotiate in good faith with the SmartFinancial
Parties (to the extent the SmartFinancial Parties desire to so negotiate) to make such adjustments in the terms and conditions
of this Agreement so that such Acquisition Proposal ceases to constitute a Superior Bancshares Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SmartFinancial
Shareholders Meeting</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SmartFinancial
shall take, in accordance with applicable Law and its charter and bylaws, all action necessary to call, give notice of, convene,
and hold, as promptly as reasonably practicable after the date on which the Registration Statement becomes effective under the
Securities Act, a meeting of SmartFinancial&rsquo;s shareholders (including any adjournment or postponement thereof, the &ldquo;<U>SmartFinancial
Meeting</U>&rdquo;) for the purpose of SmartFinancial&rsquo;s shareholders considering and voting on approval of this Agreement
and any other matters required to be approved by SmartFinancial&rsquo;s shareholders for the consummation of the transactions contemplated
hereby. Except with the prior approval of the Cornerstone Parties (which will not be unreasonably withheld), no other matters shall
be submitted for consideration by or approval of SmartFinancial&rsquo;s shareholders at the SmartFinancial Meeting. Subject to
<U>Section&nbsp;7.9(b)</U>, SmartFinancial and its board of directors (i) shall at all times prior to and during the SmartFinancial
Meeting recommend to SmartFinancial&rsquo;s shareholders the approval of this Agreement, and shall take all reasonable and lawful
action to solicit and obtain such approval of SmartFinancial&rsquo;s shareholders, and (ii) shall not withdraw, modify, or qualify
in any manner adverse to the Cornerstone Parties their recommendation of this Agreement to SmartFinancial&rsquo;s shareholders,
or take any other action or make any other public statement inconsistent with such recommendation (the actions prohibited by this
clause (ii) being referred to as a &ldquo;<U>SmartFinancial Change of Recommendation</U>&rdquo;). Notwithstanding any SmartFinancial
Change of Recommendation, this Agreement shall be submitted to the shareholders of SmartFinancial at the SmartFinancial Meeting
for the purpose of SmartFinancial&rsquo;s shareholders considering and voting on approval of this Agreement and any other matters
required to be approved by SmartFinancial&rsquo;s shareholders for the consummation of the transactions contemplated hereby. Additionally,
SmartFinancial shall not submit to or for a vote of its shareholders any Acquisition Proposal other than the transactions contemplated
by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, SmartFinancial and its board of directors may make a SmartFinancial Change of Recommendation if, but only if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial Parties have complied in all material respects with <U>Section&nbsp;7.1</U>;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
SmartFinancial board of directors determines in good faith (after consultation with and based on the advice of outside legal counsel)
that its failure to do so would result in a violation of its fiduciary duties under applicable Law; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the SmartFinancial Change of Recommendation stems from or is a result of, or relates in any manner to, an Acquisition
Proposal, (A) the SmartFinancial board of directors has concluded in good faith, after giving effect to all of the adjustments
which may be offered by the Cornerstone Parties pursuant to clause&nbsp;(C) below, that such Acquisition Proposal constitutes a
Superior SmartFinancial Proposal, (B)&nbsp;SmartFinancial notifies the Cornerstone Parties at least five Business Days in advance
of its intention to effect a SmartFinancial Change of Recommendation in response to such Superior SmartFinancial Proposal, and
furnishes to the Cornerstone Parties the identity of the Person making such Superior SmartFinancial Proposal and a copy of the
proposed transaction agreements and all other documents relating to such Superior SmartFinancial Proposal, and (C)&nbsp;prior to
effecting the SmartFinancial Change of Recommendation, the SmartFinancial Parties shall, and shall cause their financial, legal,
and other advisors to, for a period of five Business Days following SmartFinancial&rsquo;s delivery of the notice referred to in
clause&nbsp;(B) above, negotiate in good faith with the Cornerstone Parties (to the extent the Cornerstone Parties desires to so
negotiate) to make such adjustments in the terms and conditions of this Agreement so that such Acquisition Proposal ceases to constitute
a Superior SmartFinancial Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employee
and Benefit Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a period of not less than six months after the Effective Time, SmartBank will provide, and the Surviving Corporation shall cause
SmartBank to provide, employees of SmartBank immediately prior to the Effective Time who remain employed by SmartBank after the
Effective Time with compensation and benefits substantially similar, in the aggregate, to that provided to such employees immediately
prior to the Effective Time (excluding any compensation and benefits payable or accelerated as a result of the transactions contemplated
by this Agreement). The SmartFinancial Benefit Plans maintained by, contributed to, or sponsored by SmartBank prior to the Effective
Time shall at and after the Effective Time continue to be maintained by, contributed to, and sponsored by SmartBank, subject to
their amendment, modification, and/or termination after the Effective Time in accordance with applicable Law and the terms and
provisions of all documents, contracts, or agreements establishing such SmartFinancial Benefit Plans or pursuant to which they
are maintained or administered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a period of not less than six months after the Effective Time, Cornerstone will provide, and the Surviving Corporation shall cause
Cornerstone to provide, employees of Cornerstone immediately prior to the Effective Time who remain employed by Cornerstone after
the Effective Time with compensation and benefits substantially similar, in the aggregate, to that provided to such employees immediately
prior to the Effective Time (excluding any compensation and benefits payable or accelerated as a result of the transactions contemplated
by this Agreement). The Cornerstone Benefit Plans maintained by, contributed to, or sponsored by Cornerstone prior to the Effective
Time shall at and after the Effective Time continue to be maintained by, contributed to, and sponsored by Cornerstone, subject
to their amendment, modification, and/or termination after the Effective Time in accordance with applicable Law and the terms and
provisions of all documents, contracts, or agreements establishing such Cornerstone Benefit Plans or pursuant to which they are
maintained or administered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
<U>Section&nbsp;7.10</U> shall be binding upon and inure solely to the benefit of the Parties, and nothing in this <U>Section&nbsp;7.10</U>,
express or implied, shall confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this
<U>Section&nbsp;7.10</U>. Nothing contained in this <U>Section&nbsp;7.10</U>, express or implied, (i) shall be construed to establish,
amend, or modify any benefit plan, program, agreement, or arrangement or (ii) shall alter or limit the ability of the Surviving
Corporation, Cornerstone, or SmartBank, or any of their Affiliates, to after the Effective Time amend, modify, or terminate any
benefit plan, program, agreement, or arrangement at any time assumed, established, sponsored, or maintained by any of them. The
Parties acknowledge and agree that the provisions of this <U>Section&nbsp;7.10</U> shall not create any right in any employee of
SmartBank or Cornerstone or any of their Subsidiaries, or any other Person, to continued employment with the Surviving Corporation,
SmartBank, or Cornerstone, or any of their Subsidiaries (and shall not limit the right of the Surviving Corporation, SmartBank,
or Cornerstone, or any of their Subsidiaries, to terminate the employment of any employee), or any compensation or benefits of
any nature or kind whatsoever.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a period of six years after the Effective Time, Bancshares, as the Surviving Corporation, shall indemnify, defend, and hold harmless
each of the current and former directors, officers, and employees of SmartFinancial, determined as of immediately prior to the
Effective Time (each, an &ldquo;<U>Indemnified Party</U>&rdquo;), against any and all costs and expenses (including attorneys&rsquo;
fees and expenses), judgments, fines, losses, claims, damages, and liabilities incurred in connection with any claim, action, suit,
proceeding, or investigation, whether civil, criminal, administrative, or investigative, arising out of matters existing or occurring
prior to the Effective Time, whether asserted or claimed prior to, at, or after the Effective Time, and based on or pertaining
to the fact that he or she was a director, officer, or employee of SmartFinancial or was serving at the request of SmartFinancial
as a director, officer, employee, agent, trustee, or partner of another corporation, partnership, trust, joint venture, employee
benefit plan, or other entity, to the fullest extent such Indemnified Party would have been entitled to be so indemnified and held
harmless, subject to applicable Law, under the charter and bylaws of SmartFinancial as in effect as of the date of this Agreement
(including the provisions thereof, if any, relating to advances of expenses).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Indemnified Party wishing to claim indemnification under this <U>Section&nbsp;7.11</U>, upon learning of any such claim, action,
suit, proceeding, or investigation, shall promptly notify the Surviving Corporation of the same; <I>provided </I>that the failure
of the Indemnified Party to so notify the Surviving Corporation shall not relieve the Surviving Corporation of any liability it
may have to such Indemnified Party if such failure does not actually and materially prejudice the Surviving Corporation. In the
event of any such claim, action, suit, proceeding, or investigation (whether arising before or after the Effective Time), (i)&nbsp;the
Surviving Corporation shall have the right to assume the defense thereof and the Surviving Corporation shall not be liable to the
Indemnified Party for any legal expenses of other counsel or any other expenses subsequently incurred by such Indemnified Party
in connection with the defense thereof, except that, (A) if the Surviving Corporation elects not to assume such defense or (B)
if counsel for the Indemnified Party advises the Surviving Corporation that there are legal defenses available to the Indemnified
Party that are different from or in addition to those available to the Surviving Corporation or that there are issues which raise
conflicts of interest between the Surviving Corporation and the Indemnified Party that make joint representation inappropriate,
the Indemnified Party may retain its own legal counsel and the Surviving Corporation shall pay, as statements therefor are received,
the reasonable fees and expenses of such counsel for the Indemnified Party (which may not exceed one firm in any jurisdiction unless
there are multiple Indemnified Parties who have conflicts of interest), (ii)&nbsp;the Indemnified Party will cooperate in the defense
thereof, (iii)&nbsp;the Surviving Corporation shall not be liable for any settlement effected without its prior written consent,
which shall not be unreasonably withheld, conditioned, or delayed, and (iv)&nbsp;the Surviving Corporation shall have no obligation
hereunder in the event a federal or state banking agency or a court of competent jurisdiction shall determine that indemnification
of an Indemnified Party in the manner contemplated hereby is prohibited by applicable Law.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the Effective Time SmartFinancial shall obtain, and after the Effective Time the Surviving Corporation shall maintain, one or
more &ldquo;tail&rdquo; liability insurance policies providing coverage for a period of six years after the Effective Time for
Persons who are currently covered by SmartFinancial&rsquo;s existing directors&rsquo; and officers&rsquo; liability insurance policy
or policies (the &ldquo;<U>Tail Insurance</U>&rdquo;), which Tail Insurance shall provide for at least the same coverage and coverage
amounts as, and contain terms and conditions no less advantageous than, those currently provided for by SmartFinancial&rsquo;s
existing directors&rsquo; and officers&rsquo; liability insurance policy or policies; <I>provided</I>, <I>however</I>, that, without
the prior consent of Bancshares, SmartFinancial shall not expend for such Tail Insurance, on a per year basis, an amount in excess
of 250% of the annual premium(s) paid by the SmartFinancial Parties for SmartFinancial&rsquo;s current directors&rsquo; and officers&rsquo;
liability insurance policy or policies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the Surviving Corporation or any of its successors or assigns shall consolidate with or merge with or into any other
Person and shall not be the continuing or surviving entity of such consolidation or merger, or shall transfer all or substantially
all of its properties and assets to any other Person, then, and in each such case, proper provision shall be made so that the successors
or assigns of the Surviving Corporation assume the obligations of the Surviving Corporation set forth in this <U>Section&nbsp;7.11</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
indemnification payments made pursuant to this <U>Section&nbsp;7.11</U><I>&nbsp;</I>are subject to and conditioned upon their compliance
with Section&nbsp;18(k) of the Federal Deposit Insurance Act (12 U.S.C. &sect;&nbsp;1828(k)) and the regulations promulgated thereunder
by the FDIC (12 C.F.R. Part 359).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employment
Agreements</U>. The Parties shall use commercially reasonable efforts to cause each of the individuals identified on <U>Schedule&nbsp;7.12</U>
hereto to, at or prior to the Closing, execute and deliver an employment agreement providing for such individual&rsquo;s employment
with SmartFinancial and/or SmartBank, as the case may be (if executed and delivered prior to the Closing), or with Bancshares and/or
SmartBank, as the case may be (if executed at the Closing), with such employment agreement to supersede and replace any prior employment
agreement of such individual with SmartFinancial and/or SmartBank, which prior employment agreement shall be cancelled and have
no further force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Financing
Transactions</U>. The Cornerstone Parties shall prior to the Effective Time use their reasonable best efforts to consummate and
complete such Financing Transactions as may be necessary to facilitate the consummation of the transactions contemplated by this
Agreement, including such as may be required to supplement the capital of the Cornerstone Parties in order to obtain the Regulatory
Approvals. Subject to applicable Law, the SmartFinancial Parties will cooperate with and assist, to the extent reasonable, the
Cornerstone Parties in connection with any such Financing Transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Registration
Statement</U>.<FONT STYLE="color: red"> </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date hereof, the Parties will prepare and file with the SEC the Joint Proxy Statement/Prospectus
and the Registration Statement (which will include the Joint Proxy Statement/Prospectus), which shall comply with all of the requirements
of the Securities Act (and the rules and regulations thereunder) applicable thereto, for the purpose, among other things, of registering
the Bancshares Common Stock and Bancshares SBLF Equivalent Stock that will be issued to holders of SmartFinancial Common Stock
and SmartFinancial Series&nbsp;A Stock, respectively, in connection with the Merger pursuant to <U>Article&nbsp;III</U> of this
Agreement. Bancshares shall use commercially reasonable efforts to cause the Registration Statement to become effective as soon
as practicable after the filing thereof, to register or exempt from registration the Bancshares Stock to be issued to holders of
SmartFinancial Stock under the securities Laws of all applicable jurisdictions (federal and state), and to keep the Registration
Statement and such registrations or exemptions current and in effect for so long as is necessary to consummate the transactions
contemplated by this Agreement. Bancshares shall have primary responsibility for preparing and filing the Registration Statement,
<I>provided</I> that Bancshares shall afford the SmartFinancial Parties and their legal, financial, and accounting advisors a reasonable
opportunity to review and provide comments on (i) the Registration Statement, before it is filed with the SEC, and (ii) all amendments
and supplements to the Registration Statement and all responses to requests for additional information and replies to comments
relating to the Registration Statement, before the same are filed with or submitted to the SEC. Each Party shall deliver to the
other Parties copies of all material filings, correspondence, orders, and documents with, to, or from Governmental Entities, and
shall promptly relay to the other Parties the substance of any material oral communications with, to, or from Governmental Entities,
in each case pertaining or relating to the Registration Statement or any documents or materials related thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties shall cooperate in the preparation of the Registration Statement and the Joint Proxy Statement/Prospectus for the purpose
of submitting this Agreement and the transactions contemplated hereby (including the Authorized Stock Amendment, the Amended and
Restated Bancshares Charter, the Amended and Restated Bancshares Bylaws, the Series&nbsp;A Redemption Amendment, the Reverse Stock
Split Amendment, and the Bancshares Incentive Plan) to the shareholders of SmartFinancial and Bancshares, as applicable, for approval.
Each Party will as promptly as practicable after the date hereof furnish all data and information relating to it and its Subsidiaries,
and its and its Subsidiaries&rsquo; directors, officers, and shareholders, as the other Parties may reasonably request for the
purpose of including such data and information in the Registration Statement and/or the Joint Proxy Statement/Prospectus. The SmartFinancial
Parties expressly agree to cooperate with Bancshares and Bancshares&rsquo; legal and accounting advisors in requesting and obtaining
appropriate opinions, consents, and letters from its financial advisor(s) and independent auditor(s), and in taking such other
actions as may be reasonably requested by Bancshares, in connection with the Registration Statement or the Joint Proxy Statement/Prospectus.
Each Party covenants and agrees that none of the information supplied or to be supplied by such Party for inclusion or incorporation
by reference in (i) the Registration Statement will, at the time the Registration Statement and/or any amendment or supplement
thereto becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under
which they were made, not misleading, (ii) the Joint Proxy Statement/Prospectus or any amendment or supplement thereto will, on
the date the same is first mailed to shareholders of the Parties or at the time of the SmartFinancial Meeting or the Bancshares
Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
in order to make the statements made therein, in light of the circumstances under which they were made, not misleading, or (iii)
any other document filed with any Governmental Entity in connection with the transactions contemplated by this Agreement will,
at the time such document is filed, fail to comply as to form, in all material respects, with the provisions of applicable Law.
The Joint Proxy Statement/Prospectus will comply as to form, in all material respects, with all applicable requirements of the
Exchange Act and the rules and regulations thereunder, except that no representation or warranty is made by any Party with respect
to statements made or incorporated by reference therein based on information supplied by any other Party for inclusion or incorporation
by reference in the Joint Proxy Statement/Prospectus. Each Party covenants and agrees that, in the event such Party becomes aware
of any information furnished by it that would cause any of the statements in the Registration Statement and/or the Joint Proxy
Statement/Prospectus, or any other document filed with any Governmental Entity in connection with the transactions contemplated
by this Agreement, to be false or misleading with respect to any material fact, or to omit to state any material fact necessary
to make the statements therein not false or misleading, such Party will promptly inform the other Parties thereof in writing and
take all necessary steps to correct the Registration Statement and/or Joint Proxy Statement/Prospectus, or other document, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment
of Bancshares Charter and Bylaws; Option Plan</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date of this Agreement, the board of directors of Bancshares shall adopt, in accordance
with applicable Law and the charter and bylaws of Bancshares, amendments to the charter of Bancshares (i) increasing the number
of authorized shares of Bancshares Common Stock to 40,000,000 shares (the &ldquo;<U>Authorized Stock Amendment</U>&rdquo;), and
(ii) amending the terms of the Bancshares Series&nbsp;A Stock to provide that the Bancshares Series&nbsp;A Stock may be redeemed
at the option of Bancshares at any time after March 31, 2015 (the &ldquo;<U>Series&nbsp;A Redemption Amendment</U>,&rdquo; and
together with the Authorized Stock Amendment, collectively, the &ldquo;<U>Stock Amendments</U>&rdquo;), such Stock Amendments to
be in a form and substance mutually agreed upon by the Parties. The Stock Amendments shall be submitted to the shareholders of
Bancshares for approval at the Bancshares Meeting in accordance with <U>Section&nbsp;7.8</U>. Assuming approval of the Stock Amendments
by the shareholders of Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares, prior to the Closing
Bancshares shall duly execute the Stock Amendments and file the same with the Tennessee Secretary of State, with the Stock Amendments
to be effective prior to or at the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date of this Agreement, the board of directors of Bancshares shall adopt, in accordance
with applicable Law and the charter and bylaws of Bancshares, an amendment to the charter of Bancshares creating the Bancshares
SBLF Equivalent Stock to be issued to holders of SmartFinancial Series&nbsp;A Stock in accordance with <U>Article&nbsp;III</U>
hereof and determining the preferences, limitations, and relative rights of the Bancshares SBLF Equivalent Stock, such amendment
to be in a form and substance mutually agreed upon by the Parties (the &ldquo;<U>Bancshares SBLF Equivalent Stock Amendment</U>&rdquo;).
Prior to the Closing Bancshares shall duly execute the Bancshares SBLF Equivalent Stock Amendment and file the same with the Tennessee
Secretary of State, with the Bancshares SBLF Equivalent Stock Amendment to be effective prior to or at the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date of this Agreement, the board of directors of Bancshares shall adopt, in accordance
with applicable Law and the charter and bylaws of Bancshares, an amended and restated charter for Bancshares, the same to be in
a form and substance mutually agreed upon by the Parties (the &ldquo;<U>Amended and Restated Bancshares Charter</U>&rdquo;), which
Amended and Restated Bancshares Charter will, among other things, (i) change the name of the corporation to &ldquo;SmartFinancial,
Inc.&rdquo; and (ii) change the address of the principal office of the corporation to 5401 Kingston Pike, Suite 600, Knoxville,
Tennessee 37919. The Amended and Restated Bancshares Charter shall be submitted to the shareholders of Bancshares for approval
at the Bancshares Meeting in accordance with <U>Section&nbsp;7.8</U>. Assuming approval of the Amended and Restated Bancshares
Charter by the shareholders of Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares, prior to
or at the Closing Bancshares shall duly execute the Amended and Restated Bancshares Charter and deliver the same for filing with
the Tennessee Secretary of State, with the Amended and Restated Bancshares Charter to be effective at or immediately following
the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date of this Agreement, the board of directors of Bancshares shall adopt, in accordance
with applicable Law and the charter and bylaws of Bancshares, amended and restated bylaws for Bancshares, the same to be in a form
and substance mutually agreed upon by the Parties (the &ldquo;<U>Amended and Restated Bancshares Bylaws</U>&rdquo;), which Amended
and Restated Bancshares Bylaws shall express state that they will be effective, as the bylaws of the Surviving Corporation, at
or immediately following the Effective Time. The Amended and Restated Bancshares Bylaws shall be submitted to the shareholders
of Bancshares for approval at the Bancshares Meeting in accordance with <U>Section&nbsp;7.8</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date of this Agreement, the board of directors of Bancshares shall adopt, in accordance
with applicable Law and the charter and bylaws of Bancshares, an amendment to the charter of Bancshares which provides that, at
the effective time of the amendment, each four shares of Bancshares Common Stock issued and outstanding immediately prior to the
effective time of the amendment will be, automatically and without any action on the part of the holder(s) hereof, combined and
converted into one share of Bancshares <FONT STYLE="background-color: white">Common Stock (the &ldquo;<U>Reverse Stock Split Amendment</U>&rdquo;).
The Reverse Stock Split </FONT>Amendment shall be in a form and substance mutually agreed upon by the Parties. The <FONT STYLE="background-color: white">Reverse
Stock Split </FONT>Amendment shall be submitted to the shareholders of Bancshares for approval at the Bancshares Meeting in accordance
with <U>Section&nbsp;7.8</U>. Assuming approval of the <FONT STYLE="background-color: white">Reverse Stock Split </FONT>Amendment
by the shareholders of Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares, Bancshares shall
duly execute the <FONT STYLE="background-color: white">Reverse Stock Split </FONT>Amendment and file the same with the Tennessee
Secretary of State in order to facilitate the NASDAQ Listing (as defined below). The combination of issued and outstanding shares
of Bancshares <FONT STYLE="background-color: white">Common Stock to be effected by the Reverse Stock Split </FONT>Amendment is
sometimes referred to in this Agreement as the &ldquo;<U>Reverse Stock Split</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
soon as reasonably practicable after the date of this Agreement, the board of directors of Bancshares shall adopt, in accordance
with applicable Law and the charter and bylaws of Bancshares, the Bancshares Incentive Plan. The Bancshares Incentive Plan shall
be submitted to the shareholders of Bancshares for approval at the Bancshares Meeting in accordance with <U>Section&nbsp;7.8</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exchange
Listing</U>. Bancshares shall use its reasonable best efforts to list, prior to the Effective Time, on NASDAQ (subject to official
notice of issuance) the shares of Bancshares Common Stock to be issued in the form of Merger Consideration in accordance with this
Agreement (the &ldquo;<U>NASDAQ Listing</U>&rdquo;), and Bancshares shall give all notices to and make all filings with NASDAQ
required in connection with the transactions contemplated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bancshares,
Cornerstone, and SmartBank Directors and Officers</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to or at the Effective Time, Bancshares shall take all action necessary such that at or immediately after the Effective Time the
board of directors of the Surviving Corporation will be composed of the 11 individuals set forth on <U>Schedule&nbsp;7.17(a)</U>
hereto, of which seven have been designed by the SmartFinancial Parties (such individuals the &ldquo;<U>Continuing SmartFinancial
Directors</U>&rdquo;) and four have been designated by the Cornerstone Parties (such individuals the &ldquo;<U>Continuing Cornerstone
Directors</U>&rdquo;). Subject to applicable Law, for a period of not less than three years after the Effective Time, the number
of directors constituting the Surviving Corporation&rsquo;s board of directors shall be not less than 11, with seven of such directors
to be nominated or appointed by the Continuing SmartFinancial Directors (by a majority vote of such individuals) and four of such
directors to be nominated or appointed by the Continuing Cornerstone Directors (by a majority vote of such individuals).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to or at the Effective Time, Bancshares and Cornerstone shall take all action necessary such that William (Billy) Y. Carroll, Jr.
