In connection with the merger of Greer Bancshares Incorporated (“Greer”) with and into Carolina Financial Corporation (the “Company”) on March 18, 2017 (the “Merger”), pursuant to a First Supplemental Indenture dated March 18, 2017, by and between Greer, the Company, and Deutsche Bank Trust Company Americas, as Trustee, the Company assumed all of Greer’s obligations with respect to its outstanding trust preferred securities, including $6.2 million of junior subordinated debentures due 2034, related to Greer Capital Trust I, an unconsolidated Delaware statutory trust, with an interest rate equal to LIBOR plus 2.20%. Under the Agreement and Plan of Merger by and between the Company and Greer, dated November 7, 2016 (the “Merger Agreement”), effective following the closing of the Merger, Carolina Financial was to appoint a specified member of Greer’s board of director to join the Carolina Financial board of directors. Effective March 20, 2017, Carolina Financial’s board of directors expanded the size of the board from 11 to 12 directors and appointed Gary M. Griffin as a Class III director to fill the resulting vacancy on the board. Mr. Griffin has also been nominated as a board nominee for election by the Carolina Financial stockholders at the 2017 annual stockholders’ meeting. Mr. Griffin is the former chairman of Greer’s board of directors. No committee assignments have been made yet for Mr. Griffin.