will, at or immediately after the Effective Time, be appointed to the board of directors of Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to or at the Effective Time, SmartFinancial and SmartBank shall take all action necessary such that W. Miller Welborn will, at
or immediately after the Effective Time, be appointed to the board of directors of SmartBank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a period of not less than three years after the Effective Time, W. Miller Welborn shall serve as chairman and William (Bill) Carroll,
Sr. shall serve as vice-chairman of the board of directors of the Surviving Corporation, subject to such individuals&rsquo; annual
election or appointment to the board of directors of the Surviving Corporation, to applicable Law, and to such individuals&rsquo;
earlier death, resignation, or removal from office.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notice
of Dissenters&rsquo; Rights Matters</U>. Prior to the Effective Time, the Cornerstone Parties shall give the SmartFinancial Parties
prompt notice of their receipt of any notice, demand, or other instrument or communication relating to dissenters&rsquo; rights
(including any notice of intent to demand payment or any withdrawal of any such notice) provided by or on behalf of any shareholder
of Bancshares pursuant to Chapter&nbsp;23 of the Corporation Act. Likewise, prior to the Effective Time, the SmartFinancial Parties
shall give the Cornerstone Parties prompt notice of their receipt of any notice, demand, or other instrument or communication relating
to dissenters&rsquo; rights (including any notice of intent to demand payment or any withdrawal of any such notice) provided by
or on behalf of any shareholder of SmartFinancial pursuant to Chapter&nbsp;23 of the Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 7.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Decisions
as to Post-Transaction Matters</U>. Any and all decisions prior to the Effective Time as to the following matters impacting the
Surviving Corporation shall be made jointly by Bancshares and SmartFinancial (each acting through its respective board of directors):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
charters of committees of the board of directors of the Surviving Corporation;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
composition of committees of the board of directors of the Surviving Corporation;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
form, terms, and provisions of any employment or other Contract between Bancshares (including as the Surviving Corporation), SmartFinancial,
Cornerstone, or SmartBank and any director, officer, or employee of Bancshares (including as the Surviving Corporation), SmartFinancial,
Cornerstone, or SmartBank; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
Financing Transaction or other capital accumulation transaction or activities necessary for the consummation of the transactions
contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE VIII</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>CONDITIONS&nbsp;TO&nbsp;CONSUMMATION
OF THE MERGER</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Each Party&rsquo;s Obligation to Consummate the Merger</U>.<B> </B>The respective obligation of each Party to consummate the
Merger and the other transactions contemplated by this Agreement is subject to the satisfaction or, to the extent permitted by
applicable Law, written waiver by such Party prior to the Closing of each of the following conditions (other than those conditions
that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Shareholder
Approval of Agreement</I>.&nbsp; This Agreement shall have been duly approved by (i) the shareholders of Bancshares in accordance
with Bancshares&rsquo; charter and bylaws and applicable Law and (ii) the shareholders of SmartFinancial in accordance with the
charter and bylaws of SmartFinancial and applicable Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Governmental
Approvals</I>. All approvals, consents, and waivers from or of Governmental Entities (including without limitation the Regulatory
Approvals) required to consummate the transactions contemplated by this Agreement shall have been obtained and shall be in full
force and effect, and all statutory waiting periods in respect thereof shall have expired, and no such approval, consent, or waiver
shall contain any condition, restriction, or requirement that the SmartFinancial board of directors or the Bancshares board of
directors reasonably determines in good faith would, individually or in the aggregate with one or more other conditions, restrictions,
or requirements, materially reduce the benefits of the transactions contemplated by this Agreement to such a degree that SmartFinancial
(in the case of a determination by the SmartFinancial board of directors) or Bancshares (in the case of a determination by the
Bancshares board of directors) would not have entered into this Agreement had such condition(s), restriction(s), or requirement(s)
been known as of the date of this Agreement (any such condition, restriction, or requirement, a &ldquo;<U>Burdensome Condition</U>&rdquo;);
<I>provided</I>, <I>however</I>, that (i) any condition, restriction, or requirement imposed by a Governmental Entity which is
customarily imposed in published orders or approvals for transactions such as the Merger shall not be deemed to be a Burdensome
Condition and (ii) prior to declaring a Burdensome Condition and electing not to consummate the transactions contemplated hereby
as a result thereof, SmartFinancial or Bancshares, as applicable, shall use commercially reasonable efforts to negotiate with the
relevant Governmental Entity a modification to the condition, restriction, or requirement to reduce the burdensome nature thereof
such that the condition, restriction, or requirement no longer constitutes a Burdensome Condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Injunction; Illegality</I>.&nbsp; There shall not be in effect any order, decree, or injunction of any Governmental Entity that
enjoins or prohibits the consummation of the Merger, and no Governmental Entity shall have instituted any action, suit, or proceeding
for the purpose of enjoining or prohibiting the consummation of the Merger. No Law shall have been enacted, entered, promulgated,
or enforced by any Governmental Entity which prohibits or makes illegal the consummation of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Registration
Statement</I>. The Registration Statement, covering the Bancshares Common Stock and the Bancshares SBLF Equivalent Stock to be
issued to holders of SmartFinancial Common Stock and SmartFinancial Series&nbsp;A Stock, respectively, in connection with the Merger,
shall have become effective under the Securities Act and no stop order suspending such effectiveness shall be in effect, and no
action, suit, proceeding, or investigation by the SEC to suspend the effectiveness of the Registration Statement shall have been
initiated, continuing, or threatened and unresolved, and all necessary registrations, consents, approvals, and notices under state
securities Laws relating to the issuance of the Bancshares Stock to be issued in connection with the Merger shall have been filed
and received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dissenting
Shareholders</I>. The holders of not more than 7% of the outstanding shares of SmartFinancial Common Stock and Bancshares Common
Stock, taken together in the aggregate, shall have perfected and not effectively withdrawn or lost their rights to dissent from
the Merger pursuant to Chapter&nbsp;23 of the Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Authorized
Stock Amendment</I>. The Authorized Stock Amendment shall have been duly approved by the shareholders of Bancshares in accordance
with applicable Law and the charter and bylaws of Bancshares, and the same shall have been filed with the Tennessee Secretary of
State in accordance with the provisions of <U>Section&nbsp;7.15(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemption
of Bancshares Series A Stock</I>. Bancshares shall have redeemed, or shall have taken all action necessary or advisable for the
redemption at the Effective Time of, the issued and outstanding shares of Bancshares Series&nbsp;A Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>SmartFinancial
Series&nbsp;A Stock</I>. SmartFinancial and Bancshares shall have taken all actions necessary to provide for, and shall have received
all consents, approvals, and authorizations required for, the exchange at the Effective Time of the issued and outstanding shares
of SmartFinancial Series&nbsp;A Stock for shares of Bancshares&nbsp;SBLF Equivalent Stock to be issued in the form of Merger Consideration
pursuant to <U>Section&nbsp;3.1</U>, all in accordance with the charter, bylaws, and other governing documents of SmartFinancial,
the terms of the Treasury SBLF Agreement, and the terms of any other agreements pursuant to which the shares of SmartFinancial
Series&nbsp;A Stock were issued or required to be entered into in order to effect such exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Financing
Transactions</I>. The Cornerstone Parties shall have consummated and completed such Financing Transactions as may be necessary
to supplement the capital of the Cornerstone Parties in order to obtain the approvals, consents, and waivers described in <U>Section&nbsp;8.1(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Carroll
Employment Agreements</I>. William (Billy) Y. Carroll, Jr. shall have entered into an employment agreement with the Surviving Corporation
and SmartBank providing for his employment as president and chief executive officer of the Surviving Corporation and SmartBank
for a period of three years after the Effective Time, with such employment agreement to supersede and replace any prior employment
agreement of William (Billy) Y. Carroll, Jr. with SmartFinancial and/or SmartBank, which prior employment agreement shall be cancelled
and have no further force or effect. William (Bill) Carroll, Sr. shall have entered into an employment agreement with SmartBank
providing for his employment after the Effective Time as director of business development of SmartBank, with such employment agreement
to supersede and replace any prior employment agreement of William (Bill) Carroll, Sr. with SmartFinancial and/or SmartBank, which
prior employment agreement shall be cancelled and have no further force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Obligations of Cornerstone Parties to Consummate the Merger</U>.<B> </B>The obligation of each of Bancshares and Cornerstone
to consummate the Merger and the other transactions contemplated hereby is also subject to the satisfaction or written waiver by
Bancshares and Cornerstone prior to the Closing of each of the following conditions (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Representations
and Warranties of SmartFinancial Parties</I>. &nbsp;<FONT STYLE="background-color: white">The </FONT>representations and warranties
of the SmartFinancial Parties contained in <U>Section&nbsp;5.2(a)</U> (<I>Organization and Qualification</I>), <U>Section&nbsp;5.2(c)</U>
(<I>Capitalization</I>), <U>Section 5.2(d)</U> (<I>Authority</I>), <U>Section 5.2(i)</U> (<I>Financial Statements</I>), and <U>Section&nbsp;5.2(w)</U>
(<I>Broker Fees</I>)<FONT STYLE="background-color: white"> shall be true and correct in all respects, except for inaccuracies which,
individually and in the aggregate, are <I>de minimis</I> in both amount and impact. The representations and warranties of the SmartFinancial
Parties contained in <U>Article&nbsp;V</U> (including the </FONT>representations and warranties of the SmartFinancial Parties contained
in <U>Section&nbsp;5.2(a)</U> (<I>Organization and Qualification</I>), <U>Section&nbsp;5.2(c)</U> (<I>Capitalization</I>), <U>Section
5.2(d)</U> (<I>Authority</I>), <U>Section 5.2(i)</U> (<I>Financial Statements</I>), and <U>Section&nbsp;5.2(w)</U> (<I>Broker Fees</I>))<FONT STYLE="background-color: white">
shall be true and correct in all respects, except where the failure of such representations and warranties to be so true and correct
has not had or resulted in, and could not reasonably be expected to have or result in, individually or in the aggregate, a </FONT>SmartFinancial
<FONT STYLE="background-color: white">Material Adverse Effect;</FONT><I> provided </I>that, for purposes of this sentence only,
those representations and warranties containing or subject to a materiality, SmartFinancial Material Adverse Effect, or Knowledge
qualifier shall be deemed not to include or be subject to any such qualifier.<FONT STYLE="background-color: white"> </FONT>For
purposes of this <U>Section&nbsp;8.2(a)</U>, the true and correct nature of the representations and warranties of the SmartFinancial
Parties set forth in this Agreement shall be assessed as of the date of this Agreement and as of the Closing Date with the same
effect as though all such representations and warranties had been made on and as of the Closing Date, <I>provided</I> that representations
and warranties which are confined to a specific date or time shall speak only as of such date or time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Performance
of Obligations of SmartFinancial Parties</I>. &nbsp;The SmartFinancial Parties shall have performed and complied with, in all material
respects, all obligations and covenants required to be performed and complied with by them under this Agreement prior to or at
the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
SmartFinancial Material Adverse Effect</I>.&nbsp; Since June 30, 2014, there shall not have been or occurred any SmartFinancial
Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Officers&rsquo;
Certificate</I>.&nbsp; The Cornerstone Parties shall have received a certificate, dated as of the Closing Date, signed by the chief
executive officer and the chief financial officer of each of SmartFinancial and SmartBank, and otherwise in form and substance
reasonably satisfactory to the Cornerstone Parties, to the effect that the conditions set forth in&nbsp;<U>Section&nbsp;8.2(a)</U>,
<U>Section 8.2(b)</U>, and <U>Section&nbsp;8.2(c)</U> have been satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Third
Party Consents</I>.&nbsp; All of the consents, approvals, and waivers required to be obtained by the SmartFinancial Parties in
connection with the consummation of the transactions contemplated by this Agreement (including without limitation those set forth
on <B><U>Schedule 5.2(f)</U></B> of the SmartFinancial Disclosure Memorandum, but excluding those contemplated by <U>Section&nbsp;8.1(b)</U>)
shall have been obtained and the SmartFinancial Parties shall have delivered to the Cornerstone Parties such evidence of the same
as the Cornerstone Parties may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax
Opinion of Bancshares Counsel</I>. Bancshares shall have received an opinion of Miller &amp; Martin PLLC, legal counsel to Bancshares,
dated as of the Closing Date and in form and substance reasonably satisfactory to Bancshares, to the effect that, on the basis
of facts, representations, and assumptions set forth or referred to in such opinion, the Merger will qualify as a &ldquo;reorganization&rdquo;
within the meaning of Section&nbsp;368(a) of the Code. In rendering its opinion, such counsel may require and rely upon representations
contained in certificates of officers of the Cornerstone Parties and the SmartFinancial Parties, reasonably satisfactory in form
and substance to such counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Obligations of SmartFinancial Parties to Consummate the Merger</U>.<B> </B>The obligation of each of SmartFinancial and SmartBank
to consummate the Merger and the other transactions contemplated hereby is also subject to the satisfaction or written waiver by
SmartFinancial and SmartBank prior to the Closing of each of the following conditions (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Representations
and Warranties of Cornerstone Parties</I>. &nbsp;<FONT STYLE="background-color: white">The </FONT>representations and warranties
of the Cornerstone Parties contained in <U>Section&nbsp;4.2(a)</U> (<I>Organization and Qualification</I>), <U>Section&nbsp;4.2(c)</U>
(<I>Capitalization</I>), <U>Section 4.2(d)</U> (<I>Authority</I>), <U>Section 4.2(i)</U> (<I>Financial Statements; Internal Controls</I>),
and <U>Section&nbsp;4.2(w)</U> (<I>Broker Fees</I>)<FONT STYLE="background-color: white"> shall be true and correct in all respects,
except for inaccuracies which, individually and in the aggregate, are <I>de minimis</I> in both amount and impact. The representations
and warranties of the </FONT>Cornerstone <FONT STYLE="background-color: white">Parties contained in <U>Article&nbsp;IV</U> (including
the </FONT>representations and warranties of the Cornerstone Parties contained in <U>Section&nbsp;4.2(a)</U> (<I>Organization and
Qualification</I>), <U>Section&nbsp;4.2(c)</U> (<I>Capitalization</I>), <U>Section 4.2(d)</U> (<I>Authority</I>), <U>Section 4.2(i)</U>
(<I>Financial Statements; Internal Controls</I>), and <U>Section&nbsp;4.2(w)</U> (<I>Broker Fees</I>))<FONT STYLE="background-color: white">
shall be true and correct in all respects, except where the failure of such representations and warranties to be so true and correct
has not had or resulted in, and could not reasonably be expected to have or result in, individually or in the aggregate, a </FONT>Cornerstone
<FONT STYLE="background-color: white">Material Adverse Effect;</FONT><I> provided </I>that, for purposes of this sentence only,
those representations and warranties containing or subject to a materiality, Bancshares Material Adverse Effect, or Knowledge qualifier
shall be deemed not to include or be subject to any such qualifier.<FONT STYLE="background-color: white"> </FONT>For purposes of
this <U>Section&nbsp;8.3(a)</U>, the true and correct nature of the representations and warranties of the Cornerstone Parties set
forth in this Agreement shall be assessed as of the date of this Agreement and as of the Closing Date with the same effect as though
all such representations and warranties had been made on and as of the Closing Date, <I>provided</I> that representations and warranties
which are confined to a specific date or time shall speak only as of such date or time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Performance
of Obligations of Cornerstone Parties</I>. &nbsp;The Cornerstone Parties shall have performed and complied with, in all material
respects, all obligations and covenants required to be performed and complied with by them under this Agreement prior to or at
the Closing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Bancshares Material Adverse Effect</I>.&nbsp; Since June 30, 2014, there shall not have been or occurred any Bancshares Material
Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Officers&rsquo;
Certificate</I>.&nbsp; The SmartFinancial Parties shall have received a certificate, dated as of the Closing Date, signed by the
chief executive officer and the chief financial officer of each of Bancshares and Cornerstone, and otherwise in form and substance
reasonably satisfactory to the SmartFinancial Parties, to the effect that the conditions set forth in&nbsp;<U>Section&nbsp;8.3(a)</U>,
<U>Section 8.3(b)</U>, and <U>Section&nbsp;8.3(c)</U> have been satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Third
Party Consents</I>.&nbsp; All of the consents, approvals, and waivers required to be obtained by the Cornerstone Parties in connection
with the consummation of the transactions contemplated by this Agreement (including without limitation those set forth on <B><U>Schedule&nbsp;4.2(f)</U></B>
of the Cornerstone Disclosure Memorandum, but excluding those contemplated by <U>Section&nbsp;8.1(b)</U>) shall have been obtained
and the Cornerstone Parties shall have delivered to the SmartFinancial Parties such evidence of the same as the SmartFinancial
Parties may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax
Opinion of SmartFinancial Counsel</I>. SmartFinancial shall have received an opinion of Butler Snow LLP, legal counsel to SmartFinancial,
dated as of the Closing Date and in form and substance reasonably satisfactory to SmartFinancial, to the effect that, on the basis
of facts, representations, and assumptions set forth or referred to in such opinion, the Merger will qualify as a &ldquo;reorganization&rdquo;
within the meaning of Section&nbsp;368(a) of the Code. In rendering its opinion, such counsel may require and rely upon representations
contained in certificates of officers of the SmartFinancial Parties and the Cornerstone Parties, reasonably satisfactory in form
and substance to such counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Delivery
of Merger Consideration</I>. Bancshares shall have delivered, or caused to be delivered, to the Exchange Agent a certificate or
certificates, or at Bancshares&rsquo; option evidence of shares in book entry form, representing the number of shares of Bancshares
Stock issuable to holders of SmartFinancial Stock in the form of Merger Consideration, and the SmartFinancial Parties shall have
received from Bancshares such evidence of the same as the SmartFinancial Parties may reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Evidence
of Charter Amendments</I>. The SmartFinancial Parties shall have received from the Cornerstone Parties such evidence of (i) the
filing of the Authorized Stock Amendment and the Series&nbsp;A Redemption Amendment with the Tennessee Secretary of State in accordance
with the provisions of <U>Section&nbsp;7.15(a)</U>, (ii) the filing of the Bancshares SBLF Equivalent Stock Amendment with the
Tennessee Secretary of State in accordance with the provisions of <U>Section&nbsp;7.15(b)</U>, and (iii) the filing of the <FONT STYLE="background-color: white">Reverse
Stock Split </FONT>Amendment with the Tennessee Secretary of State in accordance with the provisions of <U>Section&nbsp;7.15(e)</U>
as the SmartFinancial Parties shall reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amended
and Restated Bancshares Charter</I>. The Amended and Restated Bancshares Charter shall have been duly approved by the shareholders
of Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares and Bancshares shall have filed the same
with the Tennessee Secretary of State in accordance with the provisions of <U>Section&nbsp;7.15(c)</U>, and the Cornerstone Parties
shall have delivered to the SmartFinancial Parties such evidence of the filing of the Amended and Restated Bancshares Charter as
the SmartFinancial Parties shall reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amended
and Restated Bancshares Bylaws</I>. The Amended and Restated Bancshares Bylaws shall have been duly approved by the shareholders
of Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares, and the Cornerstone Parties shall have
delivered to the SmartFinancial Parties such evidence of the same as the SmartFinancial Parties shall reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Director
Resignations</I>. Each member of the board of directors of Bancshares not identified on <U>Schedule 7.17(a)</U> hereto as a member
of the post-Merger board of directors of the Surviving Corporation shall have delivered to Bancshares a written resignation whereby
such Person resigns from the Bancshares board of directors effective as of the Effective Time, and the Cornerstone Parties shall
have delivered to the SmartFinancial Parties such evidence of the same as the SmartFinancial Parties shall reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"><I>(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bancshares
Incentive Plan</I>. The Bancshares Incentive Plan shall have been duly adopted by the board of directors of Bancshares and duly
approved by the shareholders of Bancshares in accordance with applicable Law and the charter and bylaws of Bancshares, and the
Cornerstone Parties shall have delivered to the SmartFinancial Parties such evidence of the same as the SmartFinancial Parties
shall reasonably request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE IX</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>TERMINATION</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>.
This Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at any time prior to the Effective
Time:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
mutual written consent of SmartFinancial, SmartBank, Bancshares, and Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the SmartFinancial Parties (provided that neither SmartFinancial nor SmartBank is then in material breach of any representation,
warranty, covenant, or agreement contained herein), in the event of a breach by Bancshares or Cornerstone of any representation,
warranty, covenant, or agreement contained in this Agreement, or by the Cornerstone Parties (provided that neither Bancshares nor
Cornerstone is then in material breach of any representation, warranty, covenant, or agreement contained herein), in the event
of a breach by SmartFinancial or SmartBank of any representation, warranty, covenant, or agreement contained in this Agreement,
in either case which breach (i) would result in the failure of any of the conditions set forth in <U>Article&nbsp;VIII</U> and
(ii) cannot be or has not been cured within 30 days after written notice to the breaching Party of such breach.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
either the SmartFinancial Parties or the Cornerstone Parties, (i) in the event the shareholders of Bancshares fail to approve,
by the requisite vote, this Agreement at the Bancshares Meeting, <I>provided</I> that the Cornerstone Parties shall only be entitled
to exercise their right of termination under this <U>Section&nbsp;9.1(c)(i)</U> if the Cornerstone Parties have complied with,
and there has been no breach or violation by the Cornerstone Parties of, their obligations and covenants set forth in <U>Section&nbsp;7.8</U>;
(ii) in the event the shareholders of SmartFinancial fail to approve, by the requisite vote, this Agreement at the SmartFinancial
Meeting, <I>provided</I> that the SmartFinancial Parties shall only be entitled to exercise their right of termination under this
<U>Section&nbsp;9.1(c)(ii)</U> if the SmartFinancial Parties have complied with, and there has been no breach or violation by the
SmartFinancial Parties of, their obligations and covenants set forth in <U>Section&nbsp;7.9</U>; or (iii) in the event the holders
of more than 7% of the outstanding shares of SmartFinancial Common Stock and Bancshares Common Stock, taken together in the aggregate,
shall have perfected and not effectively withdrawn or lost their rights to dissent from the Merger pursuant to Chapter&nbsp;23
of the Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
either the SmartFinancial Parties or the Cornerstone Parties, in the event any approval, consent, or waiver of or from any Governmental
Entity required to consummate the transactions contemplated by this Agreement shall have been denied by final and non-appealable
action of such Governmental Entity or any application therefor shall have been permanently withdrawn at the request of a Governmental
Entity; <I>provided</I>, <I>however</I>, that the SmartFinancial Parties shall not be entitled to exercise their right of termination
under this <U>Section&nbsp;9.1(d)</U> if such denial or withdrawal shall be due to the failure of SmartFinancial or SmartBank to
perform or observe its obligations and covenants set forth in this Agreement, and that the Cornerstone Parties shall not be entitled
to exercise their right of termination under this <U>Section&nbsp;9.1(d)</U> if such denial or withdrawal shall be due to the failure
of Bancshares or Cornerstone to perform or observe its obligations and covenants set forth in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
either the SmartFinancial Parties or the Cornerstone Parties, in the event any court or other Governmental Entity of competent
jurisdiction shall have issued a final, non-appealable order enjoining or otherwise prohibiting the consummation of the transactions
contemplated by this Agreement; <I>provided</I>, <I>however</I>, that the SmartFinancial Parties shall not be entitled to exercise
their right of termination under this <U>Section&nbsp;9.1(e) </U>if such action of such court or other Governmental Entity shall
be due to the failure of SmartFinancial or SmartBank to perform or observe its obligations and covenants set forth in this Agreement,
and that the Cornerstone Parties shall not be entitled to exercise their right of termination under this <U>Section&nbsp;9.1(e)</U>
if such action of such court or other Governmental Entity shall be due to the failure of Bancshares or Cornerstone to perform or
observe its obligations and covenants set forth in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
either the SmartFinancial Parties or the Cornerstone Parties, in the event the Merger is not consummated by September 30, 2015,
unless (i) in the event of termination by the SmartFinancial Parties, the failure to consummate the Merger by such date shall be
due to the failure of SmartFinancial or SmartBank to perform or observe its obligations and covenants set forth in this Agreement,
and (ii) in the event of termination by the Cornerstone Parties, the failure to consummate the Merger by such date shall be due
to the failure of Bancshares or Cornerstone to perform or observe its obligations and covenants set forth in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the SmartFinancial Parties, in the event (i) of any breach by Bancshares or Cornerstone of <U>Section&nbsp;7.1</U> or <U>Section&nbsp;7.8</U>
of this Agreement or (ii) the board of directors of Bancshares does not publicly recommend in the Joint Proxy Statement/Prospectus
the approval of this Agreement by the shareholders of Bancshares or, after having made such recommendation, subsequently makes
a Bancshares Change of Recommendation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the Cornerstone Parties, in the event (i) of any breach by SmartFinancial or SmartBank of <U>Section&nbsp;7.1</U> or <U>Section&nbsp;7.9</U>
of this Agreement, or (ii) the board of directors of SmartFinancial does not publicly recommend in the Joint Proxy Statement/Prospectus
the approval of this Agreement by the shareholders of SmartFinancial or, after having made such recommendation, subsequently makes
a SmartFinancial Change of Recommendation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the SmartFinancial Parties, in the event a tender offer or exchange offer for 10% or more of any class or series of outstanding
shares of Bancshares Stock is commenced (other than by the SmartFinancial Parties) and the Bancshares board of directors recommends
that the shareholders of Bancshares tender their shares in such tender or exchange offer or otherwise fails to recommend that such
shareholders reject such tender offer or exchange offer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the Cornerstone Parties, in the event a tender offer or exchange offer for 10% or more of any class or series of outstanding shares
of SmartFinancial Stock is commenced (other than by the Cornerstone Parties) and the SmartFinancial board of directors recommends
that the shareholders of SmartFinancial tender their shares in such tender or exchange offer or otherwise fails to recommend that
such shareholders reject such tender offer or exchange offer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the SmartFinancial Parties, at any time prior to the approval of this Agreement by the shareholders of SmartFinancial, for the
purpose of entering into an agreement with respect to a Superior SmartFinancial Proposal; <I>provided </I>that there has been no
breach by SmartFinancial or SmartBank of <U>Section 7.1</U> or <U>Section&nbsp;7.9</U> of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the Cornerstone Parties, at any time prior to the approval of this Agreement by the shareholders of Bancshares, for the purpose
of entering into an agreement with respect to a Superior Bancshares Proposal; <I>provided </I>that there has been no breach by
Bancshares or Cornerstone of <U>Section 7.1</U> or <U>Section&nbsp;7.8</U> of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Effect
of Termination</U>. In the event of the termination of this Agreement in accordance with this <U>Article&nbsp;IX</U>,&nbsp;this
Agreement shall, subject to <U>Section&nbsp;9.3</U>, become null and void and have no further force or effect and the Parties shall
have no further or continuing liability or obligations under this Agreement, except that (a) <U>Section 7.3(c)</U>, this <U>Section
9.2</U>, <U>Section&nbsp;9.3</U>, and <U>Article&nbsp;X</U> of this Agreement shall survive any termination of this Agreement and
(b) notwithstanding anything to the contrary contained in this Agreement, no Party shall be relieved of or released from any liability
or damages arising out of such Party&rsquo;s fraud or willful or intentional breach of any provision of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
Fee</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event (i) this Agreement is terminated by the SmartFinancial Parties pursuant to <U>Section&nbsp;9.1(b)</U> and the Bancshares
or Cornerstone breach giving rise to termination is knowing, willful, or intentional and (ii) within 12 months after the date of
termination Bancshares or Cornerstone consummates or enters into any agreement with respect to an Acquisition Proposal, the Cornerstone
Parties (1) shall pay to the SmartFinancial Parties a termination fee of $1,200,000 and (2) shall reimburse the SmartFinancial
Parties for all reasonable costs and expenses incurred by the SmartFinancial Parties through the date of termination in connection
with this Agreement or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event (i) this Agreement is terminated by the Cornerstone Parties pursuant to <U>Section&nbsp;9.1(b)</U> and the SmartFinancial
or SmartBank breach giving rise to termination is knowing, willful, or intentional and (ii) within 12 months after the date of
termination SmartFinancial or SmartBank consummates or enters into any agreement with respect to an Acquisition Proposal, the SmartFinancial
Parties (1) shall pay to the Cornerstone Parties a termination fee of $1,200,000 and (2) shall reimburse the Cornerstone Parties
for all reasonable costs and expenses incurred by the Cornerstone Parties through the date of termination in connection with this
Agreement or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event this Agreement is terminated by the SmartFinancial Parties pursuant to <U>Section&nbsp;9.1(g)</U> or <U>Section 9.1(i)</U>,
the Cornerstone Parties (1) shall pay to the SmartFinancial Parties a termination fee of $1,200,000 and (2) shall reimburse the
SmartFinancial Parties for all costs and expenses incurred by the SmartFinancial Parties through the date of termination in connection
with this Agreement or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event this Agreement is terminated by the Cornerstone Parties pursuant to <U>Section&nbsp;9.1(h)</U> or <U>Section 9.1(j)</U>,
the SmartFinancial Parties (1) shall pay to the Cornerstone Parties a termination fee of $1,200,000 and (2) shall reimburse the
Cornerstone Parties for all costs and expenses incurred by the Cornerstone Parties through the date of termination in connection
with this Agreement or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event this Agreement is terminated by the SmartFinancial Parties pursuant to <U>Section&nbsp;9.1(k)</U>, the SmartFinancial
Parties (1) shall pay to the Cornerstone Parties a termination fee of $1,200,000 and (2) shall reimburse the Cornerstone Parties
for all costs and expenses incurred by the Cornerstone Parties through the date of termination in connection with this Agreement
or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event this Agreement is terminated by the Cornerstone Parties pursuant to <U>Section&nbsp;9.1(l)</U>, the Cornerstone Parties
(1) shall pay to the SmartFinancial Parties a termination fee of $1,200,000 and (2) shall reimburse the SmartFinancial Parties
for all costs and expenses incurred by the SmartFinancial Parties through the date of termination in connection with this Agreement
or the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
termination fee payable in accordance with this <U>Section&nbsp;9.3</U> shall be paid by wire transfer of immediately available
funds to an account designated by the Parties entitled to receive the same. Any termination fee payable pursuant to <U>Section&nbsp;9.3(a)</U>
or <U>Section&nbsp;9.3(b)</U> shall be paid by the Parties obligated to make payment within two Business Days after such Parties&rsquo;
receipt of a payment demand notice from the Parties entitled to receive the same. Any termination fee payable pursuant to <U>Section&nbsp;9.3(c)</U>,
<U>Section&nbsp;9.3(d)</U>, <U>Section&nbsp;9.3(e)</U>, or <U>Section&nbsp;9.3(f)</U> shall be payable at the time of the termination
of this Agreement. The Parties acknowledge that the agreements contained in this <U>Section&nbsp;9.3</U> are an integral part of
the transactions contemplated by this Agreement, that absent such agreements the Parties would not have entered into this Agreement,
and that the termination fees provided for do not constitute a penalty or liquidated damages in the event of a breach of this Agreement
(but that the termination fee provided for in <U>Section&nbsp;9.3(e)</U> does constitute liquidated damages and the sole remedy
of the Cornerstone Parties in the event this Agreement is terminated by the SmartFinancial Parties pursuant to <U>Section&nbsp;9.1(k)</U>
and that the termination fee provided for in <U>Section&nbsp;9.3(f)</U> does constitute liquidated damages and the sole remedy
of the SmartFinancial Parties in the event this Agreement is terminated by the Cornerstone Parties pursuant to <U>Section&nbsp;9.1(l)</U>).
In the event a Party fails to timely make payment of any amounts due and payable by such Party under this <U>Section&nbsp;9.3</U>,
such Party shall pay the costs and expenses (including reasonable attorneys&rsquo; fees and expenses and court costs) incurred
by the Parties entitled to receive payment of such amounts in connection with any action, including the filing of any lawsuit,
taken to collect payment of such amounts, together with interest on the amount of any such amounts unpaid at the prime lending
rate prevailing during such period as published in&nbsp;<I>The Wall Street Journal</I>, calculated on a daily basis from the date
such amounts were required to be paid until the date of actual payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the avoidance of doubt, no termination fee shall be payable, and no costs or expenses shall be reimbursable, by either the SmartFinancial
Parties or the Cornerstone Parties in the event this Agreement is terminated pursuant to <U>Section&nbsp;9.1(a)</U>, <U>Section&nbsp;9.1(c)</U>,
<U>Section&nbsp;9.1(d)</U>, <U>Section&nbsp;9.1(e)</U>, <U>Section&nbsp;9.1(f)</U>, <U>Section&nbsp;9.1(m)</U>, or <U>Section&nbsp;9.1(n)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">ARTICLE X</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><U>MISCELLANEOUS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival</U>.
None of the representations, warranties, covenants, or agreements contained in this Agreement shall survive the Effective Time
(other than those covenants and agreements contained herein that by their express terms are to be observed or performed after the
Effective Time) or the termination of this Agreement (other than <U>Section 7.3(c)</U>, <U>Section 9.2</U>, <U>Section&nbsp;9.3</U>,
and this <U>Article&nbsp;X</U>, each of which shall survive any such termination). Notwithstanding the foregoing or anything else
in this Agreement to the contrary, none of the representations, warranties, covenants, or agreements contained in this Agreement
shall be deemed to be terminated or extinguished so as to deprive any Party hereto or any of its Affiliates of any defense, at
law or in equity, which otherwise would be available against the claims of any Person, including without limitation any shareholder
or former shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interpretation</U>.
When reference is made in this Agreement to an Article, Section, Exhibit, or Schedule, such reference shall be to an Article or
Section of or Exhibit or Schedule to this Agreement, unless otherwise indicated. The headings appearing in this Agreement have
been inserted for purposes of convenience of reference only and shall not affect the meaning of, or be given any force or effect
in the construction or interpretation of, this Agreement. Whenever the words &ldquo;include,&rdquo; &ldquo;includes,&rdquo; and
&ldquo;including&rdquo; are used in this Agreement, they shall be deemed to be followed by the words &ldquo;without limitation,&rdquo;
whether or not actually followed by such words. Any singular term used in this Agreement shall be deemed to include the plural,
and any plural term the singular. Any gender reference in this Agreement shall be deemed to include all genders. Whenever the words
&ldquo;as of the date hereof&rdquo; are used in this Agreement, such date shall be deemed the date of this Agreement. The Parties
have participated jointly in the negotiation and drafting of this Agreement, and, in the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of
proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment;
Waiver</U>.&nbsp; This Agreement may be amended, modified, or supplemented at any time prior to the filing of the Articles of Merger
with the Tennessee Secretary of State by, but only by, a written instrument executed by each of the Parties; <I>provided </I>that,
(a) after the approval of this Agreement by the shareholders of SmartFinancial, this Agreement may not be amended, modified, or
supplemented so as to change (i) the amount or kind of consideration to be received hereunder by holders of SmartFinancial Stock
or (ii) any other provision of this Agreement, if the change would adversely affect the shareholders of SmartFinancial in any material
respect, in each case without the subsequent approval of the same by the shareholders of SmartFinancial, and (b) after the approval
of this Agreement by the shareholders of Bancshares, this Agreement may not be amended, modified, or supplemented so as to change
(i) the amount or kind of consideration to be received hereunder by holders of SmartFinancial Stock or (ii) any other provision
of this Agreement, if the change would adversely affect the shareholders of Bancshares in any material respect, in each case without
the subsequent approval of the same by the shareholders of Bancshares. Prior to the Effective Time, any provision of this Agreement
may be waived by the Party or Parties entitled to the benefits thereof; <I>provided</I> that any such waiver shall be in writing
and executed by the Party or Parties granting such waiver.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.&nbsp;
This Agreement may be executed in multiple counterparts, each of which shall be deemed to constitute an original, but all of which
together shall constitute one and the same instrument. A facsimile or other electronic copy of a signature page to this Agreement
shall be deemed to be, and shall have the same force and effect as, an original signature page.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>.&nbsp; This Agreement shall be governed by, and construed, interpreted, and enforced in accordance with, the laws of the
State of Tennessee, without regard to conflict of laws principles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Expenses</U>.
Except as expressly otherwise provided in this Agreement, each Party shall be responsible for and bear all costs and expenses incurred
by it in connection with this Agreement and the transactions contemplated hereby; <I>provided</I>, <I>however</I>, that (a) all
costs and expenses directly related to the printing and mailing (to the shareholders of SmartFinancial and Bancshares) of the Joint
Proxy Statement/Prospectus and (b) all EDGARizing costs and expenses incurred, and all filing fees paid to the SEC, in connection
with the transactions contemplated by this Agreement shall be shared equally by the SmartFinancial Parties, on one hand, and the
Cornerstone Parties, on the other.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
All notices, requests, consents, and other communications required or permitted under or related to this Agreement shall be in
writing and shall be deemed given, delivered, and effective (i) when delivered, if delivered personally, (ii) on the third Business
Day after mailing, if mailed by first class United States Mail, postage prepaid and return receipt requested, or (iii) on the first
Business Day after mailing, if sent by a nationally recognized overnight delivery service, in each case to the Parties at the following
addresses (or such other addresses as the Parties may designate from time to time by notice given in accordance with this <U>Section
10.7</U>):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 90%; border-collapse: collapse; margin-left: 0.5in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%; text-decoration: underline"><FONT STYLE="font-size: 10pt"><U>If to SmartFinancial or SmartBank</U>:</FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 49%; text-decoration: underline"><FONT STYLE="font-size: 10pt"><U>With a copy to</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">SmartFinancial, Inc.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Butler Snow LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">SmartBank</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attention: Adam G. Smith</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Attention: William Y. Carroll, Jr.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">150 3rd Avenue South</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">2430 Teaster Lane, Suite 205</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Suite 1600</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Pigeon Forge, Tennessee 37863</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Nashville, Tennessee 37201</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-decoration: underline"><FONT STYLE="font-size: 10pt"><U>If to Bancshares or Cornerstone</U>:</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-decoration: underline"><FONT STYLE="font-size: 10pt"><U>With a copy to</U>:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Cornerstone Bancshares, Inc.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Miller &amp; Martin PLLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Cornerstone Community Bank</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attention: Roddy Bailey </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Attention: W. Miller Welborn</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Suite 1000, Volunteer Building &nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">800 Market Street</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">832 Georgia Avenue</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Chattanooga, Tennessee 37402</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chattanooga, Tennessee 37402</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement; Third Party Beneficiaries</U>. This Agreement, including and together with the Exhibits and Schedules hereto and the
Disclosure Memoranda, and the Confidentiality Agreement (but only to the extent the Confidentiality Agreement is not inconsistent
with any provision of this Agreement) represent the entire understanding of the Parties with respect to the transactions contemplated
hereby and supersede any and all prior agreements, understandings, and arrangements, whether written or oral, between or among
the Parties with respect to such subject matter. This Agreement is made solely for the benefit of the Parties hereto and their
respective successors and permitted assigns, and no other Person shall acquire or have any rights under or by virtue of this Agreement,
except for the rights of holders of SmartFinancial Stock to receive the Merger Consideration as provided in <U>Article&nbsp;III</U>
and such other amounts payable in respect of such SmartFinancial Stock in accordance with this Agreement, and except that the Indemnified
Parties (and their heirs and legal and personal representatives) are intended third-party beneficiaries of this Agreement to the
extent, but only to the extent, provided in <U>Section&nbsp;7.11</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
In the event any term or provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason or in any
respect, (a) such invalidity, illegality, or unenforceability shall in no event affect, prejudice, or disturb the validity, legality,
or enforceability of the remainder of this Agreement, which shall be and remain in full force and effect enforceable in accordance
with its terms, and (b) the Parties shall use their reasonable best efforts to substitute for such invalid, illegal, or unenforceable
term or provision an alternative term or provision which, insofar as practicable, implements the original purposes and intent of
this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
No Party may assign this Agreement or any of its rights, interests, or obligations hereunder without the prior written consent
of each of the other Parties. Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the benefit
of the Parties and their respective successors and permitted assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Attorneys&rsquo;
Fees</U>. In the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement or the
transactions contemplated hereby, the prevailing Party or Parties shall be entitled to recover from the non-prevailing Party or
Parties all fees, expenses, and disbursements, including without limitation attorneys&rsquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Submission
to Jurisdiction; Service of Process</U>. <FONT STYLE="text-transform: uppercase">Each Party hereby (a) irrevocably submits to the
sole and exclusive jurisdiction of the state courts of the State of Tennessee located in DAVIDSON County, Tennessee, or in the
event (but only in the event) that no such state court has jurisdiction, the United States District Court for the Eastern District
of Tennessee (the &ldquo;<U>TENNESSEE COURTS</U>&rdquo;), in respect of any claim, action, suit, or proceeding under, arising out
of, or related to this Agreement or the transactions contemplated hereby, (b) irrevocably waives and agrees not to assert as a
defense in any such claim, action, suit, or proceeding that such Party is not subject to the jurisdiction of THE TENNESSEE courts,
that such claim, action, suit, or proceeding may not be brought or is not maintainable in THE TENNESSEE courts or that the venue
thereof may not be appropriate, or that this Agreement may not be construed, interpreted, or enforced in or by THE TENNESSEE courts,
and (c) irrevocably agrees that all claims a part of or with respect to any such claim, action, suit, or proceeding shall be heard
and determined by THE TENNESSEE courts. The Parties hereby grant THE TENNESSEE courts jurisdiction over the persons of the Parties
and, to the extent permitted by Law, over the subject matter of any such claim, action, suit, or proceeding.</FONT> Any and all
process in any claim, action, suit, or proceeding under, arising out of, or related to this Agreement or the transactions contemplated
hereby may be served by complying with the provision of <U>Section&nbsp;10.7</U>, and the Parties hereby waive any and all claims
of error by reason of service of process in such manner; <I>provided</I>, <I>however</I>, that nothing in this <U>Section&nbsp;10.12</U>
shall affect the right of any Party to serve process in any other manner permitted by applicable Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Section 10.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Jury
Trial Waiver</U>. EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, AND IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY
MAY HAVE TO A TRIAL BY JURY <FONT STYLE="text-transform: uppercase">in respect of any claim, action, suit, or proceeding under,
arising out of, or related to this Agreement or the transactions contemplated hereby</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">(<I>Signature Page
Follows</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">IN WITNESS WHEREOF,
the Parties have caused this Agreement and Plan of Merger to be executed by their duly authorized officers as of the date first
above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">SMARTFINANCIAL, INC.&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid">/s/ William Y. Carroll, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">William Y. Carroll, Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><I>President and Chief Executive Officer</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">SMARTBANK </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ William Y. Carroll, Jr. </TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">William Y. Carroll, Jr. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><I>President and Chief Executive Officer</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">CORNERSTONE BANCSHARES, INC. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ <FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><I>Chairman</I> </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">CORNERSTONE COMMUNITY BANK </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ W. Miller Welborn</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><I>Chairman </I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">(<I>Signature Page
to Agreement and Plan of Merger</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>



<P STYLE="margin: 0"></P>

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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>v396203_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 10.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">DIRECTOR SUPPORT AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This Director Support Agreement (this &ldquo;<B><U>Agreement</U></B>&rdquo;),
dated as of December 5, 2014, is entered into by and among the undersigned member of the board of directors (the &ldquo;<B><U>Director</U></B>&rdquo;)
of SmartFinancial, Inc., a Tennessee corporation and registered bank holding company (&ldquo;<U>SmartFinancial</U>&rdquo;), Cornerstone
Bancshares, Inc., a Tennessee corporation and registered bank holding company (&ldquo;<U>Bancshares</U>&rdquo;), and Cornerstone
Community Bank, a Tennessee-chartered banking corporation (&ldquo;<B><U>Cornerstone</U></B>&rdquo; and together with Bancshares,
the &ldquo;<U>Cornerstone Parties</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><U>RECITALS</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, concurrently with or following
the parties&rsquo; execution of this Agreement, Bancshares, Cornerstone, SmartFinancial, and SmartBank, a Tennessee-chartered banking
corporation and wholly-owned subsidiary of SmartFinancial (&ldquo;<U>SmartBank</U>&rdquo;), have entered into or will enter into
an Agreement and Plan of Merger (as the same may be amended from time to time, the &ldquo;<B><U>Merger Agreement</U></B>&rdquo;)
providing for, among other things, the merger of SmartFinancial with and into Bancshares, with Bancshares to be the corporation
to survive such merger, in accordance with Tennessee law and upon and subject to the terms and conditions set forth in the Merger
Agreement (the &ldquo;<B><U>Holding Company Merger</U></B>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, as a condition to their willingness
to enter into the Merger Agreement, the Cornerstone Parties have required that the Director execute and deliver this Agreement;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">WHEREAS, in order to induce the Cornerstone
Parties to enter into the Merger Agreement, the Director is willing to make certain representations, warranties, covenants, and
agreements with respect to the shares of common stock, par value $1.00 per share, of SmartFinancial (the &ldquo;<B><U>SmartFinancial
Stock</U></B>&rdquo;) owned by the Director and set forth below the Director&rsquo;s signature on the signature page to this Agreement
(the &ldquo;<B><U>Original Shares</U>,</B>&rdquo; and together with any additional shares of SmartFinancial Stock or any other
class or series of capital stock of SmartFinancial contemplated by <U>Section&nbsp;6</U> hereof, the &ldquo;<B><U>Shares</U></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">NOW, THEREFORE, in consideration of the
premises and for other good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged,
the parties hereto agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Defined
Terms</U>. Capitalized terms used but not defined in this Agreement shall have the respective meanings ascribed to them in the
Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
of Director</U>. The Director represents and warrants to the Cornerstone Parties that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Director owns all of the Original Shares free and clear of any and all Liens, and, except for this Agreement, there are no options,
warrants, or other rights, agreements, arrangements, or commitments of any character to which the Director is a party or by which
the Director is bound or subject relating to the pledge, disposition, or voting of any of the Original Shares, and there are no
voting trusts or voting agreements with respect to the Original Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Director does not own any shares of SmartFinancial Stock, or any shares of any other class or series of capital stock of SmartFinancial,
other than the Original Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Director has full power and authority and legal capacity to enter into, execute, and deliver this Agreement and to perform fully
the Director&rsquo;s obligations hereunder. This Agreement has been duly and validly executed and delivered by the Director and
constitutes the legal, valid, and binding obligation of the Director enforceable against the Director in accordance with its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the execution and delivery of this Agreement by the Director, the consummation by the Director of the transactions contemplated
hereby, nor compliance by the Director with or performance by the Director of any of the provisions hereof will conflict with or
result in a breach of, or constitute a default (with or without notice or lapse of time or both) under any provision of, (i) any
trust agreement, loan or credit agreement, note, bond, mortgage, deed of trust, indenture, lease, order, or other contract, agreement,
or instrument to which the Director is a party, by which the Director or any of the Director&rsquo;s property or assets are bound,
or to which the Director or any of the Director&rsquo;s property or assets are subject, or (ii) any Law applicable to or biding
upon the Director or the Director&rsquo;s property or assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
consent, approval, or authorization of, or designation, declaration, or filing with, any Governmental Entity or other Person on
the part of the Director is required in connection with the valid execution and delivery of this Agreement. No consent of the Director&rsquo;s
spouse is necessary under any &ldquo;community property&rdquo; or other Laws in order for the Director to enter into and perform
the Director&rsquo;s obligations under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Agreement
to Vote Shares</U>. The Director agrees, during the term of this Agreement, to vote the Shares, and to cause any holder of record
of the Shares to vote the Shares: (a) in favor of the Merger Agreement and the Holding Company Merger and such other matters as
are required to be approved by the shareholders of SmartFinancial in order for the consummation of the transactions contemplated
by the Merger Agreement, in each case to the extent the Shares are entitled to vote on such matters, at every meeting of the shareholders
of SmartFinancial at which such matters are considered and at every adjournment or postponement thereof, and (b) against (i) any
Acquisition Proposal, (ii) any action, proposal, transaction, agreement, or other matter which could reasonably be expected to
result in a breach of any representation, warranty, covenant, or other obligation or agreement of SmartFinancial or SmartBank under
the Merger Agreement or of the Director under this Agreement, and (iii) any action, proposal, transaction, agreement, or other
matter that could reasonably be expected to impede, interfere with, delay, discourage, adversely affect, or inhibit the timely
consummation of the Holding Company Merger, or the fulfillment of any condition to the consummation of the Holding Company Merger
set forth in the Merger Agreement, or change in any manner the voting rights of any class or series of shares of capital stock
of SmartFinancial (including any amendment to the charter or bylaws of SmartFinancial); <I>provided</I>,<I> however</I>, that,
if the manner in which the Shares are owned is such that the Director cannot absolutely cause the Shares to be so voted, the Director
shall use the Director&rsquo;s best efforts to cause the Shares to be so voted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Voting Trust or Other Arrangement</U>. The Director agrees that the Director will not, and will not permit any Person under the
Director&rsquo;s control to, deposit any of the Shares in a voting trust, grant any proxies with respect to the Shares inconsistent
with this Agreement, or subject any of the Shares to any arrangement with respect to the voting of the Shares, other than agreements
entered into with the Cornerstone Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Transfer
and Encumbrance</U>. The Director agrees that, during the term of this Agreement, the Director will not, directly or indirectly,
transfer, sell, offer, exchange, assign, pledge, or otherwise dispose of or encumber (collectively, &ldquo;<B><U>Transfer</U></B>&rdquo;)
any of the Shares, or enter into any contract, option, or other agreement or arrangement with respect to, or consent to, a Transfer
of any of the Shares or the Director&rsquo;s voting or economic interest therein; <I>provided</I>,<I> however</I>, that this <U>Section&nbsp;5</U>
shall not prohibit a Transfer of the Shares by the Director if, as a precondition to such Transfer, the transferee agrees in a
writing, reasonably satisfactory in form and substance to the Cornerstone Parties, to be bound by all of the terms of this Agreement
(including without limitation the provisions of <U>Section&nbsp;3</U> hereof pertaining to the voting of the Shares). Any attempted
Transfer of the Shares or any interest therein in violation of this <U>Section&nbsp;5</U> shall be null and void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Additional
Shares</U>. The Director agrees that all shares of SmartFinancial Stock, and all shares of any other class or series of capital
stock of SmartFinancial, which the Director purchases, acquires the right to vote (other than as a named proxy), or otherwise acquires
beneficial ownership (as such term is defined in Rule&nbsp;13d-3&nbsp;under the Exchange Act) of after the Director&rsquo;s execution
of this Agreement shall be subject to the terms of this Agreement and shall constitute Shares for all purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver
of Appraisal and Dissenters&rsquo; Rights</U>. The Director hereby waives and agrees not to assert or perfect any right of appraisal
or right to dissent arising or existing in connection with the Merger Agreement or the Holding Company Merger or any other matter
required to be approved by the shareholders of SmartFinancial in order for the consummation of the transactions contemplated by
the Merger Agreement, in each case which the Director may have by virtue of ownership of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>.
This Agreement shall terminate upon the earliest to occur of: (a) the Effective Time of the Holding Company Merger, (b) the date
on which the Merger Agreement is terminated in accordance with its terms, and (c) the effective date of any amendment, modification,
or supplement to the Merger Agreement requiring the approval of the shareholders of SmartFinancial as contemplated by Section 10.3
of the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Agreement as Director or Officer</U>. The Director makes no agreement or understanding in this Agreement in the Director&rsquo;s
capacity as a director of SmartFinancial or an officer of SmartFinancial (if the Director holds any such office), and nothing in
this Agreement (a) will limit or affect any actions or omissions taken by the Director in the Director&rsquo;s capacity as such
a director or officer, including in exercising rights under the Merger Agreement, and no such actions or omissions shall be deemed
a breach of this Agreement, or (b) will be construed to prohibit, limit, or restrict the Director from exercising the Director&rsquo;s
fiduciary duties as a director or officer of SmartFinancial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Specific
Performance</U>. Each party hereto acknowledges that it will be impossible to measure in money the damage to the other parties
if a party hereto fails to comply with any of the obligations imposed on the party by this Agreement, that every such obligation
is material, and that, in the event of any such failure, the other parties will not have an adequate remedy at law or adequate
damages. Accordingly, each party hereto agrees that injunctive relief or other equitable remedy, in addition to remedies at law
and/or damages, is the appropriate remedy for any such failure and that it will not oppose the seeking of such relief on the basis
that a party has an adequate remedy at law. Each party hereto agrees that it will not seek, and agrees to waive any requirement
for, the securing or posting of a bond in connection with any other party seeking or obtaining any such equitable relief or remedy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement; Amendment; Waivers</U>. This Agreement supersedes all prior agreements, written and oral, between or among the parties
hereto with respect to the subject matter hereof and contains the entire, integrated agreement among the parties with respect to
the subject matter hereof. This Agreement may not be amended or supplemented, and no provisions hereof may be modified or waived,
except by an instrument in writing signed by each of the parties hereto. No waiver of any provisions hereof by a party shall be
deemed a waiver of any other provisions hereof by such party, nor shall any such waiver be deemed a continuing waiver of any provision
hereof by such party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement shall be governed by and construed and enforced in accordance with the internal Laws of the State of Tennessee, without
giving effect to any choice or conflict of law provision or rule (whether of the State of Tennessee or any other jurisdiction)
that would cause the application of Laws of any jurisdiction other than those of the State of Tennessee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement or the rights and obligations
arising hereunder, or for recognition or enforcement of any judgment in respect of this Agreement or the rights and obligations
arising hereunder, brought by any other party hereto or its successors or assigns shall be brought and determined exclusively in
a Tennessee state court of record located in Davidson County, Tennessee, or, in the event (but only in the event) that no such
state court has subject matter jurisdiction over such action or proceeding, in the United States District Court for the Middle
District of Tennessee. Each of the parties hereto hereby irrevocably submits, with regard to any such action or proceeding, for
itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and
agrees that it will not bring any action or proceeding relating to this Agreement or any of the transactions contemplated by this
Agreement in any court or tribunal other than the aforesaid courts. Each of the parties hereto hereby irrevocably waives, and agrees
not to assert, by way of motion, as a defense, by counterclaim, or otherwise, in any action or proceeding with respect to this
Agreement or the rights and obligations arising hereunder, or for recognition or enforcement of any judgment in respect of this
Agreement or the rights and obligations arising hereunder, (i) any claim that it is not personally subject to the jurisdiction
of the above named courts for any reason, (ii) any claim that it or its property is exempt or immune from the jurisdiction of any
such courts or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of judgment, or otherwise), and (iii) to the fullest extent permitted by
applicable Law, any claim that (1) the action or proceeding in such courts is brought in an inconvenient forum, (2) the venue of
such action or proceeding is improper, or (3) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO
THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (II) SUCH PARTY HAS CONSIDERED
THE IMPLICATIONS OF THIS WAIVER, (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <U>SECTION&nbsp;12(C)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality,
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction. Upon any determination that any term or provision of this Agreement is invalid, illegal,
or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent
of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby can be
consummated as originally contemplated to the greatest extent possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
party hereto shall execute and deliver such additional documents as may be necessary or desirable to effect the transactions contemplated
by and purposes and intent of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
section headings contained in this Agreement are for convenience of reference only and are not part of this Agreement, and no construction
or reference shall be derived therefrom.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
obligations of the Director set forth in this Agreement shall not be effective or binding upon the Director until such time as
the Merger Agreement is executed and delivered by SmartFinancial, SmartBank, Bancshares, and Cornerstone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1in">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
party to this Agreement may assign any of its rights or obligations under this Agreement without the prior written consent of each
of the other parties hereto. Any assignment contrary to the foregoing sentence shall be null and void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(<I>Signature Page Follows</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Director Support Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">CORNERSTONE BANCSHARES, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 3%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid">/s/ <FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE COMMUNITY BANK</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="text-indent: 0in; border-bottom: Black 1pt solid">/s/ <FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Director&rsquo;s Signature</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Director&rsquo;s Name (Print)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in"><FONT STYLE="font-size: 10pt">Number of shares of SmartFinancial Stock owned by Director as of the date of this Agreement:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; text-indent: 0in">______________________________________________________<FONT STYLE="font-size: 10pt">Shares</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3.5in; text-indent: 0in">&nbsp;</P>


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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>v396203_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in"><B>Exhibit 10.2</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="text-transform: none">EMPLOYMENT
AGREEMENT</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">THIS EMPLOYMENT AGREEMENT
is made and entered into as of December 5, 2014 (the &ldquo;<U>Effective Date</U>&rdquo;), by and between Cornerstone Bancshares,
Inc., a Tennessee corporation and registered bank holding company (the &ldquo;<U>Company</U>&rdquo;), and Nathaniel F. Hughes,
a resident of the State of Tennessee (the &ldquo;<U>Employee</U>&rdquo;). The Company and the Employee are sometimes referred to
herein collectively as the &ldquo;<U>Parties</U>,&rdquo; and each is sometimes referred to herein individually as a &ldquo;<U>Party</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal; text-transform: none">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal; text-transform: none"><U>RECITALS</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Simultaneously
with the Parties&rsquo; execution of this Agreement, SmartFinancial, Inc., a Tennessee corporation and registered bank holding
company (&ldquo;<U>SmartFinancial</U>&rdquo;), SmartBank, a banking corporation organized under the laws of the State of Tennessee
(&ldquo;<U>SmartBank</U>&rdquo;), the Company, and Cornerstone Community Bank, a banking corporation organized under the laws of
the State of Tennessee (the &ldquo;<U>Bank</U>&rdquo;) have entered into an Agreement and Plan of Merger, dated December 5, 2014
(the &ldquo;<U>Merger Agreement</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Merger Agreement contemplates and provides for the merger of SmartFinancial with and into the Company (the &ldquo;<U>SmartFinancial
Merger</U>&rdquo;), with the Company to be the corporation to survive the SmartFinancial Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company desires to employ the Employee, and the Employee desires to accept employment as President and Chief Executive Officer
of the Company, and upon the consummation of the SmartFinancial Merger, as Executive Vice President, Investment Officer and Institutional
Investor Relations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties desire to set forth in this Agreement the terms and conditions upon which the Employee will be so employed.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal; text-transform: none"><U>AGREEMENT</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In consideration of the
premises set forth above, the mutual agreements hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>.
When used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Affiliate</U>&rdquo;
shall mean any person that controls, is controlled by, or is under common control with another person. For this purpose, &ldquo;control&rdquo;
means ownership of more than 50% of the ordinary voting power of the outstanding equity securities of a person. For the avoidance
of doubt, it is expressly acknowledged that, following the SmartFinancial Merger, the Bank and SmartBank, will be Affiliates for
purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Agreement</U>&rdquo;
shall mean this Employment Agreement and any appendices incorporated herein together with any amendments hereto made in the manner
described in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Area</U>&rdquo;
shall mean, during the period of the Employee&rsquo;s employment, a radius of 75 miles from each banking office (whether a main
office, branch office, or loan or deposit production office) maintained by the Company and/or any Affiliate of the Company from
time to time during such period of employment, and, following the period of the Employee&rsquo;s employment, a radius of 75 miles
from each banking office (whether a main office, branch office, or loan or deposit production office) maintained by the Company
and/or any Affiliate of the Company as of the last day of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Board
of Directors</U>&rdquo; shall mean the board of directors of the Company, and, where appropriate, any committee or designee thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Business
of the Company</U>&rdquo; shall mean the business conducted by the Company and/or any Affiliate of the Company, which shall include
the business of commercial and consumer banking.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Cause</U>&rdquo;
shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
breach of the terms of this Agreement by the Employee not cured by the Employee within 15 business days after the Employee&rsquo;s
receipt of the Company&rsquo;s written notice thereof, including without limitation failure by the Employee to perform the Employee&rsquo;s
duties and responsibilities in the manner and to the extent required under this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
act by the Employee of fraud against, misappropriation from, or dishonesty to the Company or any Affiliate of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
conviction of the Employee of any crime;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
by the Employee that amounts to willful misconduct, gross neglect, or a material failure to perform the Employee&rsquo;s duties
and responsibilities hereunder, including prolonged absences without the written consent of the Chairman of the Board of Directors;
<I>provided</I> that the nature of such conduct shall be set forth with reasonable particularity in a written notice to the Employee
who shall have 15 business days following delivery of such notice to cure such alleged conduct, <I>provided</I> that such conduct
is, in the reasonable discretion of the Chairman of the Board of Directors, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
exhibition by the Employee of a standard of behavior within the scope of or related to the Employee&rsquo;s employment that is
in violation of (i) any written policy, which violation results in or is likely to result in a material loss or regulatory criticism,
(ii) any board committee charter, or (iii) any code of ethics or business conduct of the Company or any Affiliate of the Company;
<I>provided</I> in each case that the nature of such behavior shall be set forth with reasonable particularity in a written notice
to the Employee who shall have 15 business days following delivery of such notice to cure such alleged behavior, <I>provided</I>
that such behavior is, in the reasonable discretion of the Chairman of the Board of Directors, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
or behavior by the Employee that, in the reasonable opinion of the Chairman of the Board of Directors of the Company, has harmed
or could be expected to harm the business or reputation of the Company or any Affiliate of the Company, including without limitation
conduct or behavior that is unethical or involves moral turpitude;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receipt
of any form of written notice that any regulatory agency or authority having jurisdiction over the Company or any Affiliate of
the Company has instituted any form of regulatory action against the Employee; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Employee&rsquo;s removal from office or permanent prohibition from participating in the conduct of the affairs of the Company or
any Affiliate of the Company by an order issued under Section&nbsp;8(e) or Section&nbsp;8(g) of the Federal Deposit Insurance Act
(12 U.S.C. &sect;&nbsp;1818(e) and (g)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the scope of the Employee&rsquo;s duties and responsibilities, which (A)
is not consented to by the Employee in writing, or (B) does not occur within 12 months following either the SmartFinancial Merger
or the merger of the Bank and SmartBank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the salary and other compensation and benefits provided for in <U>Section&nbsp;4</U>
hereof from the level in effect immediately prior to such reduction, which is not consented to by the Employee in writing; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
change in the location of the Employee&rsquo;s primary office such that the Employee is required to report regularly to an office
located outside of a 75-mile radius from the location of the Employee&rsquo;s primary office as of the date of such change in location,
which change is not consented to by the Employee in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Code</U>&rdquo;
shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Competing
Business</U>&rdquo; shall mean any person (other than an Affiliate of the Company) that is conducting any business that is the
same or substantially the same as the Business of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Confidential
Information</U>&rdquo; means data and information relating to the business of the Company or any Affiliate of the Company (which
does not rise to the status of a Trade Secret) which is or has been disclosed to the Employee or of which the Employee became aware
as a consequence of or through the Employee&rsquo;s relationship with the Company or any Affiliate of the Company and which has
value to the Company or any Affiliate of the Company and is not generally known to its or their competitors. Confidential Information
shall not include any data or information that has been voluntarily disclosed to the public by the Company or any Affiliate of
the Company (<I>provided</I> that no such public disclosure shall be deemed to be voluntary when made without authorization by
the Employee or any other employee of the Company or any Affiliate of the Company) or that has been independently developed and
disclosed by others or that otherwise enters the public domain through lawful means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Disability</U>&rdquo;
shall mean the inability of the Employee to perform each of the Employee&rsquo;s duties and responsibilities under this Agreement
for a period of more than 90 consecutive days; <I>provided </I>that the Parties agree that, to the extent necessary to comply with
Section 409A of the Code, the definition of &ldquo;Disability&rdquo; shall be amended to the definition of disability required
by Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Employer
Information</U>&rdquo; shall mean, collectively, Confidential Information and Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Post-Termination
Period</U>&rdquo; shall mean a period of 12 months following the effective date of the termination of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Trade
Secrets</U>&rdquo; shall mean information of the Company or any Affiliate of the Company, including without limitation technical
and nontechnical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial
data, financial plans, product plans, and lists of actual or potential customers, prospects, or suppliers, which:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employee
Duties</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Position(s).</I>
The Employee will be employed as President and Chief Executive Officer of the Company until the consummation of the SmartFinancial
Merger, at which time the Employee shall assume the position as the Company&rsquo;s Executive Vice President, Investment Officer
and Institutional Investor Relations. The Employee shall perform and discharge faithfully the duties and responsibilities which
may be assigned to the Employee from time to time in connection with the conduct of the Company&rsquo;s business. The duties and
responsibilities of the Employee shall be commensurate with those of individuals holding similar positions at other banks similarly
situated. The Employee will report directly to the Chairman of the Board of Directors or such other officer as the Board of Directors
may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Full-Time
Status</I>. In addition to the duties and responsibilities specifically assigned to the Employee pursuant to <U>Section&nbsp;2(a)</U>
hereof, the Employee shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>subject
to <U>Section&nbsp;2(c)</U> hereof, during regular business hours devote substantially all of the Employee&rsquo;s time, energy,
attention, and skill to the performance of the duties and responsibilities of the Employee&rsquo;s employment (reasonable vacations,
approved leaves of absence, and reasonable absences due to illness excepted) and faithfully and industriously perform such duties
and responsibilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>diligently
follow and implement all reasonable and lawful policies and decisions communicated to the Employee; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>timely
prepare and forward to the requesting party or parties all reports and accountings as may be reasonably requested of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Permitted
Activities</I>. The Employee shall devote substantially all of the Employee&rsquo;s entire business time, attention, and energies
to the Business of the Company 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,
but as long as the following activities do not interfere with the Employee&rsquo;s obligations to the Company, this shall not be
construed as preventing the Employee from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>investing
the Employee&rsquo;s personal assets in any manner which will not require any services on the part of the Employee in the operations
or affairs of the subject person and in which the Employee&rsquo;s participation is solely that of an investor; <I>provided</I>
that such investment activity following the Effective Date shall not result in the Employee owning, beneficially or of record,
at any time 2% or more of the equity securities of any Competing Business; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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 the Employee to effectively discharge the Employee&rsquo;s duties and
responsibilities hereunder; <I>provided</I> that the Board of Directors may direct the Employee in writing to resign from any such
organization and/or cease any such activities in the event the Board of Directors reasonably determines that continued membership
and/or activities of the type identified would not be in the best interests of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Term
of Employment</U>. The initial term (the &ldquo;<U>Initial Term</U>&rdquo;) of this Agreement, and the Parties&rsquo; employment
relationship, shall commence on and as of the Effective Date and, unless this Agreement is sooner terminated in accordance with
its terms, shall end on the date which is the first anniversary of the Effective Date. At the end of the Initial Term (and at
the end of any one-year renewal term), this Agreement may be renewed for an additional, successive term of one year upon the mutual
agreement of the Parties. The Initial Term and any and all renewal terms, if any, are referred to together herein as the &ldquo;<U>Term</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compensation</U>.
The Bank shall compensate the Employee as follows during the Employee&rsquo;s period of employment hereunder, except as otherwise
provided below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Base Salary</I>. The Employee shall be compensated at an annual base rate of $169,200.00 per year (the &ldquo;<U>Annual Base Salary</U>&rdquo;).
The Employee&rsquo;s Annual Base Salary will be reviewed by the compensation committee of the Board of Directors at least annually
(in accordance with the committee&rsquo;s charter and any procedures adopted by the committee) for adjustments based on an evaluation
of the Employee&rsquo;s performance. The Employee&rsquo;s Annual Base Salary shall be payable in accordance with the Company&rsquo;s
normal payroll practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Incentive Compensation.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Employee shall be eligible to receive annual bonus compensation as determined by, and based on performance measures established
by, the Board of Directors (upon recommendation by the compensation committee) consistent with the strategic plan(s) of the Company
pursuant to any incentive compensation program that may be adopted from time to time by the Board of Directors (an &ldquo;<U>Annual
Bonus</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
Annual Bonus earned shall be payable in cash in the first calendar quarter of the year following the year in which the Annual Bonus
is earned in accordance with the Company&rsquo;s normal practices for the payment of short-term incentives. The payment of any
Annual Bonus shall be subject to any approvals or non-objections required by any regulator of the Company or any Affiliate of the
Company, and it is understood by the Parties that the Employee may not be eligible to receive any such Annual Bonus or other short-term
incentive compensation if the Company or any Affiliate of the Company is subject to restrictions imposed on the Company or any
such Affiliate by the United States Department of the Treasury, the Board of Governors of the Federal Reserve System, Federal Deposit
Insurance Corporation, the Tennessee Department of Financial Institutions, or any other bank or bank holding company regulatory
authority, or if the Company is otherwise restricted from making payment of such compensation under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Business Expenses</I>. Subject to the reimbursement policies from time to time adopted by the Board of Directors, and consistent
with the annual budget approved for the period during which an expense is incurred, the Company will reimburse the Employee for
reasonable and necessary business expenses incurred by the Employee in the performance of the Employee&rsquo;s duties and responsibilities
hereunder; <I>provided</I>, <I>however</I>, that, as a condition to any such reimbursement, the Employee shall submit verification
of the nature and amount of such expenses in accordance with said reimbursement policies. Examples of appropriate categories of
reimbursable expenses include memberships in professional and civic organizations, professional development, and customer entertainment.
The Employee acknowledges that the Company makes no representation with respect to the taxability or non-taxability of the benefits
provided under this <U>Section&nbsp;4(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Automobile.
</I>The Company will provide the Employee an automobile satisfactory to the Employee and the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Cellular
Telephone</I>. The Company will provide the Employee with a Company-owned cellular telephone for use by the Employee in the course
of the Employee&rsquo;s employment for Company-related business<U> </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Paid
Leave</I>. On a non-cumulative basis, the Employee shall be entitled to 26 days of paid leave per calendar year, prorated for any
partial calendar year of service. The provisions of this <U>Section&nbsp;4(f)</U> shall apply notwithstanding any less generous
paid leave policy then maintained by the Company, but the use of Employee&rsquo;s paid leave shall otherwise be in accordance with
and subject to the Company&rsquo;s paid leave policy as in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Other
Benefits</I>. In addition to the benefits specifically described in this Agreement, the Employee shall be entitled to such benefits
as may be available from time to time to similarly situated employees of the Company, 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, the Company&rsquo;s standard policies and
practices relating to such benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Expenses; In-Kind Benefits</I>. All expenses eligible for reimbursement described in this Agreement must be incurred by the
Employee during the Term of this Agreement to be eligible for reimbursement. Any in-kind benefits provided by the Company 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Clawback
of Compensation</I>. The Employee agrees to return or repay any compensation previously paid or otherwise made available to the
Employee that is subject to recovery under any applicable law, rule, or regulation (including any rule of any exchange or service
on or through which the securities of the Company or any Affiliate of the Company are traded) where such compensation was in excess
of what should have been paid or made available because the determination of the amount due was based, in whole or in part, on
materially inaccurate financial information of the Company. The Employee agrees to return or repay promptly any such compensation
identified by the Company. If the Employee fails to return or repay such compensation promptly, the Employee agrees that the amount
of such compensation may be deducted from any and all other compensation owed to the Employee. The Employee acknowledges that the
Company may take appropriate disciplinary action (up to and including termination of employment) if the Employee fails to return
or repay such compensation. The provisions of this <U>Section&nbsp;4(i)</U> shall be modified to the extent, and remain in effect
for the period, required by applicable law, rule, or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination
of Employment</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Company</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Company:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause or without Cause, upon written notice to the Employee approved by two-thirds of the members of the Board of Directors; <I>provided</I>
that the Company shall give the Employee at least 30 days prior written notice of the Company&rsquo;s intent to terminate without
Cause; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time upon the Disability of the Employee (<I>provided</I> that the Company shall give the Employee at least 30 days prior written
notice of the Company&rsquo;s intent to terminate), in which event the Employee will be entitled to such benefits (if any) as may
be available to the Employee under the Company&rsquo;s disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Employee</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Employee for Cause
or at any time without Cause or upon the Disability of the Employee (<I>provided </I>that the Employee shall give the Company at
least 60 days prior written notice of the Employee&rsquo;s intent to terminate without Cause).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Mutual Agreement</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated at any time by
mutual, written agreement of the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
Upon Death</I>. The Employee&rsquo;s employment, and this Agreement, shall terminate automatically upon the death of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Effect
of Termination; Resignation</I>. Upon the termination of the Employee&rsquo;s employment hereunder, the Company shall have no further
obligations to the Employee or the Employee&rsquo;s estate, heirs, beneficiaries, executors, administrators, or legal or personal
representatives with respect to this Agreement, except for the payment of any amounts earned and owing under <U>Sections&nbsp;4(a)</U>-<U>4(c)</U>
hereof as of the effective date of the termination of the Employee&rsquo;s employment. Further, upon the termination of the Employee&rsquo;s
employment, if the Employee is a member of the Board of Directors or the board of directors of any Affiliate of the Company, the
Employee shall at the request of the Company resign from his position(s) on such board(s), with any and all such resignations to
be effective not later than the date on which the Employee&rsquo;s employment is terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Renewal
of Agreement after Initial Term</I>. At the expiration of the Initial Term (but not at the end of any one-year renewal term), if
the Company elects not to renew this Agreement for an additional one-year term, then the Company shall (1) be required to pay to
the Employee a severance benefit equal to one times the Employee&rsquo;s Annual Base Salary, said benefit to be payable over the
course of the 12-month period following the last day of the Initial Term in accordance with the Company&rsquo;s normal payroll
practices, and (2) reimburse the Employee for the reasonable cost of premium payments paid by the Employee to continue the Employee&rsquo;s
then-existing health insurance for himself as provided by the Company for the lesser of (A) 12 months following the last day of
the Initial Term, and (B) until such time as the Employee obtains other employment providing health insurance coverage, provided
that the Company may discontinue reimbursing the Employee for such premium payments for the applicable time period and instead
provide a cash payment to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount of the remainder
of such reimbursable premium payments in the event that the Company determines that continued reimbursement of premium payments
would cause a violation of applicable nondiscrimination rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Intentionally
omitted.<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employer
Information</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Ownership
of Employer Information</I>. All Employer Information received or developed by the Employee or by the Company or any Affiliate
of the Company while the Employee is employed by the Company shall be and will remain the sole and exclusive property of the Company
or such Affiliate, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Obligations
of the Employee</I>. The Employee agrees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
hold all Employer Information in strictest confidence;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
not use, duplicate, reproduce, distribute, disclose, or otherwise disseminate Employer Information or any physical embodiments
of Employer Information to any unauthorized recipient; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>in
any event, to not take any action causing any Employer Information to lose its character or cease to qualify as, and to not fail
to take any action necessary in order to prevent any Employer Information from losing its character or ceasing to qualify as, Confidential
Information or a Trade Secret; <I>provided</I>, <I>however</I>, that none of the foregoing obligations shall preclude the Employee
from making any disclosures of Employer Information which the Employee has been advised in writing by independent legal counsel
are required by applicable law, rule, or regulation. This <U>Section&nbsp;7</U> shall survive for a period of two years following
the termination of this Agreement for any reason with respect to Confidential Information, and shall survive the termination of
this Agreement for any reason for so long as is permitted by applicable law with respect to Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Delivery
Upon Request or Termination</I>. Upon the request of the Company, and in any event upon the termination of the Employee&rsquo;s
employment with the Company, the Employee will promptly deliver to the Company all property belonging to the Company, including
without limitation all Employer Information then in the Employee&rsquo;s possession or control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Non-Competition;
Non-Solicitation; Non-Disparagement</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Competition</I>.
The Employee agrees that during the period of the Employee&rsquo;s employment by the Company hereunder and, in the event of the
termination of the Employee&rsquo;s employment for any reason for the duration of the Post-Termination Period the Employee will
not (except on behalf of or with the prior written consent of the Company):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, on the Employee&rsquo;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 the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, perform for any Competing Business any services that are the same as, or substantially
the same as, the services the Employee provides or provided for the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, accept employment with or be employed by any person engaged in any business, activity, enterprise, or venture competitive
with the Business of the Company; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>work
for or with, consult for, or otherwise be affiliated with, in either a paid or unpaid capacity, or be employed by any person or
group of persons proposing to establish a new bank or other financial institution within the Area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Customers</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Company hereunder and,
in the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Company), on the Employee&rsquo;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 of the customer of the Company or any Affiliate of the Company , including prospective customers actively
sought by the Company or any Affiliate of the Company, with whom the Employee has or had contact during the last two years of the
Employee&rsquo;s employment with the Company, for purposes of selling, offering, or providing products or services that are competitive
with those sold, offered, or provided by the Company or any Affiliate of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Employees</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Company hereunder and,
in the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Company), on the Employee&rsquo;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 the Company or any Affiliate of the Company with whom the Employee had contact during the last two years
of the Employee&rsquo;s employment with the Company, regardless of whether such employee is a full-time, part-time, or temporary
employee of the Company or any Affiliate of the Company or such employee&rsquo;s employment is pursuant to a written agreement,
for a determined period, or at will.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Disparagement</I>.
The Employee agrees that, during the period of the Employee&rsquo;s employment by the Company hereunder and for a period of two
years thereafter, the Employee will not make any untruthful statement (written or oral) that is or could reasonably be perceived
as disparaging to the Company or any Affiliate of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Modification.</I>
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 the Employee to those necessary to protect the Company from inevitable disclosure
of Confidential Information and Trade Secrets and/or 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Tolling.</I>
The Employee agrees that, in the event the Employee breaches this <U>Section&nbsp;8</U>, the Post-Termination Period shall be tolled
during the period of such breach and shall be extended to 12 months after all breaches of this Agreement have ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Remedies</I>.
The Employee agrees that the covenants contained in <U>Section&nbsp;7</U> and <U>Section&nbsp;8</U> 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 the Company and its Affiliates; and that irreparable loss and damage will be suffered by the Company should the Employee breach
any of such covenants. Therefore, the Employee agrees and consents that, in addition to any and all other remedies provided by
or available at law or in equity, the Company shall be entitled to a temporary restraining order and temporary and permanent injunctions
to prevent a breach or threatened or contemplated breach of any of the covenants contained in <U>Section&nbsp;7</U> or <U>Section&nbsp;8</U>
of this Agreement, and that, in such event, the Company shall not be required to post a bond. The Company and the Employee agree
that all remedies available to the Company shall be cumulative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability</U>.
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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Set-Off by Employee</U>. The existence of any claim, demand, action, or cause of action by the Employee against the Company or
any Affiliate of the Company, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Company of any of the Company&rsquo;s rights hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices</U>.
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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse; margin-left: 1in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%"><FONT STYLE="font-size: 10pt">If to the Company:</FONT></TD>
    <TD STYLE="width: 67%"><FONT STYLE="font-size: 10pt">Cornerstone Bancshares, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attention: Chairman, Board of Directors</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">835 Georgia Avenue </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chattanooga, Tennessee 37402</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">If to the Employee:</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Nathaniel F. Hughes</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">108 Crandall Avenue</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Lookout Mountain, Tennessee 37350</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. A Party may change such Party&rsquo;s notice address
set forth above by giving the other Party 10 days written notice of the new address in the manner set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignment</U>.
The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Company, including without limitation a purchaser of all or substantially all of the assets of the Company.
If this Agreement is assigned pursuant to the foregoing sentence, the assignment shall be by novation, and the assigning Party
shall have no further liability hereunder, and the successor or assign shall become the &ldquo;Bank&rdquo; hereunder, but the
Employee will not be deemed to have experienced a termination of employment by virtue of such assignment. Without limiting the
generality of the foregoing, the Parties expressly acknowledge and agree that, in the event of any merger of the Bank with and
into SmartBank, SmartBank as the surviving bank of such merger will, as successor by merger to the Bank, succeed to all rights
and obligations of the Bank hereunder, without any further action by the Parties, and that at and after the effective time of
such merger, all references in this Agreement to the &ldquo;Bank&rdquo; shall be references to SmartBank as successor by merger
to the Bank. This Agreement is a personal contract and the rights and interest of the Employee may not be assigned by the Employee.
This Agreement shall inure to the benefit of and be enforceable by the Employee and the Employee&rsquo;s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and legatees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Waiver</U>.
A waiver by one Party to this Agreement of any provision of this Agreement or of any breach of this Agreement by any other Party
to this Agreement shall not be effective unless in writing, and no waiver shall operate or be construed as a waiver of the same
or any other provision or breach on any other or subsequent occasion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Mediation</U>.
Except with respect to <U>Section&nbsp;7,</U> <U>Section&nbsp;8,</U> and <U>Section 22</U> hereof, and except as provided in <U>Section&nbsp;15
</U>hereof, 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 between the Parties, the Parties agree to first endeavor to settle the dispute in an amicable
manner by non-binding mediation in accordance with the rules of alternative dispute resolution of the State of Tennessee for the
judicial circuit containing Knox County, Tennessee (or other judicial circuit mutually agreed to by the Parties) before resorting
to any other process for resolving the dispute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Applicable
Law and Choice of Forum</U>. 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
legal action or proceeding arising under or relating to this Agreement shall be brought in a state court of record located in
Knox County, Tennessee (or other venue mutually agreed to by the Parties), or, in the event (but only in the event) that no such
state court has subject matter jurisdiction over such action or proceeding, in the United States District Court for the Eastern
District of Tennessee, which courts shall have exclusive jurisdiction over any such action or proceeding. Each Party consents
to, and waives any objection such Party may otherwise have to, the jurisdiction and venue of such courts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Interpretation</U>.
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 &ldquo;herein,&rdquo; &ldquo;hereunder,&rdquo; &ldquo;hereby,&rdquo; &ldquo;hereto,&rdquo;
and &ldquo;hereof,&rdquo; and any similar terms, refer to this Agreement. When used herein, the term &ldquo;person&rdquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire
Agreement</U>. This Agreement embodies the entire, final, and integrated agreement of the Parties on the subject matter stated
in this Agreement. No amendment or supplement to or modification of this Agreement shall be valid or binding upon the Company
or the Employee unless made in a writing signed by all of the Parties. All prior understandings and agreements relating to the
subject matter of this Agreement are hereby expressly terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed
to be 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 signed copy of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Rights
of Third Parties</U>. 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 successors and permitted assigns, any rights or remedies under or by reason of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal
Fees</U>. In the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement, the
prevailing Party shall be entitled to recover from the non-prevailing Party all reasonable fees, expenses, and disbursements,
including without limitation reasonable attorneys&rsquo; fees and court costs, incurred by such prevailing Party in connection
with such claim, action, suit, or proceeding, in addition to any other relief to which such prevailing Party may be entitled at
law or in equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Survival</U>.
The obligations of the Parties pursuant to <U>Sections</U> <U>4(i)</U>, <U>7</U>, <U>8</U>, <U>14</U>, <U>15</U>, <U>20</U>, <U>21</U>,
<U>23</U>, <U>24</U>, <U>25</U>, <U>26</U>, and <U>27</U> shall survive the expiration and/or termination of this Agreement and/or
the termination of the Employee&rsquo;s employment hereunder for the periods expressly designated under such sections or, if no
such period is designed, for the maximum period permissible under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Representation
Regarding Restrictive Covenants</U>. The Employee represents that the Employee is not and will not become a party to any non-competition
or non-solicitation agreement or any other agreement which would prohibit the Employee from entering into this Agreement or providing
the services for the Company contemplated by this Agreement on or after the Effective Date. In the event the Employee is subject
to any such agreement, this Agreement shall be rendered null and void and the Company shall have no obligations to the Employee
under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Right
to Contact</U>. The Employee acknowledges and agrees that the Company shall retain and have the right to contact any new employer
or potential employer (or other business) and apprise such person of the Employee&rsquo;s responsibilities and obligations owed
under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Section
409A</U>. It is the intent of the Parties for any payment to which the Employee is entitled under this Agreement to be exempt
from Section 409A of the Code to the maximum extent permitted under Section 409A of the Code. However, if any amounts payable
are considered to be &ldquo;nonqualified deferred compensation&rdquo; subject to Section 409A of the Code, such amounts shall
be paid and provided in a manner that, and at such time and in such form as, complies with the applicable requirements of Section
409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Neither the Employee nor the Company
shall intentionally take any action to accelerate or delay the payment of any amounts in any manner which would not be in compliance
with Section&nbsp;409A of the Code without the consent of the other Party. For purposes of this Agreement, all rights to payments
shall be treated as rights to receive a series of separate payments to the fullest extent allowed by Section&nbsp;409A of the
Code. To the extent that some portion of the payments provided for under this Agreement may be bifurcated and treated as exempt
from Section 409A of the Code under the &ldquo;short-term deferral&rdquo; or &ldquo;separation pay&rdquo; exemptions, then such
amounts may be so treated as exempt from Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Withholding
of Taxes</I>. The Company may deduct and withhold from any amounts payable under this Agreement all federal, state, city, or other
taxes the Company is required to deduct or withhold pursuant to applicable law, rule, regulation, or ruling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Excise
Taxes</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the event that any amounts payable under this Agreement or otherwise to the Employee would (1) constitute &ldquo;parachute payments&rdquo;
within the meaning of Section 280G of the Code or any comparable successor provision and (2) but for this <U>Section&nbsp;25(b)</U>,
be subject to the excise tax imposed by Section 4999 of the Code or any comparable successor provision (the &ldquo;<U>Excise Tax</U>&rdquo;),
then such amounts payable to the Employee shall be either (y) provided to the Employee in full or (z) provided to the Employee
to the maximum extent that would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing
amounts, when taking into account applicable federal, state, local, and foreign income and employment taxes, the Excise Tax, and
any other applicable taxes, results in the Employee&rsquo;s receipt, on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Company and the Employee
otherwise agree in writing, any determination required under this <U>Section&nbsp;25(b)</U> shall be made in writing in good faith
by the Company&rsquo;s independent accounting firm (the &ldquo;<U>Independent Accountants</U>&rdquo;). In the event of a reduction
in benefits hereunder, the reduction of the total payments shall apply as follows, unless otherwise agreed in writing and such
agreement is in compliance with Section 409A of the Code: (1) any cash severance payments subject to Section 409A of the Code due
under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter
working from the next last payment; (2) any cash severance payments not subject to Section 409A of the Code due under this Agreement
shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next
last payment; (3) any acceleration of vesting of any equity subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest;
and (4) any acceleration of vesting of any equity not subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest.
For purposes of making the calculations required by this <U>Section&nbsp;25(b)</U>, the Independent Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the
application of the Code and other applicable legal authority. The Company and the Employee shall furnish to the Independent Accountants
such information and documents as the Independent Accountants may reasonably request in order to make a determination under this
<U>Section&nbsp;25(b)</U>. The Company shall bear all costs that the Independent Accountants may reasonably incur in connection
with any calculations contemplated by this <U>Section&nbsp;25(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
notwithstanding any reductions described in this <U>Section&nbsp;25(b)</U> the Internal Revenue Service (the &ldquo;<U>IRS</U>&rdquo;)
determines that the Employee is liable for the Excise Tax as a result of the receipt of amounts payable under this Agreement or
otherwise as described above, then the Employee shall be obligated to pay back to the Company, within 30 days after a final IRS
determination or, in the event that the Employee challenges the final IRS determination, a final judicial determination, a portion
of such amounts equal to the Repayment Amount. The &ldquo;<U>Repayment Amount</U>,&rdquo; with respect to the payment of benefits,
shall be the smallest such amount, if any, that is required to be paid to the Company so that the Employee&rsquo;s net after-tax
proceeds with respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable
taxes imposed on such payment) are maximized. The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment
Amount of more than zero would not result in the Employee&rsquo;s net after-tax proceeds with respect to the payment of such benefits
being maximized. If the Excise Tax is not eliminated pursuant to this <U>Section&nbsp;25(b)</U>, the Employee shall pay the Excise
Tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
any other provision of this <U>Section&nbsp;25(b)</U>, if (1) there is a reduction in the payment of benefits as described in this
<U>Section&nbsp;25(b)</U>, (2) the IRS later determines that the Employee is liable for the Excise Tax, the payment of which would
result in the maximization of the Employee&rsquo;s net after-tax proceeds (calculated as if the Employee&rsquo;s benefits had not
previously been reduced), and (3) the Employee pays the Excise Tax, then the Company shall pay to the Employee those benefits which
were reduced pursuant to this <U>Section&nbsp;25(b)</U> as soon as administratively possible after the Employee pays the Excise
Tax, so that the Employee&rsquo;s net after-tax proceeds with respect to the payment of benefits are maximized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Restrictions</U>. 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. &sect;&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect
on Executive Change-in-Control Severance Agreement</U>. The Parties and the Company intend for this Agreement to supersede and
replace that certain Executive Change-in-Control Severance Agreement dated December 16, 2013, by and among the Company, the Bank,
and the Employee (the &ldquo;<U>Severance Agreement</U>&rdquo;). Accordingly, on and as of the Effective Date, and without any
further action by the Parties or the Company, this Agreement shall supersede and replace the Severance Agreement and the Severance
Agreement shall automatically be cancelled and shall have no further force or effect with the parties thereto having no further
rights or obligations thereunder. By executing this Agreement, the Parties and the Company hereby waive the requirements of Section
5.5 of the Severance Agreement, which if not waived would require the inclusion in the Merger Agreement of the &ldquo;Payments
Upon Termination&rdquo; (as such term is defined in the Severance Agreement) before final approval of the Merger Agreement by the
boards of directors of the Company and the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(<I>Signature Page Follows</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">IN WITNESS WHEREOF, the
Parties have executed and delivered this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">COMPANY:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE BANCSHARES, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 46%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">EMPLOYEE:</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ Nathaniel F. Hughes</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Nathaniel F. Hughes</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><U>JOINDER BY CORNERSTONE
COMMUNITY BANK</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Bank joins in this
Agreement solely to evidence its agreement to the cancellation of the Severance Agreement and the waiver of rights and obligations
thereunder, as set forth in Section 27 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">BANK:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE COMMUNITY BANK</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 46%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(<I>Signature Page to Hughes Employment
Agreement</I>)</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;</P>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>v396203_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: right"><FONT STYLE="text-transform: none">Exhibit
10.3</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">EMPLOYMENT
AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">THIS EMPLOYMENT AGREEMENT
is made and entered into as of December 5, 2014 (the &ldquo;<U>Effective Date</U>&rdquo;), by and among Cornerstone Bancshares,
Inc., a Tennessee corporation and registered bank holding company (the &ldquo;<U>Company</U>&rdquo;); Cornerstone Community Bank,
a banking corporation organized under the laws of the State of Tennessee (the &ldquo;<U>Bank</U>,&rdquo; and together with the
Company, collectively, the &ldquo;<U>Employer</U>&rdquo;); and Gary W. Petty, Jr., a resident of the State of Georgia (the &ldquo;<U>Employee</U>&rdquo;).
The Company, the Bank, and the Employee are sometimes referred to herein collectively as the &ldquo;<U>Parties</U>,&rdquo; and
each is sometimes referred to herein individually as a &ldquo;<U>Party</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal"><U>RECITALS</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Employer desires to employ the Employee as Executive Vice President and Chief Financial Officer of the Company and as Executive
Vice President and Chief Operating Officer of the Bank, and the Employee desires to accept such employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties desire to set forth in this Agreement the terms and conditions upon which the Employee will be so employed.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal"><U>AGREEMENT</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In consideration of the
premises set forth above, the mutual agreements hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>.
When used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Affiliate</U>&rdquo;
shall mean any person that controls, is controlled by, or is under common control with another person. For this purpose, &ldquo;control&rdquo;
means ownership of more than 50% of the ordinary voting power of the outstanding equity securities of a person. For the avoidance
of doubt, it is expressly acknowledged that, following the SmartFinancial Merger, the Bank and SmartBank, a banking corporation
organized under the laws of the State of Tennessee (&ldquo;<U>SmartBank</U>&rdquo;), will be Affiliates for purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Agreement</U>&rdquo;
shall mean this Employment Agreement and any appendices incorporated herein together with any amendments hereto made in the manner
described in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Area</U>&rdquo;
shall mean, during the period of the Employee&rsquo;s employment, a radius of 75 miles from each banking office (whether a main
office, branch office, or loan or deposit production office) maintained by the Bank and/or any Affiliate of the Bank from time
to time during such period of employment, and, following the period of the Employee&rsquo;s employment, a radius of 75 miles from
each banking office (whether a main office, branch office, or loan or deposit production office) maintained by the Bank and/or
any Affiliate of the Bank as of the last day of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Board
of Directors</U>&rdquo; shall mean the board of directors of the Bank or the Company, as indicated herein, and, where appropriate,
any committee or designee thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Business
of the Employer</U>&rdquo; shall mean the business conducted by the Company and/or the Bank and/or any Affiliate of the Company
or the Bank, which as to the Bank and the Company shall include the business of commercial and consumer banking.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Cause</U>&rdquo;
shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Employer:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
breach of the terms of this Agreement by the Employee not cured by the Employee within 15 business days after the Employee&rsquo;s
receipt of the Employer&rsquo;s written notice thereof, including without limitation failure by the Employee to perform the Employee&rsquo;s
duties and responsibilities in the manner and to the extent required under this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
act by the Employee of fraud against, misappropriation from, or dishonesty to the Company or the Bank or any Affiliate of the Company
or the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
conviction of the Employee of any crime;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
by the Employee that amounts to willful misconduct, gross neglect, or a material failure to perform the Employee&rsquo;s duties
and responsibilities hereunder, including prolonged absences without the written consent of the Chairman of the Board of Directors
of the Company or the President and Chief Executive Officer of the Company; <I>provided</I> that the nature of such conduct shall
be set forth with reasonable particularity in a written notice to the Employee who shall have 15 business days following delivery
of such notice to cure such alleged conduct, <I>provided</I> that such conduct is, in the reasonable discretion of the President
and Chief Executive Officer of the Company, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
exhibition by the Employee of a standard of behavior within the scope of or related to the Employee&rsquo;s employment that is
in violation of: (i) any written policy, which violation results in or is likely to result in a material loss or regulatory criticism,
(ii) any board committee charter, or (iii) any code of ethics or business conduct of the Company or any Affiliate of the Company;
<I>provided</I> in each case that the nature of such behavior shall be set forth with reasonable particularity in a written notice
to the Employee who shall have 15 business days following delivery of such notice to cure such alleged behavior, <I>provided</I>
that such behavior is, in the reasonable discretion of the Chairman of the Board of Directors or the President and Chief Executive
Officer of the Company, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
or behavior by the Employee that, in the reasonable opinion of the Chairman of the Board of Directors of the Company or the President
and Chief Executive Officer of the Company, has harmed or could be expected to harm the business or reputation of the Company,
the Bank, or any Affiliate of the Company or the Bank, including without limitation conduct or behavior that is unethical or involves
moral turpitude;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receipt
of any form of written notice that any regulatory agency or authority having jurisdiction over the Company, the Bank, or any Affiliate
of the Company or the Bank has instituted any form of regulatory action against the Employee; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Employee&rsquo;s removal from office or permanent prohibition from participating in the conduct of the affairs of the Company,
the Bank, or any Affiliate of the Company or the Bank by an order issued under Section&nbsp;8(e) or Section&nbsp;8(g) of the Federal
Deposit Insurance Act (12 U.S.C. &sect;&nbsp;1818(e) and (g)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the scope of the Employee&rsquo;s duties and responsibilities, which (A)
is not consented to by the Employee in writing, or (B) does not occur within the 12 months following either the SmartFinancial
Merger or the merger of the Bank and SmartBank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the salary and other compensation and benefits provided for in <U>Section&nbsp;4</U>
hereof from the level in effect immediately prior to such reduction, which is not consented to by the Employee in writing; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
change in the location of the Employee&rsquo;s primary office such that the Employee is required to report regularly to an office
located outside of a 75-mile radius from the location of the Employee&rsquo;s primary office as of the date of such change in location,
which change is not consented to by the Employee in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Change
of Control</U>&rdquo; shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
acquisition by any person or persons acting in concert (other than any officer(s), director(s), and/or shareholder(s) of the Company
or any Affiliate of the Company), in a single transaction or series of related transactions, of 50% or more of the outstanding
voting securities of the Company entitled to vote in the election of Company directors;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>a
reorganization, merger, or consolidation to which the Company is a party with respect to which persons who were shareholders of
the Company immediately prior to such reorganization, merger, or consolidation do not immediately thereafter own more than 50%
of the combined voting power of the reorganized, merged, or consolidated company&rsquo;s then outstanding voting securities entitled
to vote in the election of directors; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
sale, transfer, or assignment by the Company of all or substantially all of the assets of the Company and its subsidiaries to any
third party (excluding, however, any pledge by the Company of the capital stock of any subsidiary of the Company to secure indebtedness
of the Company or for other general corporate or commercial purposes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">Notwithstanding the foregoing, the Parties
expressly acknowledge and agree that neither the SmartFinancial Merger nor any merger of the Bank and SmartBank (irrespective of
the surviving bank of such merger) shall constitute or give rise to a Change of Control for purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
&ldquo;<U>Code</U>&rdquo; shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Competing
Business</U>&rdquo; shall mean any person (other than an Affiliate of the Company or the Bank) that is conducting any business
that is the same or substantially the same as the Business of the Employer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Confidential
Information</U>&rdquo; means data and information relating to the business of the Company or the Bank or any Affiliate of the Company
or the Bank (which does not rise to the status of a Trade Secret) which is or has been disclosed to the Employee or of which the
Employee became aware as a consequence of or through the Employee&rsquo;s relationship with the Company or the Bank or any Affiliate
of the Company or the Bank and which has value to Company or the Bank or any Affiliate of the Company or the Bank and is not generally
known to its or their competitors. Confidential Information shall not include any data or information that has been voluntarily
disclosed to the public by the Company or the Bank or any Affiliate of the Company or the Bank (<I>provided</I> that no such public
disclosure shall be deemed to be voluntary when made without authorization by the Employee or any other employee of Company or
the Bank or any Affiliate of the Company or the Bank) or that has been independently developed and disclosed by others or that
otherwise enters the public domain through lawful means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Disability</U>&rdquo;
shall mean the inability of the Employee to perform each of the Employee&rsquo;s duties and responsibilities under this Agreement
for a period of more than 90 consecutive days; <I>provided </I>that the Parties agree that, to the extent necessary to comply with
Section 409A of the Code, the definition of &ldquo;Disability&rdquo; shall be amended to the definition of disability required
by Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Employer
Information</U>&rdquo; shall mean, collectively, Confidential Information and Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>SmartFinancial
Merger</U>&rdquo; shall mean the merger of SmartFinancial, Inc. with and into the Company, as contemplated by that certain Agreement
and Plan of Merger, by and among the Company, the Bank, SmartFinancial, Inc., and SmartBank, dated December 5, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Post-Termination
Period</U>&rdquo; shall mean a period of 12 months following the effective date of the termination of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Severance
Benefit</U>&rdquo; shall mean any post-termination benefit(s) to be paid by the Employer pursuant to <U>Section&nbsp;5(a)(ii)</U>,
<U>Section&nbsp;5(b)(i)</U>, or <U>Section&nbsp;6</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Trade
Secrets</U>&rdquo; shall mean information of the Company or the Bank or any Affiliate of the Company or the Bank, including without
limitation technical and nontechnical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings,
processes, financial data, financial plans, product plans, and lists of actual or potential customers, prospects, or suppliers,
which:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employee
Duties</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Position(s).</I>
The Employee will be employed as Executive Vice President and Chief Financial Officer of the Company and as Executive Vice President
and Chief Operating Officer of the Bank and shall perform and discharge faithfully the duties and responsibilities which may be
assigned to the Employee from time to time in connection with the conduct of the Employer&rsquo;s business. The duties and responsibilities
of the Employee shall be commensurate with those of individuals holding similar positions at other bank holding companies and banks
similarly situated. The Employee will report directly to the Senior Executive Officer of the Bank or such other officer as the
Board of Directors of the Company may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Full-Time
Status</I>. In addition to the duties and responsibilities specifically assigned to the Employee pursuant to <U>Section&nbsp;2(a)</U>
hereof, the Employee shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>subject
to <U>Section&nbsp;2(c)</U> hereof, during regular business hours devote substantially all of the Employee&rsquo;s time, energy,
attention, and skill to the performance of the duties and responsibilities of the Employee&rsquo;s employment (reasonable vacations,
approved leaves of absence, and reasonable absences due to illness excepted) and faithfully and industriously perform such duties
and responsibilities;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>diligently
follow and implement all reasonable and lawful policies and decisions communicated to the Employee; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>timely
prepare and forward to the requesting party or parties all reports and accountings as may be reasonably requested of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Permitted
Activities</I>. The Employee shall devote substantially all of the Employee&rsquo;s entire business time, attention, and energies
to the Business of the 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,
but as long as the following activities do not interfere with the Employee&rsquo;s obligations to the Employer, this shall not
be construed as preventing the Employee from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>investing
the Employee&rsquo;s personal assets in any manner which will not require any services on the part of the Employee in the operations
or affairs of the subject person and in which the Employee&rsquo;s participation is solely that of an investor; <I>provided</I>
that such investment activity following the Effective Date shall not result in the Employee owning, beneficially or of record,
at any time 2% or more of the equity securities of any Competing Business; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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 the Employee to effectively discharge the Employee&rsquo;s duties and
responsibilities hereunder; <I>provided</I> that the Board of Directors of the Company or the Bank may direct the Employee in writing
to resign from any such organization and/or cease any such activities in the event the Board of Directors of the Company or the
Bank reasonably determines that continued membership and/or activities of the type identified would not be in the best interests
of the Company or the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Term
of Employment</U>. The initial term of this Agreement (the &ldquo;<U>Initial Term</U>&rdquo;), and the Parties&rsquo; employment
relationship, shall commence on and as of the Effective 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 at
the end of any one-year renewal term), this Agreement will automatically renew for an additional, successive term of one year,
unless the Employer or the Employee gives the other written notice of its intent to terminate this Agreement as of the end of
the Initial Term (or as of the end of the 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 renewal terms, if any, are referred to together herein as the &ldquo;<U>Term</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compensation</U>.
The Employer shall compensate the Employee as follows during the Employee&rsquo;s period of employment hereunder, except as otherwise
provided below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Base Salary</I>. The Employee shall be compensated at an annual base rate of $130,000.00 per year (the &ldquo;<U>Annual Base Salary</U>&rdquo;).
The Employee&rsquo;s Annual Base Salary will be reviewed by the compensation committee of the Board of Directors of the Company
at least annually (in accordance with the committee&rsquo;s charter and any procedures adopted by the committee) for adjustments
based on an evaluation of the Employee&rsquo;s performance. The Employee&rsquo;s Annual Base Salary shall be payable in accordance
with the Employer&rsquo;s normal payroll practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Incentive Compensation.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Employee shall be eligible to receive annual bonus compensation as determined by, and based on performance measures established
by, the Board of Directors of the Company (upon recommendation by the compensation committee) consistent with the strategic plan(s)
of the Employer pursuant to any incentive compensation program that may be adopted from time to time by the Board of Directors
of the Company (an &ldquo;<U>Annual Bonus</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
Annual Bonus earned shall be payable in cash in the first calendar quarter of the year following the year in which the Annual Bonus
is earned in accordance with the Employer&rsquo;s normal practices for the payment of short-term incentives. The payment of any
Annual Bonus shall be subject to any approvals or non-objections required by any regulator of the Company or the Bank or any Affiliate
of the Company or the Bank, and it is understood by the Parties that the Employee may not be eligible to receive any such Annual
Bonus or other short-term incentive compensation if the Company or the Bank or any Affiliate of the Company of the Bank is subject
to restrictions imposed on the Company or the Bank or any such Affiliate by the United States Department of the Treasury, the Board
of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, the Tennessee Department of Financial Institutions,
or any other bank or bank holding company regulatory authority, or if the Company or the Bank is otherwise restricted from making
payment of such compensation under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Business Expenses</I>. Subject to the reimbursement policies from time to time adopted by the Board of Directors of the Company
or the Bank, and consistent with the annual budget approved for the period during which an expense is incurred, the Employer will
reimburse the Employee for reasonable and necessary business expenses incurred by the Employee in the performance of the Employee&rsquo;s
duties and responsibilities hereunder; <I>provided</I>, <I>however</I>, that, as a condition to any such reimbursement, the Employee
shall submit verification of the nature and amount of such expenses in accordance with said reimbursement policies. Examples of
appropriate categories of reimbursable expenses include memberships in professional and civic organizations, professional development,
and customer entertainment. The Employee acknowledges that the Employer makes no representation with respect to the taxability
or non-taxability of the benefits provided under this <U>Section&nbsp;4(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Cellular
Telephone</I>. The Employer will provide the Employee with an Employer-owned cellular telephone for use by the Employee in the
course of the Employee&rsquo;s employment for Employer-related business<U> </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Paid
Leave</I>. On a non-cumulative basis, the Employee shall be entitled to 26 days of paid leave per calendar year, prorated for any
partial calendar year of service. The provisions of this <U>Section&nbsp;4(e)</U> shall apply notwithstanding any less generous
paid leave policy then maintained by the Employer, but the use of Employee&rsquo;s paid leave shall otherwise be in accordance
with and subject to the Employer&rsquo;s paid leave policy as in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Other
Benefits</I>. In addition to the benefits specifically described in this Agreement, the Employee shall be entitled to such benefits
as may be available from time to time to similarly situated employees of the Employer, 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, the Employer&rsquo;s standard policies and
practices relating to such benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Expenses; In-Kind Benefits</I>. All expenses eligible for reimbursement described in this Agreement must be incurred by the
Employee during the Term of this Agreement to be eligible for reimbursement. Any in-kind benefits provided by the 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Clawback
of Compensation</I>. The Employee agrees to return or repay any compensation previously paid or otherwise made available to the
Employee that is subject to recovery under any applicable law, rule, or regulation (including any rule of any exchange or service
on or through which the securities of the Company or any Affiliate of the Company are traded) where such compensation was in excess
of what should have been paid or made available because the determination of the amount due was based, in whole or in part, on
materially inaccurate financial information of the Employer. The Employee agrees to return or repay promptly any such compensation
identified by the Employer. If the Employee fails to return or repay such compensation promptly, the Employee agrees that the amount
of such compensation may be deducted from any and all other compensation owed to the Employee. The Employee acknowledges that the
Employer may take appropriate disciplinary action (up to and including termination of employment) if the Employee fails to return
or repay such compensation. The provisions of this <U>Section&nbsp;4(h)</U> shall be modified to the extent, and remain in effect
for the period, required by applicable law, rule, or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination
of Employment</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Employer</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Employer:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause, upon written notice to the Employee approved by two-thirds of the members of the Board of Directors of the Company, in which
event the Employee shall not be entitled to any post-termination compensation or benefits;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time without Cause (<I>provided</I> that the Employer shall give the Employee at least 30 days prior written notice of the
Employer&rsquo;s intent to terminate), in which event the Employer shall (1) be required to pay to the Employee a severance benefit
equal to one times the Employee&rsquo;s Annual Base Salary as of the date of termination, said benefit to be payable over the course
of the 12-month period following termination in accordance with the Employer&rsquo;s normal payroll practices, and (2) reimburse
the Employee for the reasonable cost of premium payments paid by the Employee to continue the Employee&rsquo;s then-existing health
insurance for himself as provided by the Employer for the lesser of (A) 12 months following termination and (B) until such time
as the Employee obtains other employment providing health insurance coverage, <I>provided </I>that the Employer may discontinue
reimbursing the Employee for such premium payments for the applicable time period and instead provide a cash payment to the Employee
(for the Employee to use as the Employee deems appropriate) equal to the amount of the remainder of such reimbursable premium payments
in the event that the Employer determines that continued reimbursement of premium payments would cause a violation of applicable
nondiscrimination rules (for the avoidance of doubt, the termination of the Employee&rsquo;s employment by the Employer upon the
disability of the Employee under <U>Section&nbsp;5(a)(iii)</U> below shall not be considered or deemed termination of the Employee&rsquo;s
employment without Cause under this <U>Section&nbsp;5(a)(ii)</U>); or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time upon the Disability of the Employee (<I>provided</I> that the Employer shall give the Employee at least 30 days prior
written notice of the Employer&rsquo;s intent to terminate), in which event the Employee will be entitled to such benefits (if
any) as may be available to the Employee under the Employer&rsquo;s disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Employee</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause, in which event the Employer shall (1) be required to pay to the Employee a severance benefit equal to (A) if termination
is for Cause as defined in <U>Section&nbsp;1(f)(ii)(1)</U> or <U>Section&nbsp;1(f)(ii)(3)</U>, one times the Employee&rsquo;s Annual
Base Salary as of the date of termination, said benefit to be payable over the course of the 12-month period following termination
in accordance with the Employer&rsquo;s normal payroll practices, or (B) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(2)</U>,
one times the Employee&rsquo;s Annual Base Salary immediately before the reduction in salary and other compensation and benefits
giving rise to termination, said benefit to be payable over the course of the 12-month period following termination in accordance
with the Employer&rsquo;s normal payroll practices, and (2) reimburse the Employee for the reasonable cost of premium payments
paid by the Employee to continue the Employee&rsquo;s then-existing health insurance for himself as provided by the Employer for
the lesser of (A) 12 months following termination and (B) until such time as the Employee obtains other employment providing health
insurance coverage, <I>provided </I>that the Employer may discontinue reimbursing the Employee for such premium payments for the
applicable time period and instead provide a cash payment to the Employee (for the Employee to use as the Employee deems appropriate)
equal to the amount of the remainder of such reimbursable premium payments in the event that the Employer determines that continued
reimbursement of premium payments would cause a violation of applicable nondiscrimination rules; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time without Cause or upon the Disability of the Employee (<I>provided </I>that the Employee shall give the Employer at least
60 days prior written notice of the Employee&rsquo;s intent to terminate), in which event the Employee shall not be entitled to
any post-termination compensation or benefits other than such benefits (if any) as may be available to the Employee under the Employer&rsquo;s
disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Mutual Agreement</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated at any time by
mutual, written agreement of the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
Upon Death</I>. The Employee&rsquo;s employment, and this Agreement, shall terminate automatically upon the death of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Effect
of Termination; Resignation</I>. Upon the termination of the Employee&rsquo;s employment hereunder, the Employer shall have no
further obligations to the Employee or the Employee&rsquo;s estate, heirs, beneficiaries, executors, administrators, or legal or
personal representatives with respect to this Agreement, except for the payment of any amounts earned and owing under <U>Sections&nbsp;4(a)</U>-<U>4(c)</U>
hereof as of the effective date of the termination of the Employee&rsquo;s employment and any payment(s) required by <U>Section&nbsp;5(a)(ii)</U>,
<U>Section&nbsp;5(b)(i)</U>, or <U>Section&nbsp;6</U> of this Agreement. Further, upon the termination of the Employee&rsquo;s
employment, if the Employee is a member of the Board of Directors of the Company or the Bank or the board of directors of any Affiliate
of the Company or the Bank, the Employee shall at the request of the Employer resign from his position(s) on such board(s), with
any and all such resignations to be effective not later than the date on which the Employee&rsquo;s employment is terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Change
of Control</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
within 12 months following a Change of Control the Employer (or any successor of or to the Company or the Bank) terminates the
Employee&rsquo;s employment without Cause, the Employee (or in the event of the Employee&rsquo;s subsequent death the Employee&rsquo;s
estate or designated beneficiary or beneficiaries, as the case may be) shall receive, as liquidated damages, in lieu of all other
claims, a severance payment equal to two times the Employee&rsquo;s Annual Base Salary as of the date of termination, such amount
to be paid in full in one lump sum payment on the last day of the month following the date of termination of the Employee&rsquo;s
employment. Additionally, the Employee will continue to receive the health insurance plan benefits then in effect for employees
of the Employer for the lesser of (i) 12 months following termination and (ii) until such time as the Employee obtains other employment
providing health insurance plan benefits, to include payment of any Employer-funded portion of the plan; <I>provided</I>, <I>however</I>,
that the Employer may discontinue paying insurer(s) COBRA premiums for health insurance coverage for the applicable time period
and instead provide a cash payment to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount
of the remainder of such COBRA premiums in the event that the Employee determines that continued provision of a COBRA subsidy would
cause a violation of applicable nondiscrimination rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
within 12 months following a Change of Control the Employee terminates the Employee&rsquo;s employment with the Employer (or any
successor of or to the Company or the Bank) for Cause, the Employee (or in the event of the Employee&rsquo;s subsequent death the
Employee&rsquo;s estate or designated beneficiary or beneficiaries, as the case may be) shall receive, as liquidated damages, in
lieu of all other claims, a severance payment equal to (i) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(1)</U>
or <U>Section&nbsp;1(f)(ii)(3)</U>, two times the Employee&rsquo;s Annual Base Salary as of the date of termination, such amount
to be paid in full in one lump sum payment on the last day of the month following the date of termination of the Employee&rsquo;s
employment, or (ii) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(2)</U>, two times the Employee&rsquo;s Annual
Base Salary immediately before the reduction in salary and other compensation and benefits giving rise to termination, such amount
to be paid in full in one lump sum payment on the last day of the month following the date of termination of the Employee&rsquo;s
employment. Additionally, the Employee will continue to receive the health insurance plan benefits then in effect for employees
of the Employer for the lesser of (i) 12 months following termination and (ii) until such time as the Employee obtains other employment
providing health insurance plan benefits, to include payment of any Employer-funded portion of the plan; <I>provided</I>, <I>however</I>,
that the Employee may discontinue paying insurer(s) COBRA premiums for health insurance coverage for the applicable time period
and instead provide a cash payment to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount
of the remainder of such COBRA premiums in the event that the Employer determines that continued provision of a COBRA subsidy would
cause a violation of applicable nondiscrimination rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employer
Information</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Ownership
of Employer Information</I>. All Employer Information received or developed by the Employee or by the Company, the Bank, or any
Affiliate of the Company or the Bank while the Employee is employed by the Employer shall be and will remain the sole and exclusive
property of the Company, the Bank, or such Affiliate, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Obligations
of the Employee</I>. The Employee agrees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
hold all Employer Information in strictest confidence;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
not use, duplicate, reproduce, distribute, disclose, or otherwise disseminate Employer Information or any physical embodiments
of Employer Information to any unauthorized recipient; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>in
any event, to not take any action causing any Employer Information to lose its character or cease to qualify as, and to not fail
to take any action necessary in order to prevent any Employer Information from losing its character or ceasing to qualify as, Confidential
Information or a Trade Secret; <I>provided</I>, <I>however</I>, that none of the foregoing obligations shall preclude the Employee
from making any disclosures of Employer Information which the Employee has been advised in writing by independent legal counsel
are required by applicable law, rule, or regulation. This <U>Section&nbsp;7</U> shall survive for a period of two years following
the termination of this Agreement for any reason with respect to Confidential Information, and shall survive the termination of
this Agreement for any reason for so long as is permitted by applicable law with respect to Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Delivery
Upon Request or Termination</I>. Upon the request of the Employer, and in any event upon the termination of the Employee&rsquo;s
employment with the Employer, the Employee will promptly deliver to the Employer all property belonging to the Employer, including
without limitation all Employer Information then in the Employee&rsquo;s possession or control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Non-Competition;
Non-Solicitation; Non-Disparagement</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Competition</I>.
The Employee agrees that during the period of the Employee&rsquo;s employment by the Employer hereunder and, in the event of the
termination of the Employee&rsquo;s employment, for the period of time in which the Employee is entitled to receive any Severance
Benefit, the Employee will not (except on behalf of or with the prior written consent of the Employer):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, on the Employee&rsquo;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 the Employer;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, perform for any Competing Business any services that are the same as, or substantially
the same as, the services the Employee provides or provided for the Employer;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, accept employment with or be employed by any person engaged in any business, activity, enterprise, or venture competitive
with the Business of the Employer; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>work
for or with, consult for, or otherwise be affiliated with, in either a paid or unpaid capacity, or be employed by any person or
group of persons proposing to establish a new bank or other financial institution within the Area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Customers</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Employer hereunder and,
in the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Employer), on the Employee&rsquo;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 of the customer of the Company, the Bank, or any Affiliate of the Company or the Bank, including prospective
customers actively sought by the Company, the Bank, or any Affiliate of the Company or the Bank, with whom the Employee has or
had contact during the last two years of the Employee&rsquo;s employment with the Employer, for purposes of selling, offering,
or providing products or services that are competitive with those sold, offered, or provided by the Company, the Bank, or any Affiliate
of the Company or the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Employees</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Employer hereunder and,
in the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Employer), on the Employee&rsquo;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 the Company, the Bank, or any Affiliate of the Company or the Bank with whom the Employee had contact during
the last two years of the Employee&rsquo;s employment with the Employer, regardless of whether such employee is a full-time, part-time,
or temporary employee of the Company, the Bank, such an Affiliate of the Company or the Bank or such employee&rsquo;s employment
is pursuant to a written agreement, for a determined period, or at will.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Disparagement</I>.
The Employee agrees that, during the period of the Employee&rsquo;s employment by the Employer hereunder and for a period of two
years thereafter, the Employee will not make any untruthful statement (written or oral) that is or could reasonably be perceived
as disparaging to the Company, the Bank, or any Affiliate of the Company or the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Modification.</I>
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 the Employee to those necessary to protect the Employer from inevitable disclosure
of Confidential Information and Trade Secrets and/or 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Tolling.</I>
The Employee agrees that, in the event the Employee breaches this <U>Section&nbsp;8</U>, the Post-Termination Period shall be tolled
during the period of such breach and shall be extended to 12 months after all breaches of this Agreement have ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Remedies</I>.
The Employee agrees that the covenants contained in <U>Section&nbsp;7</U> and <U>Section&nbsp;8</U> 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 the Company and the Bank and their Affiliates; and that irreparable loss and damage will be suffered by the Employer should
the Employee breach any of such covenants. Therefore, the Employee agrees and consents that, in addition to any and all other remedies
provided by or available at law or in equity, the Employer shall be entitled to a temporary restraining order and temporary and
permanent injunctions to prevent a breach or threatened or contemplated breach of any of the covenants contained in <U>Section&nbsp;7</U>
or <U>Section&nbsp;8</U> of this Agreement, and that, in such event, the Employer shall not be required to post a bond. The Employer
and the Employee agree that all remedies available to the Employer shall be cumulative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability</U>.
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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Set-Off by Employee</U>. The existence of any claim, demand, action, or cause of action by the Employee against the Company, the
Bank, or any Affiliate of the Company or the Bank, whether predicated upon this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Employer of any of the Employer&rsquo;s rights hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices</U>.
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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt">If to the Employer:</FONT></TD>
    <TD STYLE="width: 60%"><FONT STYLE="font-size: 10pt">Cornerstone Bancshares, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Cornerstone Community Bank</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attention: Chairman, Board of Directors</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">835 Georgia Avenue </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chattanooga, Tennessee 37402</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">If to the Employee:</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Gary W. Petty</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">14 Overbrook Drive</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Ringgold, Georgia 30736</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. A Party may change such Party&rsquo;s notice address
set forth above by giving the other Party 10 days written notice of the new address in the manner set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignment</U>.
The rights and obligations of the Company and the Bank under this Agreement shall inure to the benefit of and shall be binding
upon the successors and assigns of the Company and the Bank, including without limitation a purchaser of all or substantially
all of the assets of the Company or the Bank. If this Agreement is assigned pursuant to the foregoing sentence, the assignment
shall be by novation, and the assigning Party shall have no further liability hereunder, and the successor or assign shall become
the &ldquo;Company&rdquo; or the &ldquo;Bank,&rdquo; as applicable, hereunder, but the Employee will not be deemed to have experienced
a termination of employment by virtue of such assignment. Without limiting the generality of the foregoing, the Parties expressly
acknowledge and agree that, in the event of any merger of the Bank with and into SmartBank, SmartBank as the surviving bank of
such merger will, as successor by merger to the Bank, succeed to all rights and obligations of the Bank hereunder, without any
further action by the Parties, and that at and after the effective time of such merger, all references in this Agreement to the
&ldquo;Bank&rdquo; shall be references to SmartBank as successor by merger to the Bank. This Agreement is a personal contract
and the rights and interest of the Employee may not be assigned by the Employee. This Agreement shall inure to the benefit of
and be enforceable by the Employee and the Employee&rsquo;s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees, and legatees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Waiver</U>.
A waiver by one Party to this Agreement of any provision of this Agreement or of any breach of this Agreement by any other Party
to this Agreement shall not be effective unless in writing, and no waiver shall operate or be construed as a waiver of the same
or any other provision or breach on any other or subsequent occasion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Mediation</U>.
Except with respect to <U>Section&nbsp;7</U>, <U>Section&nbsp;8</U>, and <U>Section 22</U> hereof, and except as provided in <U>Section&nbsp;15
</U>hereof, 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 between or among the Parties, the Parties agree to first endeavor to settle the dispute
in an amicable manner by non-binding mediation in accordance with the rules of alternative dispute resolution of the State of
Tennessee for the judicial circuit containing Knox County, Tennessee (or such other judicial circuit mutually agreed to by the
Parties) before resorting to any other process for resolving the dispute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Applicable
Law and Choice of Forum</U>. 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
legal action or proceeding arising under or relating to this Agreement shall be brought in a state court of record located in
Knox County, Tennessee (or such other venue mutually agreed to by the Parties), or, in the event (but only in the event) that
no such state court has subject matter jurisdiction over such action or proceeding, in the United States District Court for the
Eastern District of Tennessee, which courts shall have exclusive jurisdiction over any such action or proceeding. Each Party consents
to, and waives any objection such Party may otherwise have to, the jurisdiction and venue of such courts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Interpretation</U>.
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 &ldquo;herein,&rdquo; &ldquo;hereunder,&rdquo; &ldquo;hereby,&rdquo; &ldquo;hereto,&rdquo;
and &ldquo;hereof,&rdquo; and any similar terms, refer to this Agreement. When used herein, the term &ldquo;person&rdquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire
Agreement</U>. This Agreement embodies the entire, final, and integrated agreement of the Parties on the subject matter stated
in this Agreement. No amendment or supplement to or modification of this Agreement shall be valid or binding upon the Company,
the Bank, or the Employee unless made in a writing signed by all of the Parties. All prior understandings and agreements relating
to the subject matter of this Agreement are hereby expressly terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed
to be 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 signed copy of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Rights
of Third Parties</U>. 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 successors and permitted assigns, any rights or remedies under or by reason of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal
Fees</U>. 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&rsquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Survival</U>.
The obligations of the Parties pursuant to <U>Sections 4(h)</U>, <U>7</U>, <U>8</U>, <U>14</U>, <U>15</U>, <U>20</U>, <U>21</U>,
<U>23</U>, <U>24</U>, <U>25</U>, <U>26</U>, <U>27</U>, and <U>28</U> shall survive the expiration and/or termination of this Agreement
and/or the termination of the Employee&rsquo;s employment hereunder for the periods expressly designated under such sections or,
if no such period is designed, for the maximum period permissible under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Representation
Regarding Restrictive Covenants</U>. The Employee represents that the Employee is not and will not become a party to any non-competition
or non-solicitation agreement or any other agreement which would prohibit the Employee from entering into this Agreement or providing
the services for the Employer contemplated by this Agreement on or after the Effective Date. In the event the Employee is subject
to any such agreement, this Agreement shall be rendered null and void and the Employer shall have no obligations to the Employee
under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Right
to Contact</U>. The Employee acknowledges and agrees that the Employer shall retain and have the right to contact any new employer
or potential employer (or other business) and apprise such person of the Employee&rsquo;s responsibilities and obligations owed
under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Section
409A</U>. It is the intent of the Parties for any payment to which the Employee is entitled under this Agreement to be exempt
from Section 409A of the Code to the maximum extent permitted under Section 409A of the Code. However, if any amounts payable
are considered to be &ldquo;nonqualified deferred compensation&rdquo; subject to Section 409A of the Code, such amounts shall
be paid and provided in a manner that, and at such time and in such form as, complies with the applicable requirements of Section
409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Neither the Employee nor the Employer
shall intentionally take any action to accelerate or delay the payment of any amounts in any manner which would not be in compliance
with Section&nbsp;409A of the Code without the consent of the other Party. For purposes of this Agreement, all rights to payments
shall be treated as rights to receive a series of separate payments to the fullest extent allowed by Section&nbsp;409A of the
Code. To the extent that some portion of the payments provided for under this Agreement may be bifurcated and treated as exempt
from Section 409A of the Code under the &ldquo;short-term deferral&rdquo; or &ldquo;separation pay&rdquo; exemptions, then such
amounts may be so treated as exempt from Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Withholding
of Taxes</I>. The Employer may deduct and withhold from any amounts payable under this Agreement all federal, state, city, or other
taxes the Employer is required to deduct or withhold pursuant to applicable law, rule, regulation, or ruling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Excise
Taxes</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the event that any amounts payable under this Agreement or otherwise to the Employee would (1) constitute &ldquo;parachute payments&rdquo;
within the meaning of Section 280G of the Code or any comparable successor provision and (2) but for this <U>Section&nbsp;25(b)</U>,
be subject to the excise tax imposed by Section 4999 of the Code or any comparable successor provision (the &ldquo;<U>Excise Tax</U>&rdquo;),
then such amounts payable to the Employee shall be either (y) provided to the Employee in full or (z) provided to the Employee
to the maximum extent that would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing
amounts, when taking into account applicable federal, state, local, and foreign income and employment taxes, the Excise Tax, and
any other applicable taxes, results in the Employee&rsquo;s receipt, on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Employer and the Employee
otherwise agree in writing, any determination required under this <U>Section&nbsp;25(b)</U> shall be made in writing in good faith
by the Employer&rsquo;s independent accounting firm (the &ldquo;<U>Independent Accountants</U>&rdquo;). In the event of a reduction
in benefits hereunder, the reduction of the total payments shall apply as follows, unless otherwise agreed in writing and such
agreement is in compliance with Section 409A of the Code: (1) any cash severance payments subject to Section 409A of the Code due
under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter
working from the next last payment; (2) any cash severance payments not subject to Section 409A of the Code due under this Agreement
shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next
last payment; (3) any acceleration of vesting of any equity subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest;
and (4) any acceleration of vesting of any equity not subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest.
For purposes of making the calculations required by this <U>Section&nbsp;25(b)</U>, the Independent Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the
application of the Code and other applicable legal authority. The Employer and the Employee shall furnish to the Independent Accountants
such information and documents as the Independent Accountants may reasonably request in order to make a determination under this
<U>Section&nbsp;25(b)</U>. The Employer shall bear all costs that the Independent Accountants may reasonably incur in connection
with any calculations contemplated by this <U>Section&nbsp;25(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
notwithstanding any reductions described in this <U>Section&nbsp;25(b)</U> the Internal Revenue Service (the &ldquo;<U>IRS</U>&rdquo;)
determines that the Employee is liable for the Excise Tax as a result of the receipt of amounts payable under this Agreement or
otherwise as described above, then the Employee shall be obligated to pay back to the Employer, within 30 days after a final IRS
determination or, in the event that the Employee challenges the final IRS determination, a final judicial determination, a portion
of such amounts equal to the Repayment Amount. The &ldquo;<U>Repayment Amount</U>,&rdquo; with respect to the payment of benefits,
shall be the smallest such amount, if any, that is required to be paid to the Employer so that the Employee&rsquo;s net after-tax
proceeds with respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable
taxes imposed on such payment) are maximized. The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment
Amount of more than zero would not result in the Employee&rsquo;s net after-tax proceeds with respect to the payment of such benefits
being maximized. If the Excise Tax is not eliminated pursuant to this <U>Section&nbsp;25(b)</U>, the Employee shall pay the Excise
Tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
any other provision of this <U>Section&nbsp;25(b)</U>, if (1) there is a reduction in the payment of benefits as described in this
<U>Section&nbsp;25(b)</U>, (2) the IRS later determines that the Employee is liable for the Excise Tax, the payment of which would
result in the maximization of the Employee&rsquo;s net after-tax proceeds (calculated as if the Employee&rsquo;s benefits had not
previously been reduced), and (3) the Employee pays the Excise Tax, then the Employer shall pay to the Employee those benefits
which were reduced pursuant to this <U>Section&nbsp;25(b)</U> as soon as administratively possible after the Employee pays the
Excise Tax, so that the Employee&rsquo;s net after-tax proceeds with respect to the payment of benefits are maximized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Restrictions</U>. 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. &sect;&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect
on Executive Change-in-Control Severance Agreement</U>. The Parties intend for this Agreement to supersede and replace that certain
Executive Change-in-Control Severance Agreement dated December 16, 2013, by and among the Company, the Bank, and the Employee (the
&ldquo;<U>Severance Agreement</U>&rdquo;). Accordingly, on and as of the Effective Date, and without any further action by the
Parties, this Agreement shall supersede and replace the Severance Agreement and the Severance Agreement shall automatically be
cancelled and shall have no further force or effect with the parties thereto having no further rights or obligations thereunder.
By executing this Agreement, the Parties hereby waive the requirements of Section 5.5 of the Severance Agreement, which if not
waived would require the inclusion in the Merger Agreement of the &ldquo;Payments Upon Termination&rdquo; (as such term is defined
in the Severance Agreement) before final approval of the Merger Agreement by the boards of directors of the Company and the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Nature
of Employer Obligations</U>. The obligations of the Company and the Bank hereunder shall be joint and several.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(<I>Signature Page Follows</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">IN WITNESS WHEREOF, the
Company, the Bank, and the Employee have executed and delivered this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">COMPANY:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE BANCSHARES, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT>&nbsp;</TD>
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">BANK:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE COMMUNITY BANK</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:&nbsp;</FONT></TD>
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.5in; width: 50%"><FONT STYLE="font-size: 10pt">EMPLOYEE:</FONT></TD>
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ Gary W. Petty</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Gary W. Petty, Jr.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><I>(Signature Page to Petty
Employment Agreement)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;</P>


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<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>6
<FILENAME>v396203_ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0in"><B>Exhibit 10.4</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-transform: uppercase; text-align: center">EMPLOYMENT
AGREEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">THIS EMPLOYMENT AGREEMENT
is made and entered into as of December 5, 2014 (the &ldquo;<U>Effective Date</U>&rdquo;), by and between Cornerstone Community
Bank, a banking corporation organized under the laws of the State of Tennessee (the &ldquo;<U>Bank</U>&rdquo;), and Robert B. Watson,
a resident of the State of Tennessee (the &ldquo;<U>Employee</U>&rdquo;). The Bank and the Employee are sometimes referred to herein
collectively as the &ldquo;<U>Parties</U>,&rdquo; and each is sometimes referred to herein individually as a &ldquo;<U>Party</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal"><U>RECITALS</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bank desires to employ the Employee as President, and the Employee desires to accept such employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties desire to set forth in this Agreement the terms and conditions upon which the Employee will be so employed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal"><U>AGREEMENT</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In consideration of the
premises set forth above, the mutual agreements hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>.
When used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Affiliate</U>&rdquo;
shall mean any person that controls, is controlled by, or is under common control with another person. For this purpose, &ldquo;control&rdquo;
means ownership of more than 50% of the ordinary voting power of the outstanding equity securities of a person. For the avoidance
of doubt, it is expressly acknowledged that, following the SmartFinancial Merger, the Bank and SmartBank, a banking corporation
organized under the laws of the State of Tennessee (&ldquo;<U>SmartBank</U>&rdquo;), will be Affiliates for purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Agreement</U>&rdquo;
shall mean this Employment Agreement and any appendices incorporated herein together with any amendments hereto made in the manner
described in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Area</U>&rdquo;
shall mean, during the period of the Employee&rsquo;s employment, a radius of 75 miles from each banking office (whether a main
office, branch office, or loan or deposit production office) maintained by the Bank and/or any Affiliate of the Bank from time
to time during such period of employment, and, following the period of the Employee&rsquo;s employment, a radius of 75 miles from
each banking office (whether a main office, branch office, or loan or deposit production office) maintained by the Bank and/or
any Affiliate of the Bank as of the last day of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Board
of Directors</U>&rdquo; shall mean the board of directors of the Bank, and, where appropriate, any committee or designee thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Business
of the Bank</U>&rdquo; shall mean the business conducted by the Bank and/or any Affiliate of the Bank, which shall include the
business of commercial and consumer banking.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Cause</U>&rdquo;
shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Bank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
breach of the terms of this Agreement by the Employee not cured by the Employee within 15 business days after the Employee&rsquo;s
receipt of the Bank&rsquo;s written notice thereof, including without limitation failure by the Employee to perform the Employee&rsquo;s
duties and responsibilities in the manner and to the extent required under this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
act by the Employee of fraud against, misappropriation from, or dishonesty to the Bank or any Affiliate of the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
conviction of the Employee of any crime;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
by the Employee that amounts to willful misconduct, gross neglect, or a material failure to perform the Employee&rsquo;s duties
and responsibilities hereunder, including prolonged absences without the written consent of the Chairman of the Board of Directors
or the President and Chief Executive Officer of the Company; <I>provided</I> that the nature of such conduct shall be set forth
with reasonable particularity in a written notice to the Employee who shall have 15 business days following delivery of such notice
to cure such alleged conduct, <I>provided</I> that such conduct is, in the reasonable discretion of the Chairman of the Board of
Directors or the President and Chief Executive Officer of the Company, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
exhibition by the Employee of a standard of behavior within the scope of or related to the Employee&rsquo;s employment that is
in violation of: (i) any written policy, which violation results in or is likely to result in a material loss or regulatory criticism,
(ii) any board committee charter, or (iii) any code of ethics or business conduct of the Bank or any Affiliate of the Bank; <I>provided</I>
in each case that the nature of such behavior shall be set forth with reasonable particularity in a written notice to the Employee
who shall have 15 business days following delivery of such notice to cure such alleged behavior, <I>provided</I> that such behavior
is, in the reasonable discretion of the Chairman of the Board of Directors or the President and Chief Executive Officer of the
Company, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
or behavior by the Employee that, in the reasonable opinion of the Chairman of the Board of Directors of the Company or the President
and Chief Executive Officer of the Company, has harmed or could be expected to harm the business or reputation of the Bank or any
Affiliate of the Bank, including without limitation conduct or behavior that is unethical or involves moral turpitude;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receipt
of any form of written notice that any regulatory agency or authority having jurisdiction over the Bank or any Affiliate of the
Bank has instituted any form of regulatory action against the Employee; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Employee&rsquo;s removal from office or permanent prohibition from participating in the conduct of the affairs of the Bank or any
Affiliate of the Bank by an order issued under Section&nbsp;8(e) or Section&nbsp;8(g) of the Federal Deposit Insurance Act (12
U.S.C. &sect;&nbsp;1818(e) and (g)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the scope of the Employee&rsquo;s duties and responsibilities, which (A)
is not consented to by the Employee in writing, or (B) does not occur within the 12 months following either the SmartFinancial
Merger or the merger of the Bank and SmartBank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the salary and other compensation and benefits provided for in <U>Section&nbsp;4</U>
hereof from the level in effect immediately prior to such reduction, which is not consented to by the Employee in writing; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
change in the location of the Employee&rsquo;s primary office such that the Employee is required to report regularly to an office
located outside of a 75-mile radius from the location of the Employee&rsquo;s primary office as of the date of such change in location,
which change is not consented to by the Employee in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Change
of Control</U>&rdquo; shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
acquisition by any person or persons acting in concert (other than any officer(s), director(s), and/or shareholder(s) of the Company
or any Affiliate of the Company), in a single transaction or series of related transactions, of 50% or more of the outstanding
voting securities of the Company entitled to vote in the election of Company directors;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>a
reorganization, merger, or consolidation to which the Company is a party with respect to which persons who were shareholders of
the Company immediately prior to such reorganization, merger, or consolidation do not immediately thereafter own more than 50%
of the combined voting power of the reorganized, merged, or consolidated company&rsquo;s then outstanding voting securities entitled
to vote in the election of directors; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
sale, transfer, or assignment by the Company of all or substantially all of the assets of the Company and its subsidiaries to any
third party (excluding, however, any pledge by the Company of the capital stock of any subsidiary of the Company to secure indebtedness
of the Company or for other general corporate or commercial purposes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">Notwithstanding the foregoing, the Parties
expressly acknowledge and agree that neither the SmartFinancial Merger nor any merger of the Bank and SmartBank (irrespective of
the surviving bank of such merger) shall constitute or give rise to a Change of Control for purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Company</U>&rdquo;
shall mean Cornerstone Bancshares, Inc., a Tennessee corporation and registered bank holding company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Code</U>&rdquo;
shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Competing
Business</U>&rdquo; shall mean any person (other than an Affiliate of the Bank) that is conducting any business that is the same
or substantially the same as the Business of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Confidential
Information</U>&rdquo; means data and information relating to the business of the Bank or any Affiliate of the Bank (which does
not rise to the status of a Trade Secret) which is or has been disclosed to the Employee or of which the Employee became aware
as a consequence of or through the Employee&rsquo;s relationship with the Bank or any Affiliate of the Bank and which has value
to the Bank or any Affiliate of the Bank and is not generally known to its or their competitors. Confidential Information shall
not include any data or information that has been voluntarily disclosed to the public by the Bank or any Affiliate of the Bank
(<I>provided</I> that no such public disclosure shall be deemed to be voluntary when made without authorization by the Employee
or any other employee of the Bank or any Affiliate of the Bank) or that has been independently developed and disclosed by others
or that otherwise enters the public domain through lawful means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Disability</U>&rdquo;
shall mean the inability of the Employee to perform each of the Employee&rsquo;s duties and responsibilities under this Agreement
for a period of more than 90 consecutive days; <I>provided </I>that the Parties agree that, to the extent necessary to comply with
Section 409A of the Code, the definition of &ldquo;Disability&rdquo; shall be amended to the definition of disability required
by Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Employer
Information</U>&rdquo; shall mean, collectively, Confidential Information and Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>SmartFinancial
Merger</U>&rdquo; shall mean the merger of SmartFinancial, Inc. with and into the Company, as contemplated by that certain Agreement
and Plan of Merger, by and among the Company, the Bank, SmartFinancial, Inc., and SmartBank, dated December 5, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Post-Termination
Period</U>&rdquo; shall mean a period of 12 months following the effective date of the termination of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Severance
Benefit</U>&rdquo; shall mean any post-termination benefit(s) to be paid by the Bank pursuant to <U>Section&nbsp;5(a)(ii)</U>,
<U>Section&nbsp;5(b)(i)</U>, or <U>Section&nbsp;6</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Trade
Secrets</U>&rdquo; shall mean information of the Bank or any Affiliate of the Bank, including without limitation technical and
nontechnical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data,
financial plans, product plans, and lists of actual or potential customers, prospects, or suppliers, which:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employee
Duties</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Position(s).</I>
The Employee will be employed as President of the Bank and shall perform and discharge faithfully the duties and responsibilities
which may be assigned to the Employee from time to time in connection with the conduct of the Bank&rsquo;s business. The duties
and responsibilities of the Employee shall be commensurate with those of individuals holding similar positions at other banks similarly
situated. The Employee will report directly to the Senior Executive Office of the Bank or such other officer as the Board of Directors
may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Full-Time
Status</I>. In addition to the duties and responsibilities specifically assigned to the Employee pursuant to <U>Section&nbsp;2(a)</U>
hereof, the Employee shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>subject
to <U>Section&nbsp;2(c)</U> hereof, during regular business hours devote substantially all of the Employee&rsquo;s time, energy,
attention, and skill to the performance of the duties and responsibilities of the Employee&rsquo;s employment (reasonable vacations,
approved leaves of absence, and reasonable absences due to illness excepted) and faithfully and industriously perform such duties
and responsibilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>diligently
follow and implement all reasonable and lawful policies and decisions communicated to the Employee; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>timely
prepare and forward to the requesting party or parties all reports and accountings as may be reasonably requested of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Permitted
Activities</I>. The Employee shall devote substantially all of the Employee&rsquo;s entire business time, attention, and energies
to the Business of the Bank 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,
but as long as the following activities do not interfere with the Employee&rsquo;s obligations to the Bank, this shall not be construed
as preventing the Employee from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>investing
the Employee&rsquo;s personal assets in any manner which will not require any services on the part of the Employee in the operations
or affairs of the subject person and in which the Employee&rsquo;s participation is solely that of an investor; <I>provided</I>
that such investment activity following the Effective Date shall not result in the Employee owning, beneficially or of record,
at any time 2% or more of the equity securities of any Competing Business; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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 the Employee to effectively discharge the Employee&rsquo;s duties and
responsibilities hereunder; <I>provided</I> that the Board of Directors may direct the Employee in writing to resign from any such
organization and/or cease any such activities in the event the Board of Directors reasonably determines that continued membership
and/or activities of the type identified would not be in the best interests of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Term
of Employment</U>. The initial term of this Agreement (the &ldquo;<U>Initial Term</U>&rdquo;), and the Parties&rsquo; employment
relationship, shall commence on and as of the Effective 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 at
the end of any one-year renewal term), this Agreement will automatically renew for an additional, successive term of one year,
unless the Bank or the Employee gives the other written notice of its intent to terminate this Agreement as of the end of the
Initial Term (or as of the end of the 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 renewal terms, if any, are referred to together herein as the &ldquo;<U>Term</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compensation</U>.
The Bank shall compensate the Employee as follows during the Employee&rsquo;s period of employment hereunder, except as otherwise
provided below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Base Salary</I>. The Employee shall be compensated at an annual base rate of $175,000.00 per year (the &ldquo;<U>Annual Base Salary</U>&rdquo;).
The Employee&rsquo;s Annual Base Salary will be reviewed by the compensation committee of the Board of Directors at least annually
(in accordance with the committee&rsquo;s charter and any procedures adopted by the committee) for adjustments based on an evaluation
of the Employee&rsquo;s performance. The Employee&rsquo;s Annual Base Salary shall be payable in accordance with the Bank&rsquo;s
normal payroll practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Incentive Compensation.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Employee shall be eligible to receive annual bonus compensation as determined by, and based on performance measures established
by, the Board of Directors (upon recommendation by the compensation committee) consistent with the strategic plan(s) of the Bank
pursuant to any incentive compensation program that may be adopted from time to time by the Board of Directors (an &ldquo;<U>Annual
Bonus</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
Annual Bonus earned shall be payable in cash in the first calendar quarter of the year following the year in which the Annual Bonus
is earned in accordance with the Bank&rsquo;s normal practices for the payment of short-term incentives. The payment of any Annual
Bonus shall be subject to any approvals or non-objections required by any regulator of the Bank or any Affiliate of the Bank, and
it is understood by the Parties that the Employee may not be eligible to receive any such Annual Bonus or other short-term incentive
compensation if the Bank or any Affiliate of the Bank is subject to restrictions imposed on the Bank or any such Affiliate by the
United States Department of the Treasury, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation,
the Tennessee Department of Financial Institutions, or any other bank or bank holding company regulatory authority, or if the Bank
is otherwise restricted from making payment of such compensation under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Business Expenses</I>. Subject to the reimbursement policies from time to time adopted by the Board of Directors, and consistent
with the annual budget approved for the period during which an expense is incurred, the Bank will reimburse the Employee for reasonable
and necessary business expenses incurred by the Employee in the performance of the Employee&rsquo;s duties and responsibilities
hereunder; <I>provided</I>, <I>however</I>, that, as a condition to any such reimbursement, the Employee shall submit verification
of the nature and amount of such expenses in accordance with said reimbursement policies. Examples of appropriate categories of
reimbursable expenses include memberships in professional and civic organizations, professional development, and customer entertainment.
The Employee acknowledges that the Bank makes no representation with respect to the taxability or non-taxability of the benefits
provided under this <U>Section&nbsp;4(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Cellular
Telephone</I>. The Bank will provide the Employee with a Bank-owned cellular telephone for use by the Employee in the course of
the Employee&rsquo;s employment for Bank-related business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Paid
Leave</I>. On a non-cumulative basis, the Employee shall be entitled to 26 days of paid leave per calendar year, prorated for any
partial calendar year of service. The provisions of this <U>Section&nbsp;4(e)</U> shall apply notwithstanding any less generous
paid leave policy then maintained by the Bank, but the use of Employee&rsquo;s paid leave shall otherwise be in accordance with
and subject to the Bank&rsquo;s paid leave policy as in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Other
Benefits</I>. In addition to the benefits specifically described in this Agreement, the Employee shall be entitled to such benefits
as may be available from time to time to similarly situated employees of the Bank, 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, the Bank&rsquo;s standard policies and practices
relating to such benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Expenses; In-Kind Benefits</I>. All expenses eligible for reimbursement described in this Agreement must be incurred by the
Employee during the Term of this Agreement to be eligible for reimbursement. Any in-kind benefits provided by the Bank 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Clawback
of Compensation</I>. The Employee agrees to return or repay any compensation previously paid or otherwise made available to the
Employee that is subject to recovery under any applicable law, rule, or regulation (including any rule of any exchange or service
on or through which the securities of the Bank or any Affiliate of the Bank are traded) where such compensation was in excess of
what should have been paid or made available because the determination of the amount due was based, in whole or in part, on materially
inaccurate financial information of the Bank. The Employee agrees to return or repay promptly any such compensation identified
by the Bank. If the Employee fails to return or repay such compensation promptly, the Employee agrees that the amount of such compensation
may be deducted from any and all other compensation owed to the Employee. The Employee acknowledges that the Bank may take appropriate
disciplinary action (up to and including termination of employment) if the Employee fails to return or repay such compensation.
The provisions of this <U>Section&nbsp;4(h)</U> shall be modified to the extent, and remain in effect for the period, required
by applicable law, rule, or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination
of Employment</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Bank</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Bank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause, upon written notice to the Employee approved by two-thirds of the members of the Board of Directors, in which event the
Employee shall not be entitled to any post-termination compensation or benefits;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time without Cause (<I>provided</I> that the Bank shall give the Employee at least 30 days prior written notice of the Bank&rsquo;s
intent to terminate), in which event the Bank shall (1) be required to pay to the Employee a severance benefit equal to one times
the Employee&rsquo;s Annual Base Salary as of the date of termination, said benefit to be payable over the course of the 12-month
period following termination in accordance with the Bank&rsquo;s normal payroll practices, and (2) reimburse the Employee for the
reasonable cost of premium payments paid by the Employee to continue the Employee&rsquo;s then-existing health insurance for himself
as provided by the Bank for the lesser of (A) 12 months following termination and (B) until such time as the Employee obtains other
employment providing health insurance coverage, <I>provided </I>that the Bank may discontinue reimbursing the Employee for such
premium payments for the applicable time period and instead provide a cash payment to the Employee (for the Employee to use as
the Employee deems appropriate) equal to the amount of the remainder of such reimbursable premium payments in the event that the
Bank determines that continued reimbursement of premium payments would cause a violation of applicable nondiscrimination rules
(for the avoidance of doubt, the termination of the Employee&rsquo;s employment by the Bank upon the disability of the Employee
under <U>Section&nbsp;5(a)(iii)</U> below shall not be considered or deemed termination of the Employee&rsquo;s employment without
Cause under this <U>Section&nbsp;5(a)(ii)</U>); or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time upon the Disability of the Employee (<I>provided</I> that the Bank shall give the Employee at least 30 days prior written
notice of the Bank&rsquo;s intent to terminate), in which event the Employee will be entitled to such benefits (if any) as may
be available to the Employee under the Bank&rsquo;s disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Employee</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause, in which event the Bank shall (1) be required to pay to the Employee a severance benefit equal to (A) if termination is
for Cause as defined in <U>Section&nbsp;1(f)(ii)(1)</U> or <U>Section&nbsp;1(f)(ii)(3)</U>, one times the Employee&rsquo;s Annual
Base Salary as of the date of termination, said benefit to be payable over the course of the 12-month period following termination
in accordance with the Bank&rsquo;s normal payroll practices, or (B) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(2)</U>,
one times the Employee&rsquo;s Annual Base Salary immediately before the reduction in salary and other compensation and benefits
giving rise to termination, said benefit to be payable over the course of the 12-month period following termination in accordance
with the Bank&rsquo;s normal payroll practices, and (2) reimburse the Employee for the reasonable cost of premium payments paid
by the Employee to continue the Employee&rsquo;s then-existing health insurance for himself as provided by the Bank for the lesser
of (A) 12 months following termination and (B) until such time as the Employee obtains other employment providing health insurance
coverage, <I>provided </I>that the Bank may discontinue reimbursing the Employee for such premium payments for the applicable time
period and instead provide a cash payment to the Employee (for the Employee to use as the Employee deems appropriate) equal to
the amount of the remainder of such reimbursable premium payments in the event that the Bank determines that continued reimbursement
of premium payments would cause a violation of applicable nondiscrimination rules; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time without Cause or upon the Disability of the Employee (<I>provided </I>that the Employee shall give the Bank at least 60
days prior written notice of the Employee&rsquo;s intent to terminate), in which event the Employee shall not be entitled to any
post-termination compensation or benefits other than such benefits (if any) as may be available to the Employee under the Bank&rsquo;s
disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Mutual Agreement</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated at any time by
mutual, written agreement of the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
Upon Death</I>. The Employee&rsquo;s employment, and this Agreement, shall terminate automatically upon the death of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Effect
of Termination; Resignation</I>. Upon the termination of the Employee&rsquo;s employment hereunder, the Bank shall have no further
obligations to the Employee or the Employee&rsquo;s estate, heirs, beneficiaries, executors, administrators, or legal or personal
representatives with respect to this Agreement, except for the payment of any amounts earned and owing under <U>Sections&nbsp;4(a)</U>-<U>4(c)</U>
hereof as of the effective date of the termination of the Employee&rsquo;s employment and any payment(s) required by <U>Section&nbsp;5(a)(ii)</U>,
<U>Section&nbsp;5(b)(i)</U>, or <U>Section&nbsp;6</U> of this Agreement. Further, upon the termination of the Employee&rsquo;s
employment, if the Employee is a member of the Board of Directors or the board of directors of any Affiliate of the Bank, the Employee
shall at the request of the Bank resign from his position(s) on such board(s), with any and all such resignations to be effective
not later than the date on which the Employee&rsquo;s employment is terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Change
of Control</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
within 12 months following a Change of Control the Bank (or any successor of or to the Bank) terminates the Employee&rsquo;s employment
without Cause, the Employee (or in the event of the Employee&rsquo;s subsequent death the Employee&rsquo;s estate or designated
beneficiary or beneficiaries, as the case may be) shall receive, as liquidated damages, in lieu of all other claims, a severance
payment equal to two times the Employee&rsquo;s Annual Base Salary as of the date of termination, such amount to be paid in full
in one lump sum payment on the last day of the month following the date of termination of the Employee&rsquo;s employment. Additionally,
the Employee will continue to receive the health insurance plan benefits then in effect for employees of the Bank for the lesser
of (i) 12 months following termination and (ii) until such time as the Employee obtains other employment providing health insurance
plan benefits, to include payment of any Bank-funded portion of the plan; <I>provided</I>, <I>however</I>, that the Bank may discontinue
paying insurer(s) COBRA premiums for health insurance coverage for the applicable time period and instead provide a cash payment
to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount of the remainder of such COBRA
premiums in the event that the Employee determines that continued provision of a COBRA subsidy would cause a violation of applicable
nondiscrimination rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
within 12 months following a Change of Control the Employee terminates the Employee&rsquo;s employment with the Bank (or any successor
of or to the Bank) for Cause, the Employee (or in the event of the Employee&rsquo;s subsequent death the Employee&rsquo;s estate
or designated beneficiary or beneficiaries, as the case may be) shall receive, as liquidated damages, in lieu of all other claims,
a severance payment equal to (i) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(1)</U> or <U>Section&nbsp;1(f)(ii)(3)</U>,
two times the Employee&rsquo;s Annual Base Salary as of the date of termination, such amount to be paid in full in one lump sum
payment on the last day of the month following the date of termination of the Employee&rsquo;s employment, or (ii) if termination
is for Cause as defined in <U>Section&nbsp;1(f)(ii)(2)</U>, two times the Employee&rsquo;s Annual Base Salary immediately before
the reduction in salary and other compensation and benefits giving rise to termination, such amount to be paid in full in one lump
sum payment on the last day of the month following the date of termination of the Employee&rsquo;s employment. Additionally, the
Employee will continue to receive the health insurance plan benefits then in effect for employees of the Bank for the lesser of
(i) 12 months following termination and (ii) until such time as the Employee obtains other employment providing health insurance
plan benefits, to include payment of any Bank-funded portion of the plan; <I>provided</I>, <I>however</I>, that the Bank may discontinue
paying insurer(s) COBRA premiums for health insurance coverage for the applicable time period and instead provide a cash payment
to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount of the remainder of such COBRA
premiums in the event that the Bank determines that continued provision of a COBRA subsidy would cause a violation of applicable
nondiscrimination rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employer
Information</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Ownership
of Employer Information</I>. All Employer Information received or developed by the Employee or by the Bank or any Affiliate of
the Bank while the Employee is employed by the Bank shall be and will remain the sole and exclusive property of the Bank or such
Affiliate, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Obligations
of the Employee</I>. The Employee agrees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
hold all Employer Information in strictest confidence;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
not use, duplicate, reproduce, distribute, disclose, or otherwise disseminate Employer Information or any physical embodiments
of Employer Information to any unauthorized recipient; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>in
any event, to not take any action causing any Employer Information to lose its character or cease to qualify as, and to not fail
to take any action necessary in order to prevent any Employer Information from losing its character or ceasing to qualify as, Confidential
Information or a Trade Secret; <I>provided</I>, <I>however</I>, that none of the foregoing obligations shall preclude the Employee
from making any disclosures of Employer Information which the Employee has been advised in writing by independent legal counsel
are required by applicable law, rule, or regulation. This <U>Section&nbsp;7</U> shall survive for a period of two years following
the termination of this Agreement for any reason with respect to Confidential Information, and shall survive the termination of
this Agreement for any reason for so long as is permitted by applicable law with respect to Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Delivery
Upon Request or Termination</I>. Upon the request of the Bank, and in any event upon the termination of the Employee&rsquo;s employment
with the Bank, the Employee will promptly deliver to the Bank all property belonging to the Bank, including without limitation
all Employer Information then in the Employee&rsquo;s possession or control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Non-Competition;
Non-Solicitation; Non-Disparagement</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Competition</I>.
The Employee agrees that during the period of the Employee&rsquo;s employment by the Bank hereunder and, in the event of the termination
of the Employee&rsquo;s employment, for the period of time in which the Employee is entitled to receive any Severance Benefit,
the Employee will not (except on behalf of or with the prior written consent of the Bank):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, on the Employee&rsquo;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 the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, perform for any Competing Business any services that are the same as, or substantially
the same as, the services the Employee provides or provided for the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, accept employment with or be employed by any person engaged in any business, activity, enterprise, or venture competitive
with the Business of the Bank; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>work
for or with, consult for, or otherwise be affiliated with, in either a paid or unpaid capacity, or be employed by any person or
group of persons proposing to establish a new bank or other financial institution within the Area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Customers</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Bank hereunder and, in
the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Bank), on the Employee&rsquo;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 of the customer of the Bank or any Affiliate of the Bank , including prospective customers actively sought
by the Bank or any Affiliate of the Bank, with whom the Employee has or had contact during the last two years of the Employee&rsquo;s
employment with the Bank, for purposes of selling, offering, or providing products or services that are competitive with those
sold, offered, or provided by the Bank or any Affiliate of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Employees</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Bank hereunder and, in
the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Bank), on the Employee&rsquo;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 the Bank or any Affiliate of the Bank with whom the Employee had contact during the last two years of the
Employee&rsquo;s employment with the Bank, regardless of whether such employee is a full-time, part-time, or temporary employee
of the Bank or any Affiliate of the Bank or such employee&rsquo;s employment is pursuant to a written agreement, for a determined
period, or at will.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Disparagement</I>.
The Employee agrees that, during the period of the Employee&rsquo;s employment by the Bank hereunder and for a period of two years
thereafter, the Employee will not make any untruthful statement (written or oral) that is or could reasonably be perceived as disparaging
to the Bank or any Affiliate of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Modification.</I>
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 the Employee to those necessary to protect the Bank from inevitable disclosure of
Confidential Information and Trade Secrets and/or 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Tolling.</I>
The Employee agrees that, in the event the Employee breaches this <U>Section&nbsp;8</U>, the Post-Termination Period shall be tolled
during the period of such breach and shall be extended to 12 months after all breaches of this Agreement have ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Remedies</I>.
The Employee agrees that the covenants contained in <U>Section&nbsp;7</U> and <U>Section&nbsp;8</U> 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 the Bank and its Affiliates; and that irreparable loss and damage will be suffered by the Bank should the Employee breach any
of such covenants. Therefore, the Employee agrees and consents that, in addition to any and all other remedies provided by or available
at law or in equity, the Bank shall be entitled to a temporary restraining order and temporary and permanent injunctions to prevent
a breach or threatened or contemplated breach of any of the covenants contained in <U>Section&nbsp;7</U> or <U>Section&nbsp;8</U>
of this Agreement, and that, in such event, the Bank shall not be required to post a bond. The Bank and the Employee agree that
all remedies available to the Bank shall be cumulative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability</U>.
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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Set-Off by Employee</U>. The existence of any claim, demand, action, or cause of action by the Employee against the Bank or any
Affiliate of the Bank, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Bank of any of the Bank&rsquo;s rights hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices</U>.
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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; padding-left: 1in"><FONT STYLE="font-size: 10pt">If to the Bank:</FONT></TD>
    <TD STYLE="width: 60%"><FONT STYLE="font-size: 10pt">Cornerstone Community Bank</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Attention: Chairman, Board of Directors</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">835 Georgia Avenue</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chattanooga, Tennessee 37402</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 1in"><FONT STYLE="font-size: 10pt">If to the Employee:</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Robert B. Watson</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">909 Ridgestone Trail</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Chattanooga, Tennessee 37421</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. A Party may change such Party&rsquo;s notice address
set forth above by giving the other Party 10 days written notice of the new address in the manner set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignment</U>.
The rights and obligations of the Bank under this Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Bank, including without limitation a purchaser of all or substantially all of the assets of the Bank. If this
Agreement is assigned pursuant to the foregoing sentence, the assignment shall be by novation, and the assigning Party shall have
no further liability hereunder, and the successor or assign shall become the &ldquo;Bank&rdquo; hereunder, but the Employee will
not be deemed to have experienced a termination of employment by virtue of such assignment. Without limiting the generality of
the foregoing, the Parties expressly acknowledge and agree that, in the event of any merger of the Bank with and into SmartBank,
SmartBank as the surviving bank of such merger will, as successor by merger to the Bank, succeed to all rights and obligations
of the Bank hereunder, without any further action by the Parties, and that at and after the effective time of such merger, all
references in this Agreement to the &ldquo;Bank&rdquo; shall be references to SmartBank as successor by merger to the Bank. This
Agreement is a personal contract and the rights and interest of the Employee may not be assigned by the Employee. This Agreement
shall inure to the benefit of and be enforceable by the Employee and the Employee&rsquo;s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Waiver</U>.
A waiver by one Party to this Agreement of any provision of this Agreement or of any breach of this Agreement by any other Party
to this Agreement shall not be effective unless in writing, and no waiver shall operate or be construed as a waiver of the same
or any other provision or breach on any other or subsequent occasion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Mediation</U>.
Except with respect to <U>Section&nbsp;7</U>, <U>Section&nbsp;8</U>, and <U>Section 22</U> hereof, and except as provided in <U>Section&nbsp;15
</U>hereof, 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 between or among the Parties, the Parties agree to first endeavor to settle the dispute
in an amicable manner by non-binding mediation in accordance with the rules of alternative dispute resolution of the State of
Tennessee for the judicial circuit containing Knox County, Tennessee (or such other judicial circuit mutually agreed to by the
Parties) before resorting to any other process for resolving the dispute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Applicable
Law and Choice of Forum</U>. 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
legal action or proceeding arising under or relating to this Agreement shall be brought in a state court of record located in
Knox County, Tennessee (or other venue mutually agreed to by the Parties), or, in the event (but only in the event) that no such
state court has subject matter jurisdiction over such action or proceeding, in the United States District Court for the Eastern
District of Tennessee, which courts shall have exclusive jurisdiction over any such action or proceeding. Each Party consents
to, and waives any objection such Party may otherwise have to, the jurisdiction and venue of such courts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Interpretation</U>.
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 &ldquo;herein,&rdquo; &ldquo;hereunder,&rdquo; &ldquo;hereby,&rdquo; &ldquo;hereto,&rdquo;
and &ldquo;hereof,&rdquo; and any similar terms, refer to this Agreement. When used herein, the term &ldquo;person&rdquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire
Agreement</U>. This Agreement embodies the entire, final, and integrated agreement of the Parties on the subject matter stated
in this Agreement. No amendment or supplement to or modification of this Agreement shall be valid or binding upon the Bank or
the Employee unless made in a writing signed by all of the Parties. All prior understandings and agreements relating to the subject
matter of this Agreement are hereby expressly terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed
to be 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 signed copy of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Rights
of Third Parties</U>. 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 successors and permitted assigns, any rights or remedies under or by reason of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal
Fees</U>. In the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement, the
prevailing Party shall be entitled to recover from the non-prevailing Party all reasonable fees, expenses, and disbursements,
including without limitation reasonable attorneys&rsquo; fees and court costs, incurred by such prevailing Party in connection
with such claim, action, suit, or proceeding, in addition to any other relief to which such prevailing Party may be entitled at
law or in equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Survival</U>.
The obligations of the Parties pursuant to <U>Sections</U> <U>4(h)</U>, <U>7</U>, <U>8</U>, <U>14</U>, <U>15</U>, <U>20</U>, <U>21</U>,
<U>23</U>, <U>24</U>, <U>25</U>, <U>26</U>, and <U>27</U> shall survive the expiration and/or termination of this Agreement and/or
the termination of the Employee&rsquo;s employment hereunder for the periods expressly designated under such sections or, if no
such period is designed, for the maximum period permissible under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Representation
Regarding Restrictive Covenants</U>. The Employee represents that the Employee is not and will not become a party to any non-competition
or non-solicitation agreement or any other agreement which would prohibit the Employee from entering into this Agreement or providing
the services for the Bank contemplated by this Agreement on or after the Effective Date. In the event the Employee is subject
to any such agreement, this Agreement shall be rendered null and void and the Bank shall have no obligations to the Employee under
this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Right
to Contact</U>. The Employee acknowledges and agrees that the Bank shall retain and have the right to contact any new employer
or potential employer (or other business) and apprise such person of the Employee&rsquo;s responsibilities and obligations owed
under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Section
409A</U>. It is the intent of the Parties for any payment to which the Employee is entitled under this Agreement to be exempt
from Section 409A of the Code to the maximum extent permitted under Section 409A of the Code. However, if any amounts payable
are considered to be &ldquo;nonqualified deferred compensation&rdquo; subject to Section 409A of the Code, such amounts shall
be paid and provided in a manner that, and at such time and in such form as, complies with the applicable requirements of Section
409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Neither the Employee nor the Bank
shall intentionally take any action to accelerate or delay the payment of any amounts in any manner which would not be in compliance
with Section&nbsp;409A of the Code without the consent of the other Party. For purposes of this Agreement, all rights to payments
shall be treated as rights to receive a series of separate payments to the fullest extent allowed by Section&nbsp;409A of the
Code. To the extent that some portion of the payments provided for under this Agreement may be bifurcated and treated as exempt
from Section 409A of the Code under the &ldquo;short-term deferral&rdquo; or &ldquo;separation pay&rdquo; exemptions, then such
amounts may be so treated as exempt from Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Withholding
of Taxes</I>. The Bank may deduct and withhold from any amounts payable under this Agreement all federal, state, city, or other
taxes the Bank is required to deduct or withhold pursuant to applicable law, rule, regulation, or ruling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Excise
Taxes</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the event that any amounts payable under this Agreement or otherwise to the Employee would (1) constitute &ldquo;parachute payments&rdquo;
within the meaning of Section 280G of the Code or any comparable successor provision and (2) but for this <U>Section&nbsp;25(b)</U>,
be subject to the excise tax imposed by Section 4999 of the Code or any comparable successor provision (the &ldquo;<U>Excise Tax</U>&rdquo;),
then such amounts payable to the Employee shall be either (y) provided to the Employee in full or (z) provided to the Employee
to the maximum extent that would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing
amounts, when taking into account applicable federal, state, local, and foreign income and employment taxes, the Excise Tax, and
any other applicable taxes, results in the Employee&rsquo;s receipt, on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Bank and the Employee
otherwise agree in writing, any determination required under this <U>Section&nbsp;25(b)</U> shall be made in writing in good faith
by the Bank&rsquo;s independent accounting firm (the &ldquo;<U>Independent Accountants</U>&rdquo;). In the event of a reduction
in benefits hereunder, the reduction of the total payments shall apply as follows, unless otherwise agreed in writing and such
agreement is in compliance with Section 409A of the Code: (1) any cash severance payments subject to Section 409A of the Code due
under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter
working from the next last payment; (2) any cash severance payments not subject to Section 409A of the Code due under this Agreement
shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next
last payment; (3) any acceleration of vesting of any equity subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest;
and (4) any acceleration of vesting of any equity not subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest.
For purposes of making the calculations required by this <U>Section&nbsp;25(b)</U>, the Independent Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the
application of the Code and other applicable legal authority. The Bank and the Employee shall furnish to the Independent Accountants
such information and documents as the Independent Accountants may reasonably request in order to make a determination under this
<U>Section&nbsp;25(b)</U>. The Bank shall bear all costs that the Independent Accountants may reasonably incur in connection with
any calculations contemplated by this <U>Section&nbsp;25(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
notwithstanding any reductions described in this <U>Section&nbsp;25(b)</U> the Internal Revenue Service (the &ldquo;<U>IRS</U>&rdquo;)
determines that the Employee is liable for the Excise Tax as a result of the receipt of amounts payable under this Agreement or
otherwise as described above, then the Employee shall be obligated to pay back to the Bank, within 30 days after a final IRS determination
or, in the event that the Employee challenges the final IRS determination, a final judicial determination, a portion of such amounts
equal to the Repayment Amount. The &ldquo;<U>Repayment Amount</U>,&rdquo; with respect to the payment of benefits, shall be the
smallest such amount, if any, that is required to be paid to the Bank so that the Employee&rsquo;s net after-tax proceeds with
respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable taxes imposed
on such payment) are maximized. The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment Amount
of more than zero would not result in the Employee&rsquo;s net after-tax proceeds with respect to the payment of such benefits
being maximized. If the Excise Tax is not eliminated pursuant to this <U>Section&nbsp;25(b)</U>, the Employee shall pay the Excise
Tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
any other provision of this <U>Section&nbsp;25(b)</U>, if (1) there is a reduction in the payment of benefits as described in this
<U>Section&nbsp;25(b)</U>, (2) the IRS later determines that the Employee is liable for the Excise Tax, the payment of which would
result in the maximization of the Employee&rsquo;s net after-tax proceeds (calculated as if the Employee&rsquo;s benefits had not
previously been reduced), and (3) the Employee pays the Excise Tax, then the Bank shall pay to the Employee those benefits which
were reduced pursuant to this <U>Section&nbsp;25(b)</U> as soon as administratively possible after the Employee pays the Excise
Tax, so that the Employee&rsquo;s net after-tax proceeds with respect to the payment of benefits are maximized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Restrictions</U>. 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. &sect;&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect
on Executive Change-in-Control Severance Agreement</U>. The Parties and the Company intend for this Agreement to supersede and
replace that certain Executive Change-in-Control Severance Agreement dated December 16, 2013, by and among the Company, the Bank,
and the Employee (the &ldquo;<U>Severance Agreement</U>&rdquo;). Accordingly, on and as of the Effective Date, and without any
further action by the Parties or the Company, this Agreement shall supersede and replace the Severance Agreement and the Severance
Agreement shall automatically be cancelled and shall have no further force or effect with the parties thereto having no further
rights or obligations thereunder. By executing this Agreement, the Parties and the Company hereby waive the requirements of Section
5.5 of the Severance Agreement, which if not waived would require the inclusion in the Merger Agreement of the &ldquo;Payments
Upon Termination&rdquo; (as such term is defined in the Severance Agreement) before final approval of the Merger Agreement by the
boards of directors of the Company and the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(<I>Signature Page Follows</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">IN WITNESS WHEREOF, the
Parties have executed and delivered this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">BANK:</FONT></TD>
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE COMMUNITY BANK</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">EMPLOYEE:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ Robert B. Watson</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">Robert B. Watson</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><U>JOINDER BY CORNERSTONE
BANCSHARES, INC.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Company joins in this
Agreement solely to evidence its agreement to the cancellation of the Severance Agreement and the waiver of rights and obligations
thereunder, as set forth in Section 27 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in; padding-left: 0.5in"><FONT STYLE="font-size: 10pt">COMPANY:</FONT></TD>
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE BANCSHARES, INC.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 47%; border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(<I>Signature Page to Watson Employment
Agreement</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>


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<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>7
<FILENAME>v396203_ex10-5.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.5</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">EMPLOYMENT
AGREEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">THIS EMPLOYMENT AGREEMENT
is made and entered into as of December 5, 2014 (the &ldquo;<U>Effective Date</U>&rdquo;), by and between Cornerstone Community
Bank, a banking corporation organized under the laws of the State of Tennessee (the &ldquo;<U>Bank</U>&rdquo;), and James R. Vercoe
Jr., a resident of the State of Tennessee (the &ldquo;<U>Employee</U>&rdquo;). The Bank and the Employee are sometimes referred
to herein collectively as the &ldquo;<U>Parties</U>,&rdquo; and each is sometimes referred to herein individually as a &ldquo;<U>Party</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal"><U>RECITALS</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bank desires to employ the Employee as Executive Vice President and Chief Credit Officer, and the Employee desires to accept such
employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties desire to set forth in this Agreement the terms and conditions upon which the Employee will be so employed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center"><FONT STYLE="font-weight: normal"><U>AGREEMENT</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">In consideration of the
premises set forth above, the mutual agreements hereinafter set forth, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>.
When used in this Agreement, the following terms and their variant forms shall have the meanings set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Affiliate</U>&rdquo;
shall mean any person that controls, is controlled by, or is under common control with another person. For this purpose, &ldquo;control&rdquo;
means ownership of more than 50% of the ordinary voting power of the outstanding equity securities of a person. For the avoidance
of doubt, it is expressly acknowledged that, following the SmartFinancial Merger, the Bank and SmartBank, a banking corporation
organized under the laws of the State of Tennessee (&ldquo;<U>SmartBank</U>&rdquo;), will be Affiliates for purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Agreement</U>&rdquo;
shall mean this Employment Agreement and any appendices incorporated herein together with any amendments hereto made in the manner
described in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Area</U>&rdquo;
shall mean, during the period of the Employee&rsquo;s employment, a radius of 75 miles from each banking office (whether a main
office, branch office, or loan or deposit production office) maintained by the Bank and/or any Affiliate of the Bank from time
to time during such period of employment, and, following the period of the Employee&rsquo;s employment, a radius of 75 miles from
each banking office (whether a main office, branch office, or loan or deposit production office) maintained by the Bank and/or
any Affiliate of the Bank as of the last day of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Board
of Directors</U>&rdquo; shall mean the board of directors of the Bank, and, where appropriate, any committee or designee thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Business
of the Bank</U>&rdquo; shall mean the business conducted by the Bank and/or any Affiliate of the Bank, which shall include the
business of commercial and consumer banking.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Cause</U>&rdquo;
shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Bank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
breach of the terms of this Agreement by the Employee not cured by the Employee within 15 business days after the Employee&rsquo;s
receipt of the Bank&rsquo;s written notice thereof, including without limitation failure by the Employee to perform the Employee&rsquo;s
duties and responsibilities in the manner and to the extent required under this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
act by the Employee of fraud against, misappropriation from, or dishonesty to the Bank or any Affiliate of the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
conviction of the Employee of any crime;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
by the Employee that amounts to willful misconduct, gross neglect, or a material failure to perform the Employee&rsquo;s duties
and responsibilities hereunder, including prolonged absences without the written consent of the Chairman of the Board of Directors
or the President and Chief Executive Officer of the Company; <I>provided</I> that the nature of such conduct shall be set forth
with reasonable particularity in a written notice to the Employee who shall have 15 business days following delivery of such notice
to cure such alleged conduct, <I>provided</I> that such conduct is, in the reasonable discretion of the Chairman of the Board of
Directors or the President and Chief Executive Officer of the Company, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
exhibition by the Employee of a standard of behavior within the scope of or related to the Employee&rsquo;s employment that is
in violation of: (i) any written policy, which violation results in or is likely to result in a material loss or regulatory criticism,
(ii) any board committee charter, or (iii) any code of ethics or business conduct of the Bank or any Affiliate of the Bank; <I>provided</I>
in each case that the nature of such behavior shall be set forth with reasonable particularity in a written notice to the Employee
who shall have 15 business days following delivery of such notice to cure such alleged behavior, <I>provided</I> that such behavior
is, in the reasonable discretion of the Chairman of the Board of Directors or the President and Chief Executive Officer of the
Company, susceptible to a cure;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct
or behavior by the Employee that, in the reasonable opinion of the Chairman of the Board of Directors of the Company or the President
and Chief Executive Officer of the Company, has harmed or could be expected to harm the business or reputation of the Bank or any
Affiliate of the Bank, including without limitation conduct or behavior that is unethical or involves moral turpitude;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receipt
of any form of written notice that any regulatory agency or authority having jurisdiction over the Bank or any Affiliate of the
Bank has instituted any form of regulatory action against the Employee; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
Employee&rsquo;s removal from office or permanent prohibition from participating in the conduct of the affairs of the Bank or any
Affiliate of the Bank by an order issued under Section&nbsp;8(e) or Section&nbsp;8(g) of the Federal Deposit Insurance Act (12
U.S.C. &sect;&nbsp;1818(e) and (g)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the context of the termination of this Agreement by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the scope of the Employee&rsquo;s duties and responsibilities, which (A)
is not consented to by the Employee in writing, or (B) does not occur within the 12 months following either the SmartFinancial
Merger or the merger of the Bank and SmartBank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
material reduction, when considered in the aggregate, in the salary and other compensation and benefits provided for in <U>Section&nbsp;4</U>
hereof from the level in effect immediately prior to such reduction, which is not consented to by the Employee in writing; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
change in the location of the Employee&rsquo;s primary office such that the Employee is required to report regularly to an office
located outside of a 75-mile radius from the location of the Employee&rsquo;s primary office as of the date of such change in location,
which change is not consented to by the Employee in writing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Change
of Control</U>&rdquo; shall mean:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
acquisition by any person or persons acting in concert (other than any officer(s), director(s), and/or shareholder(s) of the Company
or any Affiliate of the Company), in a single transaction or series of related transactions, of 50% or more of the outstanding
voting securities of the Company entitled to vote in the election of Company directors;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>a
reorganization, merger, or consolidation to which the Company is a party with respect to which persons who were shareholders of
the Company immediately prior to such reorganization, merger, or consolidation do not immediately thereafter own more than 50%
of the combined voting power of the reorganized, merged, or consolidated company&rsquo;s then outstanding voting securities entitled
to vote in the election of directors; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>the
sale, transfer, or assignment by the Company of all or substantially all of the assets of the Company and its subsidiaries to any
third party (excluding, however, any pledge by the Company of the capital stock of any subsidiary of the Company to secure indebtedness
of the Company or for other general corporate or commercial purposes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">Notwithstanding the foregoing, the Parties
expressly acknowledge and agree that neither the SmartFinancial Merger nor any merger of the Bank and SmartBank (irrespective of
the surviving bank of such merger) shall constitute or give rise to a Change of Control for purposes of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Company</U>&rdquo;
shall mean Cornerstone Bancshares, Inc., a Tennessee corporation and registered bank holding company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Code</U>&rdquo;
shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Competing
Business</U>&rdquo; shall mean any person (other than an Affiliate of the Bank) that is conducting any business that is the same
or substantially the same as the Business of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Confidential
Information</U>&rdquo; means data and information relating to the business of the Bank or any Affiliate of the Bank (which does
not rise to the status of a Trade Secret) which is or has been disclosed to the Employee or of which the Employee became aware
as a consequence of or through the Employee&rsquo;s relationship with the Bank or any Affiliate of the Bank and which has value
to the Bank or any Affiliate of the Bank and is not generally known to its or their competitors. Confidential Information shall
not include any data or information that has been voluntarily disclosed to the public by the Bank or any Affiliate of the Bank
(<I>provided</I> that no such public disclosure shall be deemed to be voluntary when made without authorization by the Employee
or any other employee of the Bank or any Affiliate of the Bank) or that has been independently developed and disclosed by others
or that otherwise enters the public domain through lawful means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Disability</U>&rdquo;
shall mean the inability of the Employee to perform each of the Employee&rsquo;s duties and responsibilities under this Agreement
for a period of more than 90 consecutive days; <I>provided </I>that the Parties agree that, to the extent necessary to comply with
Section 409A of the Code, the definition of &ldquo;Disability&rdquo; shall be amended to the definition of disability required
by Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Employer
Information</U>&rdquo; shall mean, collectively, Confidential Information and Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>SmartFinancial
Merger</U>&rdquo; shall mean the merger of SmartFinancial, Inc. with and into the Company, as contemplated by that certain Agreement
and Plan of Merger, by and among the Company, the Bank, SmartFinancial, Inc., and SmartBank, dated December 5, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Post-Termination
Period</U>&rdquo; shall mean a period of 12 months following the effective date of the termination of the Employee&rsquo;s employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Severance
Benefit</U>&rdquo; shall mean any post-termination benefit(s) to be paid by the Bank pursuant to <U>Section&nbsp;5(a)(ii)</U>,
<U>Section&nbsp;5(b)(i)</U>, or <U>Section&nbsp;6</U> hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Trade
Secrets</U>&rdquo; shall mean information of the Bank or any Affiliate of the Bank, including without limitation technical and
nontechnical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings, processes, financial data,
financial plans, product plans, and lists of actual or potential customers, prospects, or suppliers, which:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employee
Duties</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Position(s).</I>
The Employee will be employed as Executive Vice President and Chief Credit Officer of the Bank and shall perform and discharge
faithfully the duties and responsibilities which may be assigned to the Employee from time to time in connection with the conduct
of the Bank&rsquo;s business. The duties and responsibilities of the Employee shall be commensurate with those of individuals holding
similar positions at other banks similarly situated. The Employee will report directly to the Senior Executive Office of the Bank
or such other officer as the Board of Directors may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Full-Time
Status</I>. In addition to the duties and responsibilities specifically assigned to the Employee pursuant to <U>Section&nbsp;2(a)</U>
hereof, the Employee shall:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>subject
to <U>Section&nbsp;2(c)</U> hereof, during regular business hours devote substantially all of the Employee&rsquo;s time, energy,
attention, and skill to the performance of the duties and responsibilities of the Employee&rsquo;s employment (reasonable vacations,
approved leaves of absence, and reasonable absences due to illness excepted) and faithfully and industriously perform such duties
and responsibilities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>diligently
follow and implement all reasonable and lawful policies and decisions communicated to the Employee; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>timely
prepare and forward to the requesting party or parties all reports and accountings as may be reasonably requested of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Permitted
Activities</I>. The Employee shall devote substantially all of the Employee&rsquo;s entire business time, attention, and energies
to the Business of the Bank 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,
but as long as the following activities do not interfere with the Employee&rsquo;s obligations to the Bank, this shall not be construed
as preventing the Employee from:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>investing
the Employee&rsquo;s personal assets in any manner which will not require any services on the part of the Employee in the operations
or affairs of the subject person and in which the Employee&rsquo;s participation is solely that of an investor; <I>provided</I>
that such investment activity following the Effective Date shall not result in the Employee owning, beneficially or of record,
at any time 2% or more of the equity securities of any Competing Business; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>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 the Employee to effectively discharge the Employee&rsquo;s duties and
responsibilities hereunder; <I>provided</I> that the Board of Directors may direct the Employee in writing to resign from any such
organization and/or cease any such activities in the event the Board of Directors reasonably determines that continued membership
and/or activities of the type identified would not be in the best interests of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Term
of Employment</U>. The initial term of this Agreement (the &ldquo;<U>Initial Term</U>&rdquo;), and the Parties&rsquo; employment
relationship, shall commence on and as of the Effective 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 at
the end of any one-year renewal term), this Agreement will automatically renew for an additional, successive term of one year,
unless the Bank or the Employee gives the other written notice of its intent to terminate this Agreement as of the end of the
Initial Term (or as of the end of the 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 renewal terms, if any, are referred to together herein as the &ldquo;<U>Term</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compensation</U>.
The Bank shall compensate the Employee as follows during the Employee&rsquo;s period of employment hereunder, except as otherwise
provided below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Base Salary</I>. The Employee shall be compensated at an annual base rate of $135,000.00 per year (the &ldquo;<U>Annual Base Salary</U>&rdquo;).
The Employee&rsquo;s Annual Base Salary will be reviewed by the compensation committee of the Board of Directors at least annually
(in accordance with the committee&rsquo;s charter and any procedures adopted by the committee) for adjustments based on an evaluation
of the Employee&rsquo;s performance. The Employee&rsquo;s Annual Base Salary shall be payable in accordance with the Bank&rsquo;s
normal payroll practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Annual
Incentive Compensation.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Employee shall be eligible to receive annual bonus compensation as determined by, and based on performance measures established
by, the Board of Directors (upon recommendation by the compensation committee) consistent with the strategic plan(s) of the Bank
pursuant to any incentive compensation program that may be adopted from time to time by the Board of Directors (an &ldquo;<U>Annual
Bonus</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
Annual Bonus earned shall be payable in cash in the first calendar quarter of the year following the year in which the Annual Bonus
is earned in accordance with the Bank&rsquo;s normal practices for the payment of short-term incentives. The payment of any Annual
Bonus shall be subject to any approvals or non-objections required by any regulator of the Bank or any Affiliate of the Bank, and
it is understood by the Parties that the Employee may not be eligible to receive any such Annual Bonus or other short-term incentive
compensation if the Bank or any Affiliate of the Bank is subject to restrictions imposed on the Bank or any such Affiliate by the
United States Department of the Treasury, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation,
the Tennessee Department of Financial Institutions, or any other bank or bank holding company regulatory authority, or if the Bank
is otherwise restricted from making payment of such compensation under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Business Expenses</I>. Subject to the reimbursement policies from time to time adopted by the Board of Directors, and consistent
with the annual budget approved for the period during which an expense is incurred, the Bank will reimburse the Employee for reasonable
and necessary business expenses incurred by the Employee in the performance of the Employee&rsquo;s duties and responsibilities
hereunder; <I>provided</I>, <I>however</I>, that, as a condition to any such reimbursement, the Employee shall submit verification
of the nature and amount of such expenses in accordance with said reimbursement policies. Examples of appropriate categories of
reimbursable expenses include memberships in professional and civic organizations, professional development, and customer entertainment.
The Employee acknowledges that the Bank makes no representation with respect to the taxability or non-taxability of the benefits
provided under this <U>Section&nbsp;4(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Cellular
Telephone</I>. The Bank will provide the Employee with a Bank-owned cellular telephone for use by the Employee in the course of
the Employee&rsquo;s employment for Bank-related business<U> </U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Paid
Leave</I>. On a non-cumulative basis, the Employee shall be entitled to 21 days of paid leave per calendar year, prorated for any
partial calendar year of service. The provisions of this <U>Section&nbsp;4(e)</U> shall apply notwithstanding any less generous
paid leave policy then maintained by the Bank, but the use of Employee&rsquo;s paid leave shall otherwise be in accordance with
and subject to the Bank&rsquo;s paid leave policy as in effect from time to time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Other
Benefits</I>. In addition to the benefits specifically described in this Agreement, the Employee shall be entitled to such benefits
as may be available from time to time to similarly situated employees of the Bank, 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, the Bank&rsquo;s standard policies and practices
relating to such benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Reimbursement
of Expenses; In-Kind Benefits</I>. All expenses eligible for reimbursement described in this Agreement must be incurred by the
Employee during the Term of this Agreement to be eligible for reimbursement. Any in-kind benefits provided by the Bank 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Clawback
of Compensation</I>. The Employee agrees to return or repay any compensation previously paid or otherwise made available to the
Employee that is subject to recovery under any applicable law, rule, or regulation (including any rule of any exchange or service
on or through which the securities of the Bank or any Affiliate of the Bank are traded) where such compensation was in excess of
what should have been paid or made available because the determination of the amount due was based, in whole or in part, on materially
inaccurate financial information of the Bank. The Employee agrees to return or repay promptly any such compensation identified
by the Bank. If the Employee fails to return or repay such compensation promptly, the Employee agrees that the amount of such compensation
may be deducted from any and all other compensation owed to the Employee. The Employee acknowledges that the Bank may take appropriate
disciplinary action (up to and including termination of employment) if the Employee fails to return or repay such compensation.
The provisions of this <U>Section&nbsp;4(h)</U> shall be modified to the extent, and remain in effect for the period, required
by applicable law, rule, or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination
of Employment</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Bank</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Bank:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause, upon written notice to the Employee approved by two-thirds of the members of the Board of Directors, in which event the
Employee shall not be entitled to any post-termination compensation or benefits;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time without Cause (<I>provided</I> that the Bank shall give the Employee at least 30 days prior written notice of the Bank&rsquo;s
intent to terminate), in which event the Bank shall (1) be required to pay to the Employee a severance benefit equal to one times
the Employee&rsquo;s Annual Base Salary as of the date of termination, said benefit to be payable over the course of the 12-month
period following termination in accordance with the Bank&rsquo;s normal payroll practices, and (2) reimburse the Employee for the
reasonable cost of premium payments paid by the Employee to continue the Employee&rsquo;s then-existing health insurance for himself
as provided by the Bank for the lesser of (A) 12 months following termination and (B) until such time as the Employee obtains other
employment providing health insurance coverage, <I>provided </I>that the Bank may discontinue reimbursing the Employee for such
premium payments for the applicable time period and instead provide a cash payment to the Employee (for the Employee to use as
the Employee deems appropriate) equal to the amount of the remainder of such reimbursable premium payments in the event that the
Bank determines that continued reimbursement of premium payments would cause a violation of applicable nondiscrimination rules
(for the avoidance of doubt, the termination of the Employee&rsquo;s employment by the Bank upon the disability of the Employee
under <U>Section&nbsp;5(a)(iii)</U> below shall not be considered or deemed termination of the Employee&rsquo;s employment without
Cause under this <U>Section&nbsp;5(a)(ii)</U>); or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time upon the Disability of the Employee (<I>provided</I> that the Bank shall give the Employee at least 30 days prior written
notice of the Bank&rsquo;s intent to terminate), in which event the Employee will be entitled to such benefits (if any) as may
be available to the Employee under the Bank&rsquo;s disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Employee</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated by the Employee:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>for
Cause, in which event the Bank shall (1) be required to pay to the Employee a severance benefit equal to (A) if termination is
for Cause as defined in <U>Section&nbsp;1(f)(ii)(1)</U> or <U>Section&nbsp;1(f)(ii)(3)</U>, one times the Employee&rsquo;s Annual
Base Salary as of the date of termination, said benefit to be payable over the course of the 12-month period following termination
in accordance with the Bank&rsquo;s normal payroll practices, or (B) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(2)</U>,
one times the Employee&rsquo;s Annual Base Salary immediately before the reduction in salary and other compensation and benefits
giving rise to termination, said benefit to be payable over the course of the 12-month period following termination in accordance
with the Bank&rsquo;s normal payroll practices, and (2) reimburse the Employee for the reasonable cost of premium payments paid
by the Employee to continue the Employee&rsquo;s then-existing health insurance for himself as provided by the Bank for the lesser
of (A) 12 months following termination and (B) until such time as the Employee obtains other employment providing health insurance
coverage, <I>provided </I>that the Bank may discontinue reimbursing the Employee for such premium payments for the applicable time
period and instead provide a cash payment to the Employee (for the Employee to use as the Employee deems appropriate) equal to
the amount of the remainder of such reimbursable premium payments in the event that the Bank determines that continued reimbursement
of premium payments would cause a violation of applicable nondiscrimination rules; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>at
any time without Cause or upon the Disability of the Employee (<I>provided </I>that the Employee shall give the Bank at least 60
days prior written notice of the Employee&rsquo;s intent to terminate), in which event the Employee shall not be entitled to any
post-termination compensation or benefits other than such benefits (if any) as may be available to the Employee under the Bank&rsquo;s
disability insurance policy or policies (if any) then in effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
by Mutual Agreement</I>. During the Term, the Employee&rsquo;s employment, and this Agreement, may be terminated at any time by
mutual, written agreement of the Parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Termination
Upon Death</I>. The Employee&rsquo;s employment, and this Agreement, shall terminate automatically upon the death of the Employee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Effect
of Termination; Resignation</I>. Upon the termination of the Employee&rsquo;s employment hereunder, the Bank shall have no further
obligations to the Employee or the Employee&rsquo;s estate, heirs, beneficiaries, executors, administrators, or legal or personal
representatives with respect to this Agreement, except for the payment of any amounts earned and owing under <U>Sections&nbsp;4(a)</U>-<U>4(c)</U>
hereof as of the effective date of the termination of the Employee&rsquo;s employment and any payment(s) required by <U>Section&nbsp;5(a)(ii)</U>,
<U>Section&nbsp;5(b)(i)</U>, or <U>Section&nbsp;6</U> of this Agreement. Further, upon the termination of the Employee&rsquo;s
employment, if the Employee is a member of the Board of Directors or the board of directors of any Affiliate of the Bank, the Employee
shall at the request of the Bank resign from his position(s) on such board(s), with any and all such resignations to be effective
not later than the date on which the Employee&rsquo;s employment is terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Change
of Control</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
within 12 months following a Change of Control the Bank (or any successor of or to the Banks) terminates the Employee&rsquo;s employment
without Cause, the Employee (or in the event of the Employee&rsquo;s subsequent death the Employee&rsquo;s estate or designated
beneficiary or beneficiaries, as the case may be) shall receive, as liquidated damages, in lieu of all other claims, a severance
payment equal to two times the Employee&rsquo;s Annual Base Salary as of the date of termination, such amount to be paid in full
in one lump sum payment on the last day of the month following the date of termination of the Employee&rsquo;s employment. Additionally,
the Employee will continue to receive the health insurance plan benefits then in effect for employees of the Bank for the lesser
of (i) 12 months following termination and (ii) until such time as the Employee obtains other employment providing health insurance
plan benefits, to include payment of any Bank-funded portion of the plan; <I>provided</I>, <I>however</I>, that the Bank may discontinue
paying insurer(s) COBRA premiums for health insurance coverage for the applicable time period and instead provide a cash payment
to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount of the remainder of such COBRA
premiums in the event that the Employee determines that continued provision of a COBRA subsidy would cause a violation of applicable
nondiscrimination rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
within 12 months following a Change of Control the Employee terminates the Employee&rsquo;s employment with the Bank (or any successor
of or to the Bank) for Cause, the Employee (or in the event of the Employee&rsquo;s subsequent death the Employee&rsquo;s estate
or designated beneficiary or beneficiaries, as the case may be) shall receive, as liquidated damages, in lieu of all other claims,
a severance payment equal to (i) if termination is for Cause as defined in <U>Section&nbsp;1(f)(ii)(1)</U> or <U>Section&nbsp;1(f)(ii)(3)</U>,
two times the Employee&rsquo;s Annual Base Salary as of the date of termination, such amount to be paid in full in one lump sum
payment on the last day of the month following the date of termination of the Employee&rsquo;s employment, or (ii) if termination
is for Cause as defined in <U>Section&nbsp;1(f)(ii)(2)</U>, two times the Employee&rsquo;s Annual Base Salary immediately before
the reduction in salary and other compensation and benefits giving rise to termination, such amount to be paid in full in one lump
sum payment on the last day of the month following the date of termination of the Employee&rsquo;s employment. Additionally, the
Employee will continue to receive the health insurance plan benefits then in effect for employees of the Bank for the lesser of
(i) 12 months following termination and (ii) until such time as the Employee obtains other employment providing health insurance
plan benefits, to include payment of any Bank-funded portion of the plan; <I>provided</I>, <I>however</I>, that the Bank may discontinue
paying insurer(s) COBRA premiums for health insurance coverage for the applicable time period and instead provide a cash payment
to the Employee (for the Employee to use as the Employee deems appropriate) equal to the amount of the remainder of such COBRA
premiums in the event that the Bank determines that continued provision of a COBRA subsidy would cause a violation of applicable
nondiscrimination rules.<FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>1</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employer
Information</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Ownership
of Employer Information</I>. All Employer Information received or developed by the Employee or by the Bank or any Affiliate of
the Bank while the Employee is employed by the Bank shall be and will remain the sole and exclusive property of the Bank or such
Affiliate, as the case may be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Obligations
of the Employee</I>. The Employee agrees:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
hold all Employer Information in strictest confidence;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>to
not use, duplicate, reproduce, distribute, disclose, or otherwise disseminate Employer Information or any physical embodiments
of Employer Information to any unauthorized recipient; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>in
any event, to not take any action causing any Employer Information to lose its character or cease to qualify as, and to not fail
to take any action necessary in order to prevent any Employer Information from losing its character or ceasing to qualify as, Confidential
Information or a Trade Secret; <I>provided</I>, <I>however</I>, that none of the foregoing obligations shall preclude the Employee
from making any disclosures of Employer Information which the Employee has been advised in writing by independent legal counsel
are required by applicable law, rule, or regulation. This <U>Section&nbsp;7</U> shall survive for a period of two years following
the termination of this Agreement for any reason with respect to Confidential Information, and shall survive the termination of
this Agreement for any reason for so long as is permitted by applicable law with respect to Trade Secrets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Delivery
Upon Request or Termination</I>. Upon the request of the Bank, and in any event upon the termination of the Employee&rsquo;s employment
with the Bank, the Employee will promptly deliver to the Bank all property belonging to the Bank, including without limitation
all Employer Information then in the Employee&rsquo;s possession or control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>1</SUP></FONT>
NTD: Subject to confirmation that Cornerstone&rsquo;s plan is fully-insured.</P>



<P STYLE="margin: 0">&nbsp;&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Non-Competition;
Non-Solicitation; Non-Disparagement</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Competition</I>.
The Employee agrees that during the period of the Employee&rsquo;s employment by the Bank hereunder and, in the event of the termination
of the Employee&rsquo;s employment, for the period of time in which the Employee is entitled to receive any Severance Benefit,
the Employee will not (except on behalf of or with the prior written consent of the Bank):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, on the Employee&rsquo;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 the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, either directly or indirectly, perform for any Competing Business any services that are the same as, or substantially
the same as, the services the Employee provides or provided for the Bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>within
the Area, accept employment with or be employed by any person engaged in any business, activity, enterprise, or venture competitive
with the Business of the Bank; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>work
for or with, consult for, or otherwise be affiliated with, in either a paid or unpaid capacity, or be employed by any person or
group of persons proposing to establish a new bank or other financial institution within the Area.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Customers</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Bank hereunder and, in
the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Bank), on the Employee&rsquo;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 of the customer of the Bank or any Affiliate of the Bank , including prospective customers actively sought
by the Bank or any Affiliate of the Bank, with whom the Employee has or had contact during the last two years of the Employee&rsquo;s
employment with the Bank, for purposes of selling, offering, or providing products or services that are competitive with those
sold, offered, or provided by the Bank or any Affiliate of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Solicitation
of Employees</I>. The Employee agrees that, during the period of the Employee&rsquo;s employment by the Bank hereunder and, in
the event of the termination of the Employee&rsquo;s employment for any reason, for the duration of the Post-Termination Period,
the Employee will not, directly or indirectly (except on behalf of or with the prior written consent of the Bank), on the Employee&rsquo;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 the Bank or any Affiliate of the Bank with whom the Employee had contact during the last two years of the
Employee&rsquo;s employment with the Bank, regardless of whether such employee is a full-time, part-time, or temporary employee
of the Bank or any Affiliate of the Bank or such employee&rsquo;s employment is pursuant to a written agreement, for a determined
period, or at will.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Non-Disparagement</I>.
The Employee agrees that, during the period of the Employee&rsquo;s employment by the Bank hereunder and for a period of two years
thereafter, the Employee will not make any untruthful statement (written or oral) that is or could reasonably be perceived as disparaging
to the Bank or any Affiliate of the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Modification.</I>
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 the Employee to those necessary to protect the Bank from inevitable disclosure of
Confidential Information and Trade Secrets and/or 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Tolling.</I>
The Employee agrees that, in the event the Employee breaches this <U>Section&nbsp;8</U>, the Post-Termination Period shall be tolled
during the period of such breach and shall be extended to 12 months after all breaches of this Agreement have ceased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Remedies</I>.
The Employee agrees that the covenants contained in <U>Section&nbsp;7</U> and <U>Section&nbsp;8</U> 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 the Bank and its Affiliates; and that irreparable loss and damage will be suffered by the Bank should the Employee breach any
of such covenants. Therefore, the Employee agrees and consents that, in addition to any and all other remedies provided by or available
at law or in equity, the Bank shall be entitled to a temporary restraining order and temporary and permanent injunctions to prevent
a breach or threatened or contemplated breach of any of the covenants contained in <U>Section&nbsp;7</U> or <U>Section&nbsp;8</U>
of this Agreement, and that, in such event, the Bank shall not be required to post a bond. The Bank and the Employee agree that
all remedies available to the Bank shall be cumulative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability</U>.
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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Set-Off by Employee</U>. The existence of any claim, demand, action, or cause of action by the Employee against the Bank or any
Affiliate of the Bank, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement
by the Bank of any of the Bank&rsquo;s rights hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notices</U>.
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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; padding-left: 0.875in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If to the Bank:</FONT></TD>
    <TD STYLE="width: 60%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Cornerstone Community Bank</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Attention: Chairman, Board of Directors</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">835 Georgia Avenue</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Chattanooga, Tennessee 37402</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.875in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">If to the Employee:</FONT></TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">James R. Vercoe Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3111 Anderson Pike</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Signal Mountain, Tennessee 37377</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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. A Party may change such Party&rsquo;s notice address
set forth above by giving the other Party 10 days written notice of the new address in the manner set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignment</U>.
The rights and obligations of the Bank under this Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Bank, including without limitation a purchaser of all or substantially all of the assets of the Bank. If this
Agreement is assigned pursuant to the foregoing sentence, the assignment shall be by novation, and the assigning Party shall have
no further liability hereunder, and the successor or assign shall become the &ldquo;Bank&rdquo; hereunder, but the Employee will
not be deemed to have experienced a termination of employment by virtue of such assignment. Without limiting the generality of
the foregoing, the Parties expressly acknowledge and agree that, in the event of any merger of the Bank with and into SmartBank,
SmartBank as the surviving bank of such merger will, as successor by merger to the Bank, succeed to all rights and obligations
of the Bank hereunder, without any further action by the Parties, and that at and after the effective time of such merger, all
references in this Agreement to the &ldquo;Bank&rdquo; shall be references to SmartBank as successor by merger to the Bank. This
Agreement is a personal contract and the rights and interest of the Employee may not be assigned by the Employee. This Agreement
shall inure to the benefit of and be enforceable by the Employee and the Employee&rsquo;s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees, and legatees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Waiver</U>.
A waiver by one Party to this Agreement of any provision of this Agreement or of any breach of this Agreement by any other Party
to this Agreement shall not be effective unless in writing, and no waiver shall operate or be construed as a waiver of the same
or any other provision or breach on any other or subsequent occasion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Mediation</U>.
Except with respect to <U>Section&nbsp;7</U>, <U>Section&nbsp;8</U>, and <U>Section 22</U> hereof, and except as provided in <U>Section&nbsp;15</U> hereof,
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 between or among the Parties, the Parties agree to first endeavor to settle the dispute in an amicable
manner by non-binding mediation in accordance with the rules of alternative dispute resolution of the State of Tennessee for the
judicial circuit containing Knox County, Tennessee (or such other judicial circuit mutually agreed to by the Parties) before resorting
to any other process for resolving the dispute.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Applicable
Law and Choice of Forum</U>. 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
legal action or proceeding arising under or relating to this Agreement shall be brought in a state court of record located in
Knox County, Tennessee (or other venue mutually agreed to by the Parties), or, in the event (but only in the event) that no such
state court has subject matter jurisdiction over such action or proceeding, in the United States District Court for the Eastern
District of Tennessee, which courts shall have exclusive jurisdiction over any such action or proceeding. Each Party consents
to, and waives any objection such Party may otherwise have to, the jurisdiction and venue of such courts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Interpretation</U>.
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 &ldquo;herein,&rdquo; &ldquo;hereunder,&rdquo; &ldquo;hereby,&rdquo; &ldquo;hereto,&rdquo;
and &ldquo;hereof,&rdquo; and any similar terms, refer to this Agreement. When used herein, the term &ldquo;person&rdquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire
Agreement</U>. This Agreement embodies the entire, final, and integrated agreement of the Parties on the subject matter stated
in this Agreement. No amendment or supplement to or modification of this Agreement shall be valid or binding upon the Bank or
the Employee unless made in a writing signed by all of the Parties. All prior understandings and agreements relating to the subject
matter of this Agreement are hereby expressly terminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>.
This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed
to be 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 signed copy of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Rights
of Third Parties</U>. 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 successors and permitted assigns, any rights or remedies under or by reason of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal
Fees</U>. In the event of any claim, action, suit, or proceeding arising out of or in any way relating to this Agreement, the
prevailing Party shall be entitled to recover from the non-prevailing Party all reasonable fees, expenses, and disbursements,
including without limitation reasonable attorneys&rsquo; fees and court costs, incurred by such prevailing Party in connection
with such claim, action, suit, or proceeding, in addition to any other relief to which such prevailing Party may be entitled at
law or in equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Survival</U>.
The obligations of the Parties pursuant to <U>Sections 4(h)</U>, <U>7</U>, <U>8</U>, <U>14</U>, <U>15</U>, <U>20</U>, <U>21</U>,
<U>23</U>, <U>24</U>, <U>25</U>, <U>26</U>, and <U>27</U> shall survive the expiration and/or termination of this Agreement and/or
the termination of the Employee&rsquo;s employment hereunder for the periods expressly designated under such sections or, if no
such period is designed, for the maximum period permissible under applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Representation
Regarding Restrictive Covenants</U>. The Employee represents that the Employee is not and will not become a party to any non-competition
or non-solicitation agreement or any other agreement which would prohibit the Employee from entering into this Agreement or providing
the services for the Bank contemplated by this Agreement on or after the Effective Date. In the event the Employee is subject
to any such agreement, this Agreement shall be rendered null and void and the Bank shall have no obligations to the Employee under
this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Right
to Contact</U>. The Employee acknowledges and agrees that the Bank shall retain and have the right to contact any new employer
or potential employer (or other business) and apprise such person of the Employee&rsquo;s responsibilities and obligations owed
under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Section
409A</U>. It is the intent of the Parties for any payment to which the Employee is entitled under this Agreement to be exempt
from Section 409A of the Code to the maximum extent permitted under Section 409A of the Code. However, if any amounts payable
are considered to be &ldquo;nonqualified deferred compensation&rdquo; subject to Section 409A of the Code, such amounts shall
be paid and provided in a manner that, and at such time and in such form as, complies with the applicable requirements of Section
409A of the Code to avoid the unfavorable tax consequences provided therein for non-compliance. Neither the Employee nor the Bank
shall intentionally take any action to accelerate or delay the payment of any amounts in any manner which would not be in compliance
with Section&nbsp;409A of the Code without the consent of the other Party. For purposes of this Agreement, all rights to payments
shall be treated as rights to receive a series of separate payments to the fullest extent allowed by Section&nbsp;409A of the
Code. To the extent that some portion of the payments provided for under this Agreement may be bifurcated and treated as exempt
from Section 409A of the Code under the &ldquo;short-term deferral&rdquo; or &ldquo;separation pay&rdquo; exemptions, then such
amounts may be so treated as exempt from Section&nbsp;409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Withholding
of Taxes</I>. The Bank may deduct and withhold from any amounts payable under this Agreement all federal, state, city, or other
taxes the Bank is required to deduct or withhold pursuant to applicable law, rule, regulation, or ruling.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I>Excise
Taxes</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the event that any amounts payable under this Agreement or otherwise to the Employee would (1) constitute &ldquo;parachute payments&rdquo;
within the meaning of Section 280G of the Code or any comparable successor provision and (2) but for this <U>Section&nbsp;25(b)</U>,
be subject to the excise tax imposed by Section 4999 of the Code or any comparable successor provision (the &ldquo;<U>Excise Tax</U>&rdquo;),
then such amounts payable to the Employee shall be either (y) provided to the Employee in full or (z) provided to the Employee
to the maximum extent that would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing
amounts, when taking into account applicable federal, state, local, and foreign income and employment taxes, the Excise Tax, and
any other applicable taxes, results in the Employee&rsquo;s receipt, on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Bank and the Employee
otherwise agree in writing, any determination required under this <U>Section&nbsp;25(b)</U> shall be made in writing in good faith
by the Bank&rsquo;s independent accounting firm (the &ldquo;<U>Independent Accountants</U>&rdquo;). In the event of a reduction
in benefits hereunder, the reduction of the total payments shall apply as follows, unless otherwise agreed in writing and such
agreement is in compliance with Section 409A of the Code: (1) any cash severance payments subject to Section 409A of the Code due
under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter
working from the next last payment; (2) any cash severance payments not subject to Section 409A of the Code due under this Agreement
shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next
last payment; (3) any acceleration of vesting of any equity subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest;
and (4) any acceleration of vesting of any equity not subject to Section 409A of the Code shall remain as originally scheduled
to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest.
For purposes of making the calculations required by this <U>Section&nbsp;25(b)</U>, the Independent Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the
application of the Code and other applicable legal authority. The Bank and the Employee shall furnish to the Independent Accountants
such information and documents as the Independent Accountants may reasonably request in order to make a determination under this
<U>Section&nbsp;25(b)</U>. The Bank shall bear all costs that the Independent Accountants may reasonably incur in connection with
any calculations contemplated by this <U>Section&nbsp;25(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
notwithstanding any reductions described in this <U>Section&nbsp;25(b)</U> the Internal Revenue Service (the &ldquo;<U>IRS</U>&rdquo;)
determines that the Employee is liable for the Excise Tax as a result of the receipt of amounts payable under this Agreement or
otherwise as described above, then the Employee shall be obligated to pay back to the Bank, within 30 days after a final IRS determination
or, in the event that the Employee challenges the final IRS determination, a final judicial determination, a portion of such amounts
equal to the Repayment Amount. The &ldquo;<U>Repayment Amount</U>,&rdquo; with respect to the payment of benefits, shall be the
smallest such amount, if any, that is required to be paid to the Bank so that the Employee&rsquo;s net after-tax proceeds with
respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable taxes imposed
on such payment) are maximized. The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment Amount
of more than zero would not result in the Employee&rsquo;s net after-tax proceeds with respect to the payment of such benefits
being maximized. If the Excise Tax is not eliminated pursuant to this <U>Section&nbsp;25(b)</U>, the Employee shall pay the Excise
Tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
any other provision of this <U>Section&nbsp;25(b)</U>, if (1) there is a reduction in the payment of benefits as described in this
<U>Section&nbsp;25(b)</U>, (2) the IRS later determines that the Employee is liable for the Excise Tax, the payment of which would
result in the maximization of the Employee&rsquo;s net after-tax proceeds (calculated as if the Employee&rsquo;s benefits had not
previously been reduced), and (3) the Employee pays the Excise Tax, then the Bank shall pay to the Employee those benefits which
were reduced pursuant to this <U>Section&nbsp;25(b)</U> as soon as administratively possible after the Employee pays the Excise
Tax, so that the Employee&rsquo;s net after-tax proceeds with respect to the payment of benefits are maximized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Restrictions</U>. 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. &sect;&nbsp;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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect
on Executive Change-in-Control Severance Agreement</U>. The Parties and the Company intend for this Agreement to supersede and
replace that certain Executive Change-in-Control Severance Agreement dated December 16, 2013, by and among the Company, the Bank,
and the Employee (the &ldquo;<U>Severance Agreement</U>&rdquo;). Accordingly, on and as of the Effective Date, and without any
further action by the Parties or the Company, this Agreement shall supersede and replace the Severance Agreement and the Severance
Agreement shall automatically be cancelled and shall have no further force or effect with the parties thereto having no further
rights or obligations thereunder. By executing this Agreement, the Parties and the Company hereby waive the requirements of Section
5.5 of the Severance Agreement, which if not waived would require the inclusion in the Merger Agreement of the &ldquo;Payments
Upon Termination&rdquo; (as such term is defined in the Severance Agreement) before final approval of the Merger Agreement by the
boards of directors of the Company and the Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">(<I>Signature Page Follows</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">IN WITNESS WHEREOF, the
Parties have executed and delivered this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">BANK:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE COMMUNITY BANK</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 45%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/ W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">EMPLOYEE:</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">/s/
James R. Vercoe</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">James R. Vercoe Jr.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><U>JOINDER BY CORNERSTONE
BANCSHARES, INC.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">The Company joins in this
Agreement solely to evidence its agreement to the cancellation of the Severance Agreement and the waiver of any rights and obligations
thereunder, as set forth in Section 27 hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">COMPANY:</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">CORNERSTONE BANCSHARES, INC.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 45%; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">/s/
    W. Miller Welborn</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: normal; text-align: left; text-indent: 0in"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(<I>Signature Page to Vercoe Employment
Agreement</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<!-- Field: Page; Sequence: 16; Options: Last -->
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
